Down Payment Help: TSAHC Options For SA Buyers

Buying a home in San Antonio but short on cash for the down payment and closing costs? You have options. Texas State Affordable Housing Corporation, or TSAHC, offers programs that can reduce your upfront cost and even lower your annual tax bill. In this guide, you’ll learn what TSAHC provides, who qualifies in Bexar County, how to apply, and how local programs can work together. Let’s dive in.

TSAHC programs at a glance

TSAHC offers two main home loan programs with built‑in down payment help and an optional tax credit:

• Homes for Texas Heroes Home Loan Program. Designed for public‑service professionals, including teachers, law enforcement, firefighters, EMS, corrections, certain health faculty, and veterans. These are 30‑year fixed loans paired with assistance. Learn more in TSAHC’s program overview.
• Home Sweet Texas Home Loan Program. For eligible low to moderate income Texans statewide. Also a 30‑year fixed loan with assistance options. See the same TSAHC program overview.
• Mortgage Credit Certificate, or MCC. A separate benefit for eligible first‑time buyers that creates a dollar‑for‑dollar federal income tax credit based on a percentage of your annual mortgage interest. Get the basics in What is a Mortgage Credit Certificate.

How the assistance works

• Amount you can receive. TSAHC down payment assistance typically equals 3 percent, 4 percent, or 5 percent of your first‑lien loan amount, up to 5 percent total. See details in TSAHC’s assistance overview.
• Two formats. Assistance is provided as a grant you do not repay, or a deferred, forgivable second lien at 0 percent interest that can be forgiven after meeting occupancy and time requirements. It may be due if you sell, refinance, or move out early.
• Apply through a participating lender. You cannot apply directly to TSAHC. Start with TSAHC’s eligibility quiz and contact an approved lender listed there. See how to apply with TSAHC.

Who qualifies in Bexar County

Credit, income, and purchase limits

• Minimum credit score. TSAHC programs generally cite a minimum around 620. Lenders may require more depending on the loan type. See who is eligible.
• First‑time buyer rule. The MCC requires first‑time buyer status, with exceptions for qualified veterans and for purchases in Targeted Areas. TSAHC’s down payment programs may not require first‑time status, depending on the option.
• Income and price caps. TSAHC uses county‑specific income and purchase‑price limits that differ between Targeted and Non‑Targeted Areas and change periodically. In Bexar County, always verify whether the property sits in a TSAHC Targeted Area and confirm the correct limit for your household size. See TSAHC’s guidance on income limitations and ask your lender to confirm current figures.

Property and loan types

You can pair TSAHC assistance with FHA, VA, USDA, and many conventional loans when the lender participates. If you combine MCC with assistance, federal rules can add purchase‑price limits that your lender must manage. Review TSAHC’s guidance on eligible home and loan types.

Fees to expect

TSAHC lists typical program fees that may appear in your closing costs:

• Funding Fee, commonly around $250 for DPA
• Tax Service Fee, commonly around $75
• Compliance Review Fee, commonly around $200
• MCC issuance fee, commonly around $400

Texas Heroes using both DPA and MCC may receive the MCC at no charge. Some fees can be paid by the seller or financed into the loan, and amounts can change. See TSAHC’s program fees.

Why TSAHC matters in San Antonio

• Lower cash to close. Covering 3 to 5 percent of your loan can reduce or eliminate the down payment and help with closing costs.
• Tax savings with an MCC. TSAHC has cited a 20 percent MCC credit rate for locks on or after January 16, 2025, for a limited time. That increases the potential annual credit against your federal income tax. Always confirm the current rate. See MCC credit rate guidance.
• Helps with qualifying. MCC benefits can effectively improve your qualifying picture in underwriting since they reduce tax liability.

Stack TSAHC with San Antonio HIP

Many buyers pair TSAHC with the City of San Antonio’s Homeownership Incentive Program (HIP) when purchasing inside city limits. Local reporting for 2025 notes two tiers:

• HIP 80. Larger forgivable second‑loan assistance, up to about $30,000 for households at or below 80 percent AMI.
• HIP 120. Up to about $15,000 for households at or below 120 percent AMI with partial forgiveness.

HIP requires homebuyer education and coordination with a participating lender, and stacking rules vary. Review this local overview of San Antonio HIP programs and confirm details with the City and your lender early in the process.

Start‑to‑close timeline

1. Take the eligibility quiz and connect with a lender. TSAHC routes you to approved lenders who handle your application and registration. Start here: How to apply.

2. Get pre‑qualified. Plan on 1 to 7 days depending on how quickly you provide documents.

3. Complete homebuyer education. TSAHC requires a HUD‑approved course. Submit your certificate before closing.

4. Gather documents. Have ready: photo ID and Social Security numbers, last 2 years of W‑2s and tax returns, recent pay stubs, 2 to 3 months of bank statements, gift documentation if any, your education certificate, employment contact info, and contract plus HOA docs once under contract.

5. Lock your rate and register assistance. Your lender locks the loan and registers TSAHC DPA. If using an MCC, it must be requested before closing. See TSAHC’s note on MCC application timing.

6. Underwriting to closing. A straightforward file often closes in 30 to 45 days from mutual acceptance, but allow extra time for program registrations and any stacked local assistance.

Common tradeoffs to weigh

• More rules and paperwork. Income and purchase caps, Targeted Area distinctions, and extra forms add complexity that your lender will manage.
• Forgivable seconds have conditions. Deferred assistance is usually forgiven after you meet occupancy and time requirements. Selling, refinancing, or moving out before the forgiveness period can trigger repayment.

If you want a clear path through TSAHC and local options, a responsive team and an experienced lender make all the difference. If you are using a VA loan or qualify for the Texas Heroes program, having an advisor who understands both worlds can save time and stress.

Ready to run numbers and see what you qualify for in Bexar County? Connect with Scott Alexander for a no‑pressure game plan tailored to your timeline, loan type, and neighborhood goals.

FAQs

How much down payment help can I get from TSAHC?

• Up to 5 percent of your first‑lien mortgage amount, with common choices at 3, 4, or 5 percent.

Do I have to pay TSAHC assistance back?

• Grants are not repaid. Deferred, forgivable second liens can be forgiven after you meet occupancy and time requirements, but may be due if you sell, refinance, or move out early.

Can I use TSAHC with a VA loan or the City’s HIP program?

• Yes, TSAHC can pair with VA, FHA, USDA, and many conventional loans. Stacking with HIP is common, but rules vary, so coordinate early with your lender and the City.

What is an MCC and how much can it save me?

• An MCC creates a dollar‑for‑dollar federal tax credit equal to a percentage of your annual mortgage interest. TSAHC has cited a 20 percent credit rate for a limited time; confirm the current rate with your lender.

What minimum credit score do I need?

• TSAHC generally cites a minimum around 620, but specific lenders or loan products may require higher scores.

Where do I apply for TSAHC assistance?

• Start with TSAHC’s online eligibility quiz and then work with a TSAHC‑approved participating lender. TSAHC does not accept direct applications from borrowers.

Will using TSAHC delay my closing?

• It can add extra steps, fees, and documentation. With a prepared file and an experienced lender, most buyers still close in a typical 30 to 45 day window.