{"id":2838,"date":"2025-08-18T16:33:04","date_gmt":"2025-08-18T16:33:04","guid":{"rendered":"https:\/\/lrgrealty.com\/tsahc-program-san-antonio\/"},"modified":"2026-05-28T13:59:38","modified_gmt":"2026-05-28T13:59:38","slug":"tsahc-program-san-antonio","status":"publish","type":"post","link":"https:\/\/lrgrealty.com\/lrg-blog\/tsahc-program-san-antonio\/","title":{"rendered":"Texas State Affordable Housing Corporation (TSAHC) Programs in San Antonio"},"content":{"rendered":"
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\n Texas DPA Programs ·<\/span>
\n Comparison<\/strong>\n <\/div>\n

TSAHC My Choice Texas Home vs Homes for Texas Heroes: Which Program Fits Your Situation<\/h1>\n

TSAHC’s My Choice Texas Home is the better fit for most Central Texas buyers because it has no occupation requirement. Homes for Texas Heroes serves teachers, first responders, corrections officers, and veterans with the same down payment assistance \u2014 up to 5% as a grant \u2014 but restricts eligibility by profession. Both programs work with FHA, VA, USDA, and conventional loans through participating lenders statewide.<\/p>\n<\/div>\n

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My Choice Texas Home<\/h3>\n
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  • Best for:<\/strong> Any income-qualifying Texas homebuyer with no occupation restriction on eligibility<\/li>\n
  • Key advantage:<\/strong> Open to all buyers statewide, widest pool of participating lenders across Central Texas<\/li>\n
  • Watch out:<\/strong> Income and purchase-price limits vary by county and can disqualify higher earners in Austin<\/li>\n<\/ul>\n<\/article>\n
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    Homes for Texas Heroes<\/h3>\n
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    • Best for:<\/strong> Teachers, police, firefighters, EMS, corrections officers, and veterans buying in Texas<\/li>\n
    • Key advantage:<\/strong> Same DPA structure as My Choice but reserved capacity keeps funding available longer<\/li>\n
    • Watch out:<\/strong> Must verify qualifying profession through employer \u2014 independent contractors do not qualify<\/li>\n<\/ul>\n<\/article>\n
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      DPA Options Compared<\/h3>\n
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      • Grant (non-repayable):<\/strong> Up to 5% of the mortgage amount with no second lien and no repayment required<\/li>\n
      • Second lien:<\/strong> Deferred forgivable loan option available, forgiven after the required occupancy period<\/li>\n
      • Loan types accepted:<\/strong> Both programs pair DPA with 30-year fixed-rate FHA, VA, USDA, or conventional loans<\/li>\n<\/ul>\n<\/article>\n
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        Central Texas Eligibility<\/h3>\n
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        • Bexar County (San Antonio):<\/strong> Income limits adjust for metro area \u2014 check TSAHC’s current county limit table<\/li>\n
        • Travis\/Williamson (Austin):<\/strong> Higher purchase-price caps reflect Austin’s elevated median home values<\/li>\n
        • Bell County (Killeen):<\/strong> Lower cost of living means more buyers qualify under standard income thresholds<\/li>\n<\/ul>\n<\/article>\n<\/section>\n<\/div>\n<\/header>\n

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          What Is TSAHC and Why Does It Matter for Central Texas Buyers?<\/h2>\n

          TSAHC \u2014 the Texas State Affordable Housing Corporation \u2014 runs the state’s largest down payment assistance programs for homebuyers. If you’re buying in San Antonio, Austin, Killeen, or anywhere in Central Texas, TSAHC can cover up to 5% of your mortgage amount as a grant you never repay.<\/p>\n

          Most buyers I work with don’t know TSAHC exists until we’re already deep into pre-approval. That’s a problem, because the program changes the math on affordability entirely. On a $300,000 home in northeast San Antonio, a 5% TSAHC grant means $15,000 toward your down payment and closing costs \u2014 money you keep in your pocket. The program works with FHA, VA, USDA, and conventional loans, and it isn’t restricted to first-time buyers under every track. Two main programs exist: My First Texas Home<\/strong> (first-time buyers or those who haven’t owned in three years) and My Choice Texas Home<\/strong> (open to repeat buyers too). Both use the same lender network and the same application process.<\/p>\n

          How Does TSAHC Compare to Other Texas Down Payment Assistance Programs?<\/h2>\n

          TSAHC offers the most flexible down payment assistance in Texas, but it’s not the only option. TDHCA’s My First Texas Home program, city-specific programs in San Antonio (SAHA’s homeownership program) and Austin (Austin Housing Finance Corporation), and lender-funded DPA all compete for the same buyers.<\/p>\n\n\n\n\n\n\n\n\n\n
          Program<\/th>\nDPA Amount<\/th>\nRepayment<\/th>\nFirst-Time Buyer Only?<\/th>\nLoan Types<\/th>\n<\/tr>\n<\/thead>\n
          TSAHC \u2014 My First Texas Home<\/strong><\/td>\nUp to 5% of loan<\/td>\nGrant (no repayment) or 0% deferred second lien<\/td>\nYes (or no ownership in 3 years)<\/td>\nFHA, VA, USDA, Conventional<\/td>\n<\/tr>\n
          TSAHC \u2014 My Choice Texas Home<\/strong><\/td>\nUp to 5% of loan<\/td>\nGrant or deferred second lien<\/td>\nNo<\/td>\nFHA, VA, USDA, Conventional<\/td>\n<\/tr>\n
          TDHCA \u2014 My First Texas Home<\/strong><\/td>\nUp to 5% of loan<\/td>\nDeferred second lien (due on sale\/refi)<\/td>\nYes<\/td>\nFHA, VA, USDA<\/td>\n<\/tr>\n
          San Antonio \u2014 SAHA DPA<\/strong><\/td>\nUp to $30,000 in targeted areas<\/td>\nForgivable over 5\u201310 years<\/td>\nVaries by funding cycle<\/td>\nFHA, Conventional<\/td>\n<\/tr>\n
          Austin Housing Finance Corp<\/strong><\/td>\nUp to $40,000 (income-qualified)<\/td>\nForgivable over 5\u201310 years<\/td>\nVaries<\/td>\nFHA, Conventional<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

          The key differentiator: TSAHC’s grant option requires zero repayment. TDHCA’s program uses a deferred second lien that comes due when you sell or refinance. For a buyer planning to stay in a home near Fort Cavazos for a three-year PCS cycle, that distinction matters \u2014 you’ll likely sell within the forgivable window on a city program but still owe the full TDHCA lien. TSAHC’s grant has no such strings. The San Antonio and Austin city programs can offer higher dollar amounts in targeted ZIP codes, but funding runs out fast and the application windows are narrow. TSAHC accepts applications year-round as long as funds remain allocated.<\/p>\n

          Who Qualifies for TSAHC in 2026?<\/h2>\n

          Qualification depends on household income, purchase price, and credit score \u2014 not your employment type or buyer history (under My Choice). The income limits are more generous than most buyers expect.<\/p>\n

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          • Income limits (2026):<\/strong> Up to $101,340 for a 1\u20132 person household and $116,541 for 3+ persons in Bexar County (San Antonio). Travis County (Austin) limits are slightly higher. Bell County (Killeen) limits match the statewide standard.<\/li>\n
          • Credit score:<\/strong> Minimum 620 for conventional and VA loans, 640 recommended for best rate pricing. FHA allows 620 with most participating lenders.<\/li>\n
          • Purchase price cap:<\/strong> $390,000 statewide for non-targeted areas. Targeted areas (certain census tracts in east San Antonio, southeast Austin, and central Killeen) allow up to $451,000.<\/li>\n
          • Occupancy:<\/strong> Primary residence only. No investment properties, no second homes.<\/li>\n
          • Homebuyer education:<\/strong> Required \u2014 a free online course through TSAHC’s portal takes about 6\u20138 hours. Must be completed before closing.<\/li>\n<\/ul>\n<\/section>\n

            A dual-income household earning $95,000 buying a $340,000 home in Converse or Live Oak (northeast Bexar County) qualifies under both programs. A single E-7 at Fort Cavazos with a household income of $72,000 buying a $260,000 home in Harker Heights qualifies easily. The income limits exclude most high earners, but they cover the majority of first-time and workforce buyers across Central Texas.<\/p>\n

            How Much Does TSAHC Actually Save You?<\/h2>\n

            On a $300,000 home, the 5% grant delivers $15,000 at closing. That’s real money \u2014 enough to cover a 3.5% FHA down payment plus most of your closing costs, or the full closing cost package on a zero-down VA Loan.<\/p>\n

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            Real scenario \u2014 San Antonio buyer, 2026:<\/strong> A first-time buyer purchases a $310,000 home in Alamo Ranch (78253) using an FHA loan. The 3.5% down payment is $10,850. TSAHC’s 5% grant provides $15,500. After covering the down payment, the buyer has $4,650 remaining to apply toward lender fees, title insurance, and prepaid taxes. Out-of-pocket at closing: under $1,000. Without TSAHC, that buyer needs $14,000\u2013$16,000 in cash to close.<\/p>\n<\/div>\n

            Veterans using a VA Loan benefit differently. Since VA requires no down payment, the entire 5% TSAHC grant applies to closing costs and the VA Funding Fee. On a $280,000 purchase near Fort Cavazos \u2014 say, a home in Copperas Cove or Nolanville \u2014 the VA Funding Fee for a first-time user is $6,440 (2.3%). The TSAHC grant of $14,000 covers that fee plus title, appraisal, and lender origination. The buyer walks into the home with cash left over from the grant.<\/p>\n

            TSAHC also offers a Mortgage Credit Certificate (MCC) that provides a federal tax credit of up to $2,000 per year for the life of the loan. The MCC can be combined with the DPA grant \u2014 most buyers don’t realize you can stack both. Over a 10-year ownership period, the MCC adds $20,000 in cumulative tax savings on top of the initial grant.<\/p>\n

            What Are the Drawbacks of Using TSAHC?<\/h2>\n

            TSAHC isn’t free money without trade-offs. The interest rates on TSAHC-funded mortgages run 0.25%\u20130.75% higher than market rates, and the lender network is limited.<\/p>\n

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            • Above-market rates:<\/strong> TSAHC mortgages typically carry rates 25\u201375 basis points above conventional market pricing. On a $300,000 loan, that’s $45\u2013$135 more per month compared to the best available rate. Over 30 years, the added interest cost can exceed the grant amount \u2014 but most buyers sell or refinance within 7\u201310 years, making the grant a net win.<\/li>\n
            • Limited lender list:<\/strong> Only TSAHC-approved lenders can originate these loans. In San Antonio, roughly 15\u201320 lenders participate. In Killeen, the list is shorter \u2014 around 8\u201312. Your preferred lender or credit union may not be on the list.<\/li>\n
            • Processing time:<\/strong> TSAHC loans add 5\u201310 days to closing timelines compared to standard financing. In a competitive market like Austin’s 78745 or 78748 corridors, that delay can cost you a contract if the seller has a faster-closing backup offer.<\/li>\n
            • Second lien option has strings:<\/strong> If you choose the deferred second lien instead of the grant, the full amount comes due when you sell, refinance, or transfer the property. The grant avoids this entirely, but the grant option sometimes comes with a slightly higher rate than the second lien option.<\/li>\n
            • Recapture tax (rare):<\/strong> If you sell within 9 years, earn significantly more income than at purchase, and make a profit on the sale, you may owe a federal recapture tax. In practice, this affects very few buyers, but it’s in the program documents.<\/li>\n<\/ul>\n<\/section>\n

              The rate premium is the biggest consideration. Run the math with your lender: if the added interest over your expected ownership period exceeds the grant value, the program costs more than it saves. For buyers planning to stay 3\u20137 years, the grant almost always wins. For buyers planning 15+ years with no refinance, the higher rate can erode the benefit.<\/p>\n

              How Do You Apply for TSAHC in San Antonio, Austin, or Killeen?<\/h2>\n

              You apply through a TSAHC-approved lender, not through TSAHC directly. The lender handles the full process \u2014 TSAHC funds flow through the loan file at closing.<\/p>\n

              Step one: find a participating lender. TSAHC’s website maintains a searchable directory by county. In Bexar County, lenders like Supreme Lending, Cornerstone Home Lending, and several local credit unions participate. In Travis County, the list overlaps but includes some Austin-focused brokers. Bell County has a smaller roster \u2014 confirm participation before you start an application.<\/p>\n

              Step two: get pre-approved. The lender will run your income, credit, and purchase price against TSAHC’s current limits. If you qualify, they’ll lock your rate under TSAHC’s program pricing and reserve your DPA allocation. Funding is first-come, first-served \u2014 when the annual allocation runs out, the program pauses until the next funding cycle. Historically, TSAHC has not run out of funds mid-year, but demand has increased steadily since 2023.<\/p>\n

              Step three: complete homebuyer education. The online course is free through TSAHC’s approved providers. It covers budgeting, the mortgage process, and homeownership responsibilities. Plan for 6\u20138 hours total. You’ll receive a certificate that your lender submits with the loan file.<\/p>\n

              Step four: find a home, go under contract, and close. Your lender will coordinate the TSAHC funds \u2014 they arrive at the title company as part of the closing package. The grant or second lien is recorded on the HUD-1 settlement statement. There’s no separate TSAHC closing or additional paperwork beyond what your lender handles.<\/p>\n

              Is TSAHC Worth It for Military Families Near Fort Cavazos?<\/h2>\n

              For most Military buyers near Fort Cavazos, TSAHC combined with a VA Loan is the strongest financing package available in Texas. Zero down payment from the VA side plus up to 5% in grant money from TSAHC means you can buy a home and keep your savings intact.<\/p>\n

              A typical scenario: an E-6 with a household income of $68,000 buying a $255,000 home in Harker Heights (76548). The VA Loan covers 100% of the purchase price. TSAHC’s 5% grant adds $12,750 at closing \u2014 enough to cover the VA Funding Fee ($5,865 for a first-time VA buyer), lender fees (~$3,000), title and escrow (~$2,500), and prepaid property taxes (~$1,200). That buyer brings zero cash to closing and may even receive a small credit back.<\/p>\n

              The BAH for Fort Cavazos (Bell County) in 2026 supports mortgage payments on homes up to roughly $280,000\u2013$310,000 depending on rank and whether dependents are claimed. TSAHC’s purchase price cap of $390,000 is well above the typical purchase range near the base, so the cap rarely becomes an issue here. Compare that to Austin, where median home prices in desirable school districts often bump against the cap.<\/p>\n

              PCS timing matters. If you receive orders within 2\u20133 years, the grant is still yours \u2014 no clawback provision. The recapture tax is theoretically possible but requires a significant income jump and home price appreciation simultaneously, which is uncommon on a short cycle in the Killeen-Temple market. For most Military families on a 3-year rotation, TSAHC is effectively free money.<\/p>\n

              Should You Use TSAHC or Save for a Larger Down Payment?<\/h2>\n

              If you have less than $15,000 in liquid savings and you’re buying under $390,000, use TSAHC. The math favors the grant in almost every scenario where savings are tight.<\/p>\n

              The argument for saving a larger down payment is PMI elimination \u2014 put 20% down on a conventional loan and you skip private mortgage insurance entirely. On a $300,000 home, 20% down is $60,000 in cash. Most Central Texas buyers don’t have that. Even a 10% down payment ($30,000) only reduces PMI, it doesn’t eliminate it. Meanwhile, TSAHC’s 5% grant lets you close with minimal cash and redirect your savings toward an emergency fund, moving costs, or home repairs.<\/p>\n

              In San Antonio’s current market, median home prices sit around $290,000\u2013$310,000 depending on the submarket. Alamo Ranch, Helotes, and Stone Oak trend higher ($340,000\u2013$400,000). Southeast San Antonio, Converse, and Universal City trend lower ($240,000\u2013$290,000). In the lower price range, a TSAHC grant of $12,000\u2013$14,500 can fully cover down payment and closing costs. In the higher range, you may still need $3,000\u2013$5,000 out of pocket even with the grant \u2014 but that’s a fraction of what you’d need without it.<\/p>\n

              For Austin buyers, the calculus is tighter. Median prices in Round Rock, Pflugerville, and Cedar Park hover around $380,000\u2013$420,000. The TSAHC purchase price cap of $390,000 limits your options to the lower end of that range or to emerging areas like Hutto, Taylor, and Jarrell where homes in the $280,000\u2013$350,000 range are still common. If you’re set on central Austin or the 78704\/78745 corridors, TSAHC’s price cap may push you toward city-level programs with higher limits instead.<\/p>\n

              Bottom line: TSAHC is the best statewide DPA program in Texas for buyers under the income and price caps. The grant option eliminates repayment risk. The MCC stacks additional long-term savings. The rate premium is a real cost, but for buyers in the 3\u201310 year ownership window, the upfront grant value outweighs the added interest. If you’re buying in San Antonio, Killeen, or the more affordable pockets of the Austin metro, start with a TSAHC-approved lender and run the numbers before you consider any other path.<\/p>\n<\/article>\n

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              Frequently Asked Questions<\/h2>\n
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              What is the TSAHC program in Texas?<\/h3>\n
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              TSAHC (Texas State Affordable Housing Corporation) is a state-run nonprofit that offers down payment assistance and mortgage tax credits to Texas homebuyers. Its two main loan programs\u2014Home Sweet Texas Home Loan and Homes for Texas Heroes\u2014provide 5% of the loan amount as a grant or second lien. Buyers in San Antonio, Austin, Killeen, and across Central Texas use TSAHC regularly. It works with participating lenders statewide and has no first-time buyer requirement on most options.<\/p>\n<\/p><\/div>\n<\/div>\n

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              What is the income limit for TSAHC?<\/h3>\n
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              Income limits vary by county, household size, and program. In Bexar County (San Antonio), the 2026 household income limit is typically around $112,000 for a family of three or more. Travis County (Austin) limits tend to run slightly higher due to area median income differences. Killeen-area limits in Bell County are generally lower. TSAHC updates these annually. Check the TSAHC income and purchase price lookup tool with your specific county for current figures.<\/p>\n<\/p><\/div>\n<\/div>\n

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              Does TSAHC down payment assistance have to be repaid?<\/h3>\n
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              It depends on which option you choose. TSAHC offers a non-repayable grant (typically 5% of the loan amount) that never has to be paid back. They also offer a deferred forgivable second lien that is forgiven after three years if you stay in the home. Most buyers in San Antonio and Central Texas choose the grant option for simplicity. Your participating lender walks you through both choices at application.<\/p>\n<\/p><\/div>\n<\/div>\n

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              Can you use TSAHC with a VA Loan?<\/h3>\n
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              Yes, TSAHC programs pair with FHA, VA, USDA, and conventional loans. Military buyers near Fort Cavazos or Joint Base San Antonio often stack TSAHC’s down payment grant with a VA Loan to cover closing costs, since VA Loans already eliminate the down payment. The Homes for Texas Heroes program specifically targets Veterans, active-duty Military, and first responders with the same assistance amounts but a dedicated processing track.<\/p>\n<\/p><\/div>\n<\/div>\n

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              How do I apply for TSAHC in Texas?<\/h3>\n
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              You apply through a TSAHC-approved participating lender, not through TSAHC directly. Start by checking income and purchase price limits for your county on the TSAHC website, then contact a lender on their approved list. In San Antonio, Austin, and the Killeen\u2013Fort Cavazos corridor, most local mortgage companies participate. The lender handles the TSAHC paperwork alongside your primary loan application, so it adds minimal extra steps to a standard closing timeline.<\/p>\n<\/p><\/div>\n<\/div>\n

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              What is the TSAHC purchase price limit?<\/h3>\n
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              Purchase price limits are set by county and updated annually. Bexar County (San Antonio) and Travis County (Austin) typically allow purchases up to roughly $350,000\u2013$400,000 depending on the program year and targeted versus non-targeted census tracts. Bell County (Killeen) limits run in a similar range. These caps apply to the sale price, not the loan amount. Targeted areas within each county sometimes carry higher limits\u2014check the TSAHC lookup tool for your specific address.<\/p>\n<\/p><\/div>\n<\/div>\n<\/section>\n

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