Owning a home of your own has always been a part of the ‘American Dream’. Although the recent downturn of the US economy post 2008 crisis, fuelled by stagflation and lack of stable jobs, made it difficult for an average US citizen to dream of owning a home. It is, therefore, the United States Federal Housing Administration (FHA) guarantees mortgage to first-time home buyers in the country. The sole aim is to make home ownership less burdensome for individuals and families with low income. The “My First Texas Home” is one of the initiatives of the government to help first-time home buyers obtain housing loans in Texas. This blog includes all you need to learn about the program.
About the Program
The State Department of Housing and Community Affairs offers down payment assistance, mortgage income tax credits, and low-interest loans to eligible first-time home buyers through its ‘My First Texas Home’ loan program. If you are a first-time home buyer who meets income, credit, and residency requirements, you can buy a qualifying property in the state through lenders participating in this loan program.
You are eligible for the ‘My First Texas Home’ loan program or Texas Mortgage Program (TMP) 79, if the residential property you choose, currently lies within Texas. You should not only be a current resident of the State but also intend to make the property your primary residence. Home loan borrowers need not have owned a home in the last three years.
You can apply for this home loan program to buy properties such as single-family, multi-family homes, and condominiums. You are also eligible to apply for a duplex property loan as long as the property was initially occupied as a residence for five years before the closing date, and you wish to make one unit as your primary residence. Besides, the price of the property you wish to buy should not exceed the purchase price limit.
First-time home buyers also need to meet income eligibility requirements to avail mortgage down payment assistance. Borrowers with moderate to low income can get mortgage option only at high interest rates and down payment assistance in the form of a 30-year fixed second mortgage or junior-lien. Both lower interest rates and down payment adds to nearly five percent of your loan amount. Income requirements vary depending on the location of your home.
Borrowers of the ‘My First Texas Home’ loan program need to meet the credit score requirement of 640. Only then they can participate in this program. When availing this kind of loan, they should choose a lender from the FHA lender list, meet certain underwriting terms of the lender, and pay them specified fees.
Now that you have learned about eligibility requirements for first-time home buyers in Texas, you should not face any problem in applying for this kind of home loan program. Moreover, you can always take the assistance of a mortgage expert to make the entire loan process easy and smooth. However, when it comes to selecting a mortgage consultant, it is essential to ensure that the one you go for has proven competence in the lending domain, which can be validated by their customer reviews.