Texas Housing Trust Fund 2010-2011 Homebuyer Assistance Program

Texas Department of Housing has issued a special ZERO% interest program for 5 or 10 years (borrower's choice) to help with "Gap" Financing.

What this means is that the closing costs or down payment, or combination of both, can be paid for with this Zero% short term loan.

Program Details

The 2010-2011 HTF Homebuyer Assistance Program provides eligible borrowers with down payment, gap financing, and closing cost assistance for the acquisition of a single family home that must be used as a principal residence. The program will serve first time homebuyers and veterans whose annual income does not exceed 80% of the Area Median Family Income.

The 2010-2011 HTF Homebuyer Assistance Program provides:

Up to $10,000 for down payment, gap financing, and/or closing cost assistance for the acquisition of a single family home.

• Zero percent interest loans.

 A notice of funding availability (NOFA), in the approximate amount of $1.6 million, was released March 7, 2011. In an effort to serve various populations throughout the state and improve upon the efficiency of the traditional funding method, a reservation system will be utilized.

Program Requirements

Available Funds: Approximately $1.6 million

Funding Source: State of Texas

Administrative Fee: 4% of loan amount

Maximum Loan: $10,000

Loan Term: Five to ten years, per borrower’s choice

Interest Rate: 0%

First Payment: Due no later than on the sixty-first (61) month after the first payment date of the Senior Lien loan.

Eligible Properties: New and existing...

 Single family homes

• Townhouses
• Condominiums
• Manufactured housing (certain restrictions may apply)

Eligible Borrowers: First time homebuyers (This requirement is waived for Veterans.)

Borrower’s income: May not exceed 80% of the Area Median Family Income (AMFI).

Liquid Assets: May not exceed $15,000 (excluding retirement and/or 401K accounts).

Maximum Debt Ratio: Total debt-to-income ratio may not exceed 45%, unless the Senior Lien(s) are insured or guaranteed by USDA, FHA, VA, Fannie Mae or Freddie Mac.

Home Value Limits: The total contracted purchase price of the housing unit must not exceed the Single Family Mortgage Limits under Section 203(b) of the National Housing Act

Loan-to-Value (LTV) Ratio: Must be less than 100%.

HBA Program Lien: 2nd or 3rd lien position.