TDHCA Released $40 Million in Bond Funds
Targeting First Time Homebuyers
Funds to Create Mortgage Loans with Interest Rates as low as 5.3%
(AUSTIN) The Texas Department of Housing and Community Affairs (TDHCA) announced the release of $40 million in Single Family Mortgage Revenue Bond proceeds through the Department's Texas First Time Homebuyer Program. The funds create below market interest rate mortgage loans for qualifying households carrying interest rates as low as 5.3 percent. Forty participating lending institutions with more than 300 branches throughout Texas offer the 30-year fixed annual percentage rate mortgage loans.
The popular homebuyer program offers very low- to moderate-income individuals and families an opportunity to qualify for mortgage loans with monthly payments that might otherwise be out of their reach at current market interest rates. These include households earning between 30 percent and 115 percent of the area median family income.
A portion of the funds has been set aside to provide 30-year fixed annual percentage rate mortgage loans at a low 5.3 percent interest rate. Loans offering this low rate are available to qualified homebuyers who do not need down payment and closing cost assistance.
For Texans who need assistance with down payment and closing costs, funds are available to income eligible homebuyers for up to 4 percent of the mortgage amount. Mortgage loans that include the down payment and closing cost assistance are available at a comfortable 5.99 percent interest rate.
"Many Texas families and individuals pay their rent each month, hoping one day to enjoy the benefits of owning a home," said TDHCA Executive Director Edwina Carrington. "We want to support them in their housing goals. Homeownership is a key ingredient to family security, personal wealth, and strong communities. It is a critical part of the Department's mission."
"The Texas First Time Homebuyer Program and the related Down Payment Assistance Program are just two ways the Department addresses this mission," Carrington continued. "I encourage all eligible Texans to take advantage of these programs. They are here for you."
To qualify for the programs, individuals and families must meet certain area income requirements, and may not have owned a home within the past three years. Income requirements vary between regions based on the area median family income, as well as the maximum allowable home purchase price.
For more information on the program, income eligibility, and participating lenders, call the Texas First Time Homebuyer Program toll free hotline at 1-800-792-1119. The hotline is available 24-hours a day, seven days a week. Interested Texans are also encouraged to visit TDHCA's Texas First Time Homebuyer Program page.