Products at a Glance
Step by Step Procedures
Purchase Price and Income Limits
Servicer Reference Guide
Servicer Loan Delivery Checklist
The Texas Homebuyer Program requires a 620 Fico Score.
All other credit requirements are addressed with AUS and Underwriting Findings.
Targeted Area Property Search
First Time Homebuyers Flyer
My Choice Down Payment Assistance Flyer
Mortgage Tax Credit Flyer
Basic Understanding Recapture TAX
Texas Homebuyer U
In early years of an amortized loan, almost all of the payment is applied toward interest, while in the last years of the loan, almost all of the payment is applied to reduce the principal.
Closing Costs & Prepaids
Costs can include attorney fees, loan origination fees, loan discount points, application fees, appraisal fees, credit reporting, document preparation, escrow fees, surveys and recording fees, tax escrow, hazard insurance, flood zone certification, two months of private mortgage insurance (if down payment is less than 20 percent), and sometimes the entire first year’s private mortgage insurance premium. Typically, the appraisal and credit report fees are paid at application.
This new form combines and replaces the HUD‑1 and final Truth in Lending (TIL) disclosure. A Lender is required to provide the Closing Disclosure to the borrower no later than three business days before loan closing. This form is a statement of final loan terms, projected payments and closing costs. Compare this document with your Loan Estimate.
The difference between the mortgage and the lower of the purchase price or appraisal. The minimum down payment is three and a half (3.5%) percent on most loans. Private mortgage insurance is required for a down payment that is less than 20 percent.
Deposit money given to the seller by the potential buyer to show that he is serious about buying the house. If the deal goes through, the earnest money is applied to the down payment. If the deal does not go through, it may be forfeited.
The difference between a home’s fair market value and the loan amount, and/or encumbrances (such as liens or claims) against it.
This new form combines and replaces the Good Faith Estimate (GFE) and the initial Truth in Lending (TIL) disclosure. It must contain a good faith estimate of credit costs (loan costs and other costs) and transactions terms. Loan Costs are costs paid by the consumer to the Lender and third-party providers of services the Lender requires to be obtained by the borrower during the origination of the loan. Other Costs include taxes, governmental recording fees, and certain other payments included in the real estate closing transaction. A Calculating Cash to Close table shows the borrower how the amount of cash needed at closing is calculated. The Lender is required to provide the Loan Estimate within three days of receipt of the borrowers loan application.
An estimate of the average interest rate being charged by Lenders for conventional (Fannie Mae/Freddie Mac) or FHA/VA loans.
The origination fee is what the Lender charges for establishing the loan. It is included in the closing costs and may be financed.
Points or Discount Points
A point or discount point is one percent of the loan amount and is charged by the Lender to issue a loan at below market rates.
Private Mortgage Insurance
On conventional financing, Lenders require that the borrower purchase Private Mortgage Insurance (PMI) to protect the Lender against default on loans with less than 20 percent down payment. PMI has nothing to do with homeowners insurance or credit life insurance. PMI should cost the same at all Lenders.
A buyer must qualify for a loan. Typically, the monthly payment cannot be more than 25 percent to 28 percent of the buyer’s gross monthly income, and all the buyer’s monthly debt cannot total more than 33 percent to 36 percent of his/her monthly income. Some leeway may be granted based upon prior credit history, down payment, job history, etc.
An instrument that shows the buyer has a clear ownership of the property. A loan does not usually close until the title company has assured the Lender that there are no hidden problems with a title to a piece of property.
A policy required by the Lender and paid for by the borrower that insures the Lender clear title against future claims. Borrowers may also purchase title insurance to protect their equity.
How do I get on the list of preferred REALTORS® ?
Upon completion of The Texas Homebuyer Program qualified Continuing Education Training you will be eligible to be listed on the Homeownerhip REALTOR® Locator.
Where and when can I take online training about The Texas Homebuyer Program?
Stay tuned to sign up for our special 4‑hour TREC-approved Continuing Education course. Additionally the The Texas Homebuyer Program team is full of detailed information on all programs.
Is there a Cost for the training?
Typically, The Texas Homebuyer Program REALTOR® training is free. Occasionally, certain Continuing Education classes may incur a nominal fee.
What is the first step for my client to pursue down payment assistance?
The first step is to recommend your future homebuyer take the free online Texas Homebuyer U courses for first time home buyers and the Texas MCC class.
Second, your buyer should choose a Lender from the The Texas Homebuyer Program Lender locator. These Lenders have been trained and are authorized to add The Texas Homebuyer Program Down Payment Assistance and MCC to your buyers’ loan portfolio.
How do I help my buyer make sure they qualify for and obtain a MCC (Mortgage Credit Certificate)?
Stay in close contact with the chosen Lender and help the buyer make sure a MCC is included while the loan is being underwritten, if the buyer does qualify for the MCC.
Does TDHCA recommend certain REALTORS®?
TDHCA must remain impartial as a State Agency and cannot steer buyers to one REALTOR® over another. The best way to stand out is to have taken the Homebuyer Continuing Education training so you qualify to be on the REALTOR® Locator List.
How can I become a trainer for affordable housing?
At this Time, The Texas Homebuyer Program staff provides all official homebuyer training and welcome your continued interest to help us with training, in the event we ever require additional support.
Are down payment funds always available from The Texas Homebuyer Program?
While funds are technically finite and limited, The Texas Homebuyer Program is backed by the State of Texas which means a healthy and reliable budget is always available.
Where do I learn about the most recent Program Guidelines?
How do I request Marketing materials?
See printable flyer options under REALTORS® Resources or contact Lisa Johnson.