I am interested in pre-qualifying for the First Time Homebuyer Program, Where can I do so?
For more information on the TDHCA First Time Homebuyer Program and for inquiries regarding qualification and application, please refer to this link:
TDHCA First Time Homebuyer Program- Buyers Introduction
What is the First Time Homebuyer Program?
The First Time Homebuyer Program is a program offered by the state of Texas to help Texans buy their first home. The program provides low-interest rate home loans for eligible families and individuals through the sale of tax-exempt mortgage revenue bonds.
Who is eligible for the program?
Homebuyers who have not owned a home within the past three years, who meet program income guidelines and do not exceed the program purchase price limits are eligible to apply for a loan under this program.
What type of home can I buy?
Any new or existing home in the state of Texas that does not exceed the maximum purchase price limits of the program. Manufactured homes are allowable if the home is permanently affixed to a foundation and meet FHA guidelines. All homes purchased under this program must meet certain quality standards.
Are Conventional Loans allowed in this program?
No, All Conventional loans were Suspended on 1/9/2012 (Fannie Mae, Freddie Mac)
Click here for details.
How do I apply for funds?
TDHCA does not actually loan you the money. The mortgage loan funds are available through a network of participating lenders located throughout the state. If you experience difficulty with one of the participating lenders, please contact us at 1-800-792-1119.
How do I know if I qualify for a Texas First Time Homebuyer Program?
A participating lender will determine your ability to repay a 30-year mortgage loan by reviewing your employment and income information, total monthly debt obligations and your past experience with credit along with information about the value of the property you want to buy. These lenders will pre-qualify you so that you will know the approximate price range of homes to shop for. The lender will complete all necessary paperwork for loan approval and assist in the coordination of loan closing with your Realtor and closing agent. It’s a good idea to get pre-qualified by one of the participating lenders prior to shopping for a home. If you do not qualify for a loan due to credit problems, visit Help for Texans to locate a certified consumer credit counseling provider in your area.
Is this a free program, or are there any costs involved?
As with most mortgage loans, there are fees (closing costs) associated with this program. TDHCA does, however, limit the fees participating lenders may charge to help minimize your costs of closing the loan.
How long does the mortgage process usually take?
In general, the mortgage process takes between 45 to 60 days from the time of application to closing. This time frame is dependent upon a number of factors including the individual lender’s process and any potential qualifying issues. The process typically does not take any more time than any other loan a lender closes. After closing, when the loan is submitted, if all required documents are correctly submitted, a loan can be approved and purchased immediately.
Are funds available for downpayment and closing cost assistance?
Program 77 provides an Assisted Rate Option, which gives a borrower 4% of the Loan Amount for Down payment and Closing Cost Assistance. The system will automatically calculate this amount when the ‘Assisted Rate’ option is selected.
Can Housing Trust Fund DPA Loans be used with both rate options (Assisted and non-assisted)?
No. To be eligible for the HTF DPA, you must use the unassisted rate option only. The Program DPA of 4% is automatically provided when you reserve to the Assisted Rate Option.
What is recapture tax?
Homebuyers that receive a loan through the First Time Homebuyer Program may be subject to a Federal Recapture Tax. If you: (1) sell your home within nine years; (2) earn significantly more income than when you bought the home; and (3) gain or profit from the sale of the home, you may be subject to recapture tax.
What is a Qualified Veteran’s Exemption?
A service man or woman is considered a first time homebuyer if he/she does not meet the 3- year criteria and has not previously received financing as a first-time homebuyer. The serviceman/ servicewoman may have owned a previous property; however, the property may not have been financed through a first-time homebuyer financing program.
Can a Duplex be financed under the program?
Yes, a duplex may be financed under the program. To qualify as an eligible purchase, one unit of the duplex must be occupied by the Eligible Borrower as his or her Principal Residence.
Does the homebuyer have to repay the Down payment Assistance?
Yes, the DPA must be repaid. All DPA loans will have a stated term of (30) thirty years from the date of settlement of the DPA Loan. The Mortgagor (or “Eligible Borrower”) who finances a Residence with a Mortgage Loan and a DPA Loan will be required to repay the loan prior to the stated term of thirty years from date of settlement if the Mortgagor sells, refinances, transfers, or otherwise disposes of or ceases to occupy the Residence within the thirty ( 30) year term of the DPA Loan.
Does the first time homebuyer requirement apply to homes owned within the United States only or for foreign owned homes too?
The first-time homebuyer requirements is for ANY homeownership, regardless of location, within the past three years.
