Travis County - Hill Country Home Down Payment Assistance
Financial Assistance for Homebuyers in Texas
With the Hill Country Home Down Payment Assistance (DPA) Program, qualified applicants can receive a competitive, 30-year fixed rate loan, with assistance of either 4%, 5%, or 6% of the initial principal balance of the loan amount to use for down payment or closing cost assistance. The assistance is in the form of a 0% interest, 10-year forgivable second mortgage loan.
To be eligible for the program, all borrowers must meet the following criteria:
- Buyers must have a minimum FICO credit score of 640 and maximum 45 debt-to-income (DTI) ratio.
- Standard loan guidelines exist for qualification (i.e., adequate income, acceptable credit, and down payment requirement).
- All first-time homebuyers must attend a HUD approved homebuyer education course and obtain a certificate of completion.
- Maximum credit qualifying income may not exceed 140% of area median income, which is $138,460 currently.
The program funds can only be used to purchase a home; not refinance. They must be located anywhere in Travis County, including in the City of Austin, and buyers must occupy the home as their principal residence (No minimum residency). Purchase price limit is determined by the lender based on the borrower's credit, income, debt-to-income ratio and other factors. The purchase price limit for the program is $364,452.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.
Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information
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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