TDHCA vs. TSAHC: Which Down Payment Program Is Right for You in Texas?

You've saved up a little money. Not a lot — maybe $3,000 or $4,000 — and you're wondering if that's enough to buy a home in Texas. Someone told you there are programs to help with the down payment, but then you Googled it and saw two names that sound almost identical: TDHCA and TSAHC. Now you're more confused than before.

I hear this all the time from my clients. And I want to clear it up right now, because both programs are real, both can help you, and the difference between them actually matters depending on your situation.

Let me walk you through both — no fluff, just the facts you need to decide.

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What Is TDHCA and Who Does It Help?

TDHCA stands for the Texas Department of Housing and Community Affairs. This is a state government agency, and they run a program called My First Texas Home.

Here's what makes it stand out:

• Offers down payment assistance of up to 5% of the loan amount
• That assistance comes as a second loan at 0% interest — you don't pay it monthly, it's due when you sell, refinance, or pay off the home
• Works with FHA, VA, and USDA loans
• Income limits apply — they vary by county and family size, but as a rough example, a family of 4 in many Texas counties needs to be under roughly $85,000–$95,000 in annual income
• First-time homebuyer requirement applies (or you haven't owned a home in the last 3 years)
• Minimum credit score: 620

Real example: You're buying a $240,000 home with an FHA loan. 5% assistance = $12,000. That covers your 3.5% FHA down payment ($8,400) and leaves money toward closing costs. Your out-of-pocket could be close to zero.

The catch? TDHCA has stricter income limits and more documentation requirements. It can also take a little longer to process.

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What Is TSAHC and How Is It Different?

TSAHC stands for the Texas State Affordable Housing Corporation. They're not a government agency — they're a nonprofit — and their program works a bit differently.

• Also offers up to 5% in down payment assistance
• BUT you can choose between a grant (money you never repay) or a deferred loan
• Works with FHA, VA, USDA, and conventional loans
• No first-time homebuyer requirement in many cases — this is huge if you've owned before
• Income limits are slightly more flexible in some areas
• Minimum credit score: 620
• Available to more occupations through their "Homes for Texas Heroes" program (teachers, nurses, first responders, veterans)

Real example: Same $240,000 home. TSAHC gives you a 5% grant = $12,000 that you keep, no repayment ever. Your FHA down payment is covered, and you may still have money left over.

The catch? The interest rate on your main loan is slightly higher when you use TSAHC assistance — that's how they fund the grant. It's not dramatic, but over 30 years it adds up.

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TDHCA vs. TSAHC: A Quick Side-by-Side

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Which One Should You Choose?

Here's how I think about it with my clients:

• You've never owned a home and have lower income? → TDHCA may give you a better rate overall.
• You've owned before, or your income is a bit higher? → TSAHC is likely your path.
• You want money you never have to pay back? → TSAHC's grant option is hard to beat.
• You're a teacher, nurse, or veteran? → Check TSAHC's Heroes program first.

Neither program is better in every situation. It depends on your income, your credit, whether you've owned before, and what loan type makes sense for you.

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Ready to Figure Out Your Next Step?

If you're in Texas and wondering whether you can actually buy with the savings you have right now, reach out to me directly. I'll look at your specific numbers — income, credit, how much you've saved — and tell you honestly which program fits and what your monthly payment would look like.

No pressure. No runaround. Just a straight answer from someone who does this every day.