Homes for Texas Heroes Home Loan Program - 3-Year Deferred Forgivable 2nd Lien

What is Homes for Texas Heroes Home Loan Program - 3-Year Deferred Forgivable 2nd Lien?

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

• Homes for Texas Heroes - 3-Year Deferred Forgivable 2nd Lien is TSAHC's Heroes program for lower-to-moderate income borrowers. Heroes occupations only. Up to 5% DPA as a 0% second lien forgiven after 3 years of owner occupancy. Pairs with a slightly enhanced Heroes first-mortgage rate.
• TSAHC's Homes for Texas Heroes - 3-Year Deferred Forgivable 2nd Lien provides a 30-year fixed-rate first mortgage with down payment and closing-cost assistance up to 5% of the loan amount, structured as a 3-year deferred forgivable second lien (0% interest, no monthly payments, fully forgiven after 3 years of continuous owner occupancy). Reserved for Heroes occupations. No FTHB requirement. Lower-income tier than the Heroes Grant option (income floor ~$23,842 vs Grant floor ~$123,500). Stackable with MCC.
• Funding comes from TSAHC TBA execution / capital markets.

How much assistance does it provide?

Homes for Texas Heroes 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.
• 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?

Homes for Texas Heroes 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?

Homes for Texas Heroes 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?

Homes for Texas Heroes 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?

Homes for Texas Heroes 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?

Homes for Texas Heroes 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?

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

How do you apply?

Applications for Homes for Texas Heroes 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.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lenders reserve via TSAHC's online lender portal (Lender Online), 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.