First Time Homebuyer Assistance Program

Down Payment and Closing Cost Assistance Program for First Time Homebuyers

Begin a lifetime of homeownership through the Texas First Time Homebuyer Program (FTHB). This program allows qualified Texans access to down payment and closing cost assistance. Homebuyers who have not owned a home within the past three years, who meet program income guidelines and who do not exceed the program's purchase price limits are eligible to apply for a loan under the program. 

Program Highlights:

• $10,000 for down payment and/or closing cost assistance
• 0% interest loan
• 5 or 10 year loan term
• First payment will be deferred for 5 years from closing date
• Payment amount $83.33 OR $166.67 monthly, depending on term
• Borrower must be a First Time Homebuyer (excludes qualified Veterans)
• First Time Homebuyer counseling required
• Minimum credit score 640

Borrower Requirements:

• Income: May not exceed 80% area median family income regardless of family size
• Liquid Assets: May not exceed $15,000 (excluding retirement and/or 401K accounts)
• Home Value Limits: Total contracted purchase price of the single family mortgage limits under Section 203(b) of the National Housing Act
• Combined Loan-to-Value: Must not exceed 105%

Eligible Properties:

• New and existing single family homes, townhomes, and condominiums

Tarrant County: Homebuyer Financial Assistance for First Time Homebuyers

As a leader in the effort to make quality, affordable housing accessible to all, Tarrant County Housing Partnership administers a number of programs that provide down payment, closing cost or principle reduction assistance for low and moderate income individuals and families.

Each program varies: in some instances, assistance is only available for specific properties, in other instances, assistance is open to homebuyers in specific communities. A brief overview of each program’s key components and eligibility requirements follows.

Important note: You must at least attend a TCHP Orientation Class in order to be considered for assistance. Attending TCHP’s other homeowner classes is strongly encouraged, and in some instances, may be required in order to receive your funding. Your counselor can provide additional information. View a class schedule.

Arlington Homebuyer Assistance Program (AHAP)

• For first-time homebuyers purchasing a home in Arlington only.

• This program provides up to $7,500 in down payment/closing cost assistance. Up to $10,000 of assistance is available for qualified Social Security Income recipents OR for purchase of properties located in the NSRA target area.

• The home purchased must meet minimum property standards.

Development Corporation of Tarrant County (DCTC)

• This program provides up to $14,999 in down payment/closing cost assistance and principle reduction for first-time homebuyers who are purchasing DCTC-owned properties, which are located throughout Tarrant County.

To learn more about these programs, contact Jenny or visit http://www.tchp.net/programs_services/financialassistance.html

McKinney Grant Program Offers Up to $10,000

The City of McKinney’s Community Services Department is helping first-time homebuyers fulfill their dreams of owning a home. The Homebuyer Assistance Program provides down payment and closing costs assistance up to $10,000 for first-time homebuyers purchasing in McKinney with low to moderate income. Funds are made available through a grant from the Texas Department of Housing and Community Affairs' HOME Investment Partnership Program.

Some requirements of the program include:

• First-time homebuyers. A first-time homebuyer is an individual or household who has not owned a home in the last three years or is a displaced homemaker.

• Proof of U.S. citizenship or permanent legal resident alien status.

• Qualifying for a mortgage loan with a private lender.

• Income that does not exceed 80 percent of the Area Median Income.

• The home purchased through the program will be the principal residence.

• The home must be located within the city limits of McKinney.

• Completion of a HUD and City of McKinney approved homebuyer counseling workshop.

Contact Jenny today for more information or to see if you qualify for this grant program.

City Grant for Down Payment Assistance

For many years, I've worked with several cities in the Dallas Fort Worth area to provide down payment assistance through block grant programs for first-time homebuyers (or anyone else who has not owned a house in the last 3 years.)

Here is information you need know about the different city programs currently available in the market (Call me if you don't see the city you're wanting to purchase a house from):

McKinney: Must purchase house under $130,000. McKinney will pay 1/2 of your down payment and all of your closing cost up to $7,500.

Grand Prairie: Must purchase house under $160,000. $5,000 grant will be given without any repayment terms.

Plano: Must purchase house under $140,000. Plano will also pay 1/2 of your down payment and most of your closing cost or NSP program for purchasing a foreclosure home.

Lewisville: Up to $7,500 will be given to the first time homebuyer. Lewisville will pay 1/2 of your down payment and most of your closing cost. They are great to work with. The City of Lewisville will even offer improvement dollars after your house is purchased.

Irving: $10,000 grant will be given to first time homebuyers.

Frisco: Applicant must work within the city limits or be an employee of the city (i.e. police, fire fighter, teacher, or city administration employee.)

Garland: up to $10,000 for first time buyer.

Other cities with grants available: Arlington, Fort Worth

Other cities in Collin County may qualify for the USDA Rural program, which offers 100% financing and allows the seller to pay up to 6% of closing cost. Essentially, you will have to pay very little up-front money. USDA Rural program is one of the best programs available. YOU PAY NO MONTHLY PMI WITH 100% FINANCING.

How to Qualify for the $8,000 Tax Credit

Here are some general guidelines to qualify for the $8,000 Tax Credit:

Eligible Property: Any single-family residence (including condos, co-ops, and townhouses). All principal residences are eligible.

Refundable?: Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of the tax credit will be refunded to the purchaser.

Income Limit: Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

First-time Homebuyer Only: Purchaser (and purchaser’s spouse) may not have owned a principal residence in the 3 years prior to purchase date.

Revenue Bond Financing: Purchasers who utilize revenue bond financing can use credit.

Repayment: No repayment for purchases on or after January 1, 2009 and before December 1, 2009.

Questions? Contact Jenny Phung at 972-731-0165, email jenny@jennyloans.com, or visit my website at http://www.jennyloans.com/.

What to know before you go house hunting

Would it surprise you to know that your Realtor would prefer to work with clients who have their pre-qualified letters ready rather than working with clients who don't? As a Realtor, it is his or her responsibility to find the perfect house for you no matter how many miles they have driven, how much money spent on gas, and how much time invested into finding you that dream home. So before you start house hunting, here are some financial tips to make sure you're ready to get a mortgage:

1. Make a chart of your current income and expenses. How much can you budget for your mortgage payment every month with principle, interest, taxes and insurance (PITI)?

2. To ensure your loan gets approved, your mortgage should be no more than 38% of your gross income (NOT NET AFTER TAX DEDUCTION), and your total monthly mortgage payment plus all payments based on your current debt should not exceed 48% of your gross income (do not include your utilities). And a smart tip: just because you can get approved for more than your budget doesn't mean you should try to buy more.

3. Be prepared to explain any length of time when you were unemployed.

4. Know your credit. You can get a free credit report once per year for free. Go to http://www.annualcreditreport.com/ and get yourself a free credit report. If you have many delinquencies on your credit report in last 12 months, then it may be difficult for you to get an approval.

5. How much money do you have in reserves? The minimum FHA mortgage requires 3.5% down payment from the sales price. The USDA Rural program does not require any down payment, but you should still have some money in savings. The more reserves you have, the better off you are in dealing with life's many unexpected events.

6. The most important tip is to work with a licensed loan officer/mortgage consultant before you start looking for your new house. They can assess your financial situation and if you're ready, provide a pre-qualification letter that your Realtor will need. You should consider working with someone who has many years of experience, knows and understands underwriting guidelines, and most of all, is dependable and there when you need them. They answer the phone or get back with you within a reasonable amount of time. You should never have to chase down your loan officer.

As a first-time home buyer, there are many uncertainties that lie ahead. You should be able to rely on your Realtor and your mortgage consultant to help you every step of the way.

Don't forget about taking advantage of the $8,000 tax credit for first-time home buyers, including buyers who have not owned property in last 3 years, that gives you cash in your pocket. This program is set to expire November 30, 2009... so ACT NOW!

Questions? Contact Jenny Phung at 972-731-0165, email jenny@jennyloans.com, or visit my website at http://www.jennyloans.com/.