If you teach, put out fires, run an ambulance, wear a badge, or served in uniform, Texas has a program that can hand you up to 5% of your loan amount to cover your down payment and closing costs — and you can take it as a grant you never pay back. It’s called Homes for Texas Heroes, it’s run by the Texas State Affordable Housing Corporation (TSAHC), and two things surprise almost everyone who learns about it: you don’t have to be a first-time buyer, and it works with the loan you were probably going to use anyway. Here’s exactly how it works and who qualifies.
What is Homes for Texas Heroes?
Homes for Texas Heroes is a homebuyer assistance program from TSAHC, a self-supporting nonprofit created by the Texas Legislature. The program does two things: it pairs you with a fixed-rate mortgage, and it gives you money toward the down payment and closing costs — the single biggest wall between renters and ownership.
That assistance is worth up to 5% of your loan amount (TSAHC). On a typical Texas purchase, that’s real money arriving at exactly the moment it’s hardest to come up with.
Olympus originates this loan as your lender. TSAHC administers the assistance. To be clear: Olympus Financial is not a government agency and is not affiliated with, endorsed by, or acting on behalf of TSAHC, the Department of Veterans Affairs, or any government agency — we’re the mortgage broker that helps you use the program.
Who counts as a “hero”?
More people than you’d think. The “hero” list is broad, and a lot of Texans who qualify never realize it. Per TSAHC, eligible professions include:
- Educators — full-time in a public school district: teachers, teacher aides, school librarians, school counselors, and school nurses
- First responders — police officers, firefighters, and EMS personnel
- Corrections — county jailers and correctional officers
- Veterans and active-duty military
If you’re a teacher’s aide or a school librarian and assumed “hero” programs weren’t for you, read that list again. You’re on it.
And if your job isn’t on the list, don’t stop reading — TSAHC runs a companion program, Home Sweet Texas, that offers the same kind of down payment assistance to other buyers who meet the income limits. Same mechanics, wider door.
Do I have to be a first-time buyer?
No — and this is the detail almost everyone gets wrong. The down payment assistance in Homes for Texas Heroes is open to both first-time and repeat buyers (TSAHC). If you owned a home years ago, sold, and are buying again, you’re not disqualified.
First-time status only matters for one add-on benefit — the Mortgage Credit Certificate (more on that below) — not for the assistance itself.
The grant vs. the forgivable second lien — what’s the difference?
You choose how to take the assistance, and the choice matters:
- As a grant — the money is yours. You never repay it, no matter when you sell or refinance. This option is available when you use FHA, VA, or USDA financing.
- As a deferred, forgivable second lien — a $0-payment second loan that is fully forgiven after you’ve owned the home for three years. You’d only repay it if you sell or refinance within those first three years. This is how the assistance is structured with an HFA conventional loan.
Source: TSAHC. In plain terms: with government-backed financing you can walk away with a true grant; with conventional financing you get a forgivable second that costs you nothing as long as you stay put a few years. We’ll help you pick the path that fits your plans for the home.
What loan does it go with?
Whatever fits you best. The assistance layers on top of a standard fixed-rate mortgage, and it pairs with FHA, VA, USDA, or conventional loans (TSAHC). That means:
- A first-time buyer leaning toward a low-down-payment FHA loan can stack this on top.
- A veteran using their VA benefit can pair the grant with an already-strong loan.
- A buyer who qualifies for a conventional loan can use the HFA conventional option with the forgivable second.
You’re not being pushed into a worse loan to get the help. You’re adding help to the loan you’d choose anyway.
Can I stack a tax credit on top? (The MCC)
Often, yes. TSAHC also offers a Mortgage Credit Certificate (MCC) — a federal tax credit that gives you back a portion of the mortgage interest you pay every year, for the life of the loan (TSAHC). Unlike the down payment assistance, the MCC is generally limited to first-time buyers, veterans, or buyers in designated “targeted” areas, and separate price and income limits apply.
Used together, the down payment grant solves the up-front problem and the MCC keeps giving back every year you own the home. We’ll tell you whether you qualify for both before you commit to anything.
What are the requirements?
The program is designed to be reachable, not restrictive. In broad strokes (TSAHC):
- Credit score — generally a 620 minimum for FHA, VA, and USDA loans; around 640 for conventional. (Meeting the minimum is a starting point, not a guarantee of approval.)
- Income limits — these vary by county and household size and are updated annually, so the number that matters is the one for your county.
- Purchase price limits — the home has to fall under a sales-price cap that also varies by area.
- Where — it’s available statewide, in every Texas county.
- Homebuyer education — a short course is typically required before closing.
Because the income and price limits are county-specific and change each year, the honest answer to “do I qualify?” is: let’s check your county and your numbers together. That’s a ten-minute conversation, not a mystery.
Questions people actually ask
Do I really never have to pay the down payment assistance back?
With the grant option (FHA, VA, or USDA financing), correct — it’s not repaid. With the conventional option, it’s a second lien that’s forgiven after three years and only repaid if you sell or refinance before then (TSAHC).
I’m a teacher’s aide / school librarian — do I count?
Yes. Full-time school district roles including teacher aides, librarians, counselors, and school nurses are on TSAHC’s eligible list, not just classroom teachers.
I already owned a home once. Am I out?
No. Repeat buyers can use the down payment assistance. First-time status only affects the optional MCC tax credit.
I’m a veteran — can I combine this with my VA loan?
In many cases, yes — veterans are an eligible hero group and VA financing is one of the loan types the assistance pairs with. We’ll confirm the fit for your situation.
How much is it, really?
Up to 5% of your loan amount toward down payment and closing costs (TSAHC). What you actually receive depends on the option and loan you choose.
If you’re a Texas teacher, first responder, corrections officer, EMS provider, or veteran — or you simply meet the income limits under Home Sweet Texas — there may be thousands of dollars waiting to go toward your first (or next) home. Tell us your county, your role, and the home you’re after.