Homeownership Across Texas
Financial Assistance for Homebuyers in Texas
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
If the homebuyer is financing with an FHA, VA, or USDA home loan, the program grants 5 percent of the loan amount, whereas borrowers financing with a conventional loan receive 3 percent. The grant does not come with any repayment or recapture period, nor is there a first-time homebuyer requirement.
- Borrowers must fall within established income limits which vary by county.
- All borrowers must qualify for a mortgage loan provided by a participating program lender. FHA, VA, USDA or conventional mortgages are all acceptable, as long as it has a fixed interest rate; adjustable rate mortgages are not eligible under the HAT Program.
- The home being purchased must be located in Texas and outside the city limits of El Paso, Grand Prairie, and McKinney, as well as Travis County.
- Though there is no first-time homebuyer requirement, the home being purchased must serve as the applicant’s primary residence; no second homes or investment properties are eligible under the program.
All borrowers on the mortgage must complete the online SETH Homebuyer Education Class.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Texas
The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the 5 Star Texas Advantage Program, which helps eligible applicants with down payment and closing cost assistance in the form of a grant.
The Austin Down Payment Assistance Program helps low-income families purchase their first home by offering up to $40,000 in assistance funds, to help cover the upfront costs of a mortgage.
In order to help more residents purchase their first homes in Harris County, the Community Services Department offers eligible applicants help with its Down Payment Assistance Program.
Homeownership Across Texas grants 5 percent of the loan amount with VA, FHA, or USDA financed loans. Borrowers with conventional loans receive 3 percent grants. Grants do not come with any repayment or recapture period, nor is there a first-time homebuyer requirement.
This initiative provides teachers, police and correctional officers, fire fighters and EMS personnel, and veterans with down payment assistance between 3 and 5 percent of the loan amount and a 30-year fixed rate mortgage with several rates and loan options.
Along with a competitive, fixed interest, 30-year home loan, the Texas Department of Housing and Community Affairs offers the My First Texas Home Taxable Mortgage Program (TMP) offers down payment and closing cost assistance of up to 5 percent of the mortgage loan.
This program is designed for homebuyers to purchase a home anywhere in Travis County, including the City of Austin, by helping them overcome the obstacle of down payment costs. A grant of up to 6% percent of the loan amount is applied towards the down payment or closing costs.
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