Loans & Down Payment Assistance

The Homes for Texas Heroes and Home Sweet Texas Home Loan Programs are available for teachers, fire fighters, peace officers, veterans, and low and moderate-income homebuyers. These programs are available through a network of lenders across the state and all provide the following benefits:

  • A 30-year fixed interest rate mortgage loan
  • You do not need to be a first-time homebuyer
  • You do not need to live in the home for any set period of time

Three options are available to help individuals purchase a home: 

 
Standard Assistance Option
(5% DPA)
HFA Preferred ASSISTED Option
(5% DPA)
HFA Preferred UNASSISTED Option

Interest Rate

4.50%

5.125%

4.625%

Type of Loan

FHA, VA or USDA

Conventional

Conventional

Minimum Down Payment Required

3.5%

3.0%

3.0%

TSAHC Down Payment Grant (gift does not need to be repaid)

No

Available to Purchase a Home

Available to Refinance Existing Mortgage

FICO Score Requirements

640

640 / 660 / 680

(see below)

640 / 660 / 680

(see below)

Debt-to-Income 

(DTI) Ratio Maximums

  • FICO of 640 to 659 = 45% 
  • FICOs of 660 or greater = 50%

LTVs of 95% or Lower:

  • Minimum FICO score of 640 with a DTI of 45%
  • For those with a FICO score of 660 or greater, a DTI of 50% will be allowed

LTVs of 95.01 to 97%:

  • Minimum FICO score of 680 with a DTI of 45%

LTVs of 95% or Lower:

  • Minimum FICO score of 640 with a DTI of 45%
  • For those with a FICO score of 660 or greater, a DTI of 50% will be allowed

LTVs of 95.01 to 97%:

  • Minimum FICO score of 680 with a DTI of 45%
Upfront Mortgage Insurance Costs Yes No No

Lower Monthly Mortgage Insurance Premiums/Costs

No

Mortgage Insurance Cancellable at 78% LTV

No

Property Types
  • New or existing single family homes
  • Duplexes or fourplexes 
  • Condos and townhomes
  • Planned Unit Developments
  • Manufactured home 
  • New or existing single family homes
  • Townhomes
  • Planned Unit Developments 
  • New or existing single family homes
  • Townhomes
  • Planned Unit Developments
Payment Comparison Chart View Chart View Chart View Chart

 


Have questions?

Find answers to the most commonly asked questions here.

Key Steps to Qualify

  1. Take the Eligibility Quiz
  2. Attend a homebuyer education course
  3. Work with an approved lender