First Time Home Buyer Assistance
Are you a first time home buyer? Are you representing a first time home buyer? Do you have friends who are first time home buyers? Many states offer assistance, but the money availability can be limited. The assistance isn’t always free, but it can be very close to it. Let’s look at the Texas program – My First Texas Home. First time home buyers must follow specific guidelines and obtain counseling. They must use an approved lender, have a minimum credit score of 620 and not owned a home in the previous 3 years. The value of the home is capped and there are income limits as the program targets low to moderate income buyers. The program also targets veterans. Financing education plays a key role. Also, know the right mortgage for you.
What does the buyer get after jumping through these hoops. The program’s design provides a “silent” second lien up to 5% of the 1st lien amount. These funds can be used towards down payment and closing costs. A second lien means that the home buyer gets a normal mortgage for the home, but through an approved lender. The amount provided from the state of Texas comes in the form of a loan, not free money. However, it carries an interest rate of 0% and requires no payments for up to 30 years!
As a bonus, the state of Texas allows this to be paired with the federal Mortgage Credit Certificate. This tax credit amount can be up to $2,000. It won’t help a buyer with the initial closing, but provides a credit up to $2,000 when income taxes are filed.
The state of Texas also reaches those who are not first time home buyers. A second program works similar to My First Texas Home and goes by the moniker My Choice Texas Home. Many requirements are the same and there is also a maximum income limit to target low to moderate income buyers. Veterans also qualify.
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