Saving for a down payment and closing costs is one of the biggest hurdles for buyers. The good news: Texas has statewide programs that can help, and many buyers don't know they exist.
TSAHC: Homes for Texas Heroes
Offered by the Texas State Affordable Housing Corporation, this program is for teachers, firefighters, law enforcement officers, correctional officers, EMS personnel, nurses and veterans. Eligible buyers can choose either:
- a grant of roughly 3% to 5% of the loan amount that doesn't have to be repaid (usually with a slightly higher interest rate), or
- a deferred, 0% second loan that's repaid when you sell or refinance.
TSAHC: Home Sweet Texas
Similar assistance to Homes for Texas Heroes, but open to buyers in any profession who meet the income and credit requirements.
TDHCA: My First Texas Home
Offered by the Texas Department of Housing and Community Affairs for first-time buyers, which generally includes anyone who hasn't owned a primary residence in the past three years. It offers assistance of up to 5% of the loan amount as a deferred, 0% second loan with no monthly payment, repaid when you sell or refinance.
What to know
- Income limits apply and vary by county and household size.
- Minimum credit scores apply, often around 620.
- You'll typically complete a homebuyer education course.
- You must use a lender that's approved for the program, so ask before you apply.
- Assistance can affect your interest rate. Compare the total cost, not just the cash you receive.
Is it right for you?
For some buyers, these programs make it possible to buy months or even years sooner. For others, a builder incentive or seller concession may be a better deal. A lender can show you the options side by side. I often refer my buyers to Vince Mazzarese with CMG Home Loans. You can start your pre-qualification here.
Questions? Call or text me, Ashley Forston, at (817) 240-1157.
Program details, income limits and availability change. Check with the program administrator or an approved lender for current terms.