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Affordable Housing Programs for Texas

Did you know there are Affordable Housing Programs for Texas and specifically to Houston residents?

What are Affordable Housing Programs, you ask?

It’s a way to obtain governmental assistance with down payment and various fees associated with buying a home.

It is usually limited to first time home buyers on a certain income level.

Some are grants are available to where no repayment is needed.

All it takes is a bit of work and research to get the assistance.

But, I have provided a handy guide to make it easier.

Here is a quick overview of your options available.

 

1.) The Harris Downpayment Assistance Program or DAP

You must be income eligible and a first time homebuyer:

  • The maximum purchase price for a pre-existing home is $200,000.00. The maximum purchase price for a new home is $228,000.00.
  • Must be built post 1978.
    • The following will be included in the homebuyer’s closing costs:
      3-Year Home Warranty on all pre-existing homes – Maximum of $500.00 per year
    • One (1) Year Flood Insurance Policy – Maximum Policy $500.00
  • The home you buy must be in an unincorporated area of Harris County, and cannot be located in the City of Houston, Baytown, or Pasadena, since these cities have their own programs
  • To begin the DAP process, all applicants must take a homebuyer certificate program in person from a HUD approved homebuyer education course provider.
  • To participate in this program, you must live in the new house or the pre-owned house for a minimum of five years, depending on the amount of the award
  • Buyer must have at least $500 or 1/2 of lenders downpayment, as required toward the purchase price to invest in the house
  • Buyer cannot have more than $15,000 in liquid assets, such as stocks, cash, or bonds
  • Buyer must have at least one credit score of 580
  • Buyer’s debt front end ratio cannot exceed 39% and DTI cannot exceed 42% (effective August 25, 2014)
  • Buyer must be credit and program approved through one of the listed participating mortgage lenders and Harris County to receive downpayment assistance
  • In order to qualify for downpayment assistance, you must be a first time homebuyer, or not have owned a house for three years prior to applying for assistance, and be income qualified by the chart below
  • Buyer is required to have a final signed household budget form their approved Homeownership Education Providers
  • Borrower, Co-Borrower and/or Non-Participating Spouse are required to be a U.S. Citizen or Permanent Resident Alien
  • The total family gross income cannot exceed the following:

* Your income is not totally determined from your paycheck. It is also determined by use of your checking, savings, investment, and retirement accounts at a rate of .06%, plus any other forms of income you might receive, such as child support, reoccurring gifts, etc.

For additional details: https://csd.harriscountytx.gov/Pages/DAP.aspx

2.) Houston Housing Finance Corporation

Are you looking to invest in Multi-Family Homes? And are looking for affordable housing program for financing, then check out HHFC.

HHFC is active as an issuer of Private Activity, tax exempt bonds for the purpose of providing financing for multi-family rental developments. HHFC’s bond financing is in conjunction with Texas’ 4% Low Income Housing Tax Credit (LIHTC) program.  Eligible projects serve persons of low and moderate income.

For additional details: http://www.houstonhfc.com/MFP.html

3.) Texas Bootstrap Loan Program

Eligible Activities:Development of single family housing through “sweat equity” in which owner-builders provide at least 65 percent of the labor required to construct or rehabilitate the home.
Eligible Applicants:State-certified “Nonprofit Owner-Builder Housing Providers”, such as Colonia Self-Help Centers and eligible nonprofit organizations, who run self-help construction programs.
Funding Access:Eligible applicants may apply for funding to administer program activities through a Notice of Funding Availability (NOFA)
Program Availability:Two-thirds of funds are set-aside for owner-builders with property in census tracts with median household incomes not exceeding 75 percent of the state median income. The remaining one-third of the funds are available statewide. Offered via Reservation System.
Beneficiaries:Households earning up to 60 percent area median family income (AMFI)
Consumer Help:Please call 512-936-9988

For additional details:              https://www.tdhca.state.tx.us/oci/bootstrap.htm

4.) My First Texas Home (MFTH)

Eligible Activities:Mortgage loans at fixed interest rates and down payment and/or closing cost assistance to qualifying veterans and first time homebuyers or households who have not owned a home in the previous three years. Homebuyers may combine TDHCA homebuyer and mortgage credit programs for maximum benefit.
Eligible Applicants:Qualifying homebuyers through participating lenders
Program Availability:Statewide through participating lenders
Beneficiaries:Homebuyers earning up to 115 percent area median family income (AMFI); up to 140 percent (AMFI) in targeted areas of the state
Consumer Help:Call 512-475-2120, toll free 800-792-1119 or visit

For additional details:              https://www.MyFirstTexasHome.com

5.) My Choice Texas Home (MCTH) Program

Eligible Activities:Mortgage loans at fixed interest rates and down payment and/or closing cost assistance to qualifying homebuyers. Homebuyers may combine TDHCA homebuyer and mortgage credit programs for maximum benefit.
Eligible Applicants:Qualifying homebuyers
Program Availability:Statewide through participating lenders
Beneficiaries:Homebuyers earning up to 115% AMFI; up to 140% AMFI in targeted areas of the state
ContactCall 512-475-2120, toll free 800-792-1119

For additional details:       http://www.myfirsttexashome.com/

6.) Texas Mortgage Credit Certificate (TX MCC) Program

Eligible Activities:Tax credits based on the annual interest paid on a mortgage loan to qualifying veterans and first time homebuyers or households who have not owned a home in the previous three years. Homebuyers may combine mortgage credit and TDHCA homebuyer programs for maximum benefit.
Eligible Applicants:Qualifying homebuyers through a network of participating lenders
Program Availability:Statewide through participating lenders
Beneficiaries:Homebuyers earning up to 115 percent (AMFI); up to 140 percent area median family income (AMFI) in targeted areas of the state
Consumer Help:Call 512-475-2120, toll free 800-792-1119

For additional details:    http://www.myfirsttexashome.com/

 

If you think that home ownership isn’t possible, think again. =)

With a small amount of leg work, you may have an opportunity to own a home, with little to no down payment from you.

If you are in the market, please give me a call. I would love to assist you during the intricate process of buying your next home.

https://hphomesgroup.com/contact/

Best,

Lisa

High Performance Realtor

 

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