Source: TSAHC Homes for Texas Heroes, TSAHC Home Sweet Texas, TSAHC down payment assistance, and TSAHC's income and purchase price limits (limits file dated Oct 15, 2026; checked Oct 19, 2026). Limits differ for conventional loans at 80% of area income and for the Mortgage Credit Certificate, so check the right column for your situation.
TSAHC offers assistance of up to 5% of the first mortgage amount to help with the down payment and closing costs (TSAHC):
TSAHC also has a no-assistance option, which is just the program's first mortgage, and a Mortgage Credit Certificate (MCC). An MCC is a federal income tax credit equal to 15% of the mortgage interest you pay each year. It's for first-time buyers, qualified veterans, and homes in targeted areas (TSAHC MCC), and it only helps in a year you owe federal income tax. Talk with a tax professional about how an MCC would work for you.
All of these structures are available through us where TSAHC's current guidelines allow them for your loan type. What still has to check out on your file: your eligibility, the program's current funding, and TSAHC's rules for the option you pick. I'll confirm those with you up front, before you count on it.
Those are TSAHC's program rules. The agency rules for the underlying loan (FHA, VA, USDA or conventional) still apply, so does our 580 FHA minimum (TSAHC's 620 is higher anyway), and so does the underwriter's approval. See FHA credit score requirements.
TSAHC says you won't submit anything directly to them. The steps are:
Program funds and terms can change during the year, so the details on your loan are the ones confirmed when you apply.
This example is made up to show how the pieces fit.
Alicia teaches third grade in Keller ISD and has a 650 score. She qualifies as a Hero, and her household income is under the Tarrant County Heroes limit. On an FHA loan, she could look at assistance of up to 5% of the loan amount to cover the down payment and some closing costs. She'd compare the grant with the forgivable second, and as a first-time buyer she could look at adding an MCC. Whether she qualifies still depends on her income, TSAHC's current funding and rules, and underwriting approval of her file.
Teacher, nurse, first responder or veteran, or just want help with cash to close? Let me check TSAHC eligibility for you. Book a call
Links checked Oct 19, 2026.
About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.
Equal Housing Opportunity.
Last reviewed: Oct 2026