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

Texas Bootstrap Loan Program

To get help where you live find help here. Para obtener ayuda donde vives encuenta ayuda aquí.

Purpose

The Texas Department of Housing and Community Affairs (Department) administers the Owner-Builder Loan Program, commonly known as the Texas Bootstrap Loan Program (Bootstrap).

The Bootstrap Program is a self-help housing construction program that assists very low-income households (Owner-Builders) to purchase or refinance real property on which to build or repair housing by contributing the labor themselves. The maximum Bootstrap loan is $45,000 per household and 0% interest for a term of up to 30 years. Owner-Builders leverage their Bootstrap loan with additional loan funds from other sources.

An eligible Owner-Builder household income may not exceed the greater of 60% of Area Median Family Income or 60% of the State Median Income.

All Owner-Builders are required to provide at least 65% of the labor necessary to build or rehabilitate their housing by working with a state-certified Nonprofit Owner-Builder Housing Provider (NOHP) or a Colonia Self-Help Center. Owner-Builders may contribute the labor personally, they may build or rehabilitate housing for others, and/or they may receive noncontract labor assistance from others. All construction activity in the Texas Bootstrap Loan Program must be under the supervision of a certified NOHP (XLSX). Nonprofit organizations wishing to become a certified NOHP must complete this Application (PDF).

Funding Set-Asides for Certain Census Tracts

Each year, the Department is required under Section 2306.753(d) of the Texas Government Code to set aside at least two-thirds of Bootstrap funds for Owner-Builders whose property is in a census tract that has a median household income not greater than 75% of the median state household income for the most recent year statistics are available:

Census Tracts Eligible under the 2019 Texas Bootstrap Loan Program 2/3 Set-Aside (XLSX)

To look up the census tract number for an address, visit the Federal Financial Institutions Examination Council’s (FFIEC) Geocoding/Mapping System.

Household Eligibility

Eligible Owner-Builders must meet the following minimum requirements in order to apply to the Texas Bootstrap Loan Program:

  • Working with a certified NOHP (XLSX) to provide at least 65% of the labor necessary to build or rehabilitate the proposed housing
  • Has an annual household income no greater than 60% of the state or local median family income.
  • Has a Total Debt-to-Income ratio no greater than 45% and has a credit history that indicates reasonable ability and willingness to meet debt obligations
  • Has resided in Texas at least six months prior to the date of application
  • Successfully completes an Owner-Builder Education Class

Documents

Links

For additional information, please contact Luis Diaz at luis.diaz@tdhca.state.tx.us.