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

TDHCA Press Room

CFD Conversions: Closer to home

If you’ve ever heard the term Contract for Deed (PDF) (“CFD”) but never understood exactly what it meant, here’s the story:

Under a CFD, a seller will provide a buyer with the financing to purchase a piece of property, and the buyer repays the loan in installments. Unlike a traditional deed of trust, however, the seller retains legal title to the property until the final installment is paid.

In other words, the buyer, doesn’t own the property until it’s fully paid for – meaning it could be years before the buyer can enjoy the benefits of homeownership.

It’s also a situation ripe for abuse, but for many residents living in the state’s colonias – substandard neighborhoods often burdened by poor housing and infrastructure – it may be their only chance to buy or build a home.

So, what’s the solution?

TDHCA’s Contract for Deed Conversion Program (“CFDC”) supports eligible nonprofits, local governments and public housing authorities helping qualifying households convert CFDs to traditional mortgages and attain homeownership.

When funds are available, assistance comes in the form of a 0%, deferred, forgivable loan not to exceed $90,000 per home.

The buyer’s income cannot exceed 60% area median family income and the property must be located in a colonia that meets specific state guidelines.

Assistance may include reconstruction or new construction of site-built housing, the replacement of an existing manufactured housing unit with a new unit, or the rehabilitation of an existing colonia home.

For additional information on CFDC Assistance Grants, please contact the Housing Trust Fund Division at htf@tdhca.state.tx.us or 512-936-7800.


News Releases

News releases are developed by the Communications and Marketing section of the Division of Policy and Public Affairs to publicize TDHCA program activities. These include application funding cycles, program grant awards, special events, board activities, and other relevant information.

Date Headline
12/06/2016 State housing agency enters into $10 million loan agreement to provide qualified homebuyers with down payment and closing cost assistance
07/29/2016 State housing agency’s $65.3 million tax credit allocation to expand housing options for income-eligible Texans
07/28/2016 State housing agency continues investment in Hidalgo County Self-Help initiatives
07/28/2016 State housing agency continues investment in Webb County Self-Help initiatives
06/24/2016 State housing agency, regional nonprofit to provide energy assistance program in nine East Texas counties
03/21/2016 State housing agency’s online homebuyer education tool takes the complexity out of home purchase process
02/05/2016 State housing agency’s $9.96 million to create affordable housing, expand housing choices for low-income Texans
11/19/2015 State housing agency’s $34.5 million package to fund upgrades for Grand Prairie affordable rental property
07/30/2015 State housing agency’s $63.5 million tax credit allocation to expand housing options for income-eligible Texans
07/30/2015 State housing agency’s $700,000 contract to improve living standards in five Starr County colonias
07/16/2015 State housing agency’s $1 million contract to improve living standards in five Maverick County colonias
07/16/2015 State housing agency provides additional $578,000 to improve colonia standards in Cameron and Willacy counties
02/27/2015 State housing agency to contribute to ambitious makeover of 1,590 units of El Paso public housing
01/21/2015 State housing agency’s $6.7 million financing package to expand affordable rental market in Rio Hondo