Two state programs come up most often with Valley buyers. Homes for Texas Heroes, from the Texas State Affordable Housing Corporation (TSAHC), is for teachers and other school staff, first responders, corrections officers, some faculty and veterans. My First Texas Home, from the Texas Department of Housing and Community Affairs (TDHCA), is for first-time buyers, with exceptions for veterans and for homes in targeted census tracts. Both pair a fixed-rate first mortgage with down payment and closing cost help through participating lenders.
Who counts as a Texas Hero
TSAHC defines a Texas Hero by job, and every job on the list is full time (TSAHC; TSAHC Lender Guidelines 2.1):
- Professional educator: a public K-12 classroom teacher, teacher aide, school librarian, school counselor or school nurse.
- Peace officer: a full-time peace officer under Article 2.12 of the Code of Criminal Procedure, Education Code 51.212 or 51.214, or other law.
- Firefighter: a permanent, full-time fire department employee assigned to fire suppression, inspection, investigation, training, education, administration or related duties, not support or clerical staff.
- Emergency medical services personnel: a full-time emergency care attendant, emergency medical technician (basic, intermediate or paramedic) or licensed paramedic.
- Corrections: a TDCJ corrections officer or TJJD juvenile corrections officer who receives hazardous duty pay, or a county jailer under Local Government Code 85.005.
- Public security officer: an armed security officer employed by the state or a political subdivision, not a private security contractor.
- Faculty: a full-time member of the faculty of a nursing or allied health program.
- Veteran, as defined below.
If your job is not on the list, ask TSAHC or a participating lender before you plan around Heroes. Home Sweet Texas uses the same assistance options for low- and moderate-income buyers in any job.
The Heroes veteran definition
For Homes for Texas Heroes, a veteran is a Texas resident at application who meets one of these tests:
- Serving on active duty at a Texas base or facility, with Texas as home of record.
- At least 90 days of active duty after September 16, 1940 (less if discharged for a service-connected disability) and not dishonorably discharged.
- At least 20 years of active or reserve service, as computed for retired pay.
- Enlisted or appointed in the Texas National Guard, with initial active duty training completed and no dishonorable discharge.
- Served in the armed forces of the Republic of Vietnam between February 28, 1961 and May 7, 1975.
Except for active duty members, the veteran must also have been a Texas resident at enlistment, or have lived in Texas for at least a year before applying. Certain unmarried surviving spouses qualify. A DD-214 or discharge paper proves service. Reserve and Guard members should read VA loans for Reserve and National Guard members, because each program counts reserve service differently.
What Heroes and Home Sweet Texas offer
- Assistance: up to 5% of the loan amount for down payment and closing costs, as a grant that does not have to be repaid or as a second loan that is forgiven after a set period if you do not sell, refinance or move out. TSAHC also offers its loan without assistance (No DPA). Your lender gives you the full terms and APR for each option.
- First mortgage: fixed rate, for a home you will live in: a single-family home, condominium, townhome or eligible manufactured home.
- Credit: minimum scores of 620 for government loans and 640 for conventional loans.
- Education: at least one borrower completes a homebuyer education course before closing (TSAHC Lender Guidelines 2.7).
- First-time status: not required for the assistance. It is required for TSAHC's mortgage credit certificate, except for qualified veterans and homes in targeted areas.
- Mortgage credit certificate (MCC): a federal tax credit equal to 15% of the mortgage interest you pay each year, available from TSAHC only with its DPA or No DPA loans. TSAHC waives the MCC fee for Heroes who use its assistance and MCC together. The MCC has a lower federal income limit, 115% of area median income, so check both limits (TSAHC, July 10, 2026).
- Funding: TSAHC says the funding source for most of its assistance options is unlimited (TSAHC, July 10, 2026).
My First Texas Home and My Choice Texas Home
My First Texas Home
- First-time buyer: no one who will be on the deed of trust, including a non-purchasing spouse, has owned and occupied a primary residence in the last 3 years. All borrowers and a non-purchasing spouse must be on title and on the deed of trust, and first-time buyers sign a Texas Residency Affidavit at closing.
- Veteran exception: the rule is waived if you or your spouse is a qualified veteran, honorably discharged as shown on a DD-214, who has not already received a bond-financed mortgage through the qualified veteran exception.
- Targeted tract exception: the rule is waived, and higher limits apply, for a home in a qualified targeted census tract.
- Loans and credit: FHA, VA or USDA, with a minimum middle credit score of 620.
- Assistance: 2% to 5% of the loan amount, as funding permits, as a second loan due when you sell, refinance, transfer or pay off the first mortgage, or as a second loan that can be forgiven after a set period. TDHCA also offers a loan without assistance. TDHCA's current rate notice prices its assisted options above its option without assistance, so compare Loan Estimates side by side.
- Income: counts everyone who will live in the home and sign the deed of trust, including a non-purchasing spouse.
- Homes: new or existing single-family homes, condominiums, PUDs, manufactured homes that are real property, and duplexes with one unit owner-occupied. You must move in within 60 days of closing.
- Education: every borrower completes a HUD-certified homebuyer education course before buying (a non-occupying co-signer does not). TDHCA recommends Finally Home! and accepts other HUD-certified courses (TDHCA).
- Cash at closing: TDHCA allows no cash back beyond reimbursement of items paid outside closing; any excess can go to principal reduction. A federal recapture tax can apply in some sales within nine years (TDHCA recapture explainer).
Source: TDHCA's My First Texas Home program matrix, Aug 17, 2026 and TDHCA's program page.
My Choice Texas Home
No first-time rule. Income is the borrowers' qualifying income on the loan application, so a non-purchasing spouse's income is not counted, and the recapture tax does not apply. It works with FHA, VA and USDA loans and with conventional loans through Fannie Mae HFA Preferred and Freddie Mac HFA Advantage, with a minimum middle credit score of 620 and no TDHCA purchase price limit (TDHCA My Choice matrix, Aug 17, 2026; TDHCA limits).
Texas mortgage credit certificate
TDHCA's MCC is a federal tax credit for first-time buyers, waived for veterans and targeted tracts. It is offered with a TDHCA loan or on its own, and the stand-alone option has no minimum credit score (TDHCA). TDHCA's rate notice says the MCC issuance fee is waived for military buyers who combine the MCC with a TDHCA loan. You must apply before closing. Ask a tax professional how a credit would affect your return.
2026 limits in the four counties
| Program and limit | All four counties |
|---|---|
| TSAHC Home Sweet Texas, household income | $152,250 |
| TSAHC Homes for Texas Heroes, household income | $172,550 |
| TDHCA My First Texas Home and MCC, income, 1 or 2 people | $101,500 |
| Same, 3 or more people | $116,725 |
| Same, home in a targeted tract, 1 or 2 people | $121,800 |
| Same, home in a targeted tract, 3 or more people | $142,100 |
| My First Texas Home purchase price, 1 unit | $566,354 |
| Same, 1 unit in a targeted tract | $692,211 |
| My First Texas Home purchase price, 2 units | $725,146 |
| Same, 2 units in a targeted tract | $886,289 |
| Program and limit | Hidalgo | Cameron | Starr | Willacy |
|---|---|---|---|---|
| Qualified targeted census tracts in the county | 71 | 35 | 11 | 1 |
Limits for all 254 Texas counties are in the 2026 TSAHC and TDHCA income limits table.
Targeted census tracts in the Valley
TDHCA uses the IRS list of qualified targeted census tracts in Revenue Procedure 2024-08. In these tracts My First Texas Home and TDHCA's MCC waive the first-time rule and use the higher targeted limits above. TDHCA's list has 118 tracts in the four counties (TDHCA tract list):
Hidalgo County: 71 tracts
0201.03 0201.04 0201.05 0204.03 0204.08 0205.05 0205.06 0205.07 0205.09 0206.00 0207.25 0207.29 0207.30 0207.31 0210.02 0211.00 0213.06 0213.08 0213.13 0213.14 0213.15 0214.01 0214.07 0215.00 0216.00 0217.03 0217.05 0218.07 0218.08 0218.09 0219.05 0219.06 0220.08 0221.05 0221.07 0221.10 0221.11 0221.12 0222.03 0225.03 0226.00 0227.05 0227.06 0231.03 0231.04 0231.06 0235.16 0235.22 0235.23 0235.25 0235.27 0235.29 0236.02 0237.00 0240.01 0240.02 0241.07 0241.08 0241.20 0241.21 0241.22 0241.23 0241.24 0241.25 0241.26 0241.27 0241.28 0242.06 0242.10 0242.11 0245.01
Cameron County: 35 tracts
0101.03 0106.03 0107.00 0108.02 0109.00 0110.00 0111.00 0112.00 0115.00 0116.01 0116.02 0117.01 0117.02 0118.01 0119.03 0119.07 0121.05 0122.01 0125.12 0126.14 0126.15 0127.00 0130.03 0131.06 0132.03 0132.04 0132.05 0132.07 0133.06 0133.07 0133.08 0133.09 0134.01 0134.02 0137.00
Starr County: 11 tracts
9501.07 9502.02 9502.03 9502.04 9504.02 9504.03 9504.04 9505.00 9506.01 9507.01 9507.02
Willacy County: 1 tract
9503.00
To check an address, TDHCA says to look up its census tract on the FFIEC geocoder and match the county and tract number exactly against its list. Ask your lender to confirm the tract before you make an offer.
Heroes or My First Texas Home: side by side
| Feature | Homes for Texas Heroes | My First Texas Home |
|---|---|---|
| Agency | TSAHC | TDHCA |
| Who | Listed professions and veterans | First-time buyers; qualified veterans; anyone buying in a targeted tract |
| Valley income limit | $172,550 | $101,500 (1 or 2 people), $116,725 (3 or more); $121,800 and $142,100 in a targeted tract |
| Purchase price limit | None for TSAHC's non-bond assistance on its own; limits apply with bond assistance or an MCC (TSAHC Lender Guidelines 4.3). Ask a TSAHC lender for the figure. | $566,354 for one unit; $692,211 in a targeted tract |
| Loans | Government and conventional | FHA, VA or USDA |
| Minimum credit score | 620 government, 640 conventional | 620 middle score |
| Assistance | Up to 5% of the loan amount: grant or forgivable second loan, or No DPA | 2% to 5% of the loan amount: deferred or forgivable second loan, or no assistance |
| Education | Required for at least one borrower | Required for every borrower |
| Mortgage credit certificate | With TSAHC DPA or No DPA only | With a TDHCA loan or on its own |
A teacher or veteran may qualify for both. Ask a lender who offers both agencies' programs to compare them on the same home.
How to apply
- Check eligibility: your job or service for Heroes, or your ownership history for My First Texas Home, and the limit for the county where you are buying.
- Find a participating lender: TSAHC's lender search or TDHCA's participating lenders. TSAHC's homebuyer line is 877-508-4611; TDHCA's is 1-800-792-1119. The lender confirms eligibility and handles the program paperwork.
- Take the homebuyer course early, before you make an offer.
- Shop inside the limits: for My First Texas Home, check the purchase price limit and whether the address is in a targeted tract.
- Write the contract with the program's timeline in mind, because program review adds steps before closing.
Where your real estate agent fits in
Amy is a real estate agent, not a lender or housing counselor, and she does not take loan applications or set terms. She can help you find homes inside a program's price limit, check an address against the targeted tract list with you, and keep the contract dates in line with your lender's and the program's steps. For classes and counseling, see the HUD-approved agencies in down payment assistance in the Rio Grande Valley.
Heroes and My First Texas Home questions
Who qualifies for Homes for Texas Heroes?
Full-time public K-12 classroom teachers, teacher aides, school librarians, school counselors and school nurses; peace officers; firefighters; EMS personnel; TDCJ and TJJD corrections officers with hazardous duty pay; county jailers; public security officers; nursing and allied health faculty; and veterans who meet TSAHC's definition. Household income must be within the county limit, $172,550 in the four Valley counties.
Do I have to be a first-time buyer for Homes for Texas Heroes?
No. Heroes is open to first-time and repeat buyers. The first-time rule applies only to TSAHC's mortgage credit certificate, and it is waived for qualified veterans and homes in targeted areas.
What is the My First Texas Home income limit in Hidalgo County?
For 2026, $101,500 for a household of 1 or 2 people and $116,725 for 3 or more, or $121,800 and $142,100 for a home in a qualified targeted census tract. Cameron, Starr and Willacy counties use the same limits, effective July 13, 2026.
Can a veteran who owned a home before use My First Texas Home?
Often, yes. TDHCA waives the first-time rule for a qualified veteran, honorably discharged as shown on a DD-214, who has not already used the qualified veteran exception for a bond-financed mortgage. A participating lender confirms it.
Is the down payment help a grant or a loan?
TSAHC offers a grant that does not have to be repaid or a second loan that is forgiven after a set period if you keep the home. TDHCA offers a second loan that comes due when you sell, refinance or pay off the first mortgage, or one that can be forgiven after a set period. Your lender gives you the full terms.
How do I know if a home is in a targeted tract?
Look up the address's census tract on the FFIEC geocoder and match the county and tract number exactly against TDHCA's list. The Valley has 118 qualified targeted tracts: Hidalgo 71, Cameron 35, Starr 11 and Willacy 1.
Who wrote this
Amy Herrera is a REALTOR® and Texas real estate sales agent with RE/MAX Elite (TREC #808068) and a Captain, U.S. Army Reserve (veteran). She is not a lender, loan officer, tax adviser or housing counselor, and she does not take loan applications or VA claims. Program facts were checked against TSAHC's and TDHCA's own pages on Oct 16, 2026. Book a call to plan a purchase around a program's limits.
