Texas DPA for Teachers: Complete Guide to Homes for Texas Heroes

Texas DPA for Teachers: Your Complete Guide

Texas teachers are among the most valued professionals in our state, yet many struggle to afford homeownership on educator salaries. The Homes for Texas Heroes program was created specifically to help teachers and other public servants purchase homes with down payment assistance of up to 5% of the loan amount—including a grant option that never needs to be repaid.

According to TSAHC, the Texas State Affordable Housing Corporation helped 9,554 Texas families purchase homes in 2025 through their DPA programs, distributing $85.6 million in assistance. Teachers represent one of the largest groups of Heroes program beneficiaries.

This guide covers everything Texas teachers need to know about qualifying for and using the Homes for Texas Heroes down payment assistance program.

Key Takeaways

• Texas teachers qualify for the Homes for Texas Heroes program, which provides up to 5% of the loan amount in down payment and closing cost assistance
• Grant option available—teachers can receive DPA as a grant that never needs to be repaid
• No first-time buyer requirement—teachers who have owned homes before can still qualify
• Works with FHA, VA, USDA, and conventional loans—more financing flexibility than TDHCA programs
• Income limits are generous—many Texas teachers earning $60,000-$90,000+ qualify depending on county

Who Qualifies as a Teacher for the Heroes Program?

The Homes for Texas Heroes program defines eligible education professionals broadly. According to TSAHC eligibility guidelines, you qualify if you are employed full-time by:

• Public school districts (K-12)
• Charter schools
• Private schools (accredited)
• Public colleges and universities
• Community colleges

Eligible Education Positions

Position	Eligible?	Notes
Classroom Teacher	Yes	All grade levels K-12
Teacher's Aide / Paraprofessional	Yes	Full-time required
School Librarian	Yes	Must be full-time
School Counselor	Yes	Must be full-time
School Administrator	Yes	Principals, vice principals, superintendents
College/University Professor	Yes	Full-time faculty
School Nurse	Yes	Qualifies under education OR healthcare
Substitute Teacher	No	Must be full-time permanent employee
Part-Time Staff	No	Full-time employment required

The key requirement is full-time employment. Substitute teachers and part-time employees do not qualify, but teacher's aides and paraprofessionals who work full-time do qualify.

Grant vs. Second Lien: Which Should Teachers Choose?

The Homes for Texas Heroes program offers two DPA options. Understanding the difference is critical to making the right choice for your situation.

Feature	Grant Option	Second Lien Option
DPA Amount	Up to 5% of loan amount	Up to 5% of loan amount
Repayment Required	No, never	Yes, when you sell/refinance/pay off mortgage
Monthly Payments	None	None
Interest Rate on First Mortgage	Slightly higher (0.25-0.75%)	Lower
Best For	Teachers who may move within 5-7 years	Teachers staying long-term (10+ years)

Example: $300,000 Home Purchase

Grant Option:

• DPA: $14,475 (5% of $289,500 FHA loan)
• First mortgage rate: 6.75%
• Monthly payment: $1,877
• DPA repayment required: $0

Second Lien Option:

• DPA: $14,475 (5% of $289,500 FHA loan)
• First mortgage rate: 6.25%
• Monthly payment: $1,784
• DPA repayment required: $14,475 (when you sell/refinance)

The grant option costs approximately $93 more per month but saves $14,475 if you sell or refinance. For teachers who may transfer districts, relocate, or refinance within 5-7 years, the grant is typically the better choice.

Income Limits for Texas Teachers by City

TSAHC sets income limits by county and household size. Here are the approximate 2026 income limits for teachers in major Texas cities:

City	County	1-2 Person Household	3+ Person Household
Houston	Harris	$97,000 - $115,000	$111,000 - $132,000
Dallas	Dallas	$92,000 - $110,000	$106,000 - $127,000
San Antonio	Bexar	$80,000 - $95,000	$92,000 - $109,000
Austin	Travis	$102,000 - $122,000	$117,000 - $140,000
Fort Worth	Tarrant	$92,000 - $110,000	$106,000 - $127,000
El Paso	El Paso	$68,000 - $81,000	$78,000 - $93,000

Note: These are approximate ranges. Actual limits vary by specific program and are updated annually. Use our qualifier quiz for current limits.

According to Texas Education Agency data, the average Texas teacher salary is approximately $60,000, with experienced teachers in major metro areas earning $65,000-$85,000. Most Texas teachers fall well within these income limits.

How Much DPA Can Teachers Receive?

The Homes for Texas Heroes program provides up to 5% of your total loan amount. Here is what that looks like at various price points:

Home Price	Loan Amount (FHA 96.5%)	DPA at 5%
$250,000	$241,250	$12,063
$300,000	$289,500	$14,475
$350,000	$337,750	$16,888
$400,000	$386,000	$19,300

This assistance can cover your entire down payment and often a significant portion of closing costs. Use our DPA calculator to see your exact numbers.

Step-by-Step: How Teachers Apply for DPA

Step 1: Verify Your Eligibility

Confirm you meet the basic requirements:

• Full-time employment in an eligible education position
• Household income below county limits
• Minimum credit score of 620
• The home will be your primary residence

Take our qualifier quiz for a quick eligibility check.

Step 2: Complete Homebuyer Education

All TSAHC programs require completion of a HUD-approved homebuyer education course. This can be done online in 4-8 hours. The course covers budgeting, the mortgage process, and homeownership responsibilities.

Approved providers include:

• eHome America
• Framework Homeownership
• Local HUD-approved counseling agencies

Step 3: Get Pre-Approved with a TSAHC-Approved Lender

Work with a lender approved to offer TSAHC programs, like Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855). We will:

• Verify your income and employment
• Pull your credit report
• Confirm your eligibility for the Heroes program
• Issue a pre-approval letter

Step 4: Provide Employment Verification

Your lender will need proof of your full-time education employment. Acceptable documentation includes:

• Employment verification letter from your school/district
• Recent pay stubs showing employer name
• Contract or appointment letter

Step 5: Find Your Home

Shop for homes within the purchase price limits for your county. Your real estate agent should understand DPA transactions and their requirements.

Step 6: Close on Your Home

At closing, your DPA funds are applied directly to your down payment and closing costs. The entire process typically takes 30-45 days from contract to closing.

Frequently Asked Questions

Do I have to be a first-time buyer to use the Heroes program?

No. According to TSAHC program guidelines, the Homes for Texas Heroes program is available to both first-time and repeat home buyers. This is different from TDHCA's My First Texas Home program, which requires first-time buyer status.

Can teacher's aides and paraprofessionals qualify?

Yes, as long as you are a full-time employee. According to TSAHC eligibility rules, teacher's aides, paraprofessionals, and other full-time education support staff qualify for the Heroes program.

What if I switch teaching jobs during the mortgage process?

Changing employers during the mortgage process can cause delays. If possible, wait until after closing to change jobs. If you must change jobs, inform your lender immediately. Staying within the education field is generally acceptable, but changing careers could affect your eligibility.

Can I use the Heroes program if I teach at a private school?

Yes. According to TSAHC guidelines, full-time employees of accredited private schools qualify for the Homes for Texas Heroes program. The school must be accredited by a recognized accrediting organization.

Is the grant option really free money?

Yes. The TSAHC grant is a true gift that does not need to be repaid under any circumstances. Even if you sell the home the next day, refinance, or pay off the mortgage, you owe nothing back. The trade-off is a slightly higher interest rate on your first mortgage.

How does the Heroes program compare to My First Texas Home?

The Heroes program offers advantages for teachers:

Feature	Homes for Texas Heroes	My First Texas Home
Agency	TSAHC	TDHCA
Grant Option	Yes	No
First-Time Buyer Required	No	Yes
Conventional Loans	Yes	No
Who Qualifies	Education, first responders, healthcare, military	All first-time buyers

For teachers, the Heroes program is typically the better choice because of the grant option and no first-time buyer requirement.

Why the Heroes Program Was Created for Teachers

Texas faces ongoing teacher shortages, particularly in high-cost urban areas where housing prices have outpaced educator salaries. The Homes for Texas Heroes program was created by the Texas legislature to help essential public servants—including teachers—achieve homeownership.

By providing down payment assistance, the program removes one of the biggest barriers to homeownership for teachers. According to TSAHC data, the average DPA recipient received approximately $8,960 in assistance in 2025—money that would have taken years to save on a teacher's salary.

Additional Resources for Texas Teacher Home Buyers

• Texas State Teachers Association (TSTA) - Offers financial education resources for members
• Texas AFT - Provides homeownership guidance for educators
• Texas Retired Teachers Association - Resources for retired educators (different programs may apply)

Ready to Get Started?

Texas teachers have access to some of the best down payment assistance in the country through the Homes for Texas Heroes program. With up to 5% in grant assistance that never needs to be repaid, homeownership may be more affordable than you think.

Check your eligibility today with our free qualifier quiz, or contact us directly to speak with a DPA specialist.

• Tanner Cook - NMLS #2090424 - (480) 420-4918
• Zac Cook - NMLS #2111496 - (480) 406-2016

Zac Cook is a licensed mortgage loan originator (NMLS #2111496) with Cook Brothers Mortgage Team at Cornerstone First Mortgage (NMLS #173855). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.