The TSAHC Home Sweet Texas program is the most widely used and least understood down payment assistance tool in the San Antonio market — and the gap between what most buyers think it does and what it actually does is costing them thousands of dollars at closing. Most buyers who know about TSAHC know one thing: it provides money toward a down payment. What most buyers don’t know is that the assistance can be structured as a grant requiring zero repayment, that it’s available to repeat buyers not just first-timers, that it can be combined with an MCC tax credit saving up to $2,000 annually for first-time buyers, that the income limits in Bexar County for 2026 run up to approximately $112,000 for a family of three or more — well above what most buyers assume — and that targeted census tract addresses carry expanded income limits above even that. This guide covers everything San Antonio buyers need to know about Home Sweet Texas before they start their search.
Brock Bremmer | Real Estate Agent | eXp Realty | San Antonio Metro Area
Also see: SA First-Time Buyer Guide | Best Agent for First-Time Buyers
What Is TSAHC Home Sweet Texas?
The Texas State Affordable Housing Corporation (TSAHC) is a state-chartered nonprofit that provides mortgage loans and down payment assistance to Texas homebuyers. Home Sweet Texas is TSAHC’s program for low- and moderate-income buyers who don’t qualify under the Heroes profession categories — it’s the program for everyone else.
Here’s what the program actually delivers:
- 30-year fixed-rate mortgage loan through a TSAHC-approved lender — not a separate lender requirement, bundled into the same transaction
- Down payment assistance of 3%–5% of the loan amount — on a $290,000 purchase, that’s $8,700–$14,500 available toward down payment and closing costs
- Two assistance structures:
- Grant: Does not have to be repaid — ever. This is free money toward your purchase
- Deferred forgivable second lien: Only has to be repaid if you sell or refinance within three years. After three years of owner-occupancy, the second lien is forgiven entirely
- MCC (Mortgage Credit Certificate) available for first-time buyers — reduces your federal income tax liability by up to $2,000 annually for the life of the loan. Pair with Home Sweet Texas to maximize total financial benefit
- No first-time homebuyer requirement — repeat buyers qualify as long as they meet income and purchase price limits
- Minimum 620 credit score — 640 required for FHA manual underwrite and manufactured homes
Who Qualifies — Income Limits and Purchase Price Caps
Important: income limits and purchase price caps are updated annually and vary by county, household size, and whether your address falls in a targeted or non-targeted census tract. The figures below reflect 2026 guidance — always verify current limits at tsahc.org before making program decisions.
Bexar County (San Antonio) — 2026 approximate limits
- Household income limit (non-targeted areas): approximately $112,000 for a family of three or more
- Household income limit (targeted census tract areas): expanded above standard limit — verify at tsahc.org for your specific address
- Purchase price cap: approximately $350,000–$400,000 depending on program year and targeted vs non-targeted tract — verify current cap at tsahc.org
Comal County (New Braunfels, Bulverde, Spring Branch)
- Income limits differ from Bexar County — verify at tsahc.org for Comal County specifically
- Purchase price caps may differ — verify at tsahc.org before targeting New Braunfels or Bulverde under this program
Guadalupe County (Schertz, Cibolo, Seguin)
- Income and purchase price limits differ from Bexar County — verify at tsahc.org for Guadalupe County
Kendall County (Boerne, Fair Oaks Ranch)
- Higher home prices in Kendall County may push some properties above the purchase price cap — verify your specific target price at tsahc.org before committing to Boerne under this program
The targeted census tract advantage: Some addresses within each county fall in federally designated targeted census tracts — areas selected for economic development investment. Properties in targeted tracts carry expanded income limits and sometimes higher purchase price caps than standard non-targeted addresses in the same county. If your income is slightly above the standard limit for your county, check whether your target property address falls in a targeted tract at tsahc.org before assuming you don’t qualify.
How Much Does Home Sweet Texas Actually Give You?
Concrete examples at San Antonio metro price points:
| Purchase price | Loan amount (5% down conv.) | TSAHC 5% grant | Remaining out-of-pocket |
| $255,000 (Converse/Universal City) | $242,250 | ~$12,113 | Covers most of down payment; closing costs typically seller-covered with concessions |
| $285,000 (Leon Valley) | $270,750 | ~$13,538 | Covers down payment; closing costs partially covered |
| $315,000 (Schertz entry) | $299,250 | ~$14,963 | Covers 5% down payment entirely; additional closing cost coverage from seller concessions |
| $350,000 (Alamo Ranch mid-range) | $332,500 | ~$16,625 | Covers 5% down payment; check current purchase price cap at tsahc.org for Bexar County |
The stacking strategy: TSAHC grant covers the down payment → seller concessions (2%–3% in current buyer’s market) cover closing costs → buyer’s out-of-pocket approaches zero. At $285,000 with a 5% TSAHC grant and 3% seller concession, a qualifying buyer can close with approximately $0–$2,000 out of pocket. This is not a theoretical scenario — it’s a repeatable transaction structure Brock has executed throughout the SA metro.
Home Sweet Texas vs TSAHC Homes for Texas Heroes — Which Is Right for You?
| Feature | Home Sweet Texas | Homes for Texas Heroes |
| Who qualifies | Any qualifying income buyer | Military, teachers, fire/EMS, police, corrections, nurses |
| First-time buyer required | No | No |
| Assistance amount | 3%–5% of loan amount | 3%–5% of loan amount |
| Grant option | Yes | Yes |
| MCC available | Yes (first-time buyers) | Yes (first-time buyers) |
| Income limits | Bexar County ~$112,000 | Often higher than HST limits |
| Credit score minimum | 620 | 620 |
If you qualify for Texas Heroes (military, teacher, nurse, firefighter, police, corrections officer, EMS), use that program — it often carries higher income limits than Home Sweet Texas, giving more buyers access. Home Sweet Texas is for everyone else. If you’re unsure which applies, Brock’s lender connections can run both scenarios and identify which produces the better outcome for your specific income, loan amount, and target property. See our dedicated VA and military buyer resources for the Heroes program specifics.
The MCC — The Benefit Most Home Sweet Texas Users Miss
First-time buyers who use Home Sweet Texas can also apply for a Mortgage Credit Certificate (MCC) — and most don’t because they’ve never heard of it.
The MCC is a federal tax credit — not a deduction, but a direct reduction in your annual federal income tax liability — equal to 20%–40% of the mortgage interest you pay each year, up to $2,000 annually. Unlike a tax deduction that reduces taxable income, a tax credit reduces the actual tax you owe dollar-for-dollar.
How it works in practice:
- First-year mortgage interest on a $270,000 loan at 6.5%: approximately $17,347
- MCC credit at 20% (typical rate): approximately $3,469 — but capped at $2,000
- Annual federal tax reduction: $2,000 every year for the life of the loan
- Over a 7-year first-time ownership period: $14,000 in cumulative federal tax savings
The MCC must be applied for at the same time as the Home Sweet Texas loan — it cannot be added after closing. Income and purchase price limits apply and must be verified through the TSAHC Eligibility Quiz at tsahc.org. Brock connects first-time buyers with TSAHC-approved lenders experienced in combined HST + MCC transactions as standard practice.
How to Apply — The Step-by-Step Process
- Check eligibility: Complete the TSAHC Eligibility Quiz at tsahc.org — takes approximately 5 minutes. Determines whether you qualify under Home Sweet Texas or Texas Heroes and whether an MCC is available for your situation
- Find a TSAHC-approved lender: Home Sweet Texas is only available through TSAHC-participating lenders — not every lender in SA offers it. Brock connects every buyer who needs TSAHC financing with lenders who regularly close these transactions and know the program’s specific documentation requirements
- Get pre-approved: TSAHC pre-approval follows standard mortgage pre-approval with additional income documentation to verify qualification against county income limits. Gather W-2s, tax returns, pay stubs, and bank statements before starting the process
- Choose grant vs second lien: Decide with your lender whether the grant structure (no repayment ever) or the deferred forgivable second lien (no repayment if you stay 3 years) is better for your situation. Most buyers in SA choose the grant — the simplicity and zero repayment risk outweigh the marginal rate difference
- Apply for MCC simultaneously: If you’re a first-time buyer, apply for the MCC at the same time as the Home Sweet Texas loan — not after. This is a time-sensitive step that cannot be corrected after closing
- Make your offer: With TSAHC pre-approval in hand, make your offer including seller concession request (2%–3% toward closing costs in the current buyer’s market). TSAHC-backed offers are accepted throughout the SA metro — sellers in most communities are familiar with program financing
- Close: TSAHC transactions typically add 5–10 days to the standard 30–45 day closing timeline for program processing. Plan your search timeline accordingly
Which San Antonio Communities Work Best With Home Sweet Texas
The program’s purchase price cap (approximately $350,000–$400,000 for Bexar County, verify at tsahc.org) makes it best suited for the metro’s affordable-to-mid-range communities. Optimal fit by community:
- Best fit: Converse ($243,000–$275,000), Universal City ($255,000–$289,000), Live Oak ($250,000–$330,000), Leon Valley ($260,000–$334,000), Seguin ($210,000–$316,000), Marion ($319,000–$371,000), Castroville ($249,300–$300,000)
- Good fit (verify purchase price cap): Cibolo ($295,000–$360,000), Schertz entry ($300,000–$350,000), Alamo Ranch entry ($295,000–$345,000), San Marcos ($303,500–$320,000)
- May exceed purchase price cap — verify: Helotes ($370,000+), Boerne ($450,000+), New Braunfels mid-range and above ($340,000+), Stone Oak ($400,000+)
Targeted census tract addresses within any county may qualify at higher purchase prices — check your specific address at tsahc.org before eliminating a property based on price alone.
Frequently Asked Questions: TSAHC Home Sweet Texas
Do I have to be a first-time buyer to use Home Sweet Texas?
No — Home Sweet Texas is available to first-time and repeat buyers who meet the income and purchase price requirements. This is one of the most commonly misunderstood aspects of the program. The MCC tax credit, however, is only available to first-time buyers (or buyers who haven’t owned a home in the past three years). Repeat buyers can still access the grant or second lien assistance without the MCC.
Is the TSAHC assistance a loan I have to repay?
It depends on which structure you choose. The grant option requires zero repayment — ever. The deferred forgivable second lien requires repayment only if you sell or refinance within three years. After three years of continued owner-occupancy, the second lien is forgiven entirely. Most San Antonio buyers choose the grant structure for its simplicity and zero repayment risk. Your TSAHC-approved lender will explain the rate difference between the two structures — the grant option typically carries a slightly higher interest rate than the second lien option.
What income limit applies to Home Sweet Texas in San Antonio?
In Bexar County (San Antonio), the 2026 household income limit is approximately $112,000 for a family of three or more — well above what most buyers assume. Income limits vary by county and household size and are updated annually. Targeted census tract addresses carry expanded income limits above the standard cap. Always verify current limits at tsahc.org for your specific county and household size before assuming you don’t qualify. See our San Antonio first-time buyer guide for the complete program comparison.
Can I combine Home Sweet Texas with a VA loan?
TSAHC’s Homes for Texas Heroes program is specifically designed for veterans and military buyers and offers the same 5% assistance structure. Eligible military buyers should apply under Texas Heroes rather than Home Sweet Texas — Heroes often carries higher income limits. The grant can be stacked with VA financing to cover closing costs and prepaid expenses that the VA loan itself doesn’t eliminate. See our VA Loan Guide for how assistance programs interact with VA financing.
Ready to Use TSAHC Home Sweet Texas?
Brock Bremmer with eXp Realty connects San Antonio buyers with TSAHC-approved lenders, identifies which program structure produces the best outcome for their specific situation, verifies income eligibility against current county limits, and structures offers with seller concessions that stack with TSAHC assistance to minimize cash-to-close.
- 📞 Call or text: 210-501-5088
- 📧 Email: [email protected]
- 🌐 Website: brockbremmer.com
- 📅 Schedule a free consultation
Also see: First-Time Buyer Guide | Best Agent First-Time Buyers | VA Loan Guide | Property Taxes in SA | Cost of Living in SA