Hey there! Navigating the journey to homeownership can feel overwhelming, but Texas offers some fantastic programs to help first-time buyers like you. One standout option is the My First Texas Home Program. Let’s break it down together.

What is the My First Texas Home Program?

The My First Texas Home Program, offered by the Texas Department of Housing and Community Affairs (TDHCA), provides 30-year, low-interest mortgage loans coupled with down payment and closing cost assistance of up to 5% of the loan amount. This assistance can make a significant difference in easing the upfront costs of purchasing a home.

Funding Source

This program is funded by the TDHCA, a state agency dedicated to expanding affordable housing opportunities for Texans.

Eligibility Criteria

To qualify for the My First Texas Home Program, you must:

• First-Time Homebuyer Status: Be a first-time homebuyer, a veteran, or someone who hasn’t owned a home as a primary residence in the past three years.
• Credit Score: Have a minimum credit score of 620.
• Income Limits: Meet specific income requirements, which vary by county and household size.
• Property Requirements: The home must be a single-family residence, condominium, or duplex (with certain conditions) located within Texas and must meet purchase price limits set by the program.
• Homebuyer Education: Complete a pre-purchase homebuyer education course, which is available online for free through TDHCA.

Benefits

• Down Payment and Closing Cost Assistance: Receive up to 5% of the loan amount to cover these expenses, reducing the initial financial burden.
• Fixed Interest Rate: Enjoy the stability of a 30-year fixed-rate mortgage, making budgeting more predictable.
• Combination with Mortgage Credit Certificate (MCC): Potentially qualify for an annual tax credit worth 40% of the mortgage interest paid, up to $2,000, which can further enhance affordability.

Potential Drawbacks

• Repayment of Assistance: The assistance provided is structured as a second lien with 0% interest. If you sell, refinance, or pay off your mortgage before the end of the loan term, you may be required to repay the assistance.
• Income and Purchase Price Limits: Strict adherence to income and property value limits may restrict eligibility for some buyers.

Application Process

1. Homebuyer Education: Start by completing the required homebuyer education course.
2. Pre-Qualification: Connect with a TDHCA-approved lender to assess your financial situation and determine your eligibility.
3. Loan Application: Once pre-qualified, work with your lender to apply for the mortgage loan and down payment assistance.

Where is This Program Available?

This program is available throughout the entire state of Texas.

Program Type

Grant or Loan? This program provides down payment assistance in the form of a second lien loan with 0% interest, which must be repaid under certain conditions.

How to Apply

To start your application, visit the official TDHCA My First Texas Home Program page and find a participating lender near you.