Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities
 

Low Interest Mortgage Loans - Down Payment Assistance Available for Qualified Households

(AUSTIN-10/3/02) TDHCA’s popular Texas First Time Homebuyer Program offers very low- to moderate-income individuals and families an opportunity to qualify for low interest mortgage loans with monthly payments that might otherwise be out of their reach. Eligible households include those earning between 30% and 115% of the area median family income who have not owned a home in the previous three years.

Plus, the Department also offers down payment and closing cost assistance to qualifying households in need of a little extra financial help. A network of forty participating lending institutions with more than 300 branches throughout Texas offer the 30-year fixed annual percentage rate mortgage loans.

For eligible households who do not need down payment and closing cost assistance, the Texas First Time Homebuyer Program provides mortgage loans at a low 5.9% interest rate. For Texans who need assistance with down payment and closing costs, mortgage loans are available at a comfortable 6.65% rate. The assistance is available to income eligible homebuyers up to 4% of the mortgage amount. Individuals and families requesting down payment assistance may not earn an annual income of more than 60% of the area median family income.

Through the Expanded Approval component of the Texas First Time Homebuyer Program, individuals and families with slight blemishes on their credit report may also qualify for a homebuyer loan with interest rates ranging from 7.20% to 7.45%. Unlike the standard assisted homebuyer funds, assisted loans made through the Expanded Approval component are available to qualifying households earning up to 115% of the area median family income.

For more information on the program, eligibility requirements and to obtain a copy of the participating lender status, call the Texas First Time Homebuyer Program toll free hotline at 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 online at: www.tdhca.state.tx.us/homeownership/fthb.