First time home buyers in Texas

First-time buyer loan in Texas are loans for people who have not purchased a house in the last three years, according to the U.S. Department of Housing and Urban Development (HUD). The HUD, under the Executive Department, administers housing and community development assistance programs to people in the United States. People in the United States, who have previously bought and owned a house but have not bought a house in the last three years are also considered first-time homebuyers, though not first-time homeowners.

First Time Home Buyers Mortgage in Texas

Qualifications for first time home buyers in Texas

Here’s a list of qualifications for first-time homebuyers in Texas:

  • A minimum credit score of 620
  • You must meet the Texas Department of Housing and Community Affairs (TDHCA) annual household income requirements and loan requirements
  • Property being purchased must be located in Texas and meet purchase price limits
  • Property must also be a single-family home or single-unit condominium
  • Some multiplexes and manufactured housing are considered eligible properties

First time home buyer program Texas

Here is how the First-Time Homebuyer Programs, such as My First Texas Home, work in Texas. The First-Time Homebuyers Program offers a 30-year fixed-rate mortgage for first-time homebuyers through a network of participating lenders. Through this buying process program, you can get down payment assistance and closing cost assistance of up to 5% of the mortgage value as a no-interest, no monthly payment second lien. The My First Texas Home program provides 30-year fixed mortgages with low-interest rates and up to 5% interest-free down payment assistance for potential homebuyers.

The My First Texas Home loan program is available throughout Texas for first-time homebuyers. First-time buyers, veterans, or homebuyers who haven’t owned a home in the past three years can avail of the My First Texas Home program. The My First Texas Home program has the following requirements, such as meeting the income limits of the county, meeting the purchase price limits, and achieving a minimum credit score of 620. Purchase price limits and income limits are higher for properties located in areas where most median-income families earn less than 80% of the state’s median family income, aka “targeted areas.” The state’s median income or targeted areas are where affordable housing programs are offered. Learn more about the My First Texas Home program and how to determine if a property is within a targeted area on the TDHCA website.

The Homes For Texas Heroes Program, created by the Texas State Affordable Housing Corporation (TSAHC), provides home loans and down payment assistance for educators. Educators are the ones with full-time positions in a public school district, such as school teachers, school librarians, teacher aides, school counselors, and school nurses. Other professions that are qualified for the Home For Texas Heroes Program are police officers, firefighters, EMS personnel, corrections officers, veterans, and active military personnel. The Texas State Affordable Housing Corporation’s Homes For Texas Heroes Program offers low-interest fixed mortgage loan options with 3 percent to 5 percent payment mortgage assistance, excluding closing costs.

The Federal Housing Finance Agency’s (FHFA) Fannie Mae and Freddie Mac program provides guaranteed conventional loans through a network of approved lenders. These approved lenders offer both fixed-rate and adjustable-rate mortgages with low down payments. This program has higher interest rates compared to other programs. The Fannie Mae and Freddie Mac program requires applicants to have a 36 percent debt-to-income ratio, a 620 FICO® Score for fixed-rate loans, a 640 FICO® Score for adjustable-rate loans, and private mortgage insurance. Private mortgage insurance protects the lender in case the first-time homebuyer fails to make payments. The first-time homebuyer must purchase private mortgage insurance if the down payment is less than 20 percent.


Mortgage credit certificate for first time home buyers In Texas

Yes, the Mortgage Credit Certificate loan makes it so first-time homebuyers in Texas get a chance to recuperate a portion of the interest they pay lenders throughout the year since what they pay towards interest doesn’t actually pay on your loan balance. This tax credit usually includes 40% of your annual mortgage interest, up to $2,000/year, and the credit is valid for the lifetime of your loan so long as your home remains your primary residence.



Programs available for first time home buyers in Texas

The programs available for first-time homebuyers in Texas are accessible no matter where you live. These loan programs have benefits that may help you buy your first home, like low down payment and credit score requirements.

Here is a list of first time home buyers programs in Texas:

  • Conventional mortgage. National program.
  • FHA loans. National program.
  • VA loans. National program.
  • USDA loans.
  • My First Texas Home loan.
  • Texas mortgage credit certificate.

Requirements for first time home buyers in Texas

Here are the requirements for first time home buyers in Texas:
  1. Provide a 3% down payment is required for Conventional Loans
  2. Achieve at least a 620 FICO score for Conventional Loans
  3. Provide a 3.5% down payment is required for FHA Loans
  4. Achieve at least a 580 FICO score for FHA Loans
  5. Possess a debt-to-income ratio below 50%.


First time home buyer tax credit in Texas

The First-Time Homebuyer Tax Credit in Texas is offered by the Texas Department of Housing and Community Affairs (TDHCA). The Texas Department of Housing and Community Affairs (TDHCA) offers the Texas Mortgage Credit Certification Program (MCC). The MCC provides a method of maximizing first-time homebuyers’ benefits when combined with the My First Texas Home program. First-time homebuyers that are enrolled in this program can receive up to $2000 credit in their federal income taxes provided that they qualify for these conditions. The first condition for the federal tax credits is that they still have mortgage loans, and the second is that they still live in their homes. The MCC also allows first-time homebuyers, especially low-income families, to avail of a $1 to $1 reduction against their federal tax liabilities using their monthly mortgage payments. 

First time home buyers grant in Texas

Yes, there is a first-time homebuyer grant in Texas. If you have a minimum 580 credit score, you can qualify for an FHA loan with just 3.5% down. For a $200,000 house, that means you will just need $7,000 for your down payment. The best thing for first-time home buyers is that your down payment for an FHA loan can be a gift from a family member or friend.

The Hill Country Home Down Payment Assistance is a first-time homebuyer grant that is available for eligible first-time home buyers in Travis County, including Austin City. First-time home buyers in Travis County, including Austin City must have an FHA, VA, or USDA loan to be eligible applicants. Eligible applicants can avail of a grant of 4 percent to 5 percent of the original loan amount to pay for the down payment or closing costs.

Contact the Texas Mortgage Pros today to get started on your First-Time Home buyers’ loan in Texas.

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