Buyer Programs · Texas
Texas Down Payment Assistance, Compared
Five programs from two agencies, all offering roughly 5%. The differences are in forgiveness timelines, credit floors, and one geographic exclusion that catches people out.
Overview
The headline number is the same. What happens afterward is not.
TSAHC and SETH both offer up to 5% of your loan amount, which makes the choice look like a coin flip until you read the repayment terms. TSAHC delivers help as either a true grant you never repay or a forgivable lien, and its Homes for Texas Heroes track adds a free Mortgage Credit Certificate — an annual federal tax credit that keeps paying every year you own the home, which is often worth more over time than the down payment help itself. SETH structures its assistance as forgivable seconds, but the clock differs: 5 Star forgives after three years, while MyHome Plus and Buyer Select forgive after ten. If you might move inside a decade, that distinction matters more than any percentage. The credit floors differ too — 620 for TSAHC Heroes, MyHome Plus and Home Sweet Texas, 640 for 5 Star and Buyer Select. And there is one trap worth knowing before you fall in love with a program: none of the three SETH programs is available in Travis County and inside the city limits of El Paso, Grand Prairie and McKinney. Buyers in Austin discover this late and often.
How to choose
The questions that actually decide it
- How long will you stay? Three-year forgiveness beats ten-year if there is any chance you move.
- What county are you buying in? All three SETH programs are excluded in Travis County and three city limits.
- What do you do for a living? Teachers, first responders and veterans get the free MCC through TSAHC.
- What is your credit score? 620 opens three of the five; 640 opens all of them.
- Is the house expensive? None of the three SETH programs has a maximum sales price.
- Do you want a grant or a lien? Only TSAHC offers assistance you never repay at all.
The programs
Two agencies, five programs
TSAHC Homes for Texas Heroes
2–5% as a grant or forgivable lien, plus a free MCC tax credit. Teachers, first responders, peace officers, corrections, EMS and veterans. See the program.
TSAHC Home Sweet Texas
Up to 5%, grant or forgivable lien. Income-based rather than occupation-based, so any job qualifies within county income limits. See the program.
SETH 5 Star Texas Advantage
Up to 5%, forgiven after just three years — the fastest forgiveness of the five. Not available in Travis County or in El Paso, Grand Prairie and McKinney city limits. See the program.
SETH MyHome Plus
Up to 5%, forgiven after ten years, 620 minimum credit, no first-time requirement and no maximum sales price. Same Travis County and city-limit exclusions as 5 Star. See the program.
SETH Buyer Select
Forgiven after ten years, 640 minimum credit, open to repeat buyers with no maximum sales price. Same Travis County and city-limit exclusions as 5 Star. See the program.
The MCC multiplier
A Mortgage Credit Certificate is an annual federal tax credit for as long as you own the home. Free with TSAHC Heroes. On the SETH programs, pairing the assistance with SETH’s MCC adds a $3,500 grant.
Not sure which Texas program fits?
Tell me your county, your occupation and how long you plan to stay. I will run all five side by side. Call (303) 557-3846 or start online.
Texas down payment assistance side by side
| Program | How much | Structure | Credit floor | Watch out for |
|---|---|---|---|---|
| TSAHC Homes for Texas Heroes | 2–5% of the loan | Grant (never repaid) or forgivable lien, plus a free MCC | 620 | Occupation-restricted — you must be in a qualifying profession |
| TSAHC Home Sweet Texas | Up to 5% | Grant or forgivable lien; MCC available for first-time buyers | 620 | Income limits vary by county |
| SETH 5 Star Texas Advantage | Up to 5% | Forgiven after 3 years, or deferred until sale, refinance or year 30 | 640 | Not available in Travis County or the city limits of El Paso, Grand Prairie and McKinney |
| SETH MyHome Plus | Up to 5% | Second lien, no payments, forgiven after 10 years | 620 | Ten-year clock — selling early means repaying; excluded in Travis County and 3 city limits |
| SETH Buyer Select | Up to 5% | Second lien, no payments, forgiven after 10 years | 640 | Higher credit floor; ten-year clock; excluded in Travis County and 3 city limits |
Before you pick a SETH program
The forgiveness-timeline catch
A forgivable lien is only fully forgiven if you keep the home, and don’t refinance, through the whole forgiveness period: three years on 5 Star’s forgivable option, ten years on MyHome Plus and Buyer Select. Sell or refinance early and you may repay some or all of it. 5 Star also offers a deferred version instead, with the balance due on sale, refinance or at the end of 30 years, with no payments and no accrued interest.
How to choose among the three SETH programs
- Credit under 640? MyHome Plus is the only SETH option (620 minimum).
- 640 or higher and staying a long time? A ten-year forgivable program (MyHome Plus or Buyer Select) is clean and simple.
- 640 or higher and might move sooner? 5 Star’s three-year forgiveness, or its deferred option, usually fits better.
- Buying in Travis County, or inside El Paso, Grand Prairie or McKinney city limits? None of the SETH programs apply. Start with TSAHC.
- Using a conventional loan with Buyer Select? It has to be a Freddie Mac conventional loan; FHA, VA and USDA also work.
All three SETH programs have no first-time-buyer requirement and no maximum sales price, but they do carry income limits.
Source: SETH program pages for 5 Star Texas Advantage, MyHome Plus and Buyer Select (sethfc.com, accessed September 2026). Terms are set by SETH and subject to change.
Common questions about Texas assistance
What is the difference between TSAHC and SETH?
TSAHC is the Texas State Affordable Housing Corporation and SETH is the Southeast Texas Housing Finance Corporation. Both offer up to 5% of your loan amount. The practical difference is structure: TSAHC can deliver help as a true grant you never repay and includes a free Mortgage Credit Certificate on its Heroes track, while SETH delivers forgivable second liens on a three-year or ten-year clock.
Which Texas program forgives the assistance fastest?
SETH 5 Star Texas Advantage, at three years. MyHome Plus and Buyer Select both take ten. TSAHC’s grant option is faster still in one sense — there is nothing to forgive because you never owed it. If there is a realistic chance you move within a decade, this is the single most important line in the comparison.
Can I use SETH assistance in Austin?
No. All three SETH programs (5 Star Texas Advantage, MyHome Plus and Buyer Select) are available statewide except Travis County and the city limits of El Paso, Grand Prairie and McKinney. Austin buyers need to look at TSAHC instead. This catches people late in the process more than any other Texas rule.
Do I have to be a first-time buyer for Texas down payment assistance?
Not for most of them. TSAHC’s down payment assistance, SETH MyHome Plus and SETH Buyer Select are all open to repeat buyers. The Mortgage Credit Certificate is generally the piece that carries a first-time buyer requirement, with exceptions for veterans and targeted areas.