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Home Buyer Assistance Programs in Texas

Downpayment, Mcc

Buying a new home is a wonderful experience, but, sadly, it is also one many Americans will never have. The number one reason is lack of proper funds. Everyone deserves a home of their own. Here is an outline of home buyer programs in the state of Texas that can help with programs such as down-payment assistance, low monthly rates, and first-time home buyer assistance.

The Texas First Time Home Buyer Program
The Texas First Time Home Buyer Program (FTHB) is a program that helps first time buyers by providing those that qualify with low-interest rate home loans. These loans are typically 1% below the current market rates. The FTHB also offers homebuyers eligible by income a grant equal to 5% of the mortgage amount for downpayment assistance. To see if you are eligible, please contact the FTHB. Before applying, homebuyers will first use the Prequalification Tool, available on the FTHB website. Next, a homebuyer can find out which types of properties are eligible for purchse, which includes a large range. Third, the homebuyer can review the rates, fees, and requirements. Then, the buyer needs to gather all the important documents needed as per request on the list. Finally, the homebuyer finds a lender or realtor using the list on the FTHB website. This process is designed to be easy and understandable for the buyer.

Mortgage Credit Certificate Program
The Mortgage Credit Certification Program (MCC) was established to help lower income families obtain adequate housing. The MCC helps these families by reducing the federal taxes on a new mortgage. By reducing the taxes, the monthly mortgage rate will be lower, allowing the family to be more able to make the payment. This program is only applicable to those who meet the income criteria and are purchasing a home, not to those with existing mortgages or refinances. You can find out more visiting the MCC website.

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Texas Loan Star Program
The Texas Loan Star Program helps homebuyers who have enough income to keep up with a mortgage, yet cannot come up with a large downpayment. This programs offers eligible Texas homebuyers “up to eight percent of the purchase price in down payment and closing cost assistance in the form of a repayable second lien loan – with no money down”. After reviewing the information on the Texas Loan Star website, interested Homebuyers can call their hotline, which can also be found on the website.

Final Note:
While it is not guaranteed that all will qualify for these programs, remember that purchasing a home can be a lrage financial drain. Any assistance needed and offered should be given a look at, even if you are unsure if you qualify. Should you qualify for any of these programs, it could relieve some financial stress you are facing while attempting to purchase a home.

These programs are all run by the Texas state government.

Sources:
http://www.tdhca.state.tx.us/homeownership/fthb/buyer_intro.htm FTHB
http://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm MCC
http://www.tdhca.state.tx.us/homeownership/loan-star/index.htm Texas Loan Star Program