Buying a home for the first time can be a daunting task, especially if you’re unfamiliar with the various programs available to assist first-time homebuyers. Fortunately, if you’re looking to purchase a home in Texas, there are numerous first-time homebuyer programs available to help you navigate the home-buying process.
First-time homebuyer programs in Texas are designed to help people who have not owned a home before or who have not owned a home in the past three years. These programs offer a range of benefits, such as down payment assistance, reduced interest rates, and tax credits. In this blog post, we will explore some of the many first-time homebuyer programs available in Texas and how they can help you achieve your dream of homeownership.
One of the benefits of working with The Richard Woodward Team NEXA Mortgage is that we are the nation's largest mortgage broker. Unlike most lenders, we shop over 200 of the country's top lenders to find the best mortgage option for you to fit your needs. We don't try to force you into a program simply because we don't have any others to offer. You get expert advice and the widest selection of programs at wholesale prices.
1. Texas First-Time Homebuyer Program
The Texas First Time Homebuyer Program offers down payment assistance of up to 5% of the loan amount to eligible first-time homebuyers. This program is open to individuals and families with low to moderate incomes and can be used to purchase a single-family home, condominium, or townhome. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 620.
2. My First Texas Home
The My First Texas Home program offers a variety of options to help first-time homebuyers purchase a home, including down payment assistance, fixed-rate mortgage loans, and mortgage credit certificates. This program is open to individuals and families with low to moderate incomes and can be used to purchase a single-family home, condominium, or townhome. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 620.
3. Texas Mortgage Credit Certificate Program
The Texas Mortgage Credit Certificate Program offers a tax credit of up to $2,000 per year for the life of the mortgage loan to eligible first-time homebuyers. This program is open to individuals and families with low to moderate incomes and can be used to purchase a single-family home, condominium, or townhome. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 640.
4. Home Sweet Texas Home Loan Program
The Home Sweet Texas Home Loan Program offers down payment assistance of up to 5% of the loan amount to eligible first-time homebuyers. This program is open to individuals and families with low to moderate incomes and can be used to purchase a single-family home, condominium, or townhome. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 620.
5. Southeast Texas Housing Finance Corporation
The Southeast Texas Housing Finance Corporation offers a variety of programs to help first-time homebuyers purchase a home, including down payment assistance, mortgage credit certificates, and homebuyer education courses. This program is open to individuals and families with low to moderate incomes and can be used to purchase a single-family home, condominium, or townhome. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 640.
6. Conventional 1% Down Payment Assistance Program
The Conventional 1% program is exclusive to mortgage brokers and is available to home buyers at or below 50% Area Median income levels. The buyers must have credit scores above 680 but the actual eligibility is determined by Freddie Mac's automated underwriting program. The program provides a grant of 2% of the purchase price for up to $4000 maximum contributions.
7. FHA, USDA, and VA 100% Financing Down Payment Assistance Program
The program uses the FHA, USDA, and VA standard programs and combines it with a 3.5% 2nd mortgage that is forgivable in 5 years. The DPA funds may be used to fund up to 100% of the cash requirement to close, including the down payment, closing costs, pre-paid items, and other related mortgage loan fees and expenses.
2nd Mortgage DPA Details
- No first-time home buyer requirement.
- No Income limits
- No Interest & No Payments
- If the first mortgage is current at the time of payoff, the RosebudDPA will be forgiven after 60 payments.
- If the first mortgage is paid off before 60 payments have been made the full amount of the Rosebud DPA will be due and payable.
- The property must remain owner-occupied through the 60th payment or the Rosebud DPA will be called due and payable.
- The Rosebud DPA cannot be subordinated.
- A $500 “ SmartBuy Admin Fee” is to be charged on the first mortgage LE/CD in Section A.
- There is NO LE/CD for the second mortgage. No fees can be charged on the second mortgage.
- Minimum: 620
- Blended Score Feature: 660 (the higher income earning borrower must have the higher scores) (All borrowers must be occupants)
- Manufactured Home: 680 FHA -
- All 1st time home buyers with a DTI greater than 43% must complete a HUD-approved or HFA-approved homeownership counseling course.
- USDA All borrowers must complete a HUD-approved or HFA-approved homeownership counseling course
Additional Program For Lower Credit Scores
- Secondary Financing to Assist on an FHA Purchase
- Credit Scores Starting at 600
- Loans to 3.5% of Sale Price or Appraised Value (Lesser of)
- LTV* to 100%
- First-Time Home Buyers OK
- 10 Yr. Fixed Term 2nd- Repayment is required
- Cannot be Subordinated
- Primary Residence Only
- SFR, 1 to 2 Units, PUD, Townhome, Condo, Double-Wide Manufactured Home
The USDA Rural Housing program
The USDA mortgage provides low-interest mortgages, typically with little or no down payment requirements, in rural areas of the state. In Texas, this is defined as any city with fewer than 30,000 residents. To qualify, you must meet certain income requirements, be a Texas resident, and have a credit score of at least 600.
Good Neighbor Next Door Program.
Law enforcement officers, pre-Kindergarten through 12th-grade teachers, firefighters, and emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, you must commit to live in the property for 36 months as your sole residence.
VA Mortgages
VA mortgages are available to our United States military veterans and active-duty military personnel. Nexa Mortgage - Richard Woodward is proud to offer these no-money-down home loans to veterans with scores as low as 500.
Many of these first-time home buyer programs can be used in conjunction with one another. The first step in buying a home is to visit with The Richard Woodward Team or complete an online application now. We will look at your financial situation (including any credit issues) and help you come up with the best financing plan to get your family into a home of your own. We have helped thousands of first-time home buyers build wealth and financial security with a home of their own. We can help you too!
In conclusion, if you’re a first-time homebuyer in Texas, there are many programs available to assist you in achieving your dream of homeownership. These programs offer a range of benefits, including down payment assistance, reduced interest rates, and tax credits, and can help make the home-buying process more accessible and affordable.
To learn more about these programs and determine which one may be right for you, speak with a qualified mortgage professional today.
I you have not owned a home in the last 3 years then you technically qualify as a first-time home buyer.
Most programs are guided by the county income limit and some have no income limits. Just talk to our expert team to find out which programs work for you. What qualifies as a first-time home buyer in Texas?
What is the income limit for a Texas first-time home buyer
