TDCHA 1st Time Homebuyer Program
Down Payment Assistance
TDHCA Texas First Time Homebuyer Program
Beginning in May 2010, the Texas Department of Housing and Community Affairs (TDHCA) revealed the release of $500 million in funding to Texas first time homebuyers. The TDHCA First Time Homebuyer Program was designed to help low to moderate income homebuyers with the purchase of their first home. There are two types of morgage loans available through this program.
“Assisted loans” are the first type of mortgage loan offered by the TDHCA First Time Homebuyer Program. Assisted loans are 1st lien mortgage loans made available at a an interest rate slightly above the current market interest rate.They provide down payment and closing cost assistance to eligible borrowers. The amount of down payment and closing cost assistance is 4% of the mortgage amount and is available in the form of a 2nd lien, 30-year, 0% interest loan. Although no monthly payments are required, the amount of assistance is due and payable in full upon sale, refinance or repayment of the 1st lien mortgage. Borrowers earning up to 115% of the area median family income (depending on family size) and up to 140% of the area median family income (depending on family size) if purchasing in a targeted area are eligible to receive funding through the TDHCA First Time Homebuyer Program. Please review the “Combined Income and Purchase Price Limits Table” located on the TDHCA Websity for additional details and information. “Unassisted loans” are the second type of loan offered through this program and are available at an interest rate slightly below the current market interest rate; however, these loans do not include funds for down payment and closing cost assistance.
All 1st lien mortgage loans are available at a 30-year fixed rate. The interest rates offered under the program will change periodically depending on the industry market rates at the time the loan is registered. To receive assistance from the TDHCA, Homebuyer Education is required. This requirement may be met by attending a pre-purchase homebuyer education counseling course provided through the Department’s network of certified Texas Statewide Homebuyer Education Providers, or on-line counseling offered through the program’s participating lender network.
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.