Purchasing your first home consists of one of the most exciting but confusing moments in your life. If you’ve never owned property in our beautiful state, you may have the ability to take advantage of one of the many first-time homebuyer programs in Texas. While many of these programs have eligibility requirements, the Texas State Affordable Housing Corporation (TSAHC) provides plenty of payment assistance programs to help you find your home.
My First Texas Home Program
Among the ideal loan programs for first-time homebuyers, My First Texas Home offers many benefits, including the ability to take out a 30-year second loan at zero percent interest.
Eligibility Requirements
- You must have a credit score of at least 620.
- You must have not owned a home within the past three years, or this must be your first home.
- Your household income and the value of your chosen property must meet the program’s current limits.
- You need to have a preapproved mortgage with a lender backed by the Texas Homebuyer Program.
Pros
- Options for a second loan down payment available
- Up to five percent down payment assistance available
- Extra tax savings available with a mortgage credit certificate
Cons
- Must meet income requirements
- Must have an FHA credit score minimum of 580
- Only available to veterans and first-time homebuyers
- Must pay off forgivable loans if selling or refinancing too quickly
My Choice Texas Home Program
While usable as a first-time homebuyer program, My Choice Texas Home doesn’t have first-time homebuyer restrictions, enabling others to utilize it as well.
Eligibility Requirements
- You need a credit score of at least 620.
- You must have a preapproved loan from a Texas Homebuyer Program-approved lender.
- You must meet the income limits and your ideal property must meet property value limits.
Pros
- Up to five percent down payment assistance available
- Options for a zero percent interest second loan available
- Allows for higher income limits than the First Texas Home program
Cons
- Must meet income requirements
- Must have an FHA credit score minimum of 580
- Must use lenders aligned with The Texas Homebuyer Program
- Must pay off forgivable loans if selling or refinancing too quickly
Texas Mortgage Credit Certificate Program
This secondary mortgage program helps qualified homebuyers with their first-time homebuyer programs in Texas.
Eligibility Requirements
- You’ll have to complete a homebuyer education course.
- You must have not owned a home within the past three years, or this must be your first home.
- Your household income and the value of your chosen property must meet the program’s current limits.
Pros
- Can reduce federal tax liability
- Potentially higher home loans due to higher take-home pay
- No minimum credit score required so long as you combine the certificate with a normal mortgage program
Cons
- Must use funds quickly or you’ll lose that availability
- Must meet price limits and household income requirements
- Moving out within nine years may incur you to pay back a portion of the certificate
Home Sweet Texas Program
This program allows homebuyers to apply for down payment assistance or a mortgage credit certificate.
Eligibility Requirements
- Your income must fall within the program’s limits.
- You’ll have to complete a homebuyer education course.
- If you want a VA, FHA, or USDA first mortgage, you need at least a 620 FICO score, while you need a 640 FICO score for a conventional first mortgage with forgivable second loan.
Pros
- Could obtain three to five percent loan assistance
- No grant repayment after six months has passed since the closing date
- Can combine mortgage credit certificates and programs to lower tax liability
Cons
- Moving within three to nine years may require a partial repayment of grant funds
- Must have a credit score above 620 for first mortgage or forgivable second mortgage
Homes for Texas Heroes Program
This program addresses some of the most heroic positions in our society, allowing those in particular career fields to purchase a home with government help.
Eligibility Requirements
Must work in one of these positions:
- Teachers
- Firefighters
- EMS Workers
- Police Officers
- School Librarians
- School Counselors
- Corrections Officers
- Public Security Officers
- Active-duty or Veteran Military Personnel
Otherwise, the requirements, pros, and cons match those of the above Home Sweet Texas Program.
First-Time Homebuyer Down Payment Assistance in Texas
While many first-time homebuyers worry about their monthly mortgage payment, they may not anticipate the true amount of their down payment. Texas offers various types of down payment assistance so long as you meet guidelines such as certain income requirements, home guidelines, and the completion of a homebuyer education course. Additionally, for those considering buying a house with multiple owners, there are unique considerations and benefits to explore. While you still have to pay your closing costs, getting help with your down payment can lighten the overall financial load.
Navigating first-time homebuyer programs in Texas can prove daunting, so working with an experienced mortgage company can make the process easier. First-time homebuyers can learn more about mortgage programs and down payment assistance by calling Champions Mortgage in Sugar Land, TX, at (281) 727-2500. We service clients across Texas!
