Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien

What is Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien is a forgivable loan for homebuyers in Statewide, Texas.

• Home Sweet Texas Home is TSAHC's general-population (non-Heroes) statewide DPA program. It provides a 30-year fixed-rate first mortgage and up to 5% DPA as a 3-year deferred forgivable second lien. No FTHB requirement; income limits set by county. Borrowers choose between this 'Loan' / forgivable structure (lower-income tier) and the standalone Grant structure (higher-income tier).
• TSAHC's Home Sweet Texas Home Loan Program (HSTH) provides a 30-year fixed-rate first mortgage paired with down payment and closing-cost assistance up to 5% of the loan amount, structured as a 3-year deferred forgivable second lien. The DPA carries 0% interest, no monthly payments, and is fully forgiven after 3 years if the borrower retains the home as primary residence. No first-time-homebuyer requirement. Borrowers may also stack the Mortgage Credit Certificate (MCC) when offered.
• Funding comes from TSAHC bond and TBA execution; TSAHC is a 501(c)(3) self-sustaining state-chartered organization.

How much assistance does it provide?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien provides assistance worth 5% of the purchase price, as set by the program.

• Buyer contribution: No minimum borrower contribution required by TSAHC; product overlays may apply.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven after 3 years of continuous owner occupancy and due upon sale, refinance, payoff, or non-occupancy within the 3-year period.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien is open to buyers who will live in the home as their primary residence.

What are the income limits?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien limits household income to $201,460.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien caps the purchase price as follows: No TSAHC-imposed sales-price cap (subject to FHA/VA/USDA county loan limits and conforming conventional limits).

• Eligible property types include Single-family detached, townhomes, condos meeting agency approval, eligible PUDs, eligible manufactured homes.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien serves buyers purchasing in Statewide, Texas.

How do you apply?

Applications for Home Sweet Texas Home Loan Program - 3-Year Deferred Forgivable 2nd Lien go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through TSAHC-approved homebuyer education required - online course provided through Texas Homebuyer U / TSAHC partner CHCs (Frameworks-style course).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lenders reserve via TSAHC's online lender portal (Lender Online) on first-come, first-served basis, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.