Quick Answer
TDHCA, the Texas Department of Housing and Community Affairs, runs the statewide homeownership programs: 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 mortgage interest. They are funded through participating lenders and change through the year, so we verify the current terms together. Ask Patrick how TDHCA programs would work for you.
Here is the money problem, Patriot Nation: the down payment and closing costs are the wall between you and your first Texas home. TDHCA, the Texas Department of Housing and Community Affairs, knocks that wall down with programs like My First Texas Home, which pairs a below-market fixed rate with down payment assistance up to 5% of the loan amount, and the Texas Mortgage Credit Certificate, a federal tax credit that shrinks your tax bill every year. Combine them and the savings stack up month after month.
My First Texas Home
My First Texas Home is the flagship program: a below-market fixed interest rate, typically a quarter to half a percent under market, paired with down payment assistance of up to 5% of the loan amount. The assistance can be structured as a forgivable grant that stays in the home for the required period, which is money that never has to be repaid if you follow the rules. It works with FHA, VA, USDA, and conventional loans through participating lenders.
The MCC tax credit
The Texas Mortgage Credit Certificate gives you a non-refundable federal tax credit worth 20% to 40% of the mortgage interest you pay each year, capped at $2,000 a year, for the life of the loan. That is not a deduction, it is a dollar-for-dollar credit against what you owe the IRS, so it acts like a monthly raise you collect at tax time. Used alongside My First Texas Home, the two programs attack the problem from both sides.
Eligibility
The programs are built for buyers who need the help, so the rules matter. You generally must be a first-time buyer, meaning no homeownership in the past three years, though there are exceptions. Income limits vary by county and household size, purchase price limits apply, and you need a minimum credit score, typically 620 or better. Your lender verifies all of this up front, so know your numbers before you apply.
How to apply
You apply through a TDHCA-approved lender, not directly to the state. Your lender determines eligibility, completes the application, and reserves the funds for your loan. Funds are limited and allocated on a first-come, first-served basis, which is why timing matters: the buyer who starts the process early gets the reservation, and the buyer who waits can miss the round.
Income limits
Income limits vary by county and household size and are updated regularly. For Bexar County, where San Antonio sits, a 1 to 2 person household and a 3 or more person household have different ceilings, and every county across the state has its own table. Check the current limits for the county where you want to buy with your lender before you build your budget around the program.
The combined benefit
Stacked together, the programs do serious work. The below-market rate lowers your monthly payment, the down payment assistance cuts your cash to close by up to 5%, and the MCC puts money back in your pocket at tax time year after year. That combination is how a first-time buyer turns a maybe into a closing date, Patriot Nation. Start with a participating lender and make it a great one.
Ask Patrick about TDHCA programs
Get a straight answer on TDHCA programs and whether you qualify.
