Since 2005, Texas REALTORS® have helped an estimated 27,500 home buyers take advantage of state-administered home buyer-assistance programs. However, a large percentage of buyers remain unaware of these beneficial programs. The Texas Department of Housing and Community Affairs (TDHCA) has a variety of mortgage products designed to help more Texans become homeowners. TDHCA-administered programs target first-time home buyers, veterans, or those who have not owned a home in the past three years. Here are four popular state-administered programs to keep in mind when working with your buyers.
Texas Mortgage Credit Program: Helps buyers year after year
Homebuyers using Texas Mortgage Credit Certificates (MCCs) receive a reduction in their income-tax obligation of up to $2,000 per year for the life of the mortgage loan. This means more cash available to be a responsible homeowner.
My First Texas Home Program: Offers loans and down payment and closing-cost assistance
My First Texas Home (MFTH) offers expanded mortgage-loan opportunities to qualifying first-time home buyers, including government and conventional 30-year, fixed-rate mortgage-loan options that can also include down payment and/or closing-cost assistance.
Conventional option: Provides flexibility for home buyers
The TDHCA offers a conventional option under MFTH that is ideal for borrowers with limited funds for down payment and closing costs, and those who need extra flexibility on credit, income sources, or access to special options, including up to 97% loan-to-value (LTV) ratio with reduced-rate mortgage insurance (MI). The MI can be canceled at 78% LTV, which can mean long-term saving for the borrower.
MCC and loan combo: Maximizes benefits
Your clients can maximize their home-purchase benefits by combining Texas Mortgage Credit Certificates with a mortgage loan.
To learn more about these options, contact a participating lender via myfirsttexashome.com or call 800-792-1119.
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