Homes for Texas Heroes Program: A Houston Buyer’s Guide

If you teach in a Houston-area classroom, wear a badge, fight fires, run EMS calls or served in the military, the Homes for Texas Heroes program from the Texas State Affordable Housing Corporation (TSAHC) was built with you in mind. I’m Clifton Saunders, and I help Deer Park and Houston families use programs like this one every week. Here’s a look at how it works, who qualifies and how to get started.

What Is the Homes for Texas Heroes Program?

Homes for Texas Heroes is a statewide home buyer program run by TSAHC, a nonprofit created by the State of Texas to help working families buy homes. It pairs a fixed-rate mortgage with optional down payment assistance (DPA), so you can keep more of your savings in the bank at closing.

According to TSAHC’s program page, eligible buyers can currently receive down payment assistance of up to 5% of the loan amount. That help comes in one of two forms:

• A grant that never has to be repaid, or
• A forgivable second lien that is fully forgiven after three years, as long as you don’t sell or refinance during that time.

There is also a “no DPA” option if you have your own down payment and simply want the program’s rate.

Who Counts as a Texas Hero?

TSAHC defines specific professions that qualify. As of this writing, the list includes:

• Professional educators (full-time public K-12 teachers, teacher aides, school librarians, counselors and school nurses)
• Peace officers and public security officers
• Firefighters and emergency medical services personnel
• Corrections officers, juvenile corrections officers and county jailers
• Allied health and nursing faculty members
• Veterans (including some active-duty service members and certain surviving spouses)

Each profession has its own definition, and some require proof such as a verification of employment. If you work for Deer Park ISD, Pasadena ISD, La Porte ISD, Houston ISD or a local police or fire department, there’s a good chance you fit. Veterans should also look at my Texas VA home loans page, because a $0-down VA loan may be the better fit for some buyers.

Key Requirements to Know Before You Apply

Here are the basics TSAHC lists today. Guidelines change, so treat these as a starting point and call me for the current version.

• Credit score: TSAHC currently lists a 620 minimum on government loans and 640 on conventional loans.
• Income and purchase price limits: Yes, there are limits, and they vary by county and household size. I’ll check the current Harris, Galveston, Brazoria or Fort Bend County figures for your exact situation.
• First-time buyer? Not always required. Some past homeowners can qualify, though certain options and targeted areas have different rules.
• Home buyer education: You’ll need to complete an approved home buyer education course.
• Primary residence: The home must be the place you live. Single-family homes, townhomes, condos and eligible manufactured homes can work.

If your credit needs a little work before you apply, start with my first-time home buyer Houston guide. Small changes in a few months can make a real difference.

Stack It With a Mortgage Credit Certificate

Here’s the part many buyers miss. First-time buyers using Homes for Texas Heroes may also qualify for a Mortgage Credit Certificate (MCC). TSAHC describes the MCC as a federal income tax credit equal to 15% of the mortgage interest you pay each year, which can put real money back in your pocket for as long as you keep the loan and live in the home. TSAHC also notes that Texas Heroes who use its DPA and MCC together get the MCC fee waived.

Read my full Mortgage Credit Certificate Texas guide for how the credit works, and talk with a tax professional about your own return.

How to Get Started in Houston

TSAHC doesn’t lend directly. You apply through a participating lender, and that’s where my team comes in. Here’s the simple path:

1. Call or text me at 281-978-2106 for a quick review of your profession, income and credit.
2. Get pre-approved and compare the grant, forgivable second lien and no-DPA options side by side.
3. Take the home buyer course early so it doesn’t slow down your closing.
4. Shop with a Realtor who knows how DPA closings work. Agents can find helpful resources on my Realtor tools page.

Want to compare every option in one place? My Houston down payment assistance guide covers TSAHC, TDHCA, City of Houston and Harris County programs. ¿Prefiere hablar en español? Eder Mora, our Senior Loan Partner, can help at 832-346-5427, or visit our préstamos hipotecarios en español page.

Frequently Asked Questions

Is the Homes for Texas Heroes down payment help really free?

The grant option never has to be repaid. The forgivable second lien is forgiven after three years if you don’t sell or refinance during that time. The rate can differ between options, so it’s worth comparing the full cost with your loan officer.

Can I use Homes for Texas Heroes if I’ve owned a home before?

Sometimes. TSAHC says some previous homeowners can qualify, but the Mortgage Credit Certificate is for first-time buyers. I can check your situation in a few minutes.

Do I have to be a teacher or police officer in Houston specifically?

No. It’s a statewide program, so eligible heroes anywhere in Texas can use it, as long as the home and household meet the county limits.

Ready to see if you qualify? Call or text me at 281-978-2106, or get started at www.CliftonSaunders.com. The Clifton Saunders Mortgage Team is in Deer Park at 106 East San Augustine Street, and we’d be proud to help the people who serve our community.

Clifton Saunders, NMLS #230688 | New American Funding, NMLS #6606 | Equal Housing Opportunity. Subject to credit approval; not all applicants will qualify. Programs and guidelines change; call or text 281-978-2106 for current details. This article is general information, not tax or legal advice.