Here are some different types of first time homebuyer mortgage loan programs available in Texas, as well as some helpful tips, just for you.
- My First Texas Home
- Texas First Time Homebuyer Bond
The My First Texas Home loan program, or Texas Mortgage Program (TMP) 79 as it is more formally known, offers first time homebuyers in Texas more competitive interest rates and down payment assistance that can add up to almost 5% of their loan amount. This program has different maximum income requirements depending on where the home is located.
The other program offered by the Texas Department of Housing & Community Affairs (TDHCA) is theTMP 77, or Texas First Time Homebuyer Program. This program also offers competitive interest rates for Texas’s first time homebuyers and down payment/closing cost assistance, but in the form of a 30 year fixed 2nd lien.
Both programs are designated for first time home buyers (or borrowers who have not owned a home in the last 3 years) with low to moderate incomes that need assistance with down payment and closing costs. However, as you will see below, most buyers will be eligible for other programs that are more beneficial to the home buyer.
For further information and details see the next section below.
In some cases, a bond program will be the best possible option for you as a borrower. One such program is the Texas First Time Homebuyer Program, which is also known as Bond Program 77.
Bond Program 77 helps borrowers to receive competitive interest rates with a 30-year repayable mortgage for their home loans. The borrowing can help with down payments and closing costs. As a result, the program opens up the possibility of buying a home to a wider number of people. The program can be used by anyone who qualifies that is buying property within the borders of Texas.
In order to meet the qualifications, borrowers need to have low or moderate income and they must be buying a home for the first time. If they have not owned a home in at least three years, then they are also qualified.
Another program is the Texas Mortgage Program, known as TMP-79. This was designed to replace a previous single-family bond program. It is backed by more than $600 million set aside for the assistance of homebuyers. When compared to previous programs, the Texas Mortgage Program offers better interest rates and assistance on down payments and closing costs. Those additional elements may make up as much as 5 percent of the total loan. Depending upon where the home is located, there are different maximum income requirements.
These are programs that should be looked into by those who cannot afford to make an entire down payment, but can afford to make at least a partial down payment. They may also be able to be combined with other programs, thus enabling the purchase of a home with no down payment.
Our experts are familiar with all of the available Texas Bond Programs. As a result, they can help you to determine whether or not you are eligible for any.
Once you’ve figured that out, you can discuss whether or not the available Texas Bond Programs are your best option moving forward. If they are, then we can help you to begin the application process.
As with the other programs offering government assistance, the goal is to make the dream of home ownership a bit easier to achieve. If you didn’t think owning a home was ever going to be a possibility for you, we may be able to help you get the “yes,” answer that you’ve been hoping for.
Zero (0) Down Payment?...
Though not programs specifically geared toward first time homebuyers in Texas, USDA and VA loans offer very competitive rates and no down payment options.
USDA Loan
With a USDA loan, a first time homebuyer can finance the entire value (100%) of the property, as well as have the closing costs rolled into the loan. There are, however, income limitations, as well as restrictions on which cities/counties are eligible for a USDA loan. This type of loan favors those individuals seeking to purchase a home in more rural areas.
For more details on USDA loans click the button below.
If a first time homebuyer is a member of the armed services, or once was, they may be eligible for a VA loan. VA loans are backed by the U.S. Department of Veteran Affairs and offer benefits to both former and active military personnel, and their family. This program also allows the homebuyer to finance 100% of the property value. There is a funding fee with this program; however the fee can be financed with the rest of the loan amount so that it is possible to purchase the home with zero down payment.
For a more details on VA loans click the button below.
If the first time home buyer (or property) cannot qualify for a USDA or VA loan, they may still qualify for a FHA loan. FHA loans are insured by the U.S. Federal Housing Administration. Because of this “insurance”, first time home buyers can purchase the home with a minimum of 3.5% down payment, as opposed the 5% minimum on conventional loans. FHA loans are also (typically) much more lenient on borrowers with lower credit scores and/or higher debt-to-income ratios. An FHA loan does come with limitations/restrictions such as maximum loan amount and housing types. Additionally, there is a 1.75% upfront fee and a lifetime Private Mortgage Insurance (PMI) that, when combined, can be more expensive than a Conventional loan.