TDHCA vs. TSAHC: Which Texas DPA Program Is Right for You?

Texas is one of the best states in the country for down payment assistance. Two state agencies, the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC), administer a total of four distinct programs that help Texans buy homes with little to no money out of pocket.

But with four programs across two agencies, it can be confusing to figure out which one is the best fit for your situation. This guide provides a detailed side-by-side comparison of all four programs so you can make an informed decision.

The Four Texas DPA Programs at a Glance

Before diving into the details, here is a quick overview of what each agency offers:

TDHCA (Texas Department of Housing and Community Affairs)

1. My First Texas Home
2. My Choice Texas Home

TSAHC (Texas State Affordable Housing Corporation) 3. Homes for Texas Heroes 4. Home Sweet Texas

Each program pairs a competitive 30-year fixed-rate mortgage with down payment and closing cost assistance. The differences lie in eligibility requirements, DPA structure, and who qualifies.

Program-by-Program Breakdown

TDHCA: My First Texas Home

The My First Texas Home program is TDHCA's flagship offering for first-time buyers.

• Eligibility: First-time home buyers only (no homeownership in the past three years). Veterans are exempt from the first-time buyer requirement.
• DPA Amount: Up to 5% of the total loan amount
• DPA Type: Deferred second lien (due on sale, refinance, or payoff of the first mortgage) or potentially forgivable depending on the specific option selected
• Loan Types: FHA, VA, USDA
• Income Limits: Vary by county and household size, generally moderate
• Purchase Price Limits: Set by county, aligned with federal guidelines
• Homebuyer Education: Required (online or in-person)
• Credit Score: Minimum 620 typically required

TDHCA: My Choice Texas Home

My Choice Texas Home mirrors the structure of My First Texas Home but removes the first-time buyer requirement.

• Eligibility: Open to first-time and repeat home buyers
• DPA Amount: Up to 5% of the total loan amount
• DPA Type: Deferred second lien
• Loan Types: FHA, VA, USDA
• Income Limits: Similar to My First Texas Home, vary by county
• Purchase Price Limits: Set by county
• Homebuyer Education: Required
• Credit Score: Minimum 620 typically required

The key distinction here is straightforward: if you have owned a home within the past three years and are not a veteran, My Choice Texas Home may be your path to DPA through TDHCA.

TSAHC: Homes for Texas Heroes

The Homes for Texas Heroes program is specifically designed for professionals who serve their communities.

• Eligibility: Must work full-time in one of the following professions: K-12 teachers and education employees, police officers and law enforcement, firefighters and EMS, corrections officers, healthcare workers (nurses, doctors, allied health), or active military and veterans
• DPA Amount: Up to 5% of the loan amount
• DPA Type: Grant (no repayment required) OR deferred second lien, buyer's choice
• Loan Types: FHA, VA, USDA, Conventional
• Income Limits: Vary by county and household size
• Purchase Price Limits: Set by county
• Homebuyer Education: Required
• Credit Score: Minimum 620 typically required
• First-Time Buyer: Not required (open to first-time and repeat buyers)

The standout feature of this program is the grant option. Unlike a second lien, a grant does not need to be repaid. This is essentially free money toward your down payment and closing costs.

TSAHC: Home Sweet Texas

Home Sweet Texas is the broadest TSAHC program, open to all qualifying Texas buyers.

• Eligibility: Open to all Texas home buyers (no profession requirement)
• DPA Amount: Up to 5% of the loan amount
• DPA Type: Grant (no repayment required) OR deferred second lien, buyer's choice
• Loan Types: FHA, VA, USDA, Conventional
• Income Limits: Vary by county and household size
• Purchase Price Limits: Set by county
• Homebuyer Education: Required
• Credit Score: Minimum 620 typically required
• First-Time Buyer: Not required (open to first-time and repeat buyers)

Home Sweet Texas is essentially the same as Homes for Texas Heroes but without the profession requirement. It is the most broadly accessible of the four programs.

Side-by-Side Comparison Table

Feature	My First Texas Home	My Choice Texas Home	Homes for Texas Heroes	Home Sweet Texas
Agency	TDHCA	TDHCA	TSAHC	TSAHC
First-Time Buyer Required	Yes (veterans exempt)	No	No	No
Profession Requirement	None	None	Yes (heroes professions)	None
DPA Amount	Up to 5%	Up to 5%	Up to 5%	Up to 5%
Grant Option	No	No	Yes	Yes
Second Lien Option	Yes	Yes	Yes	Yes
FHA Loans	Yes	Yes	Yes	Yes
VA Loans	Yes	Yes	Yes	Yes
USDA Loans	Yes	Yes	Yes	Yes
Conventional Loans	No	No	Yes	Yes
Min Credit Score	620	620	620	620
Homebuyer Education	Required	Required	Required	Required

Key Differences That Matter

Grant vs. Second Lien

This is the biggest differentiator. TSAHC programs offer a grant option where the DPA does not need to be repaid. TDHCA programs provide DPA as a second lien, which is due when you sell, refinance, or pay off the first mortgage.

For many buyers, the grant is the more attractive option. On a $300,000 home with 5% DPA, that is $15,000 you never have to pay back through a TSAHC grant.

However, TDHCA programs sometimes offer slightly more favorable interest rates on the first mortgage, which could save money over the long term. It is worth comparing the total cost of each option with your lender.

First-Time vs. Repeat Buyers

If you are a first-time buyer, all four programs are available to you. If you have owned a home in the past three years and are not a veteran, My First Texas Home is off the table, but the other three remain options.

Profession Requirements

Homes for Texas Heroes is limited to specific professions. If you qualify, it is often the best choice because it combines the grant option with rates that may be slightly more favorable than Home Sweet Texas. If you do not work in a qualifying profession, Home Sweet Texas offers the same DPA structure without the profession requirement.

Loan Type Compatibility

TSAHC programs work with conventional loans in addition to FHA, VA, and USDA. TDHCA programs are limited to government-backed loans (FHA, VA, USDA). If you want to use a conventional loan, TSAHC is your only option among these four programs.

Conventional loans can be advantageous because they do not require upfront mortgage insurance premiums (like FHA) and may have lower long-term costs for buyers with strong credit.

How to Choose the Right Program

Here is a simple decision framework:

Step 1: Are you a teacher, first responder, healthcare worker, corrections officer, or military member?

• Yes: Start with Homes for Texas Heroes. It likely offers the best combination of grant DPA and competitive rates.
• No: Move to Step 2.

Step 2: Do you want a grant (no repayment) or are you open to a second lien?

• Grant preferred: Look at Home Sweet Texas.
• Open to second lien: Compare Home Sweet Texas with TDHCA programs on interest rates and total cost.

Step 3: Have you owned a home in the past three years?

• No (first-time buyer): All four programs are available. Compare rates and total costs.
• Yes (repeat buyer, not a veteran): My First Texas Home is not available, but the other three are.

Step 4: Do you prefer a conventional loan?

• Yes: Only TSAHC programs (Homes for Texas Heroes or Home Sweet Texas) support conventional financing.
• No preference: All programs are on the table.

Step 5: Compare the numbers. This is where your lender becomes essential. The Cook Brothers Mortgage Team can run side-by-side comparisons showing you the actual monthly payment, total DPA amount, and long-term cost for each program you qualify for.

Can You Combine Programs?

Generally, you cannot stack multiple state DPA programs on a single purchase. You choose one program for your transaction. However, in some cases, state DPA can be combined with local city or county assistance programs, potentially increasing the total help available. This varies by location and program rules.

Common Misconceptions

"DPA programs have higher interest rates." While DPA program rates may be slightly above conventional market rates, the difference is often small, and the down payment assistance more than compensates for any rate premium. In many cases, the effective savings is substantial.

"The application process is complicated." When you work with an experienced DPA lender, the process is not significantly more complex than a standard mortgage. The main additional step is the homebuyer education course, which can be completed online.

"These programs are only for low-income buyers." Income limits for Texas DPA programs are often higher than people expect, particularly in higher-cost areas. Many middle-income professionals qualify.

Let Us Help You Compare

At the Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855), we are approved to offer all four state DPA programs. We can compare options side by side and help you select the program that provides the most benefit for your unique situation.

Ready to Get Started?

The first step is finding out which programs you qualify for. Take our free qualifier quiz to get a quick assessment, or reach out directly for a personalized consultation.

• Tanner Cook - NMLS #2090424 - (480) 420-4918
• Zac Cook - NMLS #2111496 - (480) 406-2016

Tanner Cook is a licensed mortgage loan originator (NMLS #2090424). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.