Texas Housing Trust Fund
Homebuyer Assistance Program

Program Details

The HTF Homebuyer Assistance Program provides eligible borrowers with up to $10,000 in the form of a zero percent interest loan for down payment and closing cost assistance for the acquisition of a single family home that must be used as a principal residence. The program will serve first time homebuyers and veterans whose annual income does not exceed 80% of the Area Median Family Income.

Currently there are no funds available for this Program. The Department anticipates releasing additional funding in February 2012. A final date for the release of funds has not been determined.

Eligible Organizations

Units of Local Government;
Nonprofit Organizations;
Public Housing Authorities; and
For-Profit Organizations.

Organizations interested in applying to administer the program must complete the Homebuyer Assistance Program Certification Application, which will be available upon the release of funds.

Exception: Texas First Time Homebuyer Program participating lenders, and organizations currently approved to participate in the Texas Bootstrap Loan Program, must complete page one of the Homebuyer Assistance Program Certification Application, and must include a resolution that is signed by the applicant’s direct governing body. Please refer to Exhibit 1 of the application under “Organization Structure” regarding the requirements for the Resolution. In addition the applicant must execute a Loan Origination Agreement.

Approved Organizations

Download the list of all lending organizations that are currently approved to administer in the Housing Trust Fund HBA program:

Housing Trust Fund Homebuyer Assistance Program Administrators (PDF)

Loan Reservation System Access and Forms

To Register a Borrower, visit the Loan Reservation System page.

For Program Income Limits and Forms, visit the forms page.

Download the Program Manual (PDF) for further guidelines and instructions.

Program Details and Requirements

Available Funds: No funds are currently available at this time

Funding Source: State of Texas

Administrative Fee: 4% of loan amount paid to the Administrator after the loan has closed

Maximum Loan: $10,000

Loan Term: Five to ten years, per borrower’s choice

Interest Rate: 0%

First Payment: Due no later than on the sixty-first (61) month after the first payment date of the Senior Lien loan.

Eligible Properties: New and existing...

Single family homes
Townhouses
Condominiums
Manufactured housing (certain restrictions may apply)

Eligible Borrowers: First time homebuyers (This requirement is waived for Veterans, as defined in the NOFA.)

Borrower’s income: May not exceed 80% of the Area Median Family Income (AMFI).

Liquid Assets: May not exceed $15,000 (excluding retirement and/or 401K accounts).

Maximum Debt Ratio: Total debt-to-income ratio may not exceed 45%, unless the Senior Lien(s) are insured or guaranteed by USDA, FHA, VA, Fannie Mae or Freddie Mac.

Home Value Limits: The total contracted purchase price of the housing unit must not exceed the Single Family Mortgage Limits under Section 203(b) of the National Housing Act

Combined Loan-to-Value (CLTV) Ratio: May not exceed 105% of the appraised value.

HBA Program Lien: 2nd or 3rd lien position.

Mortgage Loan

Senior Lien Loan: Fully amortized, fixed-rate loan

Types of Loans: FHA, VA, USDA/RD/RHS, Fannie Mae & Freddie Mac; uninsured loans are subject to the Department’s approval.

Fees/Points: Administrator may charge borrower the following fees (unless the Senior Liens(s) are insured or guaranteed by USDA, FHA, VA, Fannie Mae or Freddie Mac):

Origination Fee: 1%
Buyer Points: 1%
Title Policy (if paid by Borrower): 1%
Application Fee: May not exceed $325 (includes compliance and funding fees)
Other Closing Costs: Must be fully disclosed on HUD-1 and may not exceed 1.5% of loan amount.

For more information or questions, please contact: Jessica Perez (512) 475-2261 or jessica.perez@tdhca.state.tx.us

Texas Housing Trust Fund Homebuyer Assistance Program