Hey there! I understand that buying your first home can feel like a daunting journey, but don’t worry—I’m here to help guide you through it. Let’s explore a program that could be a great fit for first-time homebuyers in the Round Rock area.

Source of Funding

This program is funded by the Travis County Housing Finance Corporation.

Eligibility Criteria

• Credit Score: A minimum FICO score of 640 is required.
• Debt-to-Income Ratio: Must not exceed 45%.
• Income Limits: The borrower’s income must not exceed 140% of the area median income, which is currently $138,460.
• Homebuyer Education: All first-time homebuyers are required to complete a HUD-approved homebuyer education course and obtain a certificate of completion.
• Residency: The program is not limited to first-time homebuyers, but buyers must occupy the home as their principal residence.

Benefits

• Down Payment Assistance: Eligible homebuyers can receive assistance of either 4%, 5%, or 6% of the initial principal balance of the loan amount to use for down payment or closing costs. This assistance is provided in the form of a 0% interest, 10-year forgivable second mortgage loan.
• Property Types: Financing is available for new or existing homes, including single-family homes, condominiums, or townhomes. Manufactured homes are not permitted to participate in the program at this time.
• Geographic Availability: Homebuyers may purchase a home anywhere in Travis County, including the City of Austin.

Potential Drawbacks

• Forgiveness Period: The down payment assistance is provided as a 0% interest, 10-year forgivable second mortgage. If the borrower sells or refinances the home before the end of the 10-year period, the remaining balance of the second mortgage may become due.
• Program Fees: A program fee may be charged by the participating lender, so net down payment assistance can vary depending on the qualification of the borrower and the loan type chosen.

Application Process

1. Contact a Participating Lender: The Travis County Housing Finance Corporation works with a network of participating lenders who will determine if you meet the criteria and qualify for the program.
2. Homebuyer Education: Complete a HUD-approved homebuyer education course and obtain a certificate of completion.

Program Availability

This program is available in Travis County, Texas, including the City of Austin.

Additional Resources

For more details on the Hill Country Home Down Payment Assistance Program, visit the official Travis County Housing Finance Corporation.