You follow the news every day and see that mortgage rates are still at historic lows. You are thinking about buying a home but simply don’t have the down payment. That’s an issue that comes up for many potential buyers. The fact is that you have alternatives, even with less than perfect credit.
A typical down payment for a home purchase can range from 3.5% to 20% but did you know that there are programs out there that allow you to purchase with ZERO DOWN! One of these programs may work for you and help you become a home owner sooner than later.
Texas Homebuyer Assistance Programs
Austin Down Payment Assistance Program
This program helps qualified, first-time home buyers with deferred, 0% interest loans to assist them in the purchase of a home within the Austin city limits. The sales price cannot exceed $274,312 and allows for single-family homes, condos or town homes. The loan needs to be paid back plus a percentage of equity when the borrower sells the home or transfers the title.
Texas Home of Your Own (HOYO) Program
HOYO is a program for first-time homebuyers for persons with disabilities. The program provides down payment and closing costs assistance for homes located in Blanco, Bastrop, Burnet, Caldwell, Dallas, Fort Bend, Harris, Hays, Johnson, Montgomery, Parker, Tarrant, Travis and Williamson Counties.
To qualify for this program, a borrower must be a person with a disability or have a family member with a disability. The borrower must also qualify for the loan, have no other interest or ownership in another property, and be considered a first-time home buyer. A borrower will be considered a first-time home buyer if he or she has not owned a home in the last three years.
Texas State Affordable Housing Corporation
TSAHC is a non-profit organization that serves the housing needs of low-income Texans. The corporation offers homeownership programs that provide a fixed interest rate on a 30-year FHA, VA or USDA loan to eligible borrowers. In addition, the program also offers down payment and closing costs assistance, up to 5% of the mortgage loan amount, in the form of a grant. There are household income limits and the program is only available to first-time home buyers. Borrowers will also need to work with a TSAHC-approved lender.
The Texas First-Time Homebuyer Program
Effective this month, the state of Texas released $600 million in homebuyer assistance through a new mortgage-backed securities initiative designed to give qualifying borrowers advantages over the previous single-family bond program. The program offers a more competitive mortgage interest rate while increasing the amount of down payment and closing costs assistance offered.
To find out more about any of these Texas Homebuyer Assistance programs, visit http://www.txhomeprograms.org.
VA Loans in Texas
Active and retired members of the military can buy homes with little or no money down under the VA program. VA loans also allow qualified borrowers to purchase their homes without PMI (private mortgage insurance) and that can save a borrower thousands over the life of the loan. The Veterans Administration does not lend the money for these types of loans but it does back them. The first step is to find out if a borrower is eligible. VA will issue a Certificate of Eligibility to qualified veterans.
Owner Financing in Texas
There are some homes on the market that may not sell the conventional way. Out of those sellers, there may be some that will offer owner financing. That means the seller agrees to finance the loan for the borrower themselves. It can be an effective way to sell a property when financing is difficult to obtain for the borrower. Advantages for buyers include easier qualification, little or no loan costs and a quick closing. One disadvantage for buyers is that sellers typically charge higher than normal interest rates to obtain the financing.
HUD Homes and Programs in Texas
The U.S. Department of Housing and Urban Development offers a variety of programs to assist qualified borrowers achieve the dream of home ownership. A HUD Home is a one-to-four unit residential property that has been acquired by HUD as a result of foreclosure on an FHA-insured mortgage. Almost anyone can purchase a HUD home but they are initially offered to owner-occupant borrowers. After the priority period, unsold properties are available to all buyers, including investors.
Borrowers must qualify for financing through a mortgage lender before making an offer on a HUD home. HUD may also pay up to 3% of closing costs based on the sales price. If a borrower qualifies for an FHA loan, the down payment is as little as 3.5%. Search for Austin HUD Homes with Texas Capital Properties today!
If you are a law enforcement officer, teacher, firefighter or emergency medical technician, you may also qualify for the HUD Good Neighbor Next Door Program. It offers a substantial discount of 50% from the list price of eligible homes as long as the borrower agrees to live in the property as a sole residence for at least 36 months. Eligible HUD homes are located in revitalization areas.
As you can see, there are many options to choose from when you don’t have a substantial down payment but want to achieve the American dream of home ownership. If you would like more information about any of these programs or financing options, please contact Texas Capital Properties today. We are your source for Austin real estate and homes for sale.