Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities
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Texas Housing Trust Fund
Homebuyer Assistance Program (Archived)

Program Details

The HTF Homebuyer Assistance (HBA) 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.

Program Resources

Eligible Organizations

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

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)

Program Details and Requirements

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):

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