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 the assistance they offer to home buyers.

Program Overview

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization established to assist Texans in achieving homeownership. They offer two primary programs:

• Homes for Texas Heroes Home Loan Program: This program is tailored for teachers, firefighters, EMS personnel, police and correctional officers, and veterans.
• Home Sweet Texas Home Loan Program: Designed for Texas home buyers with low and moderate incomes.

Source of Funding

TSAHC funds these programs through mortgage revenue bonds and other private activity bonds. Additionally, they seek grants and private investments to support their initiatives.

More details: Wikipedia

Eligibility Criteria

• Residency: Must be a resident of Texas.
• Profession: For the Homes for Texas Heroes Program, you should be employed in one of the eligible professions mentioned above.
• Income Limits: Income limits vary by county and are more flexible in targeted areas. Check specific limits for your area here.
• Credit Score: A minimum credit score of 620 is required.

Benefits

• Down Payment Assistance (DPA): Receive assistance ranging from 3% to 5% of the loan amount. This can be provided as a grant (which doesn’t need to be repaid) or as a 3-year deferred forgivable second lien loan.
• Fixed-Rate Mortgage: Access a 30-year fixed-interest rate mortgage loan.
• No First-Time Buyer Requirement: You don’t need to be a first-time home buyer to qualify.
• Statewide Availability: These programs are available throughout Texas via a network of participating lenders.

More details: TSAHC Official Website

Potential Drawbacks

• Credit Score Requirement: A minimum credit score of 620 might be a hurdle for some applicants.
• Income and Purchase Price Limits: There are specific limits based on county, which could restrict eligibility in certain areas.

Application Process

1. Take the Eligibility Quiz: Start by taking TSAHC’s online eligibility quiz to determine if you qualify.
2. Home Buyer Education: Complete a home buyer education course, which is mandatory for all applicants.
3. Connect with a Lender: Reach out to a participating lender to begin the application process.
4. Loan Application: Work with your lender to apply for the mortgage loan and down payment assistance.

Program Type

TSAHC’s offerings include both grants and down payment assistance. The down payment assistance can be in the form of a grant or a forgivable second lien loan.

Availability

These programs are currently active and available to eligible home buyers across Texas.

Pros and Cons

Pros:

• Generous down payment assistance options.
• No requirement to be a first-time home buyer.
• Statewide availability.

Cons:

• Minimum credit score requirement may exclude some applicants.
• Income and purchase price limits could restrict eligibility in higher-priced markets.