First Time Home Buyer
Programs in Texas
Complete First Time Home Buyer Programs Available in Texas.
The state agency created by the legislature in Texas to offer
first time home buyer programs is the Texas Department of Housing and Community
Affairs. Here is a
summary of the current first time home buyer programs that are offered:
Down Payment Assistance Program (DPAP)
The Down Payment Assistance Program (DPAP) helps very low- and low-income
families purchase a home by providing an interest-free loan ranging from $5,000
to $10,000-depending on the county in which the property is located. This
assistance is for down payment and eligible closing costs, and the borrower pays
the loan when the home is either sold or refinanced, or at the maturity of the
original mortgage.
Texas "Bootstrap" Loan Program
The Texas Bootstrap Loan Program is required under Subchapter FF, Chapter 2306,
Texas Government Code, to make available $3 million for mortgage loans to very
low-income families (60% Area Median Family Income) not to exceed $30,000 per
unit. This program is a self-help construction program, which is designed to
provide very low-income families an opportunity to help themselves through the
form of sweat equity. All participants under this program are required to
provide at least 60 percent of labor that is necessary to construct or
rehabilitate the home. All applicable building codes will be adhered to; under
this program. In addition, nonprofit organizations can combine these funds with
other sources such as those from private lending institutions, local
governments, or any other sources. However, all combined loans can not exceed
$60,000 per unit. Funds for the initiative come from the Department's Housing
Trust Fund and other sources. The program is administered through TDHCA's
Colonia Self-help Centers and State Certified Owner-Builder Housing Programs
across the state.
Texas First Time Homebuyer Program
The Texas First-Time Homebuyer Program channels below-market interest rate
mortgage money through participating Texas lending institutions to eligible
families who are purchasing their first home, or to those who have not owned a
home in the past three years. Although income limits may vary with each bond
issue, the program is designed to serve very low- to moderate-income (30 to 115
percent of AMFI) Texas families.
For complete details on these first time home
buyer programs available to Texas residents, visit the
Texas Department of Housing
and Community Affairs website.
It is highly recommend that you also visit the
First Time Home Buyer Grants page
for free assistance with the down payment. This will make it possible for many
people to qualify for a first time home
buyer loan who wouldn't have qualified without the grant assistance.
Best Lender For First Time Home Buyer Loans
Unfortunately, some lenders do not like
to work with first time home buyers (due to not having a track record), and prefer instead to only provide
mortgages to people who have previously owned a home.
If you do not need help with the down payment and are not
in need of any state program, but simply want to apply for a mortgage,
we recommend ING DIRECT Orange Mortgage
They have great rates, an easy online application, and welcome first
time home buyers. Additionally they have not been as severely hurt by the
subprime mortgage crisis and are still approving the majority of applications.
Other First Time Home Buyer Programs & Resources
