4 Mortgage Assistance Programs in Texas

Getting approved for a mortgage loan is one of the first steps in buying a home. But for people with past credit problems, income limitations, or other economic hardships, getting a mortgage through traditional routes can be difficult or impossible. This is where mortgage assistance programs can help.

You may have noticed that I have been promoting our mortgage assistance programs more than ever. There are a number of programs available to help everyday people obtain mortgages – programs like Zero Down VA Loans, Zero Down USDA Loans, programs through the Texas Veterans Housing Assistance Program, bond programs such as SETH, and programs through the Texas Department of Housing and Community Affairs. It’s just a matter of figuring out which ones you qualify for and letting us help you get the process started.

Below are the some of the best mortgage assistance programs available for home buyers in Texas.

1. VA Loans –

Most veterans are eligible for a VA assistance, which provides low cost financing and other programs to help veterans build or purchase a home with little to no down payment. VA loans are offered by private lenders but a portion of the loan is guaranteed by the Veterans Administration. This means the lender can offer better terms on the mortgage note, and veterans who otherwise wouldn’t have had enough cash to purchase a home can now obtain financing.

The types of VA assistance available include:

• Purchase Loan – for building or purchasing a home. No down payment or private mortgage insurance is required.
• Interest Rate Reduction Refinance Loan (IRRRL) – to refinance an existing VA home loan.

Eligibility for VA assistance depends on your military service, credit score, income, and possession of a valid Certificate of Eligibility (COE). Please call me at 512-459-2405 to learn more.

2. FHA Home Loans –

The FHA home loan program is administered by the U.S. Department of Housing and Urban Development. This program has more flexible debt to income ratios and lower minimum credit scores. It is a perfect resource for first time home buyers who have very little savings, who have had credit problems in the past, or who want to save the extra cash to fix up the home they are purchasing.

FHA loans are offered by private lenders but are insured by the Federal Housing Administration, enabling the lender to offer a better deal that includes:

Low down payments – as low as 3.5% of the purchase price.
Little to no closing costs with seller paid closing costs or lender paid options

There is also additional assistance for first time home buyers available through SETH. Read on to learn more.

3. Mortgage Grants – Southeast Texas Housing Bond (SETH) –

The SETH Single Family Bond Program offers down payment assistance, closing cost assistance, grants, and fixed-rate mortgage financing for buyers in select Texas counties who have a maximum household income of $88,205 (although this amount varies by location).

SETH Program works as follows to help first-time homebuyers purchase a home:

SETH 5 Star Texas Advantage Program – provides a grant of up to 5% of the cost of the home. Repayment of the grant money is not required. Applicants do not need to be a first time home buyer, and the funds may be used for mortgages with fixed 30 year rates. The program is available everywhere in Texas except for El Paso, Grand Prairie, and McKinney.

4. MCC Program – Texas Mortgage Credit Certificate Program –

This program allows buyers to claim a tax credit of up to $2000 for a portion of their mortgage interest payments. The credit can be claimed every year for the life of the loan and helps reduce overall federal tax liability.

To qualify for this program, buyers must:

• Qualify for a mortgage loan through a lender
• Have not owned a home in the past three years
• Meet certain income requirements
• Agree to make the home their primary residence

All types of mortgages (including VA, FHA, and conventional loans) are eligible for the program. It can be used for new construction or existing dwellings, including single family homes, townhomes and condominiums.. Buyers utilizing this program must complete a pre-purchase homebuyer education course and pay an issuance fee at closing.

If you think you might qualify for one of these programs, don’t hesitate, call me today! 

Ansawilliams@remax.net or 832-628-0452