Available Programs
First Time Home Buyers
Collin County, Texas
I am getting many calls from clients and Realtors wanting information about the programs available for the First Time Homebuyers. Some of the products will supply the downpayment but there are restrictions. I have defined the current programs which are not freestanding. The bond and grant programs are typically closed as an FHA loan. Qualifying is not more lenient, it simply assists with the downpayment. Most of the programs below have funds available at this time but there is no guarantee as to the availability of funds. I have provided a breakdown and explanation as to what is currently available.
· Bond Loans- Primarily designed for the low- and moderate income families and individuals who are first-time homebuyers. Funds are provided through the sale of bonds by the Texas Department of Housing and Community Affairs (TDHCA) and Texas State Affordable Housing Corporation (TSAHC).
· City Grants - Funds made available to citizens of specific cities (Frisco, McKinney, Plano) who are first-time homebuyers. The funds can be used toward the down payment or closing costs.
· Federal Housing Administration (FHA) - Loan program created by congress in 1934. Offers lower down payment, seller contributions up to 6%, flexible qualifying ratios and more lenient on derogatory credit. Minimum required downpayment is 3% until Dec. 31,2008.
· United States Department of Agriculture (USDA...like the beef) (Also known as Rural Housing) - USDA Rural Development administers the program and guarantees the loan for rural customers. Closing cost can be rolled into the loan and long as total loan amount is not more than appraised value.
· Conventional Access - Affordable loan program allowing second lien to a Non Profit agency for the downpayment to provide homeownership opportunities for low and moderate income families. Combined loan to value is 100%.
· $7500 Tax Credit - 10% of the cost of the home not to exceed $7500. Available to First Time Homebuyers purchasing a home between April 2008 and July 2009. Income limitations apply.
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