Buying a home is a better investment than renting properties or apartments, but what can you do when the costs renting make it difficult to save up for a solid down payment? There are likely more options available to you than you realize, and The Texas Mortgage Pros can help.
Home Loans With Down Payment Assistance in Texas
Luckily for Texans, there are a variety of options for first time home buyers and previous home buyers, you just need to find the one that suits your home buying needs.
The Texas Department of Housing and Community Affairs (TDHCA) has two programs for first time home buyers and one for prior homeowners. It is important to note that as of February 2019, the Texas Mortgage Credit Certificate Program (MCC) will only be offered in combination with My First Texas Home program mortgage loans.
TDHCA mortgage loans offer many features, including:
- 30-year fixed interest rate mortgage loans
- Options for first time home buyers and previous home owners
- Available to qualified home buyers from all professions
- Available statewide through a network of participating lenders
- Down payment assistance and closing cost assistance up to 5% of the loan amount
- Government Loans (FHA, VA, USDA) and conventional loan products (FNMA HFA Preferred)
- Dollar-for-dollar reduction on federal tax liability through the Department’s Texas MCC Program
My First Texas Home Program
The My First Texas Home Program (FTHP) is the TDHCA’s mortgage assistance program for first-time home buyers. This home loan program comes with down payment and closing cost assistance and is available to anyone regardless of profession.
In order to be eligible for this program, you must be:
- A first time home buyer, veteran, or home buyer who hasn’t owned a home within the past 3 years
- Within the income limits
- Planning to purchase a property within the purchasing price limit (Max: $200,160)
- Have a minimum 620 credit score
And additional requirements may apply depending on your situation and location.
My Choice Texas Home Program
My Choice Texas Home is a program for returning home buyers, only there’s absolutely NO first time home buyer requirement. Aside from that small difference, the program is quite similar to the FTHP as far as eligibility is concerned. Income and purchase price limits apply, you need a minimum credit score of 620, and some additional requirements may apply.
Austin Home Buyer Assistance Program
The Austin Housing and Community Development Department (HCDD) is responsible for the city’s Home Buyer Assistance Program (HAP). The program is available for low to moderate income households, providing funds that can be used to assist applicants with paying their closing costs, down payment, and principal buydown.
Qualifications for the HAP include:
- First time home buyer or previous home owner that has not owned a home in the last 3 years
- Home buyer and co-borrower must be U.S. citizens or permanent resident alien
- Must not have more than $15,000 in liquid assets prior to closing (Deferred assets like 401(k)s, etc. not included)
- Buyer must be able to obtain a fixed-rate mortgage (Adjustable-rate mortgages and seller financed mortgages are not accepted)
- Combined household income must be at or below the HAP Income Limits chart
(Income includes any payments from employment, child support, etc. Household income limits are subject to change.)
Home Buyer Assistance Program Guidelines
HAP has a variety of guidelines and features for eligible households. Your selected home must be located within the property tax jurisdiction of the City of Austin, for example. Eligible home buyers at or below 80% annual minimum income could receive up to $30,000 in assistance towards qualifying property types. Eligible properties include single-family homes, duplexes, triplexes, quadruplexes, attached townhomes, condominiums, and cooperative units.
Each applicant must take an 8 hour Home Buyer Education Course through an approved HUD counseling agency as part of the program guidelines. The property being purchased must also be occupied as their principal residence for a minimum of 5 years. And additional Homebuyer Assistance Program Guidelines apply.
Finding the Right Program for You
Buying a home can be tricky, especially for first time home buyers. The Texas Mortgage Pros offer Down Payment Assistance Austin Program to qualified home buyers in the City of Austin and surrounding Austin, TX area. For additional information regarding our Down Payment Assistance Programs, please contact our Home Loan Specialists at (877) 280-4833 and get one step closer to owning your own home.