TSAHC Income Limits 2026: Texas Buyer Guide

Published by Homebuyer Creators | Updated for 2026

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If you are buying a home in Texas and hoping to use state-sponsored down payment assistance, the first number you need to know is your program's income limit. The Texas State Affordable Housing Corporation (TSAHC) sets these limits by county, by household size, and by program type. Miss the threshold by a dollar, and your application gets declined. Understand it clearly, and you may find you qualify for thousands of dollars in assistance you did not know was available. This guide covers every major TSAHC income limit category for 2026, explains how the math works, and shows you what to do next whether you qualify today or need to reposition first.

Key Takeaways

• TSAHC income limits vary by county, household size, and program, so your zip code matters as much as your paycheck.
• Households with three or more people typically qualify at a higher income ceiling than one-to-two-person households in the same county.
• Targeted census tract areas carry higher income and purchase price limits, opening doors for buyers who just miss standard thresholds.
• The Homes for Texas Heroes and Home Sweet Texas programs share the same DPA structure but serve different buyer groups.
• A mortgage credit certificate (MCC) has its own, separate income limits that are often lower than standard TSAHC program limits.

What Are TSAHC Income Limits and Why They Matter

TSAHC is a self-sustaining nonprofit created by the Texas Legislature. Its mission is to make homeownership possible for low-to-moderate income Texans. To keep assistance flowing to the people who need it most, TSAHC caps qualifying income for every program it offers.

The income limit is the maximum gross annual income a household can earn and still receive down payment assistance (DPA) or a mortgage credit certificate through a TSAHC program. Exceed the limit and the loan cannot close under that program, even if your credit and the property both qualify.

Why the Limits Are Set the Way They Are

TSAHC bases its limits on Area Median Income (AMI) data published by the U.S. Department of Housing and Urban Development (HUD). Each year HUD releases updated AMI figures for every county in the country. TSAHC then applies a percentage of that AMI as its income cap, which is why limits shift from year to year and from county to county.

For most standard areas, TSAHC targets buyers earning up to 80 percent of AMI. In some programs and in targeted census tracts, that ceiling rises. Understanding where your county falls on the AMI scale is the first step in knowing whether TSAHC down payment assistance is within reach.

TSAHC 2026 Income Limits by County and Metro Area

The table below reflects TSAHC program income limits for the most active Texas metro areas served by Homebuyer Creators: Houston, San Antonio, Dallas, and Austin. Limits shown are for standard (non-targeted) areas. Always verify the current figures directly at tsahc.org before applying, as TSAHC can update limits mid-cycle when HUD revises AMI data.

Standard Area Income Limits: Major Texas Metros (2026 Estimates)

Important disclosure: The figures above are illustrative estimates based on HUD 2025-2026 AMI trends. Official 2026 TSAHC limits are published at tsahc.org. Consult a TSAHC-approved lender for the exact limit that applies to your county and household size before making any financial decisions.

Why Household Size Changes the Limit

Federal fair housing policy recognizes that larger families need more income to cover basic costs. As a result, TSAHC applies a higher income ceiling for households of three or more people compared to one-to-two-person households in the same county. The gap is typically around 15 percent. A family of four in Harris County can earn roughly $14,000 more per year than a single buyer in the same county and still qualify for the same assistance program.

Purchase Price Limits That Pair With Income Limits

Income limits alone do not determine eligibility. TSAHC also caps the purchase price of the home you are buying. A qualifying income means nothing if the property costs more than the program allows.

Standard Purchase Price Limits for 2026

These purchase price limits apply to the total acquisition cost of the home, not just the list price. Seller concessions and certain closing cost credits can affect how the number is calculated, so review the final numbers with your TSAHC-approved lender before going under contract.

Homes for Texas Heroes vs. Home Sweet Texas: Which Program Fits You

TSAHC runs two main homebuyer programs. They share the same down payment structure and income limit framework, but they target different groups of buyers.

Homes for Texas Heroes

This program is designed for professionals in public service roles. Eligible occupations include:

• Full-time teachers and school counselors
• Police officers, firefighters, and EMS personnel
• Corrections officers and juvenile corrections officers
• Veterans and active-duty military members
• Allied health professionals including nurses and nurse faculty

Texas Heroes borrowers receive a slightly lower mortgage interest rate than Home Sweet Texas borrowers, which can translate to meaningful savings over a 30-year loan term. DPA under this program covers up to 5 percent of the loan amount, delivered as a grant or a 0 percent interest second lien.

Home Sweet Texas

Home Sweet Texas is open to any income-qualifying buyer in Texas who does not meet the occupational requirements for Texas Heroes. The income and purchase price limits are the same. The only difference is the interest rate offered, which runs slightly higher than the Heroes rate. For buyers who are not in a qualifying profession, this program is the primary path to TSAHC down payment assistance.

Which One Should You Choose?

If your occupation qualifies you for Homes for Texas Heroes, always apply under that program. The lower rate saves real money. If you are not sure whether your job qualifies, ask your TSAHC-approved lender. Some occupations, such as certain healthcare roles, have nuances in how they are classified.

How TSAHC Calculates Your Qualifying Income

The income figure TSAHC uses is not simply your W-2 wages. The program applies a household income calculation that can include sources you might not expect.

What Counts as Income

• Base salary and hourly wages from all jobs
• Overtime pay, if it is consistent and documented over a two-year history
• Bonus income, averaged over two years if it recurs
• Self-employment net income as shown on two years of federal tax returns
• Alimony and child support received, if it will continue for at least three years
• Social Security income and pension distributions
• Rental income, net of documented expenses

Self-Employment and Overtime Nuances

Self-employed buyers often find their qualifying income lower than their bank deposits suggest. Lenders use the net income from Schedule C or the distributive share from an S-Corp K-1, minus certain deductions. If you wrote off significant business expenses, your qualifying income drops accordingly. Overtime works the opposite way. If you have consistently earned overtime for two years, that income counts and could push you over the TSAHC income limit even if your base salary sits well below it. Document your income carefully before applying.

Borrower Scenario: Houston, Single Buyer

Consider a single teacher in Houston earning $78,000 base salary with no overtime. Harris County's 1-to-2-person limit is approximately $92,800. This buyer qualifies on income. She is also a teacher, so she applies under Homes for Texas Heroes. She finds a home priced at $310,000, well under the $404,800 purchase price limit. TSAHC DPA covers 4 percent of her loan amount, reducing her out-of-pocket cash at closing by roughly $12,400.

Borrower Scenario: San Antonio, Family of Four

A family of four in Bexar County has combined household income of $101,000. The standard 1-to-2-person limit would disqualify them, but the 3-plus-person limit is approximately $95,680 under standard figures. At $101,000 combined, they may still exceed that ceiling. However, if their purchase is in a targeted census tract, the income limit rises by roughly 20 percent, potentially bringing them back into eligibility. This is why checking targeted area status for a specific address matters before ruling out an application.

Targeted Areas: Where Limits Are Higher

Targeted census tracts are geographic areas designated by the IRS as economically distressed. To encourage investment in these neighborhoods, TSAHC allows higher income limits and higher purchase price limits for homes located within them.

How Much Higher Are Targeted Area Limits?

In most targeted tracts, income limits increase by approximately 20 percent above the standard ceiling. Purchase price limits also expand, as shown in the county table above. This can be the difference between qualifying and not qualifying for a buyer who earns modestly above the standard threshold.

How to Check a Targeted Census Tract

The TSAHC website includes a map tool that lets you enter a property address and confirm whether it falls within a targeted area. Your TSAHC-approved lender can also run this check. If you are house hunting in Houston, San Antonio, Dallas, or Austin and your income is near the limit, ask your lender to filter listings by targeted census tract status. It is a legitimate and often overlooked strategy for qualifying buyers.

What Happens If You Exceed the TSAHC Income Limit

Going over the income limit does not mean all assistance programs are closed. It means TSAHC programs are closed. Several alternatives exist for buyers who earn too much for TSAHC but still need help with a down payment or closing costs.

Other Texas Assistance Options

• TDHCA programs: The Texas Department of Housing and Community Affairs runs separate programs with different income thresholds, discussed in the next section.
• Local city and county programs: Houston, San Antonio, Dallas, and Austin each have city-level homebuyer assistance programs with their own limits and funding cycles.
• FHA gift funds: Family members can contribute gift funds toward an FHA down payment with no income restriction on the buyer.
• Conventional 3% down programs: Fannie Mae's HomeReady and Freddie Mac's Home Possible programs have income limits but they differ from TSAHC's and may accommodate buyers who just miss TSAHC thresholds.

For guidance on what options remain open when TSAHC is not the right fit, see our resource on becoming a homeowner with credit or income challenges.

TSAHC vs. TDHCA: Understanding Both Texas Assistance Agencies

Texas has two major state-level homebuyer assistance agencies. Many buyers confuse them or do not know both exist. Here is a direct comparison.

Side-by-Side Comparison: TSAHC vs. TDHCA

Which Agency Should You Apply Through?

If you are a qualifying professional (teacher, first responder, veteran), start with TSAHC's Heroes program for the rate advantage. If you are a first-time buyer in a standard occupation, compare TSAHC's Home Sweet Texas rate with TDHCA's My First Texas Home rate at the time you apply. Rates fluctuate and the spread changes. Your TSAHC-approved lender can pull both quotes simultaneously.

For a broader look at what to consider before starting the homebuying process, visit our guide on 10 things to know before buying a home.

Step-by-Step: How to Apply for TSAHC Down Payment Assistance

The TSAHC application process runs through an approved lender, not directly through TSAHC. You cannot apply to TSAHC on your own. Here is the practical sequence.

Step 1: Check Income and Purchase Price Limits

Use the TSAHC website or the tables in this guide to confirm you are within the income limit for your county and household size. Also verify the home you are targeting is under the purchase price cap for your county and whether the address falls within a targeted census tract.

Step 2: Find a TSAHC-Approved Lender

TSAHC maintains a searchable directory of approved lenders on its website. Not every Texas lender is approved to originate TSAHC loans. Choosing an unapproved lender means you cannot access the program. Look for lenders with documented experience closing TSAHC loans in Houston, San Antonio, Dallas, or Austin, depending on where you are buying.

Step 3: Get Pre-Qualified and Gather Documents

Your lender will need two years of tax returns, recent pay stubs, two months of bank statements, and identification. Self-employed buyers should also prepare profit and loss statements. The lender calculates your qualifying income, checks your credit score, and determines which TSAHC program you are eligible for.

Step 4: Complete Homebuyer Education (If Required)

Some TSAHC programs require completion of a HUD-approved homebuyer education course. This is typically a short online course that takes a few hours and results in a completion certificate. Ask your lender early whether this applies to your loan type.

Step 5: Loan Submission and Underwriting

Your lender submits the loan to TSAHC's system for approval. Underwriting reviews income, credit, the property appraisal, and compliance with program guidelines. Timeline from complete application to clear-to-close is typically 30 to 45 days, though this can vary based on lender volume and appraisal turnaround times in your market.

Step 6: Closing

DPA funds are applied at closing. If your assistance is structured as a grant, it does not need to be repaid. If it is a second lien, the terms (typically 0 percent interest with deferred repayment) are disclosed in your loan documents. Review both structures with your lender before deciding which option serves you better.

If your credit score is a concern in the qualification process, see our resource on home loans with bad credit history for options that may apply to your situation.

Before you apply, it is worth seeing exactly what a lender will see. A 3-bureau monitor like SmartCredit shows all three reports and scores in one dashboard, which is the practical way to confirm what is actually on your file and what to fix first.

Frequently Asked Questions

What are the income limits for Texas down payment assistance?

TSAHC income limits for Texas down payment assistance vary by county and household size. In major metros like Houston, Dallas, San Antonio, and Austin, standard limits for 2026 range from approximately $83,200 to over $112,000 for one-to-two-person households. Three-or-more-person households qualify at a ceiling roughly 15 percent higher. Always confirm current figures at tsahc.org or with a TSAHC-approved lender, as limits update with annual HUD AMI releases.

Do TSAHC income limits change based on household size?

Yes. TSAHC applies two household size tiers in most counties: one limit for households of one or two people, and a higher limit for households of three or more people. The difference is typically around 15 percent. A family of four can earn meaningfully more than a single buyer and still qualify in the same county under the same program.

What is the purchase price limit for TSAHC programs in 2026?

Purchase price limits for TSAHC programs in standard areas for major Texas counties range from approximately $381,000 to $404,800 in 2026. Homes located in targeted census tracts carry higher purchase price limits, often reaching $465,000 to $494,800 in the same counties. The specific cap depends on the county where the property is located.

Can I use TSAHC assistance if I have used a home loan before?

Yes, for most TSAHC programs. The Homes for Texas Heroes and Home Sweet Texas DPA programs do not require you to be a first-time homebuyer. However, the TSAHC mortgage credit certificate (MCC) does carry a first-time buyer requirement in non-targeted areas. If you have owned a home in the past three years, you may still qualify for DPA but not for the MCC unless the property is in a targeted census tract.

What is the difference between Homes for Texas Heroes and Home Sweet Texas?

Both programs offer the same down payment assistance structure and use the same income and purchase price limits. The difference is eligibility and mortgage rate. Homes for Texas Heroes is reserved for teachers, first responders, veterans, and certain healthcare workers. It offers a slightly lower interest rate than Home Sweet Texas, which is open to all income-qualifying buyers regardless of occupation.

Does TSAHC have different income limits for targeted areas?

Yes. Homes located in IRS-designated targeted census tracts qualify under higher income limits, typically around 20 percent above the standard county ceiling. Purchase price limits are also higher in targeted areas. This means a buyer who exceeds the standard income limit in their county may still qualify if the property they are purchasing falls within a targeted tract. Check the address on TSAHC's online map tool to confirm targeted status.

What credit score do I need to qualify for TSAHC down payment assistance?

TSAHC programs require a minimum credit score of 620 for most loan types. Some lenders who originate TSAHC loans may apply overlays requiring a higher score, such as 640. The underlying loan type also affects the floor: FHA loans paired with TSAHC DPA generally allow scores as low as 620, while conventional loan pairings typically require 640 or higher. If your score is below these thresholds, addressing your credit profile before applying is an important first step.

How does a mortgage credit certificate affect my TSAHC income limit?

A mortgage credit certificate (MCC) is a tax credit program that runs separately from TSAHC's DPA programs and carries its own, typically lower, income limits. Borrowers who want both DPA and an MCC must qualify under both sets of limits simultaneously. In many counties, the MCC income limit is 10 to 15 percent lower than the standard DPA limit. If you are near the income ceiling, ask your lender to calculate both limits before layering the MCC into your loan structure.

A Note on 2026 Limit Updates and When to Recheck

TSAHC updates its income and purchase price limits at least once per year, typically in alignment with HUD's AMI release schedule, which usually occurs in the spring. If you check your eligibility today and do not qualify, check again after the next HUD AMI update. Rising AMI figures can lift the TSAHC ceiling enough to bring you into eligibility without any change in your own income. Conversely, if you are currently eligible, confirm your limits are still valid at the time your loan is submitted for approval, not just when you first checked.

For more context on common misunderstandings buyers have about programs like this, visit our overview of common misconceptions during the home buying process.

Ready to Find Out If You Qualify?

TSAHC programs have helped thousands of Texas buyers cover their down payment and reduce their mortgage costs. Whether you are buying in Houston, San Antonio, Dallas, Austin, or anywhere in between, knowing exactly where you stand on income limits before you start shopping saves time and prevents disappointment at the closing table.

Homebuyer Creators works with buyers across Texas who are sorting through program eligibility, credit requirements, and down payment strategies. If you want a clear picture of where you stand before talking to a lender, learn more about how we support Texas homebuyers here. We can help you understand the path forward whether you qualify for TSAHC today or need to build toward it.

Disclosure: This article is for educational purposes only. Income and purchase price limits shown are estimates based on publicly available HUD and TSAHC data and are subject to change. Always consult a TSAHC-approved lender and review official program guidelines at tsahc.org before making any financial decisions. Homebuyer Creators is not a lender and does not originate mortgage loans.