TDHCA has just released two down payment assistance programs to help borrowers in purchasing their first home. These programs advances down-payment and closing cost assistance. To qualify, eligible borrowers must meet the federal first time homebuyer requirements. You must use a lender on the TDHCA participating lender list.

• 1st time homebuyers purchasing a home – new or resale that will be used as a principal residence. Includes single family detached homes, attached homes like townhouses, condominiums and manufactured homes.
• 1st time homebuyer is a buyer who has not owned a principal residence during the 3 year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
• Home purchase must occur on or after 1/1/09 and before 12/1/09. The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.
• Proceeds may be used for down-payment, closing costs, or pre-paids.

 TDHCA 90-DAY Down Payment Assistance Program - effective 06/22/09

You must use a lender on the TDHCA participating lender list.

Program Details

1. Amount of assistance available – 5% of the total mortgage amount (including MIP) up to a maximum of $7,000.
2. Income limit for single taxpayers is $75K; the limit is $150K for married taxpayers filing a joint return.
3. Borrowers must complete a pre-purchase homebuyer education course.
4. Application Fee of $250
5. Available in conjunction with FHA loans only.
6. For the first 90 days (4 mths) after the loan closes, 0% interest is charged - Grace Period
1. If not paid off in 4 months then, 2 year term at 10% interest rate, a monthly payment of $323
7. Tax credit advance loan MAY NOT result in cash back to borrower.
8. 2nd Lien may not exceed total amount needed for down payment, closing costs and prepaid expenses.
9. 2nd Lien payments must be included within qualifying ratios

TDHCA Mortgage Advantage Program (MAP) - effective 06/22/09

The MAP must be used with either TDHCA’s Bond Program 70 or 2009 MCC Program. Lenders MUST be on the TDHCA participating lender list.

Program Details

1. Income limit for 1-2 person households is $73,300, and for 3 or more person households; income limit is $84,295.
2. Amount of assistance available – 5% of the total mortgage amount (including MIP) up to a maximum of $6,000.
3. Borrowers must complete a pre-purchase homebuyer education course.
4. Application Fee of $250
5. Available in conjunction with FHA loans only.
6. Proceeds may be used for down-payment, closing costs, or pre-paids.
7. For the first 120 days (4mths) after the loan closes, 0% interest - Grace Period
1. If not paid off in 4 months, then, 5 year term at 7% interest rate - monthly payment of $118
8. Tax credit advance loan MAY NOT result in cash back to borrower.
9. 2nd Lien may not exceed total amount needed for DPA, closing costs & prepaid expenses.

10. 2nd Lien payments must be included within qualifying ratios

Click here to see remaining available funds in these programs.