TDHCA Texas First Time Homebuyer Program (Bond Program 77) Now available new program funds for Downpayment and Closing Cost Assistance.
Effective May 2010, the Texas Department of Housing and Community Affairs (TDHCA) announced the release of $500 million in funding for first time homebuyers. The program is designed to assist low to moderate income homebuyers who are interested in purchasing their first home. Two types of mortgage loans are available.
“Assisted loans” are 1st lien mortgage loans made available at an interest rate slightly above the current market interest rate and provide down payment and closing cost assistance. The amount of down payment and closing cost assistance is 5% of the mortgage amount and is available in the form of a 2nd lien, 30-year, 0% interest loan. Although no monthly payments are required, the amount of assistance is due and payable in full upon sale, refinance or repayment of the 1st lien mortgage.
All 1st lien mortgage loans are available at a 30-year fixed rate. The interest rates offered under the program will change periodically depending on the industry market rates at the time the loan is registered. Homebuyer Education is required for all borrowers receiving a loan through theTexas First Time Homebuyer Program
. This requirement may be met by attending a pre-purchase homebuyer education counseling course provided through the Department’s network of certified Texas Statewide homebuyer Education Providers, or on-line counseling offered through the program’s participating lender network.
For current available program funds please visit this Available Fund page. As of Oct. 26, 2010
Texas Homeowner Advocate