Texas has two statewide down payment assistance programs that Bastrop County buyers can use: the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA). Both offer up to 5% of the loan amount toward down payment and closing costs, through participating lenders. Here is how each works, who qualifies, and the 2026 limits for Bastrop County.
The two programs at a glance
| TSAHC | TDHCA | |
|---|---|---|
| Programs | Homes for Texas Heroes; Home Sweet Texas | My First Texas Home; My Choice Texas Home |
| Assistance | Up to 5% of the loan amount | Up to 5% of the loan amount |
| Form of assistance | Grant, 3-year forgivable second lien, or 30-year deferred second lien | 30-year deferred second lien (My First Texas Home; a 3-year forgivable lien is also offered when combined with TDHCA’s tax credit); 3-year forgivable or 30-year deferred (My Choice) |
| First-time buyer required? | No for most loan and assistance options; yes for the tax credit (MCC) and for the 5% deferred second lien (qualified veterans and targeted areas excepted) | Yes for My First Texas Home (waived for qualified veterans and qualified targeted census tracts); no for My Choice Texas Home |
| Minimum credit score | 620 (FHA, VA, USDA); 640 conventional | 620 |
| Bastrop County income limits | Home Sweet Texas $201,600; Homes for Texas Heroes $228,480 (government loans, without the tax credit) | My First Texas Home: $134,400 (1–2 people), $154,560 (3+); My Choice: up to $228,480 (FHA/VA/USDA) |
| Purchase price limit (Bastrop County) | $598,019 with the tax credit or bond assistance | $598,019 for My First Texas Home; My Choice follows loan-program limits |
Sources: TSAHC homebuyer programs and county income-limits tool; TDHCA Texas Homebuyer Program and its limits table effective July 13, 2026. Figures checked October 30, 2026 against TSAHC’s rate sheet effective October 28, 2026, TSAHC’s county limits tool, and TDHCA’s rate notice dated October 29, 2026; limits and rates change, so confirm with a participating lender.
TSAHC: Homes for Texas Heroes and Home Sweet Texas
Homes for Texas Heroes is for listed professions: veterans, active-duty service members assigned to a Texas base, fire fighters, EMS personnel, peace officers, public security officers, corrections and juvenile corrections officers, county jailers, full-time public K-12 educators in listed roles, and certain nursing and allied health faculty (TSAHC Homes for Texas Heroes). Home Sweet Texas is for low- to moderate-income buyers who are not in those professions. Both pair a fixed-rate mortgage with assistance of up to 5%, as a grant (never repaid), a forgivable second lien (forgiven after three years if you don’t sell, refinance or move out), or a 30-year deferred second lien (repaid when the first loan is sold, transferred, paid off or refinanced). On TSAHC’s rate sheet effective October 28, 2026, the grant was offered at 2%, the 3-year forgivable lien at 2% to 4%, and the 5% option was the 30-year deferred lien, limited to first-time buyers (unless a qualified veteran or a targeted-area purchase) at or below 80% of area median family income (TSAHC daily rates).
First-time buyers can add TSAHC’s Mortgage Credit Certificate, a federal tax credit of 15% of the mortgage interest you pay each year. TSAHC now offers it only together with its down payment assistance.
TDHCA: My First Texas Home and My Choice Texas Home
My First Texas Home is for first-time buyers, defined as not having owned a primary residence in the past three years. TDHCA waives that requirement for qualified veterans (a one-time exception, documented with a DD-214) and for homes in qualified targeted census tracts; TDHCA’s limits table does not mark Bastrop County as having targeted areas. It uses FHA, VA or USDA loans, requires homebuyer education, and offers up to 5% assistance as a 0% second lien with no required monthly payment, due when you sell, refinance, transfer or pay off the first loan. Combined with TDHCA’s tax credit, a 3-year forgivable second lien is also offered (TDHCA rate notice; program matrix).
My Choice Texas Home has no first-time-buyer requirement and works with FHA, VA, USDA or conventional loans. TDHCA also offers the Texas Mortgage Credit Certificate to first-time buyers and veterans, either combined with a TDHCA loan or on its own. TDHCA’s site also lists additional down payment gift dollars for Bastrop County through Capital Area HFC, used together with TDHCA’s assistance while funds last; ask a participating lender for the current amount (TDHCA additional assistance).
TDHCA counts income from everyone who will sign the deed of trust, including a non-purchasing spouse.
How to use assistance on a Bastrop County home
- Find a lender that participates in TSAHC or TDHCA programs (both list them on their websites) and get pre-approved with the assistance included.
- Complete any required homebuyer education early.
- Ask the lender to compare the assistance options against a loan without assistance. The rate on an assisted loan can be higher, and a repayable second lien is due when you sell.
- Write offers that leave enough time for the program’s approval steps.
Assistance can be combined with USDA, VA and FHA loans in many cases; see USDA loans in Bastrop County and my first-time homebuyer guide. To estimate a payment, try the Bastrop mortgage calculator.
Is there down payment assistance in Bastrop County?
Yes. TSAHC (Homes for Texas Heroes, Home Sweet Texas) and TDHCA (My First Texas Home, My Choice Texas Home) both offer up to 5% of the loan amount through participating lenders.
Do I have to be a first-time buyer to get down payment assistance in Texas?
Not always. Most of TSAHC’s assistance options and TDHCA’s My Choice Texas Home have no first-time requirement. TDHCA’s My First Texas Home does, but it is waived for qualified veterans.
What are the income limits for down payment assistance in Bastrop County?
As of October 29, 2026: TSAHC Home Sweet Texas $201,600 and Homes for Texas Heroes $228,480 for government loans without the tax credit; TDHCA My First Texas Home $134,400 for 1 to 2 people and $154,560 for 3 or more.
Do veterans qualify for Texas down payment assistance?
Yes. Veterans qualify for TSAHC’s Homes for Texas Heroes, and TDHCA waives its first-time-buyer requirement for qualified veterans as a one-time exception.
Want help finding homes that fit a down payment assistance budget? Call or text (512) 993-8488. I’m not a lender; I’ll connect you with participating lenders for the loan side.
Written by Bre Meador, REALTOR® — All City Real Estate, Bastrop County, TX · U.S. Army veteran · TREC #835116. Last reviewed October 2026. Program terms and limits were checked on October 30, 2026 and change often; confirm with a participating lender. This is general information, not lending advice.