Hey there! Navigating the journey to homeownership can feel overwhelming, but Garland, Texas, offers several programs to assist first-time homebuyers like you. Let’s explore some of these opportunities to make your path to owning a home a bit smoother.

Garland Housing Finance Corporation’s Mortgage Credit Certificate (MCC) with Down Payment Assistance (DPA) Program

This program is designed to provide financial support to first-time homebuyers through two key components:

Mortgage Credit Certificate (MCC)

The MCC offers a federal income tax credit equal to 30% of the annual interest paid on your mortgage, up to a maximum of $2,000 per year. This credit can increase your net earnings, helping you qualify for your first home mortgage.

Down Payment Assistance (DPA)

In conjunction with the MCC, the DPA provides $15,000 in assistance—$10,000 as a non-forgivable second lien and a $5,000 grant—to help with down payment and closing costs. The second lien is due upon maturity, sale, transfer, or refinancing of the home.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a principal residence in the last three years, unless purchasing in a targeted area or you’re a qualified veteran.
• Income Limits: For households of 1-2 persons, the maximum income is $132,360; for 3 or more persons, it’s $154,420.
• Purchase Price Limits: The maximum purchase price is $706,251.
• Location: The home must be within the geographic boundaries of Garland, Texas.

Benefits

• Tax Savings: The MCC provides a significant tax credit, reducing your federal income taxes annually.
• Financial Assistance: The combined $15,000 from the DPA can substantially lower your upfront costs.

Potential Drawbacks

• Repayment Obligation: The $10,000 second lien is non-forgivable and must be repaid under specified conditions.
• Program Fees: There are fees associated with the MCC program, including application and issuance fees.

Application Process

1. Choose a Participating Lender: Select a lender approved by Hilltop Securities to participate in the Garland HFC MCC/DPA Program.
2. Apply Before Loan Closing: Submit your application for the MCC, with or without the DPA, before closing on your loan.
3. Complete Required Documentation: Sign the program application, affidavit, and other necessary documents prepared by your lender.
4. Approval and Closing: If approved, the program administrator will coordinate with Garland HFC to release the funds to the title company for your closing.
5. Sign Closing Affidavit: At closing, sign the MCC Closing Affidavit along with your other loan documents.

For more detailed information, you can visit the Garland Housing Finance Corporation’s website.

Garland Housing Agency’s Housing Choice Voucher Home Ownership Program

This program allows participants to use their voucher subsidy to assist with monthly mortgage expenses.

Eligibility Criteria

• Current Participant: Must be a current rental voucher program participant for at least one year.
• Employment: Must be employed an average of 30 hours per week for the last three consecutive years (employment requirements do not apply to disabled families).
• First-Time Homeowner: No family member should have had any ownership interest in a principal residence in the past five years.

Benefits

• Mortgage Assistance: The voucher subsidy can be applied to monthly mortgage expenses, making homeownership more affordable.

Potential Drawbacks

• Eligibility Restrictions: Strict eligibility criteria may limit participation.