Home Sweet Texas

What is Home Sweet Texas?

Home Sweet Texas is a forgivable loan for homebuyers in Texas.

• TSAHC (Texas State Affordable Housing Corporation) statewide forgivable second lien program providing 3% of the first mortgage amount for down payment and closing cost assistance. Available to all eligible homebuyers (not limited to first-time buyers). Second lien is forgiven after 3 years if borrower maintains primary residence.
• 3% of the loan amount provided for down payment and/or closing costs.
• available as either a grant (no repayment required) or a deferred forgivable second lien forgiven after 3 years of primary occupancy.
• no first-time homebuyer requirement.
• statewide availability.
• competitive 30-year fixed interest rates.
• can be combined with mortgage credit certificate (MCC).
• Funding comes from State.

How much assistance does it provide?

Home Sweet Texas provides assistance worth 3% of the purchase price, as set by the program.

• 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 is forgiven after 3 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale and No Longer Primary.
• 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 is open to buyers who will live in the home as their primary residence.

What are the income limits?

Home Sweet Texas limits household income to 115% of the area median income, which varies by county and household size.

• 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 can be used for Single Family, Condo, and Townhouse.

• New construction is eligible.

Where does it apply?

Home Sweet Texas serves buyers purchasing anywhere in Texas.

• The program targets specific areas: Federally designated targeted census tracts and areas of economic distress throughout Texas; higher income and purchase price limits apply in targeted areas.

How do you apply?

Applications for Home Sweet Texas 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 HUD-approved homebuyer education required.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider 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.