Homes for Texas Heroes Program (TSAHC)

If you’re looking for a way to make your first home purchase in Texas a little more affordable, the Homes for Texas Heroes program might be just what you need. This program is aimed at helping Texans who serve their communities—think teachers, police officers, and nurses—but it also has options for other first-time home buyers. Here’s how it works:

Key Types of Assistance

• Down Payment Assistance: You can receive a grant (which you don’t have to pay back) or a deferred forgivable second loan to help cover your down payment or closing costs.
• Mortgage Interest Rate Reduction: TSAHC works with participating lenders to offer you lower-than-average mortgage interest rates, which can save you money over the life of the loan.

Who’s Eligible?

• First-time Home Buyer: You qualify as a first-time buyer if you haven’t owned a home in the past three years. Certain exceptions apply if you’re purchasing a home in a targeted area.
• Profession-Specific Eligibility: If you’re a teacher, firefighter, police officer, EMS personnel, or healthcare worker, you’re automatically eligible. TSAHC also extends this assistance to veterans (regardless of first-time buyer status).
• Income Limits: Your household income must fall below specific limits set by TSAHC, which vary by county and family size.
• Credit Score: You’ll need a minimum credit score of 620 to qualify for most options.

Benefits

• Grants: TSAHC offers grants that provide up to 5% of the loan amount to assist with down payment and closing costs.
• No Repayment Required on Grants: The grant portion never has to be repaid.
• Deferred Forgivable Loan Option: Stay in the home for at least three years, and the loan will be forgiven.
• Competitive Interest Rates: The program offers interest rates that are lower than what’s typically available.

Potential Drawbacks

• Income Limits: Depending on your location and family size, you may exceed the income thresholds.
• Credit Score Requirement: A minimum credit score of 620 is required.
• Profession Restrictions: If you’re not part of the targeted group, the assistance may not be as generous.

How to Apply

1. Visit the TSAHC website to review income limits and ensure you meet the eligibility criteria.
2. Contact a Participating Lender: Apply for your mortgage through one of TSAHC’s approved lenders.
3. Take a Home Buyer Education Course: Complete an approved course, either online or in person.
4. Secure Your Down Payment Assistance: Once approved, your lender will help you apply for down payment assistance.

Pros and Cons

Pros:

• Up to 5% down payment assistance in the form of a grant.
• Available statewide with no repayment on the grant portion.
• Offers competitive interest rates to reduce mortgage costs.
• Designed to support community professionals like teachers, police officers, and veterans.

Cons:

• Income limits may exclude higher-earning households.
• Requires a credit score of 620 or higher.
• Some buyers may need to explore other TSAHC programs if they don’t meet the profession-specific criteria.