The short answer: Texas buyers can compare TSAHC's Home Sweet Texas with TDHCA's My First Texas Home, and consider TDHCA's My Choice Texas Home if they have owned a home before. Assistance may be a grant, forgivable second lien, or repayable second lien. County limits, education rules, lender approval, and Mortgage Credit Certificate availability should be checked before closing.
This post is for you if:
- You are buying a home in Texas and want to compare state assistance.
- You owned a home before and need the program-specific first-time rule.
- You are comparing grants, second liens, county limits, education, or an MCC.
Could a brief call help you identify which program details to verify for your county?
Book a callWhich Texas homebuyer programs should first-time buyers compare?
Texas buyers can compare TSAHC's Home Sweet Texas and TDHCA's My First Texas Home, then consider TDHCA's My Choice Texas Home if first-time status is an issue. Each program has different eligibility and assistance rules.
| Program | First-time status | Assistance |
|---|---|---|
| TSAHC Home Sweet Texas | First-time and repeat buyers | Grant or forgivable second lien |
| TDHCA My First Texas Home | First-time rule, with exceptions | Deferred repayable or forgivable lien |
| TDHCA My Choice Texas Home | No first-time requirement | Separate assistance options |
| MCC | Separate eligibility rules | Federal tax certificate, not cash |
Compare the program name and lien terms, not just the first-time-buyer label.
What does TSAHC Home Sweet Texas offer?
TSAHC says Home Sweet Texas can serve eligible first-time and repeat buyers. The program pairs a mortgage with assistance, and some buyers may also qualify for a Mortgage Credit Certificate.
Its program page lists a grant or forgivable lien. TSAHC's broader DPA overview also lists a deferred repayable lien. Confirm the option tied to your reservation and note.
How do Texas down payment assistance options differ?
Assistance may be a grant or a second lien, and a lien may be forgivable or repayable. The selected program and documents determine the conditions.
- A grant does not require repayment under that product.
- Forgiveness depends on stated conditions; selling, refinancing, or moving may affect it.
- A repayable lien may come due on events listed in its note.
The TDHCA Lender Guide describes the separate second-lien options and payoff terms. Ask the lender which option applies.
What does TDHCA My First Texas Home offer?
TDHCA's My First Texas Home is for eligible first-time buyers and offers assistance through a second lien. The current guide describes deferred repayable and forgivable options. My Choice Texas Home does not require first-time status.
TDHCA's guide, effective August 26, 2026, lists exceptions for qualified veterans and targeted areas. It also identifies payoff conditions such as sale, refinance, transfer, payoff of the first lien, or no longer living in the home as a primary residence. Review the guide and your note.
Would it help to compare lender and assistance terms before you choose?
Talk through optionsHow do Texas income and purchase price limits work?
Texas program limits are not one statewide figure. As checked October 29, 2026, TSAHC says limits vary by county and household size; TDHCA's posted table shows income and purchase-price limits effective July 13, 2026.
TSAHC's July 2026 update gives metro examples and points buyers to its county-specific tool. Check the property county and exact program category instead of relying on an example.
Who qualifies as a first-time homebuyer?
The three-year lookback applies to specific program rules, not every Texas assistance option. TSAHC says Home Sweet Texas may serve repeat buyers, while its MCC and TDHCA My First Texas Home have separate first-time rules.
TSAHC's MCC rule looks at ownership interest in a primary residence during the prior three years, with targeted-area and qualified-veteran exceptions. TDHCA's guide uses an owned-and-occupied primary-residence test, with its own exceptions. See the TSAHC MCC rules and TDHCA guide.
How does a Mortgage Credit Certificate work?
An MCC may let an eligible holder claim a federal tax credit for qualifying mortgage interest. It is a tax certificate, not down payment money or a change to the mortgage interest rate.
TSAHC says its stand-alone MCC is discontinued indefinitely, with combination options subject to availability. TDHCA lists stand-alone and combined MCC options subject to availability. Apply before closing. The IRS says eligible taxpayers use Form 8396; tax limits apply, and selling within nine years may require recapture. Ask a tax professional how an MCC could affect your return.
What should you verify before applying?
Before applying, verify the program, county limit, current lender approval, education requirement, and written assistance terms. A Texas mortgage license alone does not establish program participation.
Confirm the lender through TSAHC or TDHCA, then ask whether the lien is forgivable or repayable. TSAHC requires an approved course before closing; the TDHCA guide requires pre-purchase HUD-certified education.
I am licensed in Texas, but my license alone does not establish current TSAHC or TDHCA approval. If you are also comparing FHA, see my Texas FHA requirements guide and FHA loan overview. Those cover separate loan questions, not state-program eligibility.
Frequently asked questions
Can repeat buyers use TSAHC Home Sweet Texas?
Yes. TSAHC says Home Sweet Texas can serve first-time and repeat buyers. MCC rules differ.
Is down payment assistance always a grant?
No. Assistance may be a grant, forgivable lien, or repayable lien. The note controls.
Do all Texas programs use the same first-time-buyer rule?
No. Rules differ by program. My Choice Texas Home has no first-time requirement.
Are Texas income and purchase-price limits statewide?
No. Limits vary by county and program. Check the current table for the property's county.
When should I apply for an MCC?
Before closing. TSAHC says to apply before the loan closes; IRS advises early coordination.
Is homebuyer education required?
Yes. TSAHC requires an approved course before closing. TDHCA requires HUD-certified pre-purchase education.
Sources
Last verified October 29, 2026. Programs, limits and fees change, so confirm the current numbers before you rely on them.
- Home Sweet Texas program page, TSAHC
- Loans and down payment assistance, TSAHC
- Mortgage Credit Certificate rules, TSAHC
- County income and purchase-price limits, TSAHC
- TSAHC 2026 income-limit update
- Homebuyer education, TSAHC
- Lender Guide, TDHCA
- Combined income and purchase-price limits, TDHCA
- Form 8396, IRS
- Publication 530, IRS
If you have chosen a lender, start your application here.
Start your application hereI am Fabion Medhanie, U.S. Army Retired and a loan officer in Las Vegas. This is education, not a rate quote or a loan approval. Your loan options depend on your full file.
Looking in Nevada? See first-time buyer loans in Las Vegas, FHA loans in Nevada and Nevada down payment assistance.
