Owning a home is a dream for many families, but for some, the financial hurdles can seem overwhelming.

San Antonio’s partnership with the Texas State Affordable Housing Corporation (TSAHC) is designed to ease that burden and open the door to homeownership for more residents.

If you’ve been wondering how to make owning a home a reality, the Homeownership Incentive Program (HIP) might be exactly what you need.

Let’s dive into how it works, who’s eligible, and why it could be a great fit for you.

What Is the Homeownership Incentive Program?

TSAHC’s Homeownership Incentive Program provides down payment assistance and affordable financing options to low- and moderate-income homebuyers in San Antonio.

The program is tailored to meet the specific needs of first-time homebuyers, public service professionals, and others who qualify.

With rising housing costs, saving for a down payment can feel impossible. According to TSAHC, “Our programs aim to address the affordability challenges by bridging the gap between hardworking Texans and their first homes.”

Key Benefits of the Program

Down Payment Assistance (DPA):

Eligible buyers can receive up to 5% of the loan amount to cover their down payment and closing costs.

Assistance comes in the form of a grant or a deferred forgivable second lien, meaning you might not need to repay it if certain conditions are met.

Low Fixed-Rate Mortgages:

TSAHC partners with approved lenders to offer 30-year fixed-rate loans.

Stability in interest rates helps you plan your monthly payments with confidence.

Special Programs for Public Servants:

Teachers, firefighters, police officers, and veterans can benefit from additional incentives under the Homes for Texas Heroes program.

Income Flexibility:

Unlike some programs, TSAHC’s incentives extend to moderate-income households, not just low-income families.

Who Qualifies for TSAHC Programs?

Eligibility requirements vary slightly depending on the specific program, but here are some general guidelines:

First-Time Homebuyer Status:

Defined as someone who hasn’t owned a home in the past three years.

Income Limits:

Income thresholds vary by county and household size. In Bexar County, for instance, a household of four can earn up to $106,000 and still qualify.

Purchase Price Limits:

The property’s price must fall within TSAHC’s guidelines, which are updated annually.

Criteria	Details
First-Time Buyer	No homeownership in the past three years
Income Threshold	Up to $106,000 for a family of four (varies by location)
Property Price Cap	Must meet TSAHC’s affordability limits

Application Process: Step-by-Step Guide

Navigating any financial assistance program can feel daunting, but TSAHC’s process is straightforward:

Pre-Qualify:

Use TSAHC’s online eligibility tool to see if you qualify for assistance.

Work With an Approved Lender:

Partner with a lender who understands TSAHC programs and can guide you through financing.

Complete Homebuyer Education:

A required online or in-person course ensures you’re ready for homeownership responsibilities.

Select Your Home:

Once approved, you’re ready to find your dream home within the program’s price limits.

Visit the TSAHC application page for more information, a list of lenders, and step-by-step guidance to kick off your application process. This is your first step toward affordable homeownership!

Comparing TSAHC to Other Programs

TSAHC isn’t the only homebuyer assistance program out there, so how does it compare?

Program	TSAHC	Federal Housing Administration (FHA)
Down Payment Assistance	Up to 5% of loan	None
Income Limits	Moderate-income families included	No specific limits
Interest Rates	Fixed, competitive rates	Can vary based on credit
Target Audience	Public servants, first-time buyers	All buyers

For many, TSAHC’s tailored approach and state-level oversight make it a better fit than national options.

Why Choose TSAHC in San Antonio?

San Antonio’s real estate market has seen significant growth over the past decade, leading to higher home prices. TSAHC addresses this challenge head-on by offering local families the tools they need to succeed.

According to the San Antonio Board of Realtors, the median home price in the city has risen to $325,000 as of 2025. Programs like TSAHC ensure that middle-income families aren’t left behind.

Tips for Maximizing TSAHC Benefits

• Start Early: Reach out to an approved lender as soon as possible to determine eligibility.

• Understand the Fine Print: Make sure you’re clear on any repayment conditions for forgivable loans.

• Take Advantage of Education: TSAHC’s homebuyer education courses can set you up for long-term success.

• Consider Your Long-Term Goals: Evaluate whether homeownership aligns with your financial and personal plans.

Frequently Asked Questions

What is TSAHC?

TSAHC is a nonprofit organization created to make homeownership more accessible for Texans through down payment assistance and affordable financing options. They also offer education and resources to empower buyers.

Can I qualify if I’m not a first-time homebuyer?

Yes, under some TSAHC programs, such as Homes for Texas Heroes, you can qualify even if you’ve owned a home before. The first-time buyer requirement is waived for specific professions.

How does the forgivable loan work?

The forgivable second lien is essentially a loan that doesn’t need to be repaid if you stay in your home for a certain number of years. Typically, the loan is forgiven at a rate of 20% per year over five years.

Do I have to live in the home?

Yes, TSAHC programs are designed for owner-occupied properties. Investment or rental properties don’t qualify.

Can I combine TSAHC with other assistance programs?

In many cases, yes. It’s worth discussing this with your lender to see if you can layer TSAHC benefits with other local or federal programs.

How long does the process take?

The timeline depends on your lender and readiness, but most buyers can close within 30-45 days of starting the application.

What happens if I move before the loan is forgiven?

If you sell or move out of the home before the forgiveness period ends, you’ll likely need to repay the remaining balance on the second lien.

What types of homes qualify?

Most single-family homes, condos, and townhouses within the program’s price limits are eligible. Check with TSAHC for specific details.