Quick Answer
Texas does not have CHFA; that is Colorado's program. Our version is TDHCA, the Texas Department of Housing and Community Affairs, which runs My First Texas Home with below-market rates and up to 5% down payment assistance, plus the Texas Mortgage Credit Certificate that gives you a dollar-for-dollar tax credit on interest. We use these through participating lenders all the time. Ask Patrick how the Texas CHFA program would work for you.
Here is the money problem, Patriot Nation: you heard about CHFA, a program that helps first-time buyers, and you are hoping Texas has one. Straight answer: Texas does not have CHFA, that is Colorado's program. Texas runs its own through TDHCA, and it is worth knowing.
TDHCA, the Texas Department of Housing and Community Affairs, offers My First Texas Home with below-market rates and down payment assistance up to 5%, plus the Texas Mortgage Credit Certificate, a tax credit on your mortgage interest.
These programs are delivered through participating lenders and are built for qualifying first-time buyers.
The savings stack: a better rate, help with the down payment, and a tax credit, all on one purchase.
TDHCA Programs
TDHCA is the Texas equivalent of other states' housing finance agencies. They administer federal and state funds for affordable homeownership programs throughout Texas.
What it means: every state has a housing finance agency, and Texas's is TDHCA. It is the machine behind the state's first-time buyer programs.
The money angle: the programs exist to lower your rate, your down payment, or your taxes, and the savings are real dollars on a real purchase.
Real-world consequence: the programs are funded and capped, so timing and a participating lender matter. We check availability before you plan around it.
My First Texas Home
My First Texas Home offers below-market fixed interest rates and down payment assistance up to 5% of the loan amount. Available for FHA, VA, USDA, and Conventional loans. Must use a participating lender.
The meaning: this is the flagship program: a below-market rate plus down payment assistance up to 5%, wrapped into one mortgage.
The money angle: 5% assistance on a $300,000 home is $15,000 toward your down payment, and the below-market rate trims the payment for the life of the loan.
Real-world consequence: it works with FHA, VA, USDA, and conventional loans, so the program bends to your loan, not the other way around.
Texas MCC
The Texas Mortgage Credit Certificate (MCC) provides a federal tax credit worth 20-40% of annual mortgage interest paid. This can save qualifying buyers $1,500-$2,000/year in federal taxes.
What it means: the MCC turns part of your mortgage interest into a dollar-for-dollar federal tax credit, not just a deduction.
The money angle: a $1,500 to $2,000 annual credit is $125 to $165 a month of effective savings, which is real breathing room in the budget.
Real-world consequence: the credit applies every year you own the home and hold the certificate, so the savings compound over your ownership.
Eligibility Requirements
Income limits vary by county and household size. Purchase price limits apply. Must be a first-time buyer (or not owned a home in 3 years). Must complete a homebuyer education course.
What it means: the programs target buyers who need the help: income and price caps, a first-time buyer definition, and a required education course.
The money angle: the caps decide eligibility, and the education course is a small time cost for a large financial benefit.
Real-world consequence: the first-time buyer definition includes anyone who has not owned a primary home in the last 3 years, so a past owner can still qualify. We verify your county's numbers before you plan.
How to Apply
Work with a lender approved to offer TDHCA programs. Your lender handles the application. The programs are funded on a first-come, first-served basis, so early application is important.
What it means: you cannot apply directly to the state. You apply through a participating lender, and your lender manages the whole process.
The money angle: funding is first-come, first-served, so the buyer who starts early locks the benefit and the one who waits may miss the window.
Real-world consequence: I work with approved lenders and we get your file in line early, so the program is there when you are ready to close.
Benefits for Buyers
The combination of below-market rates, DPA, and MCC can make homeownership significantly more affordable. How much you save depends on your loan amount, rate, and tax situation, so it is worth running the numbers with a participating lender.
The meaning: the three pieces, rate, down payment help, and tax credit, stack into one affordability package.
The money angle: the exact savings depend on your loan size and tax situation, so we run your real numbers, not a generic estimate.
The play: bring your income, credit, and target price, and I will show you which Texas program fits and what it saves you every month and every year. Make it a great one, Patriot Nation.
Check my Texas homebuyer assistance options
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