Homeownership is a celebratory milestone but also a huge investment that can be overwhelming for first-time homebuyers. Luckily, there are various assistance options for down payments and closing costs that can lessen the financial load.
Read on to learn more about first-time homebuyer programs in Texas.
Who is a First-Time Homebuyer?
According to the U.S. Department of Housing and Urban Development, a first-time homebuyer is:
- A person who hasn’t owned a principal residence for the last three years
- A single parent or displaced homemaker who has only owned a home with a former spouse
- A person who has only owned a primary residence not affixed permanently to a permanent foundation in accordance with the regulations
First-Time Homebuyer Programs in Texas
Here are the three major first-time homebuyer programs in Texas:
Texas State Affordable Housing Corporation (TSAHC)
TSAHC is a nonprofit organization designed by the Texas legislature to help Texans own homes more easily. It offers first-time homebuyers a mortgage loan and funding to use as a down payment. You can receive the assistance as a grant or deferred forgivable second lien mortgage. To qualify for the TSAHC program, you should have a minimum credit score of 620 and meet the required income limits.
Texas Department of Housing and Community Affairs (TDHCA)
TDHCA offers resources and programs to Texans earning low-to-moderate income. The programs include 30-year fixed-rate mortgages with down payment and closing cost assistance of up to 5% of the loan amount. To qualify, you should have a minimum score of 620 and meet the income limit requirements. Examples of TDHCA programs are My First Texas Home, Texas Mortgage Credit Certificate Program, My Choice Texas Home Program, and Texas Bootstrap Loan Program.
Other First-Time Homebuyer Programs
Besides the Texas state mortgage programs, you should consider government-backed first-time homebuyer programs including VA loans, FHA loans, and USDA loans.
First-Time Homebuyers Programs in Texas
First-time homebuyer programs can help make your homeownership dreams a reality. If you’re in Texas and would like to learn more about first-time homebuyers programs available to you, feel free to reach out to us today!
