New Terminology
In 1982, Kurt Freund reported evidence that there exist two types of cross-gender identity in male-to-female transsexual people, coined the term "homosexual transsexual" and hypothesized that gender dysphoria in "homosexual males" (male-to-female transsexual people attracted to men) is different from gender dysphoria in heterosexual males. His protege, Ray Blanchard notes that "Freund, perhaps for the first time of any author, employed a term other than 'transvestism' to denote erotic arousal in association with cross-gender fantasy."
Blanchard's observations at the Clarke Institute began with four types of male transsexual people based on their sexual orientation relative to their sex assigned at birth: homosexual, heterosexual, bisexual, and asexual (i.e., transsexual people attracted to men, women, both, or neither, respectively.) Blanchard conducted a series of studies of biological males with gender dysphoria, including male-to-female transsexual people, concluding that there exist two distinct types. One type of gender dysphoria/transsexualism manifests itself in individuals who are exclusively attracted to men, whom Blanchard referred to as homosexual transsexuals, adopting Freund's terminology The other type includes those who are attracted to females (gynephilic), attracted to both males and females (bisexual), and attracted to neither males nor females (analloerotic or asexual); Blanchard referred to this latter set collectively as the non-homosexual transsexuals. Blanchard claims that the non-homosexual transsexual people (but not the homosexual transsexual people) exhibit autogynephilia, which he defined as a paraphilic interest in having female anatomy.
Read more about this topic: Blanchard's Transsexualism Typology