SETH 5-Star Texas Advantage Program
The State of Texas offers many ways forward for homebuyers who cannot come up with a large down payment to purchase a house. There are different programs to help different groups of people, from military veterans to teachers and nurses. Other programs were designed for first-time homebuyers. TX Home Now connects you to every resource you qualify for when you need down payment assistance to get into a new home in Texas. One way eligible homebuyers can get assistance is through the SETH 5-Star Texas Advantage Program.
What Is It?
The Home Star Program from the Southeast Texas Housing Finance Corporation (SETH) is a down payment assistance program that provides as much as 5% of the total home loan amount in the form of a down payment grant. This grant does not need to be repaid. It is given in conjunction with a 30-year fixed rate loan from the FHA, VA, USDA, or a conventional lender.
SETH created this program in response to the plight of homebuyers who make enough money to afford monthly mortgage payments, but who find it difficult or impossible to come up with a lump sum of money for a down payment. Many Texas families have benefitted from SETH’s down payment grants, and you could be next!
Who Is Eligible?
To be eligible for a 5-Star Texas Advantage down payment assistance grant, borrowers must meet certain criteria. TX Home Now has similar eligibility requirements, so if you qualify for our program, you will almost certainly qualify for this program. Here are the guidelines as laid out by SETH:
- No First-Time Homebuyer Requirement. Anyone can participate in this program, whether or not they are buying their first home.
- Minimum FICO Score of 640. The lenders who participate in this program will only approve borrowers whose credit scores are 640 or higher.
- Maximum Sales Price of $484,350. This is the highest dollar amount you can pay for the home you purchase through this program.
- Must Obtain Mortgage and Assistance Approval from a Program Lender. The first step in the approval process is to contact and get approved by one of the program’s lenders.
- Must Meet Income Level Criteria. This limit depends on which county you live in and which program you are obtaining a mortgage through (FHA, VA, USDA, or conventional). You can find the guidelines for the various lenders here.
- Borrowers must complete a SETH online homebuyer education class before purchasing the house. All borrowers whose names appear on the loan must attend the class individually. The course costs $100 for an individual or $60 each for multiple borrowers. When you’re all finished, you will receive a certificate of completion that’s good for 12 months.
The home you purchase through the Home Star program must be owner-occupied; you cannot use the down payment assistance to purchase a house you plan to rent to others. It can be located anywhere in Texas, with the exceptions of Grand Prairie, El Paso, and Travis County. The maximum home purchase price is $484,350. This could be your first home or your fifth, as the 5-Star Texas Advantage Program has no first-time homebuyer requirement. If you’re interested in participating in this or any other down payment assistant program in Texas, it’s important to use someone you trust to help you navigate the various program requirements. Many homebuyers have placed their trust in TX Home Now, and they haven’t been disappointed.
TX Home Now: Your Personal Guide to Down Payment Assistance
Think of TX Home Now as your friend on the inside of the homebuying process. We know all the programs available to Texas homebuyers, and we take the time to connect you with every program you could possibly benefit from. Don’t let an oversized down payment requirement keep you from fulfilling your dream of owning a home in Texas. Call TX Home Now and get ready to become a homeowner!
If you are currently employed, earn less than $96,000 annually, have a credit score of at least 580, and agree to attend an online home buyer education course, we want to hear from you today! Even if you don’t quite qualify, we’ll help you improve your credit score until you do. We help all Texans reach their goal of home ownership, and we’re ready to help you, too. Call us now!
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