Texas First-Time Homebuyer Assistance Programs | Bankrate

If you ’ re a first-time homebuyer in the Texas, the Texas Department of Housing and Community Affairs and other organizations offer several programs to help you afford a home plate.

Texas first-time homebuyer loan programs

TDHCA My First Texas Home

For first-time homebuyers, the Texas Department of Housing and Community Affairs ( TDHCA ) offers the My First Texas Home course of study, a 30-year mortgage with a low concern rate and up to 5 percentage in interest-free down payment aid. You can obtain an FHA, VA or USDA loan through this broadcast. The aid must be repaid when you sell your home, or refinance or pay off your mortgage. These funds are then reused to help other homebuyers.

You could be eligible for the program with a credit score ampere low as 620, but you must besides meet the platform ’ s income and purchase price requirements, which vary based on county. You must besides take a homebuyer education course, available for spare through Texas Homebuyer U. This plan is available to veterans arsenic well as first-time buyers, or those who haven ’ deoxythymidine monophosphate owned a home in the past three years .

TDHCA My Choice Texas Home

If you ’ re a first-time or recur homebuyer, TDHCA ’ s My Choice Texas Home program offers a alike low-rate mortgage and up to 5 percentage aid to help cover your close up costs and devour requital. This aid is a zero-interest, no-monthly requital second mortgage. In accession to an FHA, VA or USDA loan, you can besides obtain a Fannie Mae HFA Preferred conventional loanword through this broadcast. To qualify, your citation score can be deoxyadenosine monophosphate humble as 620, but as is distinctive for these types of programs, you must be within income and leverage price limits .

TSAHC Home Sweet Texas Home Loan Program

The Home Sweet Texas Home Loan Program through the Texas State Affordable Housing Corporation ( TSAHC ) offers a 30-year fixed-rate mortgage and up to 5 percentage down requital aid, either as a grant or second mortgage. There ’ randomness no concern and no monthly payments on the second mortgage, and it ’ ll be forgiven after three years. ( If you sell your home or refinance your mortgage before then, however, you ’ ll need to repay it. ) This platform can be used to get a Fannie Mae HFA Preferred or Freddie Mac HFA Advantage conventional lend, an FHA loan, VA loan or USDA loanword. You don ’ t have to be a first-time homebuyer to be eligible, but you must have at least a 620 credit grade and touch income and leverage price limits based on county, size of your family and whether you ’ rhenium buying in a target or non-targeted area .

TSAHC Homes for Texas Heroes Program

If you work in a public service profession — such as a teacher, patrol officer or fireman — or are an eligible seasoned, you might qualify for TSAHC ’ s Homes for Texas Heroes Program. This program offers a 30-year mortgage along with down payment aid up to 5 percentage. Like the Home Sweet Texas Home Loan Program, the aid can be either a concession or second mortgage.

You don ’ t have to be a first-time homebuyer, but your income and the home plate ’ sulfur price can ’ thyroxine exceed income and purchase price limits. You can view a number of eligible occupations here .

Texas down payment assistance

While TDHCA ’ randomness and TSAHC ’ randomness programs can be paired with down payment aid, certain cities in Texas might besides have their own aid programs, which are worth checking out if you ’ re buy a base in the area. For exemplify, the city of Dallas offers the Dallas Homebuyer Assistance Program, which is a zero-percent submit lend that can help with your down payment and shutting costs.

Other Texas homebuyer assistance programs

Local Texas homebuyer assistance programs

First-time homebuyers in Austin could qualify for up to $ 40,000 in down payment and close cost aid via a excusable loanword through the city. To qualify, your income must be below $ 55,400 if you ’ re a one-man family ( the limits increase for bigger households ), and you must be buying a home within the city ’ s limits. That home besides can ’ metric ton cost more than $ 295,000. eligible borrowers in Corpus Christi could receive up to $ 25,000 in down payment aid and up to $ 10,000 for close costs from the city in the form of a zero percentage interest excusable loanword, with a term of either five or 10 years. The home must be located within the city ’ s limits and not cost more than $ 238,000. There are besides income limitations. In Houston, Wells Fargo ’ second NeighborhoodLIFT platform provides up to $ 15,000 in down payment aid and up to $ 5,000 in close monetary value serve to borrowers within income limits and who complete a homebuyer education course .

Mortgage credit certificate (MCC)

A mortgage accredit certificate ( MCC ) is a federal tax credit for a share of your annual mortgage interest. The credit is equal to either 20 percentage or 30 percentage of the interest, depending on how much you borrowed for your mortgage, up to $ 2,000 per class. You can combine the MCC with a My First Texas Home loanword, but you ’ rhenium not required to have that type of lend in club to be eligible. It is only available to first-time homebuyers and veterans who are within income and price limits.

Other first-time homebuyer loan programs

In addition to Texas state homebuying programs, consider any of the nationally available first-time homebuyer loan programs, including :

  • FHA loans – If you have a lower credit score or limited savings, consider an FHA loan. These loans are widely available, have a minimum credit score of 580 and require a down payment as little as 3.5 percent.
  • VA loans – If you’re a member of the military or veteran, you could qualify for a VA loan, which doesn’t require a down payment.
  • USDA loan – USDA loans don’t have a down payment requirement, but are only available to borrowers buying in a USDA-eligible rural area. You typically need a credit score of 640 or higher to qualify.

Get started

If you ’ ra interest in a Texas Department of Housing and Community Affairs program, find an approved mortgage lender to help you get the march started. It ’ sulfur helpful to have your documentation handy ahead of time, including three months ’ worth of bank statements and two months ’ deserving of holocene pay stubs. If you ’ re considering a platform through the Texas State Affordable Housing Corporation, begin by taking this eligibility quiz. You can then browse through the organization ’ south list of lenders to learn more. Whichever lender or lend program you decide on, be surely to compare mortgage rates and loan offers across multiple lenders. This can help you find the most low-cost mortgage for your foremost home plate purchase .

First-time homebuyer programs in nearby states

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Category : Finance

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