TSAHC Grant Guidance for Texas Hill Country Public Servants

The Texas State Affordable Housing Corporation is a nonprofit created by the Texas Legislature in 1994 to help low-to-moderate income Texans become homeowners. It does not lend money directly. Instead, it partners with a network of approved mortgage lenders who offer TSAHC-backed loan programs with built-in down payment assistance — either as a non-repayable grant or a forgivable second lien.

The core problem TSAHC solves: saving for a down payment and closing costs is the single biggest barrier to homeownership for first-time buyers. A 5% down payment on a $300,000 home is $15,000, and closing costs can add another $6,000 to $9,000. TSAHC's assistance covers a significant portion of that gap, making it possible for teachers, first responders, and other public servants to buy homes they might otherwise be priced out of.

Two main programs exist: Homes for Texas Heroes, designed for people in specific community-serving professions, and Home Sweet Texas, available to any qualifying low-to-moderate income first-time buyer regardless of occupation.

Both programs offer the same mortgage terms and down payment assistance options. The difference is eligibility: Heroes targets specific professions defined by the Texas Legislature, while Home Sweet Texas is income-based and open to anyone who qualifies.

First-Time Buyer Definition

Under TSAHC guidelines, a first-time homebuyer is anyone who has not owned a home in the previous three years. This is broader than many people assume. If you sold a home in California four years ago and have been renting since, you qualify as a first-time buyer. If you jointly owned a home with a former spouse and haven't owned individually in three years, you also qualify.

Credit Score Requirements

TSAHC requires a minimum credit score of 620 for all loan types — FHA, VA, USDA, and conventional. This is the hard floor. If your score is below 620, you need to improve it before applying. For reference, FHA loans (the most common TSAHC vehicle) also require mortgage insurance, but the credit threshold is lower than many conventional loan programs.

Property Price Limits

TSAHC does not impose a strict purchase price limit for its down payment assistance programs. However, the Mortgage Credit Certificate (MCC) option — which provides an annual federal tax credit — does have county-specific purchase price caps. The practical limit is your qualifying loan amount, which is determined by the lender based on your income, debts, and the appraised value. In the Hill Country market, homes in the $250,000 to $450,000 range are typical for TSAHC-assisted buyers.

Income Limits

Income limits are the primary qualifying factor and vary by county, household size, and whether the property is in a "targeted area" (typically census tracts designated by HUD as low-to-moderate income). Both Kendall County and Bexar County have areas that qualify as targeted. The table below shows the baseline income thresholds. Your TSAHC-approved lender will confirm your exact limits during the eligibility consultation.

Homebuyer Education

All TSAHC borrowers must complete a homebuyer education course before closing. This is typically a single-day workshop or online course covering budgeting, credit management, the mortgage process, homeownership maintenance, and fair housing. Your approved lender will direct you to an approved course provider. The cost is usually $50 to $100 and can often be completed online in a few hours.

The Homes for Texas Heroes program is designed specifically for people who serve their communities in essential roles. Qualifying for this program gives you access to the same loan terms and down payment assistance as the Home Sweet Texas program, but your profession is the gateway — income limits still apply, but the program is built around your career.

Teachers and School Staff

This is the largest category of Heroes beneficiaries in the Hill Country. The program covers all public school employees classified as "professional educators" under Texas Education Code:

• Teachers — classroom teachers at any public school (Boerne ISD, Northside ISD, Comal ISD, Randolph Field ISD, etc.)
• Teacher aides and paraprofessionals — full-time employees of a public school district
• School librarians — employed by a public school district
• School counselors — licensed professional counselors employed by a public school
• Full-time school nurses — employed by a public school district

In the Boerne-Fair Oaks Ranch-San Antonio corridor, the major school districts that employ Heroes-eligible staff include Boerne ISD, Northside ISD (the largest in the area), North East ISD, Comal ISD, and Randolph Field ISD. If you work in any of these districts — or any Texas public school — you qualify for the Heroes program.

Police Officers and Firefighters

Peace officers, police officers, and firefighters employed full-time by a Texas city, county, or state agency all qualify. This includes:

• Municipal police officers — Boerne PD, Fair Oaks Ranch PD, San Antonio PD, and any other Texas municipal department
• County sheriff's deputies — Kendall County Sheriff, Bexar County Sheriff's Office
• Firefighters — career (paid) firefighters employed by any Texas fire department or district
• EMS personnel — paramedics and emergency medical technicians employed full-time by a public entity

Corrections Officers

A frequently overlooked category. The following professions qualify under the Heroes program:

• Corrections officers — state or federal correctional facilities
• County jailers — employed by a Texas county
• Juvenile corrections officers — employed by the state or a county juvenile facility
• Public security officers — as defined under the Texas Government Code

San Antonio is home to multiple state correctional facilities and the Bexar County Jail, making this a significant category for Hill Country buyers who work in corrections and commute from Boerne or Fair Oaks Ranch.

Medical Professionals

TSAHC's Heroes program covers a narrower range of medical professionals than most people expect:

• Nursing faculty — full-time faculty members at public or private institutions of higher education who teach nursing
• Allied health faculty — full-time faculty at institutions of higher education teaching allied health programs (e.g., respiratory therapy, radiologic technology, dental hygiene)

This does not include bedside nurses, lab technicians, pharmacists, or other hospital-based medical professionals under the Heroes program. However, medical professionals who don't qualify for Heroes still have access to the Home Sweet Texas program, which offers identical loan terms and down payment assistance based on income rather than profession.

For those working at major Hill Country employers — University Health SA (UTHSA), Methodist Hospital, Baptist Health System, orCHRISTUS Santa Rosa — Home Sweet Texas remains a strong pathway to homeownership with the same DPA benefits.

Veterans and Active Military

Veterans and active-duty military members qualify for the Heroes program. This is in addition to VA loan benefits, which can be stacked with TSAHC down payment assistance. A veteran using a VA loan with zero down payment through TSAHC could receive up to 5% of the loan amount as a grant — effectively covering all closing costs and then some.

TSAHC provides down payment assistance in two forms, and understanding the difference matters. Both are calculated as a percentage of your first mortgage loan amount — you choose 3%, 4%, or 5%.

Option 1: The Grant

A straight grant means the money is yours. No repayment, no lien, no strings — with one condition: if you refinance or pay off the first mortgage within the first six months, the grant must be repaid. After six months, it's yours permanently. There are no monthly payments, no interest, and no balance to worry about at closing or when you sell.

On a $300,000 loan, a 5% grant = $15,000 toward your down payment and closing costs.

Option 2: The 3-Year Deferred Forgivable Second Lien

This option records a second lien on your property equal to the DPA amount. It carries 0% interest and no monthly payments. After you've lived in the home as your primary residence for three continuous years, the lien is forgiven in full — the debt disappears.

The catch: if you sell, refinance, or transfer the title before the three-year mark, you must repay the full amount. This is structured as a safety net, not a penalty. The three-year clock starts at closing and runs continuously.

What Happens When You Sell or Refinance

With the grant: nothing. The grant is yours. Selling or refinancing after six months triggers no obligation.

With the forgivable lien: if you sell or refinance before the three-year anniversary, you repay the DPA amount from your sale proceeds. If you wait until after three years, the lien is forgiven and you owe nothing — even if you sell the next day.

This means if you're reasonably confident you'll stay in the home for at least three years, the forgivable lien and the grant are functionally equivalent. The grant has a slight edge because there's no lien to record and no scenario (other than the six-month window) where repayment is triggered.

The Primary Mortgage: Fixed-Rate, 30-Year Terms

TSAHC-approved lenders offer 30-year fixed-rate mortgages through FHA, VA, USDA, and conventional programs. The interest rate is set by the lender and the market — TSAHC does not cap or subsidize the rate on the first mortgage. What TSAHC provides is the DPA structure on top of the standard mortgage. In practice, this means your monthly payment is the same as any conventional 30-year fixed mortgage, with the added benefit of having your down payment covered by the grant or forgivable lien.

TSAHC income limits are based on the Area Median Family Income (AMFI) as determined by HUD and vary by county and household size. The limits below reflect HUD's FY2025 income data for the relevant metro areas. Your TSAHC-approved lender will confirm your exact qualifying limit during the application process, as these figures are updated annually.

Kendall County (Boerne, Fair Oaks Ranch)

Kendall County is classified as its own HUD Metro FMR Area. Income limits below are based on HUD FY2025 data for the Kendall County area.

Source: HUD FY2025 Adjusted Home Income Limits, Kendall County TX HUD Metro FMR Area. TSAHC-specific limits for non-targeted and targeted areas may differ — verify with your approved lender.

Bexar County (San Antonio)

Bexar County is part of the San Antonio-New Braunfels, TX HUD Metro FMR Area. Income limits below are based on HUD FY2025 data for this MSA.

Source: HUD FY2025 Adjusted Home Income Limits, San Antonio-New Braunfels TX HUD Metro FMR Area. TSAHC-specific limits for non-targeted and targeted areas may differ — verify with your approved lender.

TSAHC does not accept applications directly from homebuyers. The entire process runs through approved mortgage lenders. Here is the timeline and what to expect at each stage.

Step 1: Find a TSAHC-Approved Lender

Start by identifying a lender in the TSAHC network. TSAHC publishes a list of approved lenders on its website. In the Hill Country market, several regional and national lenders participate. Your real estate agent — especially one with Texas Affordable Housing Specialist training — can recommend lenders who regularly process TSAHC loans and understand the program nuances.

Step 2: Get Pre-Approved

The lender will pull your credit, verify your income and employment, and issue a pre-approval letter. This is where you learn whether you meet the 620 minimum credit score, whether your household income falls within the county limits, and which loan program (FHA, VA, USDA, or conventional) is the best fit.

The pre-approval also determines which DPA option — grant or forgivable lien — your lender will structure into the loan. You do not need to decide this in advance; the lender will walk you through the tradeoffs.

Step 3: Complete Homebuyer Education

You must complete an approved homebuyer education course before closing. Your lender will connect you with an approved provider. Options include:

• Online courses (typically $50–$100, completable in 3–5 hours)
• In-person workshops offered by HUD-approved counseling agencies in San Antonio and Boerne
• Some lenders offer bundled education as part of their TSAHC program

Step 4: Shop for a Home

Once pre-approved, you shop with a clear budget and a verified DPA allocation. Your buyer's agent can show you properties that fit the TSAHC framework. There is no restriction on neighborhood, property type (single-family, condo, townhome), or price range — the limits are on your income, not the home's price.

Step 5: Under Contract and Processing

Once your offer is accepted, the lender processes the loan with the DPA structure built in from day one. The forgivable second lien is recorded at closing alongside the first mortgage. The grant is disbursed at closing to cover your down payment and closing costs.

Typical timeline from pre-approval to closing: 30 to 45 days, depending on the property and lender workload.

Documents You'll Need

• Last 30 days of pay stubs
• Last two years of W-2s and tax returns
• Two months of bank statements (all accounts)
• Government-issued photo ID
• Proof of employment and income verification
• If applicable: DD-214 (veterans), teaching certificate or school district employment verification, law enforcement credentials
• Completed homebuyer education certificate

Navigating a TSAHC-assisted purchase is straightforward once you understand the program, but having a buyer's agent who knows the process eliminates the friction points that trip up first-time buyers.

What Bill Does for TSAHC Buyers

• Lender coordination — Bill works with TSAHC-approved lenders regularly and knows which ones process these loans efficiently in the Hill Country market. Lender speed matters: a slow lender can delay closing or cause you to miss rate locks.
• Transaction compliance — TSAHC loans have specific requirements around timing, documentation, and lender approvals. Bill ensures the purchase contract and timeline align with TSAHC processing requirements, so there are no surprises at closing.
• Market knowledge for first-time buyers — First-time buyers often need guidance on which neighborhoods and property types work best for their budget. Bill's deep knowledge of the Boerne, Fair Oaks Ranch, and San Antonio markets helps buyers find homes that meet their needs and fit within TSAHC income and loan parameters.
• Homebuyer education referral — Bill connects buyers with approved education providers so the requirement is completed on schedule.
• Cross-state coordination — For California relocators using TSAHC, Bill coordinates timing between the California sale and Texas purchase, ensuring the DPA is available at closing and the two transactions align.

Bill holds the Texas Affordable Housing Specialist designation, which means he has specialized training in affordable housing programs, down payment assistance, and the specific needs of first-time buyers.