Menu
The Texas Department of Housing and Community Affairs has started making available the first $50 million under a $500 million program that will go toward making mortgage loans for as many as 4,000 eligible Texans.
The program, which is funded through the sale of mortgage revenue bonds, represents the single largest financing initiative for state homebuyer funds in the 27-year history of the program and serves as the state's response to the recent expiration of the federal homebuyer tax credit, according to a news release.
Qualified borrowers will have a choice between two 30-year, fixed rate loans. An assisted loan will have a 5.74 percent interest rate and offer down payment and closing cost assistance of up to 5 percent of the mortgage amount in the form of a 30-year repayable second lien. An unassisted loan will be offered at a 4.99 percent interest rate but have no additional funds.
Eligible households can earn up to 115 percent of the area median family income, depending on the number of individuals living in the home, as long as all other program requirements are met.
For the Houston area, a one- to two-person household can earn up to $63,800. A household with three or more individuals can earn up to $73,370.
The $50 million alone could help around 400 buyers, assuming a $120,000 average home price.
Loans are available through the program's network of more than 45 participating lending institutions with more than 235 branches located throughout the state. Applicants must qualify under FHA, RHS, VA, Fannie Mae, or Freddie Mac guidelines.
Source - Houston Chronicle
For Additional Info contact,
