Texas First-Time Buyer Programs: TSAHC, TDHCA, MCC, SETH Guide

Q: What first-time home buyer programs are available in Texas?

Texas first-time buyers have access to several state-level and regional programs. TSAHC (Texas State Affordable Housing Corporation) operates the Home Sweet Texas Home Loan Program, the Homes for Texas Heroes program for teachers, firefighters, police, EMS, veterans, and other public-service workers, and the Mortgage Credit Certificate (MCC) program for ongoing federal tax credit. TDHCA (Texas Department of Housing and Community Affairs) operates the My First Texas Home program for first-time buyers and the My Choice Texas Home program available to repeat buyers and higher-income first-time buyers. SETH (Southeast Texas Housing Finance Corporation) operates the 5-Star Texas Advantage and GoldStar programs with down payment assistance up to 5% of the loan amount. City of Austin operates a down payment assistance program for income-qualified Austin buyers. Each program has distinct income limits, home price limits, buyer qualification criteria, and Austin-area applicability.

Q: What is TSAHC and how does it help Texas first-time buyers?

TSAHC stands for Texas State Affordable Housing Corporation, a nonprofit chartered by the Texas Legislature to provide housing assistance to Texas residents. For first-time buyers, TSAHC's primary programs include the Home Sweet Texas Home Loan Program (fixed-rate mortgage with up to 5% down payment and closing cost assistance structured as a grant, not a repayable loan), Homes for Texas Heroes (same structure but with better rates and higher assistance for teachers, firefighters, police, EMS, veterans, nurses, correctional officers, and allied health faculty), and the TSAHC MCC (Mortgage Credit Certificate providing up to $2,000 annual federal tax credit for the life of the loan). TSAHC programs are available statewide including throughout the Austin metro area.

Q: What is the TDHCA My First Texas Home program?

My First Texas Home is a bond-funded first-time home buyer program operated by the Texas Department of Housing and Community Affairs (TDHCA). The program provides a 30-year fixed-rate mortgage with down payment and closing cost assistance structured as a second-lien loan that is typically forgivable or has favorable repayment terms depending on the specific sub-program. Eligibility includes first-time buyer status (not having owned a primary residence in the previous 3 years with certain veteran and targeted-area exceptions), income limits based on county and household size, home purchase price limits, buyer credit score requirements, and homebuyer education completion. The program is available throughout Austin and the broader Texas market.

Q: What is a Mortgage Credit Certificate (MCC) and does it help Austin first-time buyers?

A Mortgage Credit Certificate is a federal tax credit that allows eligible first-time buyers to claim a portion of their annual mortgage interest as a direct federal tax credit, as opposed to the standard mortgage interest deduction which only reduces taxable income. The MCC amount is typically 20-30% of annual mortgage interest paid, with the specific percentage set by the issuing agency and capped at $2,000 annually. Over the life of a 30-year mortgage this can produce $30,000-$60,000 of federal tax savings depending on loan size and interest rate. In Texas, MCCs are issued by TSAHC and TDHCA. The MCC can be combined with other first-time buyer programs including the Home Sweet Texas Home and My First Texas Home programs. Issue fees apply.

Q: Does the City of Austin have a down payment assistance program?

Yes. The City of Austin operates a down payment assistance program through the Austin Housing Finance Corporation and the Neighborhood Housing and Community Development department. The program provides significant down payment and closing cost assistance (historical amounts have ranged up to $40,000) to income-qualified buyers purchasing homes within Austin city limits. Eligibility requires household income at or below specific area median income percentages, first-time buyer status in most cases, completion of HUD-approved homebuyer education, and purchase of a primary residence within city limits. Assistance is typically structured as a forgivable loan with specific residency requirements. Funding availability and specific program parameters change periodically; verify current status with the Austin Housing Finance Corporation at the time of application.

Q: Who should I contact for Austin first-time buyer guidance?

Luke Allen (TREC #788149) represents Austin first-time home buyers across all submarkets and buying bands. 5.0 Google rating across 30 verified reviews. First conversation covers buying power, target neighborhood, timeline, and FTHB program applicability. Luke coordinates buyer representation and refers to Austin-area lenders experienced with TSAHC, TDHCA, SETH, and City of Austin programs for the loan-side application. Contact: Luke@austinmdg.com or 254-718-2567.

Every Texas FTHB program, in one directory

TSAHC, TDHCA, SETH, Mortgage Credit Certificate, City of Austin. Each program has distinct income limits, home-price caps, buyer eligibility, and assistance structure. The specific right program depends on your household income, target home price, and professional category.

By Luke Allen · TREC #788149 · Updated October 9, 2026

Match me to the right program

Program directory

Each row below summarizes a specific Texas FTHB program with the key eligibility and assistance parameters. Verify current specifics with the issuing agency before applying; program parameters change periodically.

Program

What it does

Assistance level

Buyer category

Home Sweet Texas HomeTSAHC

30-year fixed-rate mortgage with down payment and closing cost assistance. Grant structure (not repayable). Available statewide including Austin.

DPA grantUp to 5% of loan

BuyerFTHB or non-FTHB

Homes for Texas HeroesTSAHC

Same structure as Home Sweet Texas with enhanced rates and higher assistance for teachers, firefighters, EMS, police, veterans, nurses, correctional officers, allied health faculty.

DPA grantUp to 5% of loan

BuyerPublic-service worker

TSAHC MCCMortgage Credit Certificate

Federal tax credit for a portion of annual mortgage interest (typically 20-30%), capped at $2,000 annually. 30-year benefit. Can be combined with other TSAHC programs.

Benefit$2K/year federal tax credit

BuyerFTHB only

My First Texas HomeTDHCA

Bond-funded 30-year fixed mortgage with DPA structured as a second-lien loan with favorable or forgivable repayment. Statewide including Austin.

DPAUp to 5% of loan

BuyerFTHB only

My Choice Texas HomeTDHCA

Similar structure to My First Texas Home but open to repeat buyers and higher-income first-time buyers. Higher income limits.

DPAUp to 5% of loan

BuyerFTHB or repeat

TDHCA MCCMortgage Credit Certificate

Equivalent federal tax credit structure to TSAHC MCC but issued by TDHCA. Can be stacked with My First Texas Home or My Choice Texas Home.

Benefit$2K/year federal tax credit

BuyerFTHB only

SETH 5-Star Texas AdvantageSoutheast Texas Housing Finance Corp

30-year fixed mortgage with 3-5% DPA. Statewide despite the SETH name. No FTHB requirement in all cases.

DPA3-5% of loan

BuyerFTHB or repeat

SETH GoldStarSoutheast Texas Housing Finance Corp

Alternative SETH program with similar DPA structure. Different rate / assistance combination than 5-Star.

DPAUp to 5% of loan

BuyerFTHB or repeat

City of Austin DPAAustin Housing Finance Corporation

Austin-specific down payment assistance for income-qualified buyers purchasing within city limits. Historically significant assistance (up to $40,000 reported). Forgivable loan structure with residency requirement. Funding availability varies.

DPAUp to $40,000 (verify)

BuyerIncome-qualified

Four Texas FTHB agencies to know

Each program is operated by a specific agency with its own application process, lender network, and timing considerations.

Agency 1

TSAHC

Texas State Affordable Housing Corporation. Nonprofit chartered by the Texas Legislature. Operates the Home Sweet Texas Home Loan Program, Homes for Texas Heroes, and TSAHC MCC. DPA structured as a grant (not repayable), which is a meaningful advantage over second-lien structures.

Programs:Home Sweet Texas, Homes for Texas Heroes, TSAHC MCC

Agency 2

TDHCA

Texas Department of Housing and Community Affairs. State agency operating My First Texas Home (FTHB only) and My Choice Texas Home (open to repeat buyers). DPA structured as a second-lien loan with favorable or forgivable repayment terms depending on the specific sub-program.

Programs:My First Texas Home, My Choice Texas Home, TDHCA MCC

Agency 3

SETH

Southeast Texas Housing Finance Corporation. Despite the regional name, SETH programs are available statewide including the Austin metro. Operates the 5-Star Texas Advantage and GoldStar programs with DPA ranging 3-5% of loan amount.

Programs:5-Star Texas Advantage, GoldStar

Agency 4

City of Austin AHFC

Austin Housing Finance Corporation operating through the Neighborhood Housing and Community Development department. Austin-specific DPA for income-qualified buyers purchasing within city limits. Funding availability varies year to year; verify current status with AHFC at application time.

Programs:City of Austin DPA, specific neighborhood programs

Texas first-time buyer programs are not all created equal. The right program for a specific buyer depends on household income, target home price, professional category (teacher, veteran, etc.), and whether the buyer qualifies as technically first-time. The directory above summarizes the key programs; this section covers the practical considerations for choosing.

Not legal or financial advice Program parameters including income limits, home price limits, DPA amounts, and eligibility criteria change periodically. The information on this page describes general program structures as of the publish date for buyer-side scoping purposes. Verify current specifics with the issuing agency and consult with a lender for current rate and qualification analysis before application. Luke Allen is a Texas-licensed Realtor, not a mortgage lender or tax advisor.

How to choose the right program for your Austin purchase

The practical selection process runs through four questions. First: are you a technical first-time buyer (not having owned a primary residence in the previous 3 years, with veteran and targeted-area exceptions)? If yes, the full menu of programs is available. If no, My Choice Texas Home and SETH programs remain available.

Second: are you in a public-service profession eligible for Homes for Texas Heroes (teacher, firefighter, EMS, police, veteran, nurse, correctional officer, allied health faculty)? If yes, this program typically offers the best rate-and-assistance combination in TSAHC's lineup.

Third: is your target home within Austin city limits and your household income below the AMI thresholds for City of Austin DPA? If yes, the City of Austin assistance stacks with other programs and can produce substantial total assistance.

Fourth: are you planning to hold the home long enough to benefit from the MCC federal tax credit? The MCC provides $30K-$60K lifetime federal tax savings on a 30-year hold. If you plan to move within 3-5 years the MCC issue fees may not justify the shorter benefit period.

Who to contact

Luke Allen (TREC #788149): [email protected] or 254-718-2567. First conversation covers household income band, target home price, professional category for Heroes eligibility, and submarket preference. Luke refers to Austin-area lenders experienced with specific Texas FTHB programs for the loan-side qualification.

Common Texas FTHB program questions

What first-time home buyer programs are available in Texas?

TSAHC programs (Home Sweet Texas, Homes for Texas Heroes, TSAHC MCC), TDHCA programs (My First Texas Home, My Choice Texas Home, TDHCA MCC), SETH programs (5-Star Texas Advantage, GoldStar), and City of Austin DPA. Each has distinct income limits, home price limits, buyer qualification, and Austin-area applicability.

What is TSAHC and how does it help Texas first-time buyers?

Texas State Affordable Housing Corporation. Nonprofit chartered by the Texas Legislature. Home Sweet Texas (fixed-rate mortgage with up to 5% DPA as grant), Homes for Texas Heroes (same structure with better rates for teachers, firefighters, police, EMS, veterans, nurses), TSAHC MCC (up to $2,000 annual federal tax credit).

What is the TDHCA My First Texas Home program?

Bond-funded 30-year fixed-rate mortgage with DPA structured as a second-lien loan, operated by Texas Department of Housing and Community Affairs. Eligibility includes first-time buyer status (3-year lookback with exceptions), income and purchase price limits, credit score requirements, and homebuyer education completion.

What is a Mortgage Credit Certificate (MCC) and does it help Austin first-time buyers?

Federal tax credit allowing eligible first-time buyers to claim a portion of annual mortgage interest as direct federal tax credit (vs standard interest deduction). Typically 20-30% of annual mortgage interest, capped at $2,000 annually. On 30-year hold: $30K-$60K lifetime federal tax savings. Issued by TSAHC or TDHCA. Can combine with other first-time buyer programs.

Does the City of Austin have a down payment assistance program?

Yes. City of Austin DPA through Austin Housing Finance Corporation. Historical assistance up to $40,000 (verify current). Income-qualified buyers purchasing within Austin city limits. First-time buyer status in most cases. HUD-approved homebuyer education required. Forgivable loan with residency requirement. Funding availability varies year to year.

Who should I contact for Austin first-time buyer guidance?

Luke Allen (TREC #788149), Austin-based Realtor. 5.0 Google rating across 30 reviews. First conversation covers buying power, target neighborhood, timeline, FTHB program applicability. Refers to Austin-area lenders experienced with TSAHC / TDHCA / SETH / City of Austin programs. Contact: [email protected] or 254-718-2567.

Every Texas FTHB program, in one directory

Program directory

Four Texas FTHB agencies to know

TSAHC

TDHCA

SETH

City of Austin AHFC

How to choose the right program for your Austin purchase

Who to contact

Common Texas FTHB program questions

What first-time home buyer programs are available in Texas?

What is TSAHC and how does it help Texas first-time buyers?

What is the TDHCA My First Texas Home program?

What is a Mortgage Credit Certificate (MCC) and does it help Austin first-time buyers?

Does the City of Austin have a down payment assistance program?

Who should I contact for Austin first-time buyer guidance?

Match me to the right program