STATEWIDE PROGRAMS

My First Texas Home & My Choice Texas Home

Assistance Available:
The Texas Housing and Community Affairs administers two programs that assist qualified homebuyers with the costs of downpayment and closing.

My First Texas Home is available to first time homebuyers and veterans. You can get up to 5% of the purchase price. You can combine it with the Texas Mortgage Credit Certificate Program to maximize benefits. This allows you a dollar for dollar savings on your federal tax liability.

Qualifications for My First Texas Home:
There are options for first time and repeat homebuyers. You must have a minimum credit score of 620. The income and purchase price limits are determined by the county in which the property is located.

Qualifications for My Choice Texas Home:
You do not have to be a first time homebuyer. Income and purchase price limits apply. You must have a minimum credit score of 620. You cannot combine your My Choice Texas Home mortgage with the Texas Credit Mortgage Certificate.

Homes For Texas Heroes

Assistance Available:
The Texas State Affordable Housing Corporations administers the Homes for Texas Heroes program designed to assist qualifying individuals in professionals deemed heroic attain the dream of homeownership. The professions include public school teachers, firefighters, corrections officers, police officers, school librarians, school nurses, school counselors, EMT personnel, and veterans or active military. Assistance available includes a grant that does not have to be repaid and a secondary loan for help in defraying the costs of downpayment and closing.

The assistance available is up to 6% of the purchase price. For a limited time, Texas heroes who are first time homebuyers can receive lower, 4.85%, mortgage rates with a 4% grant for downpayment costs.

Qualifications:
You are not required to be a first time homebuyer. Income and purchase price limits depend on the county in which the property is located. There are expanded income and purchase price limits if you are willing to purchase property in targeted areas. If you are a first time homebuyer, you can apply for a Mortgage Credit Certificate. Texas Heroes using downpayment and mortgage credit assistance together are eligible to receive their mortgage credit certificate for free. This is a $500 savings.

Homeownership Across Texas (HAT)

Assistance Available:
The HAT Program provides grants across Texas to help homebuyers with the cost of downpayment or closing. The assistance comes in the form of 1% to 5% of the purchase price in financial assistance with downpayment and closing costs. These are not loans, and do not require repayment. There are no additional costs associated with the grant program.

Qualifications:
You must have a minimum credit score of 620. The maximum allowable household limit is dependent on the county in which the property you are purchasing is located. You must complete an online or classroom homebuyer education course. You do not have to be a first time homebuyer. You must be approved for an FHA, USDA RD, VA, or conventional loan by a HAT lender.

Eligible properties include single family homes that are new or existing. The maximum purchase price is $484,350. Lenders who participate in the programs may make loans anywhere in the State of Texas.

Homestar Program
The Homestar Program has ended. The SETH 5 Star and SETH Goldstar Programs have taken its place.

SETH 5 Star Advantage Program

Assistance Available:
Up to 5% of the purchase price is available to qualified purchasers to provide downpayment and closing cost assistance. There are no repayments or recaptures for conventional loans. For government loans a community second mortgage is forgiven after 3 years. There are no monthly payments with either one of these options. These loans are not available within the city limits of El Paso or Grand Prairie and outside of Travis County.

Qualifications:
You must have a minimum credit score of 640. You do not have to be a first time homebuyer. Your annual household income may not exceed the program limits. The maximum purchase price may not exceed $484,350. You must be approved for a loan from an approved program lender.

SETH Goldstar Program

Assistance Available:
The assistance available with the SETH Goldstar Program comes in the form of a forgivable second lien that is 7% of the purchase price. The loan provided is 7 or 10 years and is a forgivable community 2nd mortgage. You have the option of getting an FHA, VA, USDA, or conventional loan. There are no prepayment penalties or federal recapture taxes.

Qualifications:
You do not have to be a first time homebuyer. You must have a minimum credit score of 600. Your debt to income ratio may not exceed 55%. You may not exceed the program income limits. Each borrower must take a $60 homebuyer education course.

CITY OR COUNTY PROGRAMS

Travis County
Hill Country Down Payment Assistance Program

Assistance Available:
The Travis County Housing Finance Corporation assists homebuyers in getting FHA, VA, and USDA-RD loans to purchase property anywhere in Travis County including within the city limits of Austin. To assist in this effort the program offers low to moderate income residents 5% to 6% in the form of non-repayable grants to help defray the costs of down payment and closing.

Qualifications:
You must have a minimum credit score of 640. Your maximum debt to income ratio may not exceed 45%. You must attend a HUD approved homebuyer education course and receive a certificate of completion. Your income, credit, and downpayment must meet the standard loan guidelines. You cannot use this loan to refinance. You must live in the home as your primary residence. Your qualifying income may not exceed 140% of the area median income, which is currently $134,260. $350,871 is the current purchase limit.