Texas offers more Down Payment Assistance programs than almost any other state — with two major statewide agencies, a robust network of Southeast and Central Texas programs, and major-city initiatives in Austin, Dallas, Houston, and San Antonio that can provide
$30,000–$60,000 in assistance for eligible buyers.
The Bookspan Baker Team at Keepsake Loans works with both TDHCA and TSAHC programs and helps Texas buyers identify and structure the right DPA combination.
TDHCA (Texas Department of Housing and Community Affairs): The state’s primary housing agency, administering the My First Texas Home and My Choice Texas Home programs.
TSAHC (Texas State Affordable Housing Corporation): A separate statewide agency with Homes for Texas Heroes and Home Sweet Texas programs.
Both agencies have extensive participating lender networks throughout Texas, and the Bookspan Baker Team is approved for both.
TDHCA’s flagship first-time buyer program.
First-time homebuyers (no ownership in past 3 years) and honorably discharged veterans
FHA, VA, USDA, and conventional
Up to 5% of loan amount as a 30-year deferred repayable second lien — no monthly payments; repaid in full when you sell, refinance, or pay off the mortgage
Apply and vary by county
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Can be paired with a Texas Mortgage Credit Certificate (MFTH + MCC Combo)
TDHCA’s program for all buyers — one of the most generous DPA programs in the country.
ALL buyers — no first-time buyer requirement
FHA, VA, USDA, and conventional (HFA Preferred)
Up to 5% of loan amount as a 3-year deferred forgivable second lien — forgiven after 3 years of occupancy; no monthly payments
Apply by county
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The combination of no first-time buyer requirement + no purchase price cap + 3-year forgivable DPA makes My Choice Texas Home one of the most accessible DPA structures in any state.
TSAHC’s hero-focused DPA program — no first-time buyer requirement.
Eligible hero professions:
Professional educators (teachers, aides, librarians, counselors, nurses) in Texas public school districts
Firefighters
Emergency medical technicians (EMTs)
Police and correctional officers
Veterans (honorably discharged)
Hero profession buyers statewide — no first-time buyer requirement
Up to 5% of loan amount as either a non-repayable grant (never needs to be repaid) OR a deferred forgivable second lien
FHA, VA, USDA, and conventional
Included at no additional cost — a federal tax credit worth up to $2,000/year
Apply
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For Texas teachers, first responders, and veterans, the Homes for Texas Heroes grant + free MCC combination is one of the most valuable DPA packages in the country.
Home Sweet Texas
TSAHC’s program for non-hero buyers. Same DPA structure (up to 5% grant or deferred lien), compatible with FHA, VA, USDA, and
conventional.
Federal income tax credit equal to 40% of annual mortgage interest paid, up to $2,000 per year — for the life of the loan. This is a direct tax credit (not a deduction) that reduces federal taxes owed annually. Credits that can’t be used in a given year can be carried forward 3 years.
Can be combined with TDHCA’s My First Texas Home (MFTH + MCC Combo) and TSAHC’s Homes for Texas Heroes/Home Sweet Texas.
SETH’s 5 Star Texas Advantage Program provides qualifying homebuyers up to 5% of the final loan amount in DPA statewide, structured as a second lien with forgivable or deferred options.
Can be combined with TDHCA’s My First Texas Home (MFTH + MCC Combo) and TSAHC’s Homes for Texas Heroes/Home Sweet Texas.
City of Austin / Austin Housing Finance Corporation: Up to $40,000 for income-eligible first-time buyers within Austin city limits.
City of Dallas / Dallas Homebuyer Assistance Program: Up to $60,000 for income-eligible first-time buyers within Dallas city limits — one of the largest local DPA amounts in the country.
City of Houston: Up to $50,000 in DPA assistance for qualifying buyers in Houston.
City of San Antonio: Up to $30,000 for income-eligible buyers within San Antonio city limits.
| First-time buyer, any profession | My First Texas Home (TDHCA) or Home Sweet Texas (TSAHC) |
|---|---|
| Repeat buyer, want DPA | My Choice Texas Home (TDHCA) — no purchase price limit, 3-year forgiveness |
| Teacher, firefighter, EMT, police officer | Homes for Texas Heroes (TSAHC) — up to 5% grant + free MCC |
| Veteran, first-time buyer | My First Texas Home or Homes for Texas Heroes — either works; Heroes provides MCC automatically |
| Maximum DPA | Stack city/local program with state program where eligible |
TDHCA’s My First Texas Home is a 30-year fixed-rate loan for
first-time buyers and veterans paired with up to 5% DPA as a 30-year deferred second lien (no monthly payments; repaid when you sell, refinance, or pay off the mortgage). Can be paired with a Texas MCC.
TDHCA’s My Choice Texas Home provides up to 5% DPA as a 3-year forgivable second lien — forgiven after 3 years with no purchase price limits and no first-time buyer requirement.
TSAHC’s Homes for Texas Heroes provides up to 5% as a non-repayable grant for teachers, firefighters, EMTs, police officers, correctional officers, and veterans — no first-time buyer requirement. A free MCC (up to $2,000/year federal tax credit) is automatically included.
In some cases, yes. The Bookspan Baker Team will identify what combinations are available for your specific city, income level, and purchase price.
