TSAHC My First Texas Home: The Complete Guide for San Antonio Buyers

The TSAHC My First Texas Home program is, in my experience, the single most useful down payment assistance tool available to San Antonio first-time buyers right now. It’s well-funded, it’s been running successfully for years, and it has real teeth — up to 5% of your loan amount in assistance that, under the grant option, you never have to repay.

Most buyers I talk to haven’t heard of it. That’s the gap this guide fills.

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What Is TSAHC?

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization created by the Texas Legislature to serve the housing needs of low-to-moderate-income Texans. It’s not a state agency in the typical sense — it’s a self-sustaining nonprofit that operates state-authorized programs. It has been providing down payment assistance and affordable mortgage rates to Texas buyers since 1994.

TSAHC’s My First Texas Home program is its primary first-time buyer offering. It pairs a below-market mortgage rate with down payment and closing cost assistance, delivered through a network of approved participating lenders across Texas.

How the Program Actually Works

Here’s the structure in plain English:

• You apply through a participating lender (not directly through TSAHC)
• The lender originates your mortgage using TSAHC funds, which typically come with a below-market interest rate
• You receive down payment and closing cost assistance of up to 5% of your total loan amount
• That assistance can come as a grant (no repayment required) or as a deferred second lien (repaid when you sell, refinance, or pay off the home)
• The program works with FHA, VA, USDA, and conventional loans

Let’s put numbers on it. If you’re purchasing a $250,000 home with an FHA loan and you receive 5% assistance:

This is the question I get asked most often about TSAHC. The program offers two forms of assistance:

Option A: The Grant

The grant is money you don’t pay back. Ever. Once you close, it’s yours — it was applied to your down payment and/or closing costs, and there’s no second loan, no lien, no repayment obligation. This is the option most buyers prefer, for obvious reasons.

Option B: Deferred Second Lien

The deferred second lien is a loan — but it’s a 0% interest loan with no monthly payments. You repay it when you sell the home, refinance, or pay off your first mortgage. If you stay in the home and never touch the loan, you won’t feel it until the day you sell.

Some buyers prefer this option because it may come with a slightly better interest rate on the first mortgage. A participating lender can model both scenarios for you so you can see the real numbers.

Who Qualifies for My First Texas Home?

Here are the key eligibility factors. Remember: these are general guidelines, and the specifics change. Always confirm current requirements with a TSAHC-approved lender.

Buyer Status

You must be a first-time homebuyer — defined as someone who has not owned a home as their primary residence in the past three years. This is the standard definition used by most federal and state housing programs. If you owned a home but sold it or moved out more than three years ago, you may still qualify.

Credit Score

Most TSAHC-participating lenders require a minimum 620 credit score. Some lenders may require higher. Your credit score also affects the interest rate you’ll receive and whether you qualify for the grant vs. the deferred lien option. Read our credit score guide →

Income Limits

TSAHC sets income limits by county and household size. These change periodically. For Bexar County (San Antonio), verify the current limits at tsahc.org. Your gross household income (all income-earning adults living in the home) must be at or below the applicable limit.

Purchase Price Limits

There are also maximum purchase price limits, which vary by county. Your lender will confirm whether the home you’re buying falls within the eligible range.

Property Requirements

• Must be your primary residence (no investment properties or vacation homes)
• Single-family homes, condos, and some townhomes are eligible
• Property must pass standard FHA/VA/conventional appraisal requirements

Homebuyer Education

An online homebuyer education course is required before closing. This is a few hours of your time and has real value — buyers who’ve done it consistently tell me they learned things they didn’t know. TSAHC accepts courses from HUD-approved providers.

How to Apply: The Step-by-Step Process

TSAHC vs. TDHCA: Which Program Is Better?

Both TSAHC My First Texas Home and TDHCA My Choice Texas Home are excellent programs with similar structures. The key differences:

• First-time requirement: TSAHC strictly requires first-time buyer status (or 3-year non-ownership). TDHCA’s program may allow some repeat buyers.
• Income limits: May differ between programs — your lender will check both.
• Participating lenders: The network of approved lenders may differ. Some lenders participate in both programs.

For a detailed comparison, read our TDHCA vs. TSAHC comparison guide →

Common Questions About TSAHC

Can I use TSAHC with a VA loan?

Yes — TSAHC works with VA loans. However, since VA loans already offer $0 down, the assistance would typically apply to closing costs rather than the down payment. This can still be very valuable for buyers who want to minimize their out-of-pocket costs at closing.

What if TSAHC funding runs out?

TSAHC is a well-funded program, but funding cycles do affect availability. If TSAHC’s program is temporarily closed when you’re ready to buy, there are alternative programs — TDHCA, SAHA, and other options. A knowledgeable lender will know what’s open and will pivot your approach accordingly.

Does using TSAHC affect the homes I can buy?

Yes — purchase price limits apply, and the property must meet the program’s requirements. Most standard single-family homes in San Antonio fall within eligible price ranges, but your lender will confirm before you start searching.