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.
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.
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
- 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.