Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to make your dream of owning a home in Texas a reality. But don’t worry—there are programs designed to help folks just like you. Let’s chat about the Texas State Affordable Housing Corporation (TSAHC) and how their home buyer programs might be the perfect fit for you.

What is TSAHC?

TSAHC is a nonprofit organization created by the Texas Legislature to assist Texans in achieving their homeownership goals. They offer a variety of programs to make buying a home more affordable, especially for first-time buyers and individuals in certain professions. Learn more on TSAHC’s website.

Available Programs

Homes for Texas Heroes Home Loan Program

This program is tailored for professionals who serve our communities, including:

• Teachers
• Firefighters and EMS personnel
• Police and correctional officers
• Veterans

It provides a 30-year fixed-rate mortgage loan along with down payment assistance. The assistance can be up to 5% of the loan amount and is available as a grant (which you don’t have to repay) or a 3-year deferred forgivable second lien loan. Plus, you don’t need to be a first-time home buyer to qualify.

Learn more about the Homes for Texas Heroes Program.

Home Sweet Texas Home Loan Program

If you don’t fall into the professions listed above, this program is designed for Texas home buyers with low and moderate incomes. It offers the same benefits as the Heroes program: a 30-year fixed-rate mortgage, down payment assistance up to 5%, and the choice between a grant or a forgivable second lien loan. Again, being a first-time home buyer is not a requirement.

Learn more about the Home Sweet Texas Home Loan Program.

Mortgage Credit Certificate (MCC) Program

For first-time home buyers, TSAHC also offers a Mortgage Credit Certificate program. This provides a special tax credit that reduces your federal income tax liability every year, making your mortgage more affordable. To qualify, you must meet certain income requirements, and the home must meet specific sales price restrictions.

Learn more about the MCC Program.

Eligibility Criteria

• Credit Score: A minimum credit score of 620 is required.
• Income Limits: Income limits vary by county and are higher in targeted areas.
• Home Buyer Education: Completion of a home buyer education course is required.

Benefits

• Affordable 30-year fixed interest rate mortgage loans.
• Down payment assistance to help cover upfront costs.
• Options for both first-time and repeat home buyers.
• Special programs for community heroes.

Potential Drawbacks

• Income and purchase price limits may restrict eligibility.
• The forgivable second lien loan requires you to stay in the home for at least three years to avoid repayment.

Application Process

1. Check Eligibility: Use TSAHC’s online eligibility quiz to see if you qualify.
2. Home Buyer Education: Complete an approved home buyer education course.
3. Find a Lender: Contact a participating lender to start the application process.

For more detailed information, visit TSAHC’s official website: TSAHC Home Buyer Programs.

Remember, buying a home is a significant step, but with the right resources and support, it’s entirely achievable. TSAHC’s programs are here to make the journey smoother for you. If you have any more questions or need further assistance, feel free to ask!