One of the biggest misconceptions about Down Payment Assistance programs is that they’re only for low-income buyers. The reality? Many middle-class Texas families qualify for substantial assistance through ACE Home Mortgage’s TSAHC programs, often saving $20,000+ on their home purchase.
For Homebuyers: The Income Reality Check
TSAHC income limits are based on Area Median Family Income (AMFI) and vary by county. Here’s what that means in real dollars for popular Texas markets:
Harris County (Houston) – 80% AMFI Limits: – 1 person: $67,200 – 2 people: $76,800 – 3 people: $86,400 – 4 people: $96,000 – 5+ people: $103,680+
Travis County (Austin) – 80% AMFI Limits: – 1 person: $73,600 – 2 people: $84,100 – 3 people: $94,650 – 4 people: $105,150 – 5+ people: $113,550+
Dallas County – 80% AMFI Limits: – 1 person: $69,350 – 2 people: $79,250 – 3 people: $89,150 – 4 people: $99,050 – 5+ people: $107,000+
These limits do change regularly
The “Extra Day or Two” for Life-Changing Savings
Let’s put this in perspective: A family earning $95,000 in Harris County qualifies for programs that can provide: – Up to $25,000 in Down Payment Assistance – $2,000 annually in MCC tax credits – Total first-year benefit: $27,000
Processing time difference: 2-3 days Savings per day: $9,000-$13,500
Would you take two vacation days to earn $27,000? That’s essentially what you’re doing with DPA programs.
Special Income Considerations
Veterans and Targeted Areas: – Veterans: May qualify regardless of income in certain situations – Targeted areas: Higher income limits or no limits in designated rural/urban areas – Heroes programs: Special consideration for teachers, firefighters, police, EMS
Income Calculation Methods: – Gross household income from all sources – 12-month average for variable income – Special allowances for certain deductions
For Real Estate Agents: Expand Your Qualified Buyer Pool
Understanding income limits helps you identify more potential DPA clients:
The $100,000 Household Myth: Many agents assume families earning $100,000+ don’t qualify for assistance. This is wrong. Depending on family size and location, households earning $105,000+ may still qualify.
Client Qualification Strategy: 1. Ask about household size – larger families have higher income limits 2. Identify the county – limits vary significantly by location 3. Check hero status – teachers, firefighters, police, veterans may have different rules 4. Consider targeted areas – some locations have enhanced limits
Income Limits by Program Type
Home Sweet Texas Program: – At or below 80% AMFI – First-time buyers (with exceptions) – Statewide availability
Homes for Texas Heroes: – At or below 80% AMFI – Teachers, firefighters, EMS, police, veterans – Enhanced benefits and processing
Targeted Area Programs: – May have higher limits or no limits – Specific geographic areas – Additional flexibility
The MCC Income Boost Strategy
Here’s a powerful qualification strategy: Even if a buyer is slightly over income limits for DPA, they may still qualify for an MCC, which provides:
MCC Benefits: – Up to $2,000 annual tax savings – Counts as income for loan qualification – Available to higher income buyers in some areas – Can be combined with other programs
Common Income Limit Mistakes
Mistake #1: Assuming gross income is too high without checking family size adjustments Mistake #2: Not considering hero status or veteran benefits Mistake #3: Overlooking targeted area exceptions Mistake #4: Forgetting about MCC-only options for higher income buyers
Documentation Requirements
Income verification typically includes: – Pay stubs: Most recent 30 days – Tax returns: Previous 2 years – Bank statements: 2-3 months – Employment verification: Direct from employer – Other income: Social Security, disability, child support, etc.
Strategies for Borderline Income Situations
If income is slightly over limits: – Check calculation methods – some income may be excluded – Consider timing – income fluctuations may help – Explore targeted areas – different rules may apply – Look at MCC-only options – higher income limits
The Qualification Process
ACE Home Mortgage makes income qualification simple:
- Initial screening – Quick income and family size assessment
- Detailed analysis – Comprehensive income calculation
- Program matching – Identify best available programs
- Documentation – Guide through required paperwork
- Approval – Coordinate with TSAHC for final approval
Don’t Assume – Get Qualified
The only way to know for sure if you qualify is to get a professional analysis. Income limits are complex, vary by location and family size, and have numerous exceptions.
Ready to discover if you qualify? – Homebuyers: Get your free income qualification analysis today – Real Estate Agents: Learn how to properly qualify clients for maximum program benefits
You might qualify for more assistance than you think – let’s find out together!
