Hi friends! As you might have noticed, we over at Jo & Co., are strong supporters of home ownership for all, and know that the first step holders are first time home buyers. That is why we love educating buyers about down payment assistance programs and assisting them in purchasing a home with down payment assistance.
There are many down payment assistance programs out there, and I touched on these back in 2017. The one program that I have been focusing on lately is TSAHC. I featured TSAHC in my blog post on March 8th, where I answered the questions, What does my credit score need to be & how much do I need for a down payment? If you haven’t gotten a chance to read it, you should check it out.
To recap, when using TSAHC for down payment assistance, and if you qualify (there is an income maximum), they can receive up to a 5% grant, and you can finance FHA or conventional, although you must have a minimum credit score of 620. Here are the program benefits of TSAHC.
- A 30-year fixed interest rate mortgage loan, several rates and loan options available
- Down payment assistance (DPA) provided as a grant (never needs to be repaid) or repayable second lien loan
- DPA available for up to 5% of the loan amount
- You do not have to be a first-time homebuyer
- Available statewide through a network of participating lenders.
- Income limits vary by county. Expanded income and purchase price limits available in targeted areas.
First-time buyers can also apply for a mortgage interest tax credit known as a Mortgage Credit Certificate.
Previously worked with families..
I have had a handful of families and clients use TSAHC. One family in particular, purchased a $212,000 home in Spring, TX 77379 on February 14th. This is the financial breakdown for their particular situation.
$212,000 Purchase Price
$2,120 Earnest Money Deposit
$5,000 Seller Credit
$100 Option Fee Deposit
$8,183 TSAHC (TDHCA) Credit
$417.59 CASH TO BUYER at Close
Actual Settlement Statement..
I think it is a really cool and rare opportunity to see a real (post close) statement. But there it is. Just as a disclosure, even though I removed their personal information, I did get permission from the buyer, prior to posting this statement.
I know and acknowledge that home ownership can be very expensive, and while this family didn’t need any coupons, due to me negotiating $5,000 from the seller, and the TSAHC credit, I know sometimes, buyers need help.
Now it is near impossible to get an offer accepted without any money to you name, and it is even harder for a bank to lend you money, without a certain amount of reserves, it is possible to purchase a home with very little out of pocket.
At a minimum a buyer will need: 1% as the earnest deposit, money for the option period, and money for the inspection. So please keep this in mind if you are looking to purchase, and you haven’t yet saved much money.
But like above, buying a house, could be less expensive then securing a rental home.
I recently, created a sheet of coupons with first time home buyers in mind, and you can read that blog post here. It is a great read for anyone new to purchasing a home or one considering if they want to purchase a home. Please note, anyone can use those coupons, so please share them.
And something really cool, is that I have a handful of lenders who are experienced working with TSAHC and first time home buyers. My favorite lenders to recommend for these down payment assistance programs are:
- Gary Warstler – Guaranteed Rate | 713-387-9873 | [email protected] | grarate.com/garywarstler
- Tim Colson – LeaderOne Financial | 281-507-8797 | [email protected] | timcolson.leader1.com
- Sue Gold – Movement Mortgage | 281-205-3995 | [email protected] | movement.com/lo/sue-gold
If you have any questions, please reach out to me.