The Southeast Texas Housing Finance Corporation (SETH) runs three down payment assistance programs — 5 Star Texas Advantage, MyHome Plus, and Buyer Select. They look similar at a glance, but the differences in credit score and forgiveness timeline decide which one is right for you. Here’s the plain-English comparison.

What all three have in common

Each SETH program offers down payment and closing-cost assistance (generally up to 5% of your loan), has no first-time-buyer requirement and no maximum sales price, works with FHA, VA, USDA and conventional loans, and can add an extra $3,500 grant when combined with the SETH Mortgage Credit Certificate. All three are available across Texas except Travis County and the city limits of El Paso, Grand Prairie and McKinney.

The differences that matter

5 Star Texas Advantage — the flexible one

5 Star gives you a choice of structure: a second loan that’s forgiven after just 3 years, or a deferred-payment loan (with a lower rate) where the balance is due only on sale, refinance, or at the end of 30 years — no payments, no interest. Minimum credit score: 640. Best for buyers who want options and expect to be settled quickly.

MyHome Plus — the accessible one

MyHome Plus delivers up to 5% as a community second loan that’s fully forgiven after 10 years, with the lowest credit bar of the three — a 620 minimum. Best for buyers whose credit is still climbing, or who plan to stay put for the long haul.

Buyer Select — the broad one

Buyer Select provides assistance as a second lien that’s forgiven after 10 years, works with FHA, VA, USDA and Freddie Mac conventional loans, and has a 640 minimum credit score. A solid, flexible default for repeat and first-time buyers alike.

How to choose

Start with your credit score: under 640 points you toward MyHome Plus (620 minimum). If you’re at 640+, the question becomes timeline. Planning to stay a long time or want the lowest credit bar? A 10-year forgivable program (MyHome Plus or Buyer Select) is clean and simple. Want flexibility or think you might move sooner? 5 Star’s 3-year forgiveness or deferred option may fit better.

The forgiveness-timeline catch

With any forgivable-lien program, the assistance is only fully forgiven if you keep the home (and don’t refinance) through the forgiveness period — 3 years for 5 Star’s forgivable option, 10 years for MyHome Plus and Buyer Select. Sell or refinance early and you may repay some or all of it. As always, match the program to how long you’ll actually stay.

The bottom line

There’s no single “best” SETH program — there’s the best one for your credit, your timeline, and your goals. That’s a five-minute conversation. Tell me your numbers and I’ll line all three up side by side against your loan options and tell you which one leaves you better off. Reach out to compare.

This article is for educational purposes only and is not financial, tax, or legal advice. I am a licensed mortgage loan officer, not a financial advisor. Program terms are set by TSAHC/SETH and subject to change; confirm current details and your eligibility before deciding.

Related resources

• SETH 5 Star Texas Advantage
• SETH MyHome Plus
• SETH Buyer Select
• TSAHC Homes for Texas Heroes
• Talk to David

Frequently Asked Questions

What’s the difference between SETH 5 Star, MyHome Plus and Buyer Select?

5 Star (640 credit) offers 3-year forgiveness or a deferred option; MyHome Plus (620 credit) forgives after 10 years; Buyer Select (640 credit) also forgives after 10 years.

Which SETH program has the lowest credit requirement?

MyHome Plus, with a 620 minimum FICO.

Do SETH programs require you to be a first-time buyer?

No — all three are open to first-time and repeat buyers, with no maximum sales price.