The Home Sweet Texas Home Loan Program is the Texas State Affordable Housing Corporation (TSAHC) program for low- and moderate-income buyers. There's no profession requirement, and both first-time and repeat buyers can use it. You get a 30-year fixed-rate mortgage plus down payment assistance of up to 5% of the loan amount, a Mortgage Credit Certificate if you're a first-time buyer, or both. Credit minimums are 620 for FHA, VA, and USDA loans and 640 for conventional loans.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton, and Fairway is a participating lender for TSAHC programs. Home Sweet Texas is where I point buyers who read about Homes for Texas Heroes and then realize their job isn't on the list. Everything below comes from TSAHC's program page and its lender guidelines revised September 9, 2026.
Want to know if you fit? Get Pre-Approved or Book a Free Consultation.
Who Qualifies for Home Sweet Texas
The rules are shorter than you might expect. Under TSAHC's Guidelines for DPA and MCCs, an eligible Home Sweet Texas borrower:
- Has income at or below the Home Sweet Texas limit for the county, at application and at closing
- Works in any job. There's no profession test
- Can be a first-time or repeat buyer for the loan and Non-Bond DPA
- Makes the home a principal residence within 60 days of closing, and the home is in Texas
- Takes an approved homebuyer education course before closing (at least one borrower)
First-Time Buyer Rules Only Apply to Some Options
You only have to be a first-time buyer if you add an MCC or use Bond DPA. For those, no one on the deed of trust (or a spouse) can have had an ownership interest in a principal residence in the past three years. TSAHC waives that rule in Targeted Areas and for a "Qualified Veteran." Active-duty service members don't count as Qualified Veterans for this waiver.
If You Already Own a Home
You can currently own a home and still use Home Sweet Texas, as long as the new home becomes your principal residence at closing. One catch: if you bought your current home with TSAHC down payment assistance, you have to sell it to use the assistance again.
Residency
TSAHC's guidelines say "no residency requirements apply" for Home Sweet Texas. Non-U.S. citizen borrowers follow the rules of the loan type (FHA, VA, USDA, Fannie Mae, or Freddie Mac) and the master servicer.
The Loan Itself
- 30-year fixed rate only
- Eligible loan types: FHA (30-year fixed and limited 203(k)), VA, USDA-RHS, and HFA conventional (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage)
- Purchases only. No refinances
- Temporary buydowns of 2-1, 1-1, and 1-0 are allowed when a seller, builder, lender, or other permitted third party pays for them, except on Bond loans. Borrower-funded buydowns aren't allowed
If you're weighing FHA as the first mortgage, my FHA loans page covers the basics.
Down Payment Assistance: Amounts and Forms
Home Sweet Texas assistance comes at 2%, 3%, 4%, or 5% of the total loan amount. It can pay your down payment, closing costs, and prepaid items. TSAHC notes that closing costs can include items such as real estate agent commission, following agency guidelines. It can't pay off debt or reduce your first-mortgage principal.
| Assistance Form | Repayment | Loan Types | Minimum Credit |
|---|---|---|---|
| Grant | No second lien; TSAHC says it doesn't need to be repaid after six months from the first mortgage closing date | FHA, VA, USDA only | 620 |
| 3-Year Deferred Forgivable Second | 0%, no monthly payments, forgiven on the third anniversary of the Note | All eligible loan types | 620 government, 640 conventional |
| 30-Year Deferred Repayable Second (when available) | 0%, no monthly payments, repaid at maturity, sale, transfer, refinance, or payoff | FHA, VA, USDA with Bond DPA, at 4% or 5% | 620 |
| No-DPA option | First mortgage only, can pair with an MCC | All eligible loan types | 620 government, 640 conventional |
Source: TSAHC Guidelines, Section 3.3, revised September 9, 2026.
The Fine Print on the Forgivable Second
The 3-year second has to be repaid in full if, during those three years, you sell, transfer, or refinance, pay off the first mortgage, or stop living in the home as your principal residence. If there's a real chance you'll move before year three, tell me up front. The grant may be the better fit.
To see how the assistance shows up on your paperwork, my guide to closing costs in Texas walks through the Loan Estimate and Closing Disclosure.
Credit Requirements
- 620 minimum for FHA, VA, and USDA
- 640 minimum for HFA conventional
- 640 for manufactured homes
- FHA manual underwriting: allowed with a 640 minimum and a 45% maximum debt-to-income ratio
- VA, USDA, and conventional loans can't be manually underwritten under these programs (USDA's manufactured home pilot is the exception)
- Scores from 620 to 639 on FHA, VA, or USDA add a 0.25% origination charge
A buyer in Waco assumed their credit was too low to bother applying. We reviewed the full profile, compared the minimums for different programs, and mapped out a plan for anything that needed work before they were ready.
Illustrative scenario, not an actual client transaction. Credit and underwriting requirements vary.
Income and Purchase Price Limits
TSAHC sets income limits by county and household size. In general, it treats households up to 80% of area median income as low-income and up to 150% to 170% as moderate-income. Limits are significantly higher in Targeted Areas.
Whose income counts depends on what you pick:
- Non-Bond DPA or No-DPA without an MCC: only the income used to qualify you for the loan counts. A non-purchasing spouse's income isn't included.
- With an MCC, or with Bond DPA: household income counts, including anyone who will live in the home and sign the deed of trust, such as a non-purchasing spouse.
On price, Non-Bond DPA by itself has no purchase price limit. Price limits apply when you add an MCC or use Bond DPA.
TSAHC publishes the dollar figures in its county income limits lookup. I'll pull the current numbers for your county and household size when we talk, so you're not guessing.
Adding a Mortgage Credit Certificate
First-time buyers can pair Home Sweet Texas with a TSAHC Mortgage Credit Certificate. It turns 15% of the mortgage interest you pay each year into a federal tax credit, for each year you live in the home.
- The $400 MCC issuance fee applies to Home Sweet Texas borrowers. (Homes for Texas Heroes borrowers using Non-Bond DPA with an MCC don't pay it.)
- An MCC works only with No-DPA or Non-Bond DPA, never with Bond DPA.
- If you sell within nine years, a federal recapture tax may apply. TSAHC lists exemptions, including no gain on the sale and a sale due to death or divorce.
My Texas mortgage credit certificate guide explains how the credit works at tax time.
Program Fees and Education
The master servicer, Lakeview Loan Servicing, deducts TSAHC's program fees: a $250 funding fee, an $85 tax service fee, and a $200 compliance review fee.
For education, at least one borrower completes an approved in-person or online homebuyer course before closing. If you use an MCC or the 3-year forgivable second, TSAHC's videos for those are required too, and you sign a TSAHC Home Buyer Education Affidavit.
Home Sweet Texas vs. Homes for Texas Heroes vs. My First Texas Home
| Feature | Home Sweet Texas (TSAHC) | Homes for Texas Heroes (TSAHC) | My First Texas Home (TDHCA) |
|---|---|---|---|
| Who it's for | Low- and moderate-income buyers, any job | Full-time educators, peace officers, firefighters, EMS, corrections officers, county jailers, veterans, and others | First-time buyers |
| First-time buyer required? | No (only for MCC or Bond DPA) | No (only for MCC or Bond DPA) | Yes, with veteran and targeted-tract exceptions |
| Loan types | FHA, VA, USDA, HFA conventional | FHA, VA, USDA, HFA conventional | FHA, VA, USDA |
| Assistance | Up to 5% | Up to 5% | Up to 5% |
| Minimum credit | 620 government, 640 conventional | 620 government, 640 conventional | 620 middle score |
| MCC fee | $400 | Waived with Non-Bond DPA | $400 in the Combo (waived for Military Combo) |
Sources: TSAHC Guidelines (Sept. 9, 2026) and the TDHCA Homebuyer Programs page.
If your job is on TSAHC's Heroes list, read my Homes for Texas Heroes guide first. If you're a first-time buyer happy with FHA, VA, or USDA, compare it with my My First Texas Home guide. For a wider view of the options, see Down Payment Assistance in Texas.
How to Apply
- Check your income against TSAHC's limit for your county and household size.
- Work with a TSAHC participating lender. You don't apply to TSAHC directly. Fairway Independent Mortgage is a participating lender for TSAHC programs.
- Get pre-approved for the first mortgage and pick your assistance form.
- Take the homebuyer course before closing.
- Close and move in within 60 days.
TSAHC's homeownership team is at 877-508-4611 if you want to ask them directly.
Frequently Asked Questions
Who qualifies for the Home Sweet Texas Home Loan Program?
Low- and moderate-income buyers whose income is at or below TSAHC's Home Sweet Texas limit for their county. There's no profession requirement, repeat buyers can use the loan and Non-Bond DPA, and the home must become your principal residence in Texas within 60 days of closing.
Do I have to be a first-time buyer for Home Sweet Texas?
No. The loan and Non-Bond DPA are open to first-time and repeat buyers. You only need to be a first-time buyer, meaning no ownership interest in a principal residence in the past three years, if you add a Mortgage Credit Certificate or use Bond DPA.
How much down payment assistance does Home Sweet Texas offer?
Up to 5% of the total loan amount, at 2%, 3%, 4%, or 5%. It comes as a grant for FHA, VA, and USDA loans, a 3-year forgivable second lien, or, when available, a 30-year deferred repayable second with Bond DPA.
What credit score do I need for Home Sweet Texas?
TSAHC requires a 620 minimum for FHA, VA, and USDA loans and 640 for conventional loans. Manufactured homes and FHA manual underwriting require 640, and scores from 620 to 639 on government loans add a 0.25% origination charge.
What is the difference between Home Sweet Texas and Homes for Texas Heroes?
Homes for Texas Heroes is limited to certain full-time professions and veterans, while Home Sweet Texas has no profession requirement. The assistance forms and credit minimums match, but Home Sweet Texas borrowers pay the $400 MCC issuance fee, which Heroes borrowers using Non-Bond DPA with an MCC don't pay.
Let's See If Home Sweet Texas Fits Your Budget
I'll check your income against your county's limit, compare the grant and the forgivable second side by side, and show you what each does to your cash to close.
Get Pre-Approved | Book a Free Consultation
Related Guides
- Texas First-Time Home Buyer Programs
- Down Payment Assistance in Texas
- Homes for Texas Heroes Program
- My First Texas Home Down Payment Assistance
- Mortgage Credit Certificate in Texas
- Closing Costs in Texas
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. Not affiliated with or endorsed by TSAHC, TDHCA, or any government agency.