First Time Homebuyer Assistance
Your first homebuying experience should be a joyful one. After all, you’re getting ready to purchase the place where you and your family will make memories. Many first-time homebuyers feel discouraged when they see how much houses cost and how much money they’ll need to put down in order to secure a mortgage. There’s no need to despair! TX Home Now is here, and we’re ready to help first-time homebuyers in Texas by connecting them to down payment assistance programs. Best of all, our service is 100% FREE for homebuyers.
The high cost of down payments prevents many families from owning their own home. At TX Home Now, we don’t think that’s right, so we’ve created a program to help people lower their down payment expense. Most Texans don’t realize that there are millions of dollars in assistance just waiting for someone to come and claim them. The state and federal government offer many programs that either allow homebuyers to make a much lower down payment or pay part of the down payment for the homebuyer. When we realized that people needed someone to connect them to these programs, we decided that we would step in and become the solution.
The Texas housing market is one of the strongest in the nation, and home prices keep climbing as more people flock to Dallas-Fort Worth to find employment. What does that mean for today’s homebuyers? Big down payments. If you manage to find a home for $200,000, which is rare in areas near major cities, you’ll need to put down a payment of $40,000 to purchase it. How many Texans have $40,000 in their bank accounts? Not many.
Help for First Time Homebuyers
Buying your first home can be a scary endeavor. You might not have the high down payment or credit score that banks want to see when they give out home loans, and you probably don’t want to wait years to get them. Luckily, the government has solutions to this problem.
Federal Housing Authority (FHA) loans are popular with new homebuyers because they don’t have the rigid lending standards bank loans have. They also allow you to purchase a home with a relatively small down payment. Here are the rules for obtaining a loan from the FHA:
- The loan must be for a 1 to 4 family dwelling.
- The property must be the borrower’s primary residence.
- Borrowers with a 580 credit score qualify for 3.5% down payments.
- Borrowers with a 500 – 579 credit score qualify for 10% down payments.
- Borrowers can have a debt-to-income ratio as high as 56.9%, depending on the strength of the borrower.
- Borrower must have proof of a steady income.
The FHA is known for its generous mortgage lending guidelines. The 2019 FHA lending limits for single-family properties in Texas range from $314,827 in most counties to $395,600 in all 13 counties that make up the DFW Metroplex. The county and your debt-to-income ratio will determine how much money you qualify for.
My First Texas Home
The Texas Department of Housing and Community Affairs (TDHCA) offers a budget-friendly plan to assist with down payments and closing costs. My First Texas Home (MFTH) is designed specifically to help new homebuyers and veterans come up with their down payment and cover closing costs if needed. This assistance can total up to 5% of the mortgage loan.
The eligibility rules for MFTH are:
- First-time homeowner, or haven’t owned a home in 3 years
- Minimum credit score of 620
- Income limits apply
- Purchase price limits apply
- Other requirements may apply
First-time homebuyers can also receive a dollar-for-dollar reduction on their federal tax liability through the Texas Mortgage Credit Certificate Program.
Call TX Home Now for Fast Down Payment Assistance
A big down payment shouldn’t stand between you and your Texas homeowner dream. Whittle that big price tag down to size with the help of federal FHA loans and first-time buyer assistance programs from the state of Texas.
Call us today so we can get you into your first home in as few as 30 days! Once we verify that you meet all of the eligibility criteria, you could receive help within 48 hours. We work fast because we know you’re eager to get an answer and move into your new home.
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Free Down payment Assistance