Published July 14, 2026

TDHCA Raises 2026 Income Limits. Could You Now Qualify for Homebuyer Assistance?

Written by Jonathan McNabb

A Texas homebuyer reviewing financing options after TDHCA updated its 2026 income limits.

If you've been thinking about buying a home but assumed your household income was too high to qualify for a Texas homebuyer assistance program, it's time to take another look.

Effective July 14, 2026, the Texas Department of Housing and Community Affairs (TDHCA) updated the income limits for several of its most widely used homeownership programs. While not everyone will qualify, the revised limits may allow more Texans to become eligible for programs that can help reduce the upfront cost of buying a home.

For many buyers, this announcement is an important reminder that eligibility requirements change over time. If you were told you didn't qualify in the past, today's guidelines may produce a different answer.

What Changed?

TDHCA released updated income limits for all Texas counties covering these programs:

My First Texas Home
My Choice Texas Home
Texas Mortgage Credit Certificate (MCC)

Because the limits vary by county and household size, buyers should review the income chart that applies to the county where they plan to purchase a home.

The updated limits expand eligibility for some moderate-income households that may not have qualified under the previous guidelines.

Why This Matters

One of the most common misconceptions I hear is:

"I make too much money to qualify for down payment assistance."

Sometimes that's true.

But many buyers have never checked, or they were evaluated using older income limits.

With TDHCA's 2026 update, some households that previously exceeded the income limit may now qualify for assistance programs designed to make homeownership more affordable.

That doesn't guarantee eligibility, but it makes reviewing your options worthwhile.

Jonathan's Local Insight

Over the years, I've worked with buyers who assumed they earned too much to qualify for assistance programs, so they never asked a lender to review their situation. Whenever TDHCA updates its income limits, I encourage buyers to revisit the conversation. A quick review with a participating lender can sometimes uncover opportunities that simply weren't available under the previous guidelines.

Did You Know?

Many Texas homebuyer assistance programs are not limited to low-income households. Some are designed for moderate-income buyers who meet the program's eligibility requirements. Income is only one factor considered during the qualification process.

Understanding the Programs

My First Texas Home

My First Texas Home helps eligible buyers purchase a home through competitive mortgage financing combined with down payment assistance.

Despite the name, you do not always have to be a first-time homebuyer. Certain veterans and buyers purchasing in targeted areas may also qualify, depending on program requirements.

My Choice Texas Home

Unlike some assistance programs, My Choice Texas Home may also be available to buyers who have previously owned a home, provided they meet the program's eligibility requirements.

For repeat buyers, it's a program that's often worth discussing with a participating lender.

Texas Mortgage Credit Certificate (MCC)

The Texas Mortgage Credit Certificate Program allows eligible homeowners to claim a federal income tax credit based on a portion of the mortgage interest they pay each year.

Depending on your individual tax situation, this credit may reduce your overall federal income tax liability.

Because tax circumstances vary, buyers should consult a qualified tax professional regarding the potential benefits of an MCC.

Does This Mean Everyone Qualifies?

No.

The updated income limits are only one part of the qualification process.

Lenders also consider factors such as:

Household income
Credit history
Debt-to-income ratio
Loan program requirements
Occupancy requirements
Purchase price limits
Underwriting guidelines

Every buyer's situation is unique, which is why it's important to have your individual circumstances reviewed rather than making assumptions based on general information.

If You Were Turned Down Before...

This may be the most important takeaway from today's announcement.

If you spoke with a lender months or even years ago and were told your household income exceeded the program limits, today's update may change your eligibility.

Rather than assuming nothing has changed, ask a participating lender to review your situation using the newly released 2026 income limits.

The process is often much easier than buyers expect.

Buying in Katy or the Greater Houston Area?

Whether you're planning to buy in Katy, Houston, Cypress, Richmond, Rosenberg, Sugar Land, Fulshear, or another Texas community, these updated guidelines may be worth reviewing.

Many buyers are surprised to learn that homebuyer assistance programs may still be available even if they have stable employment, good credit, or have owned a home before.

The only way to know is to review your specific circumstances with a qualified lender.

Not Sure Whether You Qualify?

The easiest way to find out is by speaking with a lender who participates in TDHCA programs.

If you're considering buying a home in Katy or the Greater Houston area, I'd be happy to connect you with one of my trusted lending partners who can review your eligibility using the updated 2026 guidelines.

📞 Call or Text: 281.549.8099

Frequently Asked Questions

Do the new income limits apply across Texas?

Yes, but the actual income limits vary by county and household size.

Do I have to be a first-time homebuyer?

Not always. Some TDHCA programs allow certain repeat buyers to qualify, and special rules may apply for veterans or purchases in targeted areas.

Does this update guarantee that I'll qualify?

No. Income limits are only one part of the qualification process. Credit, debt-to-income ratio, occupancy requirements, purchase price limits, and lender underwriting guidelines also apply.

Can I apply if I was denied before?

Yes. If your previous denial was related to income limits, it's worth asking a participating lender to review your eligibility under the updated 2026 guidelines.

Where can I find the official income limits?

The Texas Department of Housing and Community Affairs publishes county-by-county income limit charts for its homeownership programs.

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If you're preparing to buy a home, these resources may also help:

About the Author

Jonathan McNabb, REALTOR®
Broker/Owner | Nest Ahead

Jonathan McNabb helps buyers throughout Katy and the Greater Houston area navigate the home-buying process. He regularly works alongside participating lenders to help buyers understand financing options, including TDHCA and TSAHC assistance programs, VA loans, FHA loans, conventional financing, and new construction incentives.

📞 281.549.8099