Hometown Heroes Down Payment Help Explained - Texas Teachers, First Responders, Military, Healthcare Workers
If you are a Texas teacher, first responder, military member, healthcare worker, or corrections officer, you may qualify for thousands of dollars in down payment help and ongoing tax credits when you buy a home - and most people who qualify never apply because they didn’t know they could. Here is the plain-English breakdown of the Homes for Texas Heroes program as it stands in 2026, who it is for, and exactly how it works.
What is Hometown Heroes / Homes for Texas Heroes?
It’s a state-administered down payment assistance program run by the Texas State Affordable Housing Corporation (TSAHC). Eligible buyers in qualifying professions can receive a grant of up to 5% of the loan amount that does not have to be repaid as long as you live in the home for the required period. On top of the grant, first-time buyers can claim a Mortgage Credit Certificate (MCC) worth up to $2,000 per year in federal tax credits for the life of the loan.
Authoritative source: tsahc.org - Homes for Texas Heroes.
Who qualifies?
TSAHC defines a Hometown Hero as anyone in one of the following categories:
- Teachers and education staff - full-time teachers, teacher aides, librarians, counselors, and school nurses in public school districts.
- First responders - police officers, sheriffs, firefighters, and EMS personnel.
- Military - active duty, reservists, and veterans of the U.S. Armed Forces.
- Healthcare workers - nurses, doctors, allied health professionals.
- Corrections officers - county jailers, state correctional officers, and juvenile corrections officers.
Income and price limits
TSAHC sets county-by-county income and purchase-price caps that change annually. As of early 2026, Smith County (Tyler) limits are well above what a typical East Texas Hero earns - meaning the vast majority of qualifying applicants in our market clear the income test easily. Purchase price limits are also above the median in Tyler / Lindale / Whitehouse / Bullard, so most of the homes our team helps clients buy are eligible.
How the grant works in plain English
Walk through it with a typical first-time buyer:
- Home price: 285,000 (a starter in Lindale or Whitehouse).
- Loan amount (after a 3% down conventional): 276,450.
- 5% TSAHC grant: $13,822 - applied at closing toward the down payment and/or closing costs. Does not have to be repaid.
- Mortgage Credit Certificate (first-time buyer): up to $2,000/year in federal tax credit.
Net effect for that buyer: significantly less out-of-pocket at closing, plus an annual tax break that materially lowers the true cost of homeownership.
Step-by-step: how to use the program with us
- Confirm you qualify. Send us a quick note about your role and we’ll point you to the TSAHC eligibility checklist or set up a 15-minute call.
- Get pre-approved with a participating lender. Not every lender participates in TSAHC. We will introduce you to a Hometown Heroes-approved lender who runs the program weekly.
- Search for homes. We help you target neighborhoods that fit your eligible price range and the kind of home you actually want to live in. Browse our community guides.
- Make an offer. The lender flags the loan as TSAHC-eligible. The grant is funded at closing.
- Close. You move in. Your accountant claims the MCC tax credit on your federal return.
Common questions
Is the grant truly forgivable?
Yes - there are options where the grant becomes a forgivable second lien (typically forgiven if you stay in the home three years) and options where it is fully grant-funded. We will walk you through which option saves you the most.
Can I use this for a custom build?
Yes. New construction qualifies. If you want to combine Hometown Heroes funding with a build through Kirby Custom Homes, we can help structure that. We have done it before.
Does using TSAHC make my offer weaker to a seller?
Not when written correctly. We use clean offer language and work only with experienced TSAHC lenders so there are no surprises in underwriting.
If you serve your community in one of the qualifying roles above, the program was built for you. Send us a quick note and we will tell you exactly what you qualify for.