Hey there! Navigating the journey to homeownership can feel overwhelming, but Texas offers several programs to make the process smoother for first-time buyers. Let’s explore one of the standout options available to help you achieve your dream of owning a home in the Lone Star State.

What is TSAHC?

The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization established by the Texas Legislature to assist residents in achieving homeownership. They offer two primary programs designed to support first-time homebuyers:

• Home Sweet Texas Home Loan Program
• Homes for Texas Heroes Home Loan Program

Source of Funding

TSAHC operates as a self-sustaining nonprofit housing organization, utilizing mortgage revenue bonds and other private activity bonds to fund its affordable housing programs. They also seek grants and private investments to support programs not funded through private activity bonds.

Eligibility Criteria

• First-Time Homebuyer Status: Generally, you should not have owned a home as your primary residence in the past three years. However, this requirement is waived for certain professions and veterans.
• Income Limits: Income limits vary by county and household size. You can check the specific limits for your area on TSAHC’s website.
• Credit Score: A minimum credit score of 620 is typically required.
• Home Purchase Price: The property’s purchase price must fall within program limits, which also vary by county.

Benefits

• Down Payment Assistance: Receive up to 5% of the loan amount to assist with down payment and closing costs. This assistance can be provided as a grant (which doesn’t need to be repaid) or as a deferred forgivable second lien loan.
• Fixed-Rate Mortgage: Access a 30-year fixed-rate mortgage with competitive interest rates.
• Mortgage Credit Certificate (MCC): Potential to combine with an MCC, which offers a dollar-for-dollar reduction on your federal tax liability, up to $2,000 annually.

Potential Drawbacks

• Repayment Conditions: If you opt for the forgivable second lien loan for down payment assistance, it must be repaid if you sell, refinance, or pay off your mortgage within three years.
• Income and Purchase Price Limits: Strict adherence to income and purchase price limits may restrict eligibility for some buyers.

Application Process

1. Homebuyer Education: Complete a homebuyer education course approved by TSAHC.
2. Find a Participating Lender: Work with a TSAHC-approved lender to get pre-qualified and discuss your home buying goals.
3. Loan Application: Apply for a mortgage loan through the participating lender, who will guide you through the process and ensure you meet all program requirements.

Program Type

• Down Payment Assistance: Yes
• Grant: Yes, if you choose the grant option for down payment assistance.

Availability

These programs are available statewide across Texas.

Additional Resources

For more detailed information, including income and purchase price limits for your specific area, visit TSAHC’s official website:
TSAHC Website.

Embarking on the path to homeownership is an exciting journey, and programs like those offered by TSAHC are designed to make it more accessible. If you have any questions or need further assistance, feel free to reach out!

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Note: The information provided is based on the latest available data as of February 2025. Program details and availability may change, so it’s advisable to consult with TSAHC or a participating lender for the most current information.