Home buying programs for teachers in Texas start with TSAHC's Homes for Texas Heroes, the one built for school staff. It gives full-time public K-12 teachers, teacher aides, school librarians, school counselors, and school nurses a 30-year fixed-rate mortgage with down payment assistance of up to 5% of the loan amount, a Mortgage Credit Certificate, or both, and you don't have to be a first-time buyer. Teachers can also use programs open to everyone: TDHCA's My First Texas Home, TSAHC's Home Sweet Texas, Mortgage Credit Certificates, HUD's Good Neighbor Next Door, and standard FHA and conventional loans.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton. If you teach or work in a Texas school, you have more choices than most buyers, and each one has its own rules about your job, your income, and whether you've owned a home before. Fairway is a participating lender for both TSAHC and TDHCA programs, so I can lay them out side by side for you. Everything below comes from the agencies' current guidelines, read October 19, 2026. For the full breakdown of the teacher program itself, see my Homes for Texas Heroes guide.
Teaching in Texas and ready to buy? Get Pre-Approved or Book a Free Consultation.
Quick Comparison: Programs Texas Teachers Can Use
| Program | Who It's For | First-Time Buyer Required? | What It Offers |
|---|---|---|---|
| Homes for Texas Heroes (TSAHC) | Full-time public K-12 educators and other listed professions | No (the MCC option is for first-time buyers) | Fixed-rate mortgage plus DPA up to 5% of the loan amount, an MCC, or both |
| Home Sweet Texas (TSAHC) | Low- and moderate-income households, any job | No (the MCC option is for first-time buyers) | Fixed-rate mortgage plus DPA up to 5% of the loan amount, an MCC, or both |
| My First Texas Home (TDHCA) | First-time buyers, with exceptions for targeted areas and qualified veterans | Yes | 30-year fixed FHA, VA, or USDA loan plus DPA of 2% to 5% of the loan amount |
| My Choice Texas Home (TDHCA) | Any buyer, first-time or not | No | DPA with government or HFA conventional loans |
| Mortgage Credit Certificate (TSAHC or TDHCA) | First-time buyers within income and price limits | Yes, with exceptions | A yearly federal tax credit based on your mortgage interest |
| Good Neighbor Next Door (HUD) | Full-time pre-K through 12 teachers at state-accredited public or private schools | No, but you can't have owned other residential property in the 12 months before your offer | 50% off the list price of select HUD-owned homes |
| FHA and conventional loans | Anyone who qualifies | No | Low down payment financing that the programs above build on |
Sources: TSAHC, TDHCA, and HUD, read October 19, 2026.
Homes for Texas Heroes: The Teacher-Specific Program
This is the only state program on this list where your job is what qualifies you.
Which School Jobs Qualify
TSAHC's guidelines define a Professional Educator as a full-time, public K-12:
- Classroom teacher
- Teacher aide
- School librarian
- School counselor (TSAHC's program page specifies certified under Subchapter B, Chapter 21 of the Education Code)
- School nurse
Full-time nursing faculty and allied health faculty in undergraduate or graduate programs qualify too, along with peace officers, firefighters, EMS personnel, corrections officers, county jailers, and veterans.
Who Isn't Covered
The wording matters. "Full-time" and "public K-12" leave out part-time staff and private-school teachers, and many campus roles, like administrators, bus drivers, and cafeteria staff, aren't on the list. If that's you, keep reading. Home Sweet Texas uses the same assistance with no job requirement, and HUD's Good Neighbor Next Door program includes private-school teachers.
What Heroes Offers, in Short
- 30-year fixed-rate FHA, VA, USDA, or HFA conventional loan, for purchases only
- Down payment assistance of 2%, 3%, 4%, or 5% of the total loan amount for your down payment, closing costs, and prepaids
- Two main forms: a grant (government loans only) or a 3-year forgivable second lien that must be repaid if you sell, transfer, refinance, or move out before the third anniversary
- Credit minimums of 620 for government loans and 640 for conventional
- First-time and repeat buyers can use the loan and assistance
- A free MCC for first-time buyers: the $400 issuance fee is waived for Heroes who use TSAHC down payment assistance and the MCC together
- Homebuyer education for at least one borrower before closing
Moving to Texas for a teaching job? Heroes borrowers must be Texas residents or show intent to become one, and TSAHC says people who've accepted a job in an eligible profession in Texas are eligible.
Income limits apply and vary by county and household size. TSAHC's county income limits tool lets you pick Homes for Texas Heroes and your county. The grant's repayment rules, the 30-year repayable option, and fees are all in my Homes for Texas Heroes deep dive.
Home Sweet Texas: Same Assistance, No Job Requirement
TSAHC's Home Sweet Texas program offers the same fixed-rate mortgage and down payment assistance of up to 5% of the loan amount, as a grant or a 3-year forgivable second lien, to low- and moderate-income households. First-time and repeat buyers can use it, and the credit minimums match Heroes.
The two practical differences for school staff:
- No profession requirement, which helps private-school teachers, part-time staff, and campus employees outside the Heroes list
- The $400 MCC issuance fee applies, while Heroes who pair TSAHC down payment assistance with an MCC don't pay it
TSAHC describes households up to 80% of area median income as low-income and up to 150% to 170% as moderate-income. More detail is in my Home Sweet Texas guide.
My First Texas Home: TDHCA's First-Time Buyer Program
My First Texas Home is run by the Texas Department of Housing and Community Affairs (TDHCA), and there's no job requirement. What matters is your first-time status, income, and price.
- First-time buyer: you haven't owned and lived in a primary residence in the last three years. Qualified veterans with a DD-214 and homes in a Qualified Targeted Census Tract are exceptions.
- Loan: 30-year fixed FHA, VA, or USDA
- Assistance: 2% to 5% of the total loan amount, funding permitting, as a 30-year deferred repayable second (0%, due on sale, refinance, transfer, or payoff) or a 3-year deferred forgivable second (0%, forgiven after 36 months if you stay current and keep living there)
- Credit: 620 minimum middle score
- Education: a HUD-certified homebuyer course for every borrower
- Income counted: everyone on the Deed of Trust, including a non-purchasing spouse
TDHCA Limits for Central Texas Teachers
| County | Income Limit, 1 to 2 Persons | Income Limit, 3 or More Persons | Purchase Price Limit (1 Unit) |
|---|---|---|---|
| Bell (Temple, Belton, Killeen, Salado) | $101,500 | $116,725 | $566,354 |
| McLennan (Waco) | $101,500 | $116,725 | $566,354 |
| Williamson and Travis (Georgetown, Round Rock, Cedar Park, Leander) | $134,400 | $154,560 | $598,019 |
Source: TDHCA Combined Income and Purchase Price Limits, effective July 13, 2026. Bell and McLennan fall under TDHCA's balance-of-state limits. These are non-targeted figures. Homes in qualified targeted census tracts have higher limits. These same limits apply to TDHCA's Mortgage Credit Certificate.
Already Own a Home? Look at My Choice Texas Home
TDHCA's My Choice Texas Home offers down payment assistance with a 30-year mortgage and no first-time buyer requirement. It works with FHA, VA, and USDA loans and with Fannie Mae HFA Preferred and Freddie Mac HFA Advantage conventional loans.
Extra Gift Funds in Williamson County
Teaching in Georgetown, Round Rock, Cedar Park, or Leander? TDHCA partners with the Capital Area Housing Finance Corporation to add gift funds that don't have to be repaid: $2,500 in Williamson and Hays counties. The gift has to be combined with a TDHCA program, uses the same income limits as My First Texas Home, and is first come, first served. Details are on TDHCA's additional gift funds page. My full guide is My First Texas Home.
Mortgage Credit Certificates: A Tax Credit Teachers Can Add
A Mortgage Credit Certificate (MCC) turns part of the mortgage interest you pay each year into a federal income tax credit. Both state agencies offer one.
- TSAHC's MCC has a 15% credit rate. It's available to first-time buyers, with exceptions in Targeted Areas and for qualified veterans. It must be paired with a TSAHC loan with no DPA or with Non-Bond DPA, and it can't be used with Bond DPA.
- TDHCA's MCC is available with My First Texas Home, where TDHCA's October 16, 2026 rate notice lists a 15% credit rate, and as a stand-alone option alongside an outside first mortgage. TDHCA says the stand-alone version has no minimum credit score for the MCC itself.
- Fees: TSAHC charges $400, waived for Heroes using its DPA. TDHCA lists $400 for the combo and $1,000 for the stand-alone.
The credit can't exceed your federal tax bill for the year. Under TSAHC's guidelines, unused credit carries forward up to three years. You figure it on IRS Form 8396. If you sell within nine years, a federal recapture tax can apply in some cases. My Texas mortgage credit certificate guide walks through the math.
HUD Good Neighbor Next Door: A Federal Option for Teachers
HUD's Good Neighbor Next Door program offers eligible buyers a 50% discount from the list price on HUD-owned homes in designated revitalization areas. Under federal rules, a teacher qualifies if employed full-time by a state-accredited public or private school serving pre-K through 12th grade students from the area where the home is located.
- Live in it 36 months. You sign a "silent second" mortgage for the discount, with no interest or payments if you meet the occupancy requirement. Leave early and HUD requires prorated repayment.
- No other home. You don't have to be a first-time buyer, but you and your spouse can't own other residential property when you submit an offer or for 12 months before it.
- Financing. You can use FHA, VA, or conventional financing, or pay cash. With FHA, the down payment is $100.
- How homes are sold. Homes are listed through the program for seven days, offers go in at the list price through a HUD-registered broker, and a random lottery picks among multiple offers. Homes are sold as is.
The catch is supply. HUD says the number of homes is limited and the list changes weekly, so check HUD Home Store for Texas listings. HUD also allows state or local government assistance to be used with the program.
FHA and Conventional Loan Basics for Teachers
Every assistance program above sits on a regular mortgage, so it helps to know the basics:
- FHA: HUD requires a minimum investment of 3.5% of the adjusted value. Scores of 580 or higher qualify for maximum financing, and 500 to 579 are limited to 90% loan-to-value. See my FHA loans page.
- Conventional: first-time buyers can put down as little as 3% and repeat buyers 5%. Fannie Mae's HomeReady loan allows as little as 3% down when your qualifying income is at or below 80% of the area median. See my conventional loans page.
Keep in mind that the state programs set their own credit minimums, 620 for government loans and 640 for conventional at TSAHC. Those can be higher than the loan type alone requires.
Which Program Fits? Hypothetical Examples
These are hypothetical examples to show how the rules sort out, not real clients.
| Hypothetical Buyer | Programs Worth Comparing |
|---|---|
| Full-time third-grade teacher in Killeen, never owned a home | Homes for Texas Heroes with an MCC, or My First Texas Home with an MCC |
| Full-time teacher aide in Temple who sold a home two years ago | Homes for Texas Heroes DPA (repeat buyers allowed); the MCC and My First Texas Home require three years without ownership unless the home is in a targeted area |
| Private-school teacher in Waco | Home Sweet Texas, My First Texas Home if first-time, and Good Neighbor Next Door if a qualifying HUD home is listed |
| Teacher relocating from another state for a job in Round Rock | Homes for Texas Heroes (an accepted Texas teaching job meets residency), or a TDHCA program plus the Capital Area HFC gift |
In each case, the right answer depends on income, credit, the home's price and location, and how long you plan to stay. That's the comparison I'll run with you.
How to Get Started
- Confirm your role and full-time status. For Heroes, your job title and full-time employment have to match TSAHC's definition.
- Pull three years of tax returns. MCCs and My First Texas Home check first-time status against them.
- Get pre-approved with a participating lender. You don't apply to TSAHC or TDHCA directly.
- Take homebuyer education before closing. The TSAHC and TDHCA programs all require it.
- Pick your assistance form and plan your move. TSAHC and TDHCA both require you to live in the home within 60 days of closing.
TSAHC's homebuyer line is 877-508-4611, and TDHCA's is 1-800-792-1119, if you have program questions.
Frequently Asked Questions
What home buying programs are available for teachers in Texas?
The main teacher-specific program is TSAHC's Homes for Texas Heroes, which offers full-time public K-12 educators a fixed-rate mortgage with down payment assistance of up to 5% of the loan amount, a Mortgage Credit Certificate, or both. Teachers can also use TDHCA's My First Texas Home, TSAHC's Home Sweet Texas, HUD's Good Neighbor Next Door, and standard FHA and conventional loans.
Do teacher aides and other school staff qualify for Homes for Texas Heroes?
TSAHC's Professional Educator definition covers full-time public K-12 classroom teachers, teacher aides, school librarians, school counselors, and school nurses. Other campus roles, part-time staff, and private-school teachers are not on that list, but they can look at Home Sweet Texas, which has no profession requirement.
Do I have to be a first-time buyer to use a Texas teacher home loan program?
Not for Homes for Texas Heroes or Home Sweet Texas, which are open to first-time and repeat buyers. My First Texas Home and Mortgage Credit Certificates generally require that you have not owned a primary residence in the past three years, with exceptions for targeted areas and qualified veterans.
Can private school teachers in Texas get help buying a home?
Private-school teachers do not meet the Homes for Texas Heroes definition, which is limited to public K-12 educators. They can still use Home Sweet Texas or My First Texas Home if they qualify, and HUD's Good Neighbor Next Door program includes full-time teachers at state-accredited public or private schools.
Can a teacher combine Homes for Texas Heroes with a Mortgage Credit Certificate?
Yes, if you are a first-time buyer. TSAHC's MCC has a 15% credit rate, and the $400 issuance fee is waived for Heroes who use TSAHC down payment assistance with the MCC. The MCC cannot be combined with TSAHC's Bond DPA.
You Teach Texas. Let's Get You Home.
I'll check which programs you qualify for, compare them side by side, and show you what each one means for your cash to close and your payment.
Get Pre-Approved | Book a Free Consultation
Related Guides
- Homes for Texas Heroes Program
- My First Texas Home Down Payment Assistance
- Home Sweet Texas Home Loan Program
- Mortgage Credit Certificate in Texas
- Texas First-Time Home Buyer Programs
- Down Payment Assistance in Texas
Sources
- TSAHC: Homes for Texas Heroes and Home Sweet Texas
- TSAHC Guidelines for DPA and MCCs (revised Sept. 9, 2026) and TSAHC MCC FAQ
- TDHCA Homebuyer Programs, My First Texas Home Program Matrix, and Income and Purchase Price Limits
- TDHCA Texas Mortgage Credit Certificate Program and Standalone MCC Matrix
- HUD: Good Neighbor Next Door, FHA GNND fact sheet, and 24 CFR 291.525
- HUD Handbook 4000.1
- Fannie Mae: HomeReady Mortgage
- IRS: About Form 8396, Mortgage Interest Credit
Taylor Ring, NMLS #2809683 | Fairway Independent Mortgage Corporation, NMLS #2289 | The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513 | Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval and program guidelines, and approval, rates, and program availability are not guaranteed. Assistance is subject to funding availability, and program terms can change. This article is general information, not tax advice; talk with a tax professional about how an MCC affects you. Not affiliated with or endorsed by TSAHC, TDHCA, HUD, or any government agency.