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

Low Interest Mortgage Loans Now Available at 4.99% Through Texas First Time Homebuyer Program

TDHCA has released $45.5 million in Single Family Mortgage Revenue Bond proceeds through the Department's Texas First Time Homebuyer Program. These funds will create home mortgage loans for qualifying households carrying a remarkably low 4.99 percent interest rate. Forty participating lending institutions with more than 300 branches throughout Texas will offer the 30-year fixed annual percentage rate mortgage loans.

The popular Texas First Time 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 are primarily households earning between 30 percent and 115 percent of the area median family income.

For many Texans, this may represent the best chance to purchase a home of their own. TDHCA strongly urges anyone who has always thought that the dream of owning a home was beyond his or her reach to learn more about this homebuyer initiative.

To qualify for the program, 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. No down payment or closing cost assistance is available with this particular loan program.

For more information on the program, income eligibility, and participating lenders, visit TDHCA's Texas First Time Homebuyer Program page online at: www.tdhca.state.tx.us/homeownership/fthb.