A LITTLE HOMEBUYING HELP

HOMEBUYER-ASSISTANCE PROGRAMS CHANGE TO BECOME MORE COMPETITIVE, PROVIDE MORE AID.
For years, state and local housing-finance agencies issued tax-exempt mortgage revenue bonds (MRBs) as their pricipal way to provide mortgage loans with below-market interest rates for qualifying borrowers.
The mortgage-lending landscape has changed, through, and today’s conventional mortgage rates are lower than what can be achieved through MRBs. Bond programs simply can’t compete.

MOVING WITH THE MARKETS
The Texas Department of Housing and Community Affairs (TDHCA) and local housing-finance agencies have shifted to a non-bond, taxable mortgage-backed securitization program that features a number of advantages over the old bond program.
In addition to a lower interest rate, which can adjust daily until the buyer locks in the fixed interest rate, taxable mortgage program loans may also offer homebuyhers more in downpayment and closing-cost assistance than MRBs. Eligibility and other program features may vary between providers.

STATE RELEASES $600 MILLION IN ASSISTANCE
The TDHCA in October launched its own taxable mortgage program, My First Texas Home. The $600 million of homebuyer assistance is the highest amount ever for a program offered by the state. Interest rates on these 30-year, fixed-rate mortgage loans vary depending on market conditions. (as of this writing, they were set at 3.5% interest rate; 3.68% APR.)(Jan/Feb, 2013 Issue of Realtor Magazine)
Downpayment and closing-cost assistance of 5% of the mortgage loan is available in the form of a 30-year non-amortizing, 0% APR repayable second-lien loan. Additionally, funds may be used in conjunction with TDHCA’s Texas Mortgage Credit Certificate Program.
The program is available state-wide and is not restricted to any profession or trade. The first-time homebuyer requirement is waived for qualified veterans. Participants must complete homebuyer education designed to promote successful homeownership. Additionally homebuyhers with disabilities and limited English proficiency may request assistance in order to access TDCA’s My first Texas Home resources.
You can learn more about the TDHCA’s assistance programs at MyFirstTexasHome.com

By Eric Pike, Director of the Texas Homeownership Division of TDHCA