Homes for Texas Heroes is a Texas State Affordable Housing Corporation (TSAHC) home loan program for full-time teachers, peace officers, firefighters, EMS personnel, corrections officers, nursing and allied health faculty, and veterans. It pairs a 30-year fixed-rate mortgage with down payment assistance of up to 5% of the loan amount, a Mortgage Credit Certificate, or both. You don't have to be a first-time buyer to use the loan and assistance.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton. Central Texas is full of the people this program was built for: teachers in Temple and Killeen, deputies in Bell County, firefighters in Round Rock, and a lot of veterans. Here's what TSAHC's current guidelines actually say.
Think you might qualify? Get Pre-Approved or Book a Free Consultation.
Who Qualifies: Eligible Professions
Your job is the ticket in. TSAHC requires full-time employment in one of these roles:
- Public K-12 professional educators: classroom teachers, teacher aides, school librarians, certified school counselors, and school nurses
- Allied health and nursing faculty in undergraduate or graduate programs
- Peace officers and public security officers employed by the state or a political subdivision (private contractors don't count)
- Firefighters in non-administrative fire department roles
- EMS personnel: ECA, EMT, EMT-I, EMT-P, and licensed paramedics
- Corrections officers with TDCJ, and TJJD juvenile corrections officers, who receive hazardous duty pay
- County jailers
- Veterans
How Veterans Qualify
Veteran eligibility includes active-duty members assigned to a Texas base who have designated Texas as their home of record, and people who meet TSAHC's 90-day, 20-year, Texas National Guard, or Republic of Vietnam service tests plus Texas residency tests. An unmarried surviving spouse may qualify under certain conditions. A DD-214 proves service.
One clarification I give buyers near Killeen: living near Fort Hood doesn't qualify you by itself. Eligibility comes from your veteran status or your profession, not your ZIP code.
Texas Residency
Heroes borrowers must be Texas residents or show intent to become one. If you've accepted a job in an eligible profession in Texas, that counts.
The Loan Itself
- 30-year fixed-rate first mortgage
- Eligible loan types: FHA, VA, USDA-RHS, and HFA conventional (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage). See my VA loans and USDA loans pages for the basics.
- First-time and repeat buyers can use it, though some options and targeted areas have different rules
- Purchases only; there's no refinance option
Down Payment Assistance: Amounts and Forms
You can receive assistance at 2%, 3%, 4%, or 5% of the total loan amount. It can go toward your down payment, closing costs, and prepaids, but not toward paying off debt or reducing principal.
| Assistance Form | Repayment | Loan Types | Minimum Credit |
|---|---|---|---|
| Grant | No repayment and no second lien | FHA, VA, USDA only | 620 |
| 3-Year Deferred Forgivable Second | 0%, no monthly payments, forgiven on the 3rd 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, refinance, or payoff | Government loans, Bond DPA only, at 4% or 5% | 620 |
| No-DPA option | First mortgage only | All eligible loan types | 620 government, 640 conventional |
Source: TSAHC Guidelines for DPA and MCCs, revised September 9, 2026.
Read the Fine Print
The grant: TSAHC's guidelines say grant assistance does not need to be repaid after six months from the first mortgage closing date. Ask your lender what that means for your file.
The forgivable second: The 3-year forgivable second has to be repaid in full if, before the third anniversary, you sell, transfer, or refinance the home, pay off the first loan, or stop living there as your principal residence. If you might move within three years, the grant or the repayable option may fit better. That's a conversation worth having before you lock.
Credit Requirements
- 620 minimum for government loans (FHA, VA, USDA)
- 640 minimum for HFA conventional loans
- 640 for manufactured homes
- FHA manual underwriting: 640 minimum and a 45% maximum debt-to-income ratio
- Scores from 620 to 639 on FHA, VA, or USDA add a 0.25% origination charge
Income and Purchase Price Limits
Income limits vary by county and household size, and they're significantly higher in Targeted Areas. TSAHC generally describes households up to 80% of area median income as low-income and up to 150-170% as moderate-income.
Two details that often surprise people:
- No purchase price limit for Non-Bond DPA used by itself. Price limits apply only to Bond DPA and MCCs.
- Whose income counts depends on the option. For Non-Bond DPA without an MCC, only the borrowers' qualifying income counts. With an MCC or Bond DPA, household income counts, including a non-purchasing spouse.
To see your county's numbers, use TSAHC's county income limits lookup. I'll double-check yours with you, too.
Pairing Heroes With a Mortgage Credit Certificate
First-time buyers can add a TSAHC Mortgage Credit Certificate with a 15% credit rate, which turns part of your yearly mortgage interest into a federal tax credit.
- The $400 MCC issuance fee is waived for Heroes who use TSAHC Non-Bond DPA with the MCC.
- An MCC can't be combined with Bond DPA.
My Texas mortgage credit certificate guide explains how the credit works on your tax return.
Homebuyer Education
At least one borrower must complete an approved in-person or online homebuyer education course before closing. If you're using an MCC or the 3-year forgivable second, TSAHC's education videos for those are required too, and you'll sign a TSAHC Home Buyer Education Affidavit.
Property, Occupancy, and Fees
- Eligible homes: single-family homes, condos, townhomes, and eligible manufactured homes in Texas
- Primary residence, occupied within 60 days of closing
- TSAHC program fees (deducted by the master servicer): $250 funding, $85 tax service, and $200 compliance review
Not in a Listed Profession? Look at Home Sweet Texas
TSAHC's Home Sweet Texas program has no profession requirement. It's built for low- and moderate-income households, first-time and repeat buyers alike, with the same assistance forms and credit minimums. The main difference with an MCC: the $400 issuance fee applies.
If you're a first-time buyer, also compare TDHCA's program in my My First Texas Home guide. It uses FHA, VA, or USDA loans and has its own income and price limits.
How to Apply
- Confirm your eligibility. Profession or veteran status, Texas residency, and income for your county.
- Work with a participating lender. You don't apply to TSAHC directly. Fairway Independent Mortgage is a participating lender for TDHCA and TSAHC programs.
- Get pre-approved for the first mortgage and pick your assistance form.
- Complete homebuyer education before closing.
- Close and move in within 60 days.
TSAHC's homebuyer line is 877-508-4611 if you have program questions.
Frequently Asked Questions
Who qualifies for Homes for Texas Heroes?
Full-time public K-12 educators, allied health and nursing faculty, peace officers and public security officers, firefighters, EMS personnel, TDCJ and TJJD corrections officers with hazardous duty pay, county jailers, and veterans. Borrowers must also meet Texas residency, income, and credit requirements.
Do I have to be a first-time buyer to use Homes for Texas Heroes?
No. The loan and down payment assistance are open to first-time and repeat buyers. The Mortgage Credit Certificate option is for first-time buyers, with exceptions in Targeted Areas and for qualified veterans.
Does Homes for Texas Heroes assistance have to be repaid?
It depends on the form. TSAHC's guidelines say the grant does not need to be repaid after six months from the first mortgage closing date. The 3-year forgivable second is forgiven on the third anniversary of the Note unless you sell, transfer, or refinance, pay off the first loan, or move out first. The 30-year repayable second is due at maturity, sale, refinance, or payoff.
What credit score do I need for Homes for Texas Heroes?
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.
Can I combine Homes for Texas Heroes with a Mortgage Credit Certificate?
Yes, if you're a first-time buyer. TSAHC's MCC has a 15% credit rate, and the $400 issuance fee is waived for Heroes who use TSAHC Non-Bond DPA with the MCC. An MCC can't be combined with Bond DPA.
You Serve Texas. Let's Get You Home.
I'll check your eligibility, compare the assistance options side by side, and show you what each one means for your cash to close.
Get Pre-Approved | Book a Free Consultation
Related Guides
- Down Payment Assistance in Texas
- Texas First-Time Home Buyer Programs
- My First Texas Home Down Payment Assistance
- Mortgage Credit Certificate in Texas
- Buying a Home in Cedar Park, TX
- VA Loan Limit 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 or any government agency.