Frequently Asked Questions

Our frequently asked questions are below. If you don't find the answer you are looking for, call us at 1-800-792-1119 and we will be glad to help.

• Does the lender have to pay a participation fee?
• What are the allowable fees a lender can charge on a Texas First Time Homebuyer Program bond loan?
• How often are funds made available under the program?
• Can other downpayment assistance programs be used in conjunction with this program?
• If a lender gets approved for the Texas First Time Homebuyer Program does this automatically approve them to participate in the Mortgage Credit Certificate (MCC) Program?
• Can a lender service the loans they originate under this program?

Does the lender have to pay a participation fee?
No, a participation fee is not required. All funds are distributed on a first-come, first-served basis. top

What are the allowable fees a lender can charge on a Texas First Time Homebuyer Program bond loan?
Lenders are allowed to charge the following fees:

• Up to 2% in Origination Charges
• Application Fee: Not to exceed $560 (includes administrator/compliance, servicer and lender fee)
• Other Closing Costs: including appraisal fee; credit report fee, survey fee, title insurance fee, etc. (must be fully disclosed on HUD-1 in accordance with agency policies)

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How often are funds made available under the program?
TDHCA makes available mortgage revenue bond proceeds on an annual basis. Funds are generally released several times each year. The program strives to always have funds available. How many lenders participate in the program? Approximately 45-50 lending institutions participate with over 300 branch offices located throughout the state. top

Can other downpayment assistance programs be used in conjunction with this program?
Yes, other downpayment assistance programs may be used if approved by our Master Servicer (US Bank, N.A.). Many communities within Texas operate programs at the local level that may be used. top

If a lender gets approved for the Texas First Time Homebuyer Program does this automatically approve them to participate in the Mortgage Credit Certificate (MCC) Program?
No, a separate application must be completed to participate in the MCC Program. Can the MCC Program and Texas First Time Homebuyer Program be combined? No, both programs are funded through the sale of tax-exempt bond proceeds and may not be combined. top

Can a lender service the loans they originate under this program?
No, all of our loans are sold to and serviced by our Master Servicer (US Bank, N.A.) top

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