March 1, 2022

5 Best Texas Homebuyer Programs To Choose From

These Texas Homebuyer Programs provide mortgage interest tax benefits as well as assistance with down payments and closing expenses to Texas homebuyers.

5 Texas Homebuyer Programs To Choose From

#1 Homes for Texas Heroes Home Loan Program

Teachers, police officers, firefighters and EMS professionals, correctional officials, and veterans are eligible for house loans and down payment help under the Homes for Texas Heroes Program. The Homes for Texas Heroes Program provides down payment assistance and fixed-rate Texas homebuyer programs to the following outstanding professions:

  • Professional educators includes school teachers, teacher aids, school librarians, school counselors, and school nurses, all of whom work full-time in a public school system.
  • Officers of the law and public security
  • Firefighters and paramedics
  • Active military personnel or veterans
  • Officers in charge of correctional and officers in charge of juvenile corrections
  • Faculty in nursing and associated health officers
  • Nursing faculty and allied health faculty

More details on professional requirements can be found here. You must also have a credit score of 620 and meet certain income requirements to be considered.

#2 Home Sweet Texas Home Loan Program

The Homes Sweet Texas Home Loan Program provides low and moderate-income families with home loans and down payment assistance. This Texas homebuyer program is aimed to assist low and moderate-income Texans in realizing their dreams of becoming homeowners.

TSAHC will provide you with a mortgage loan and funding for your down payment if you qualify. You have the option of receiving down payment help in the form of a grant (which does not require repayment) or a forgiven deferred second lien loan (which only has to be repaid if you sell or refinance within three years). If you qualify, you could receive free money to help you purchase a home.

#3 Mortgage Credit Certificates (MCC)

Mortgage Credit Certificates, or MCCs, are offered by TSAHC to first-time home buyers. A mortgage interest tax credit (MCC) is a credit that lowers the amount of federal income taxes you pay each year. MCCs are for first-time home purchasers who qualify for one of the following programs:

  • Teachers, firefighters, EMS employees, police and correctional officials, and veterans are eligible for the Homes for Texas Heroes Home Loan Program.
  • For Texas house buyers with low and moderate incomes, the Home Sweet Texas Home Loan Program is available.

#4 My First Texas Home Program

The Texas Department of Housing and Community Affairs’ My First Texas Home “Taxable Mortgage Program” (TMP) gives down payment and closing fee assistance of up to 5% of the mortgage loan, in addition to a competitive, fixed-interest, 30-year home loan.

By combining the Department’s Mortgage Credit Certification Program with TMP funding, qualified home purchasers can take advantage of a variety of advantages offered by the program, significantly boosting the property’s affordability. The annual tax credit will be equal to 40% of the annual interest paid on the mortgage loan, up to a maximum of $2,000 per year. MCC credits that are not used in the current year can be carried over and used in the following three years.

Requirements for Eligibility

To be eligible for the My First Home program, you must meet the following criteria:

  • Applicants must be first-time buyers or have not owned a house as their principal residence in the last three years.
  • The applicant’s income must fall under the program’s income limits.
  • The property’s acquisition price should not exceed the program’s established boundaries.
  • FHA, VA, and USDA loans need a minimum credit score of 640, with debt-to-income ratios of no more than 45 percent.
  • For Fannie Mae HFA Preferred loans, the minimum credit score is 640 for loan-to-value ratios of 95 percent or less, and 680 for loan-to-value ratios of 95.01 percent to 97 percent. Maximum debt-to-income ratios are set at 45 percent.

#5 My Choice Texas Home

My Choice Texas Home assists “Texas homebuyers of all professions” with “home loans, down payment assistance, and closing cost assistance.” The Texas Department of Housing and Community Affairs offers this program (TDHCA). If you want to buy a home in Texas but can’t afford the large down payment that most homes require, My Choice Texas Home may be able to assist you.

Advantages of the Program

  • You don’t have to be a first-time homebuyer to benefit from this program.
  • Loans with a 30-year fixed interest rate
  • Up to 5% of the loan amount can be used for down payment and closing costs assistance.
  • A network of collaborating lenders makes it possible to get a loan anywhere in the state.
  • All qualifying homebuyers of all professions are eligible.
  • Homebuyers have the option of going with a government-backed loan (FHA, VA, or USDA) or a conventional loan.

We Make Your Texas House Dreams a Reality!

It’s important to remember that Texas homebuyer programs aren’t a one-size-fits-all answer. What works well for one borrower may not be available to another. Have you always wanted to buy a house in Texas for you and your family? Don’t let the cost of a down payment keep you from realizing your goal! Allow us to assist you in becoming a homeowner in the beautiful state of Texas TODAY!

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