Texas DPA Income Limits: What First-Time Buyers Need to Check Before They Apply

The hardest part of Texas down payment assistance is not always finding the program. It is knowing whether your income actually fits.

A buyer may see "up to 5% down payment assistance," start shopping, and then learn that the program uses a county income limit, a targeted-area rule, a different calculation for a spouse or co-borrower, or a lender-specific view of overtime and bonus income. That is painful because it usually happens late, after the buyer has already mentally spent the assistance.

This guide is a practical screen before you apply. It will not replace a lender's approval, but it will help you ask the right questions before you build a Texas homebuying plan around DPA.

The Short Version

Texas DPA income limits are not one statewide number.

Before you rely on assistance, check:

the exact program: TSAHC, TDHCA My First Texas Home, TDHCA My Choice Texas Home, or a local city/county program
the county or metro area where the home is located
whether the address is in a targeted census tract
which people and income sources count for that program
whether the program uses qualifying income, family income, or a specific income-limit worksheet
whether the home price is under the program's purchase price limit, if one applies

The same buyer can be eligible in one county, over the limit in another county, or eligible only if the property is in a targeted area. That is why "Do I qualify for Texas DPA?" is really an address-and-program question.

TSAHC vs. TDHCA: Similar Goal, Different Rules

Texas buyers most often run into two statewide DPA administrators.

TSAHC is the Texas State Affordable Housing Corporation. TSAHC says its Home Sweet Texas and Homes for Texas Heroes programs are restricted to buyers who meet its income limits and have at least a 620 credit score. TSAHC also offers DPA as a grant or forgivable second lien, and its assistance can be paired with a Mortgage Credit Certificate when current program rules allow it.

TDHCA is the Texas Department of Housing and Community Affairs. TDHCA's My First Texas Home is for first-time buyers, with certain exceptions for targeted areas and qualified veterans. TDHCA's My Choice Texas Home does not have a first-time-buyer requirement. TDHCA program materials describe assistance up to 5% of the mortgage loan through deferred repayable or 3-year forgivable second lien options, subject to current rate notices and availability.

The buyer mistake is treating those as interchangeable. They are not. Program fit depends on the home, the county, the loan type, current assistance options, lender participation, and how income is counted.

Why County and Targeted Area Matter

TDHCA's current combined income and purchase price limits table shows how different the numbers can be by metro.

As of the TDHCA table effective May 27, 2025:

Austin-Round Rock counties listed in the table show a My First Texas Home income limit of $133,800 for 1 or 2 persons in a non-targeted 1-unit purchase.
Dallas HMFA counties listed in the table show $117,300 for 1 or 2 persons in a non-targeted 1-unit purchase.
Houston-The Woodlands-Sugar Land counties listed in the table show $101,100 for 1 or 2 persons in a non-targeted 1-unit purchase.
San Antonio-New Braunfels counties listed in the table show $104,227 for 1 or 2 persons in a non-targeted 1-unit purchase.

Those are not universal Texas limits. They are examples from one TDHCA table, and the numbers can change when TDHCA updates its limits.

Targeted areas add another wrinkle. TSAHC explains that targeted areas are census tracts designated as areas of economic distress and that higher income and purchase price limits may be available for homes in those areas. TDHCA's table also lists higher targeted-area limits for certain counties and metros. The practical takeaway is simple: do not stop at county. Check the exact address or census tract when the buyer is close to the limit.

The Income Calculation Can Be the Real Surprise

Buyers usually think about income like a tax return: "I made about this much last year." DPA programs may not look at it that way.

TSAHC's income FAQ says the income used depends on the product. For Non-Bond DPA without an MCC, TSAHC says only the income of the mortgagor or mortgagors is considered, and a non-purchasing spouse is not included. But for Non-Bond DPA with an MCC, Bond DPA, or MCC-only scenarios, TSAHC says income from family members living in the home with an ownership interest is considered, including a non-purchasing spouse when that person is expected to be liable on the deed of trust.

TSAHC lender guidance also says employed-family income is generally computed by multiplying current gross monthly income by 12, with sporadic income averaged and added. For self-employed buyers, the guidance points to annualizing year-to-date profit and loss and averaging with the two most recent years' federal tax return net income, with depreciation added back.

TDHCA's lender guide uses a different program split. For My First Texas Home, the income-limit qualification includes a non-purchasing spouse and anyone else who will sign the deed of trust. For My Choice Texas Home, TDHCA says only borrower income shown on the 1003 loan application is considered, and a non-purchasing spouse is not included.

This is why two buyers with the same W-2 income can get different answers. The program and paperwork matter.

A Screening Example

Assume a buyer is shopping in Harris County and wants to use TDHCA My First Texas Home.

The buyer earns:

$8,200 per month in gross base pay
an expected $6,000 annual bonus

A simple screening estimate would be:

Base pay: $8,200 x 12 = $98,400

Bonus: $6,000

Estimated annual income to discuss with the lender: $104,400

The TDHCA limits table lists the Houston-The Woodlands-Sugar Land HMFA, including Harris County, at $101,100 for 1 or 2 persons in a non-targeted 1-unit purchase and $121,320 for a targeted-area 1-unit purchase in the same table.

That means the buyer may be over the non-targeted screening number but under the targeted-area screening number. The next question is not "Can I still get DPA?" The next question is "Is this exact property in a qualified targeted census tract, and how will my lender calculate my program income?"

This example is deliberately simplified. Overtime, commission, self-employment, child support, non-purchasing spouse income, co-signers, and one-time income can all change the answer. Use it as a pre-application sanity check, not an approval.

Five Questions to Ask Before You Count the Assistance

Ask these before you write an offer that only works with DPA.

Which program are we using? TSAHC Home Sweet Texas, TSAHC Homes for Texas Heroes, TDHCA My First Texas Home, and TDHCA My Choice Texas Home do not all count income the same way.
What county and census tract is the property in? A targeted tract can change income and purchase price limits. A nearby home can have a different answer.
Whose income counts? Ask directly about a spouse, fiance, co-borrower, co-signer, non-purchasing spouse, and any adult who will be on title or the deed of trust.
Which income sources are being counted? Base pay is not the whole story. Bonus, overtime, commission, self-employment income, child support, and recurring side income can affect eligibility.
What fees and tradeoffs come with this option? TSAHC publishes program fees, and TDHCA publishes program fees in its program materials. DPA can still be the right move, but compare the full payment, fees, rate, repayment terms, and forgiveness rules.

When You Are Close to the Limit

If your estimated income is comfortably below the limit, the bigger question may be credit, debt-to-income ratio, savings, and home price.

If you are close to the limit, slow down.

Do not assume:

last year's tax return is the number the program will use
a non-purchasing spouse is always ignored
a bonus will be ignored because it is not guaranteed
a targeted-area exception applies to the whole county
a local city program uses the same rules as TSAHC or TDHCA
a lender who is not approved for the program can reserve funds

Ask for the lender's income-limit worksheet or written explanation before you rely on the assistance in your offer strategy.

What If Your Income Is Too High?

Being over a DPA income limit is frustrating, but it does not mean you cannot buy.

It may mean:

TDHCA My Choice Texas Home fits better than a first-time-buyer-only option
a different county or property address changes the limit
a targeted-area property changes the answer
a local city or county program may have a different limit
a low-down-payment conventional, FHA, VA, or USDA path may work without state DPA
you should compare the payment with and without assistance, because some DPA options can carry a higher first-mortgage rate than a market-rate loan

The right comparison is not "free money or no free money." It is the full monthly payment, cash to close, repayment or forgiveness terms, and the risk that a borderline eligibility assumption fails late.

The Bottom Line

Texas DPA can be real help. It can cover a meaningful part of the down payment and closing-cost gap for eligible buyers. But eligibility is not a slogan. It is a county, address, income, credit, loan type, and program calculation.

Before you count on assistance, verify the current limits with the administering agency and a participating lender. Then run your budget both ways: with DPA and without it. A buyer who knows the real answer early has more negotiating power, fewer surprises, and a better chance of closing on a payment that still works after the paperwork catches up.

Check your Texas homebuyer readiness and see which paths may fit ->

Sources

This guide is current as of May 20, 2026. Program limits, rate notices, DPA availability, fees, and income calculation rules can change. First Home AI is not affiliated with TSAHC, TDHCA, HUD, Fannie Mae, Freddie Mac, or any lender. This guide is for educational purposes only and is not mortgage, tax, legal, or financial advice. Always verify program eligibility with the administering agency and a participating lender before relying on assistance in an offer.