Home Buyer Assistance Programs in Texas
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.
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
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7 Comments
Post a CommentThanks Deborah. :)
Thanks Jacques. Homes are getting more and more expensive. California is definitely a good example of that. LOL
This was most informative. Here in southern California we have two types of homes: the ones that the rich can afford and the ones the poor people can't. For what you pay for a two bedroom 1 bath home in California, you could probably buy a five bedroom home anywhere else and still have enough money for two new cars and a summer beach house.
btw, Awakening, I noticed you got your screen name changed. ;)
Thanks Awakening2000. I agree. Thanks LadyC. I agree with you as well. :)
This is information I think all Texans should know about. This also means people need to do their homework before purchasing a home to make sure they can afford the payment with the tax and insurance added to the principal and interest.
Nice article. It's nice to see states doing more to help people own their own homes.