Texas TDHCA Down Payment Assistance
The Texas Department of Housing and Community Affairs runs two flagship assistance paths: My First Texas Home (for first-time buyers) and My Choice Texas Home (no first-time buyer requirement). Both offer down payment and closing cost assistance of up to 5% of the loan amount, and both can pair with the Texas Mortgage Credit Certificate (MCC), a federal income tax credit worth up to $2,000 per year for the life of the loan.
What you can get
Down payment and closing cost assistance up to 5% of the loan amount, structured either as a 3-year deferred forgivable second lien or a 30-year deferred repayable second lien at 0% interest. The MCC converts 20–40% of annual mortgage interest into a direct federal tax credit, capped at $2,000 per year.
Who qualifies
- My First Texas Home: first-time buyer (no primary-residence ownership in the past 3 years) unless purchasing in a targeted area. My Choice Texas Home: no first-time buyer requirement.
- Minimum 620 credit score (640+ preferred by many lenders).
- Household income within TDHCA limits for your county.
- Purchase price within program limits.
- Complete required homebuyer education.
- Primary residence only; apply through a TDHCA-approved lender.
How it pairs with your mortgage
TDHCA assistance pairs with FHA, VA, USDA, and conventional first mortgages originated by TDHCA-approved lenders. The MCC can be combined with the DPA (a combo issuance fee applies). TSAHC, the Texas State Affordable Housing Corporation, runs parallel programs (Home Sweet Texas, Homes for Texas Heroes) offering up to 5% as grants or forgivable liens; many buyers qualify under both agencies, so check both.
Availability right now
TDHCA rate sheets, income limits, and DPA structures are updated frequently. Confirm current terms with TDHCA or an approved lender before relying on a figure on this page.
Availability depends on lender participation and current program funding. Program terms change, confirm current details with the administering agency or a participating lender. Educational information only; not a commitment to lend.
What is the difference between My First Texas Home and My Choice Texas Home?
My First Texas Home requires first-time buyer status (with targeted-area exceptions); My Choice Texas Home does not. Both offer up to 5% assistance through TDHCA-approved lenders.
How does the Texas MCC work?
The Mortgage Credit Certificate turns a percentage of the mortgage interest you pay into a dollar-for-dollar federal income tax credit, up to $2,000 per year, for as long as you hold the loan and live in the home.
Can I combine TDHCA assistance with TSAHC programs?
Many buyers qualify under both agencies. TSAHC's Home Sweet Texas and Homes for Texas Heroes offer up to 5% as grants or forgivable second liens, including options with no first-time buyer requirement.
Loans that pair with this program
Buying in Texas? Check your eligibility
Tell us about your purchase. We will confirm which assistance programs your scenario qualifies for, usually within one business day.