Home Ownership Made Possible for Texans
What is a TDHCA Loan?
The Texas Department of Housing and Community Affairs (TDHCA) offers a variety of loan programs designed to assist low- and moderate-income Texans in achieving homeownership. These programs provide affordable mortgage options, down payment assistance, and other benefits to help make buying a home more accessible. TDHCA loans are available to first-time homebuyers, veterans, and other eligible individuals and families.
Benefits of a TDHCA Loan
Down Payment Assistance:
TDHCA offers down payment and closing cost assistance, which can significantly reduce the upfront cost of purchasing a home.
Competitive Interest Rates:
TDHCA loan programs provide access to competitive interest rates, making monthly mortgage payments more affordable.
Mortgage Credit Certificates (MCC):
Some TDHCA programs include MCCs, which allow eligible borrowers to claim a tax credit for a portion of the mortgage interest paid each year.
Homebuyer Education:
TDHCA provides homebuyer education courses to help borrowers understand the homebuying process and make informed decisions.
Support for First-Time Homebuyers:
Special programs are available for first-time homebuyers, offering additional support and benefits.
Frequently Asked Questions About Buying a Home
Who is eligible for a TDHCA loan?
Eligibility varies by program but generally includes low- and moderate-income Texans, first-time homebuyers, veterans, and individuals purchasing in targeted areas. Specific income and purchase price limits apply.
What is the minimum credit score required for a TDHCA loan?
The minimum credit score requirements vary by program and lender, but a score of at least 620 is typically required. Some programs may have more flexible credit criteria.
How much down payment assistance can I receive?
Down payment assistance amounts vary by program but can range from 3% to 5% of the loan amount. This assistance can be used for down payments and closing costs.
What types of properties are eligible for TDHCA loans?
Eligible properties typically include single-family homes, townhouses, condominiums, and manufactured homes that meet specific criteria. The property must be the borrower’s primary residence.
Can I use a TDHCA loan to refinance my existing mortgage?
TDHCA loans are primarily designed for home purchases, but some programs may offer refinancing options. Check with TDHCA or your lender for specific details.
What is a Mortgage Credit Certificate (MCC), and how does it work?
An MCC allows eligible borrowers to claim a tax credit for a portion of the mortgage interest paid each year, reducing their federal income tax liability. The credit is available for the life of the loan as long as the borrower occupies the home as their primary residence.
Are there income limits for TDHCA loan programs?
Yes, income limits apply and vary by program and household size. These limits are designed to ensure that assistance goes to those who need it most. Check the TDHCA website or consult with your lender for specific income limits.
How do I apply for a TDHCA loan?
To apply for a TDHCA loan, you must work with a participating lender. The lender will guide you through the application process and help you determine which program best fits your needs.
What are the benefits of TDHCA homebuyer education courses?
Homebuyer education courses provide valuable information about the homebuying process, financial management, and home maintenance. Completing these courses can increase your chances of a successful homeownership experience.
Can I combine a TDHCA loan with other assistance programs?
Yes, TDHCA loans can often be combined with other local, state, or federal assistance programs to maximize the benefits available to you. Discuss your options with your lender to see what additional assistance you may qualify for.
