Down payment assistance for Texas homebuyers

How the stack works

Assistance programs are a second layer, not a replacement loan. You still get a normal FHA first mortgage with its own rate, term, and mortgage insurance. The assistance sits behind it as either a grant or a deferred second lien, and its job is to fund the 3.5% down payment and, in some cases, part of your closing costs. Two programs run statewide: TDHCA and TSAHC.

TDHCA My First Texas Home

• Up to 5% of the loan amount as a second lien
• 0% interest with no monthly payment
• Repaid only when you sell or refinance — deferred, not forgiven
• Pairs with FHA, VA, or conventional financing
• For first-time buyers, meaning no primary residence owned in the past three years (waived for honorably discharged veterans)

TSAHC Home Sweet Texas

• Open to all qualifying buyers, not just first-time buyers
• Choose a non-repayable grant of 3–5% of the loan amount, or a deferred second lien paired with a lower first-mortgage rate
• You pick the structure that fits your situation — the grant costs less up front, the deferred lien usually prices better long term

TSAHC Homes for Texas Heroes

• Same grant or deferred-lien choice as Home Sweet Texas
• For teachers, firefighters, EMS, law enforcement, corrections officers, veterans, and healthcare workers
• Typically includes a modest rate reduction versus the standard program

How this works with your FHA loan

Nothing about the FHA process changes. You are still underwritten as an FHA purchase borrower, and if this is your first home the same guidance on FHA loans for first-time buyers applies. The assistance is layered on during that same file — we confirm program eligibility, income and price limits for your county, and reserve funds while the loan is in process.