TDHCA Texas First Time Homebuyer Program (Bond Program 77)

Effective May 2010, the Texas Department of Housing and Community Affairs (TDHCA) announced the release of $500 million in funding for first time homebuyers. The program is designed to assist low to moderate income homebuyers who are interested in purchasing their first home. Two types of mortgage loans are available.

“Assisted loans” are 1st lien mortgage loans made available at a an interest rate slightly above the current market interest rate and provide down payment and closing cost assistance. The amount of down payment and closing cost assistance is 5% of the mortgage amount and is available in the form of a 2nd lien, 30-year, 0% interest loan. Although no monthly payments are required, the amount of assistance is due and payable in full upon sale, refinance or repayment of the 1st lien mortgage. Assisted loans are available to borrowers earning up to 115% of the area median family income (depending on family size) and up to 140% of the area median family income (depending on family size) if purchasing in a targeted area. Please review the “Combined Income and Purchase Price Limits Table” for additional detail.

“Unassisted loans” are available at an interest rate slightly below the current market interest rate and do not include funds for down payment and closing cost assistance.

All 1st lien mortgage loans are available at a 30-year fixed rate. The interest rates offered under the program will change periodically depending on the industry market rates at the time the loan is registered.

Information from http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm