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TSAHC offers two types of assistance:
A home buyer cannot apply for either type of assistance AFTER closing on their home loan. Assistance is only available during the home purchase process.
Home buyers never have to pay back a portion of TSAHC’s down payment assistance grant. It is a true grant.
First-time home buyers may use both forms of assistance when purchasing a home.
Additionally, TSAHC’s down payment assistance grants can be combined with other down payment assistance programs offered in the home buyer’s city or county.
TSAHC provides 30-year fixed interest rate mortgage loans, down payment assistance grants, and mortgage credit certificates through the following programs. These programs are offered through a network of approved mortgage lenders.
Both programs are restricted to home buyers earning up to 115% of the Area Median Family Income. Incomes vary by county. Take the eligibility quiz to see if your clients qualify.
Under the Homes for Texas Heroes Program, the Texas Legislature defines a “Texas Hero” as one of the following:
For detailed definitions, click here. If you do not see a profession listed above, it is not eligible for the “Texas Heroes” program. However, a home buyer may qualify for the Home Sweet Texas program and receive the same benefits. Take the Eligibility Quiz to see if your client qualifies.
Home buyers may use TSAHC’s home buyer programs to purchase a home anywhere in Texas. Our programs are not limited to certain areas or to TSAHC-specific homes.
No, home buyers are not required to stay in the home for any period of time. However, home buyers who used TSAHC’s down payment assistance prior to June 2012 or receive a TSAHC MCC may be subject to Recapture Tax if they decide to sell their home within 9 years of purchase. Click here to learn more about Recapture Tax.
Yes, both the Homes for Texas Heroes and Home Sweet Texas Home Loan Programs have income limits. Please take the Eligibility Quiz for more information.
No minimum FICO credit score or maximum debt-to-income (DTI) requirements.
For DPA or MCC/DPA programs:
Effective April 3, 2017- No maximum debt-to-income (DTI)* requirements will apply to any loan using DPA or MCC/DPA program that receives an automated underwriting approval.
FHA Loans, VA or USDA-RHS Loans
Home buyers must have a minimum FICO score of 620. Please note, home buyers with a FICO score of 620-639 will be charged a .50% origination fee. FHA allows manual underwriting with a maximum debt to income ratio of 43%. A minimum credit score of 640 will apply unless using non-traditional credit.
Fannie Mae HFA Preferred Conventional Loans
Home buyers must have a minimum FICO score of 620. Please note, home buyers with a FICO score of 620-639 will be charged a .25% origination fee.
Home buyers should visit the Texas Financial Toolbox to find a home buyer education course in their area. Any course listed on this site will meet the requirement.
Lenders may collect other reasonable and customary fees and closing costs, provided all fees are fully disclosed in accordance with federal, state and local regulations.
Using one or both of TSAHC’s home buyer programs should not take any longer than the customary time it takes to close a traditional mortgage loan. On average, it takes 24-48 hours for TSAHC to review the loan file for approval. TSAHC requires that all loans be sold to Lakeview Loan Servicing within 60 days of reservation.
Home buyers may purchase a home anywhere in Texas to receive TSAHC’s assistance. However, home buyers purchasing a home in a targeted area are allowed to have a higher income and purchase price limit. A targeted area is a designated census tract or an area of chronic economic distress. To see if a property is located in a targeted area, click here.
With the DPA or Combo DPA/MCC program a home buyer can purchase the following property types:
HFA Preferred Conventional Loan-
An entire duplex, triplex, or fourplex (must put down 5% or more and one unit must be owner-occupied)
With the MCC program by itself a home buyer can purchase the following property types:
Any loan type-
To qualify for assistance, the home must become the home buyer's primary residence. Vacation, rental and second homes do not qualify under TSAHC’s home buyer programs.
Gifts are an acceptable source for part of the down payment, if the gift giver is related to the home buyer or is from a nonprofit or government organization.