TSAHC Down Payment Assistance

What TSAHC is

TSAHC stands for the Texas State Affordable Housing Corporation. It’s a nonprofit created to expand homeownership in Texas by offering fixed-rate mortgage loans plus down payment and closing cost assistance for qualified buyers who might otherwise struggle with upfront cash. You’ll see it most often with first-time homebuyers and certain career groups, but there are multiple paths depending on income and profession. 

30-Year Fixed Mortgage

TSAHC offers 30-year fixed mortgage loans tailored for buyers with limited down payment resources.

Down Payment Assistance (DPA)

Buyers can receive 3%, 4%, or 5% of the loan amount as assistance that can be used for down payment and closing costs. This money can often be structured as a grant or forgivable loan that doesn’t need monthly payments.

Programs You’ll See Most Often

There are two big ones agents need to know:

1) Homes for Texas Heroes Program
This is designed for community-serving professions like teachers, police, firefighters, EMS, corrections officers, and veterans. It pairs the TSAHC mortgage with down payment help and often has competitive terms because of the role these buyers play in their communities.

2) Home Sweet Texas Loan Program
This is broader than Heroes. It’s aimed at low-to-moderate income buyers statewide. If income, credit, and other requirements are met, any eligible buyer can use this.

1) Makes upfront costs easier to manage
For many buyers, saving for both down payment and closing costs is the biggest barrier. TSAHC cuts that upfront need dramatically, sometimes eliminating the need for any out-of-pocket funds beyond earnest money.

2) Works with fixed-rate mortgages
That predictable rate matters in planning long term. Buyers aren’t stuck with adjustable terms or unpredictable resets.

3) Can be paired with other benefits
Buyers might still qualify for other state or local grants, tax credits like Mortgage Credit Certificates (MCC), or federal programs like FHA or VA loans, depending on situation and lender.

1) Income & purchase price limits apply
Every county has income and purchase price caps. If a buyer earns above limits, they won’t qualify. These limits change annually.

2) Credit and education requirements
Buyers need a minimum credit score of 620 and to complete a homebuyer education course before closing.

3) Program rules can add steps
There are extra documents, program disclosures, and sometimes timing constraints. If the lender isn’t familiar with TSAHC, this can delay things. That’s why lender choice matters. More on that below.

TSAHC is not just “another loan product.”
Lenders must be approved to deliver TSAHC loans. An experienced TSAHC lender:

• Knows the income and purchase price limits by county.

• Understands how to bundle DPA with mortgage programs (like FHA, conventional, VA).

• Anticipates additional documentation (like homebuyer education certificates) early.

• Avoids delays at underwriting because of missing program paperwork.

If the buyer’s lender doesn’t understand how TSAHC works, the file can get pushed back, approvals delayed, or worse, closed without the assistance applied. Always recommend agents match the buyer with a TSAHC-approved lender who has closed these before.

Keep it simple and practical:

1) Start with the barrier they feel
“Most buyers tell us saving for both down payment and closing costs is the hardest part. TSAHC can cover a percentage of that for you.”

2) Explain the benefit in real dollars
“For a $300,000 home, 5% assistance is $15,000 toward your down payment and closing costs. That’s cash you don’t have to pull from savings.” (Adjust numbers for real quotes.)

3) Clarify eligibility without scaring them
“You’ll need to meet income and credit guidelines, and complete a short approved course. If you qualify, you reduce your upfront cash need and get a fixed rate mortgage.”

4) Set expectations about process
“This works through specific lenders who know the product. If you want to explore it, we’ll connect you with someone experienced so there are no surprises.”

HOW THE BUYER CAN GET STARTED

https://www.tsahc.org/homebuyers-renters/take-the-eligibility-quiz

INFORMATIONAL VIDEOS

https://www.tsahc.org/homebuyers-renters/informational-videos

Before recommending TSAHC:

☑ Has the buyer completed or plans to complete homebuyer education?
☑ Does the buyer meet income guidelines for their county?
☑ Does the buyer have at least the minimum credit score required?
☑ Is the lender TSAHC-approved and experienced?
☑ Have you confirmed whether the buyer wants to layer in other programs (like MCC, local grants, or federal loans)?

TSAHC isn’t magic, but it opens doors for buyers who are strong candidates but struggle with upfront cash. It pairs a solid fixed mortgage with meaningful help toward down payment and closing costs. The value to your clients comes from clear expectations, smart lender choice, and practical communication that reduces fear and increases confidence.

If a buyer is struggling with cash-to-close and fits the profile, TSAHC is absolutely worth exploring.

If you’re going to help buyers use TSAHC programs, getting trained matters. It protects your client, keeps deals moving, and makes you a better partner to lenders.

What certification does
TSAHC REALTOR® training teaches you how their loan and down payment assistance programs actually work, including eligibility rules, required steps, and common pitfalls. It’s not legally required, but it does set you apart and reduces surprises during the transaction.

How to get certified

1. Register for TSAHC REALTOR® training through Texas State Affordable Housing Corporation (TSAHC)

2. Complete the training, usually offered online or live

3. Once completed, you can market yourself as TSAHC-trained and may be included on TSAHC’s participating REALTOR® lists

Why it helps you and your client
• You can explain TSAHC clearly and confidently
• Lenders trust that you understand the program
• Fewer delays caused by missed steps or paperwork
• Stronger credibility with first-time and budget-conscious buyers

How to explain it to a client
“I’ve completed TSAHC training, so I know how their down payment assistance works and how to coordinate with lenders who use it regularly. That helps us avoid surprises and keep your purchase on track.”

Pro tip
Training is only half the equation. Always pair TSAHC-trained agents with TSAHC-approved lenders who close these loans often. That combo is what makes the program work smoothly.