Down Payment Assistance Programs Texas

Down Payment Assistance Programs Texas


Today we’re going to be talking about
downpayment assistance programs in Texas! So if this is a topic you’re interested
in, we’re here to discuss all the ins and outs, so coming up next! I’m Alfredo a realtor here in the
Greater Houston area with Houston Katy Homes Group, AmeriChoice Realty, if
you’re new here please remember to hit the subscribe button and the
notification bell so that you don’t miss out on any of our upcoming videos. Today
I’m with David Rodriguez with Interlink Mortgage, he’s the area vice president.
Can you tell us a little bit about yourself and Interlink mortgage?
Absolutely, I’m a mortgage banker, I’ve been in the
business for 25 years, the first 10 years I originated loans, the second 10 years
or thereafter I got into management, about 6 years ago I made the decision to
get out of management and back into origination’s. Origination has
always been my first love so it took me a little time to figure out that
management was not my calling, so here I am today originating loans, doing what I love the best. Interlinc Mortgage services are a
direct lender, we lend in about twelve different states, we’re able to service
some of the loans that we do, it’s more by choice, and as a result of our
structure we can do almost any type of loan out there. David, thank you again for
your time ,you know now we’re going to be talking about what are some of the down
payment assistance programs that are available to people who are considering
buying a home and getting a mortgage and I know that there’s a few programs that
are available to them, could you tell us about some of these programs David, and
in particular I’ve heard of this one called TSAHC, could you tell us about this and
how it works? Absolutely, it’s a great program TSAHC stands for Texas
Affordable Housing Corporation. They will do an actual grant
ranging anywhere from 2% of the sales price of a home up to 4%. That grant is
as an actual grant there’s no recapture period, there’s no obligation to keep the
home for a certain amount of time, the great part about the TSAHC program
is it does serve many first-time homebuyers but also what many people
don’t know is that program doesn’t require you to be a first-time buyer you
can actually own a rent home or you can actually be moving out of one home to
purchase another home and use the TSAHC grant program to buy another home. The only requirement is that you know you have to qualify for both homes the
TSAHC program has its own requirements. They require you to have at
least a 625 FICO score. They require you to qualify for either an FHA loan or a
Conventional loan. In many instances if it’s a conventional loan we will do the
Fannie Mae Home Ready program with that or the Freddie Mac Home Possible program. With that the debt to income ratio requirements will follow whatever
the loan program is, so on an FHA with this TSAHC program, you can go up to
a 56 debt to income ratio and on the Conventional it’s typically going to be
around 45% depending upon the buyer and with some buyers you can go up to a
50 it but that’s going to be driven by the FICO score. The other requirement
with the TSAHC is income requirements. The typical income requirement for
Harris County or in Greater Houston area is going to be about $86,100
per year on the income, in other words, if you make more
than the income maximum limit then you’re not eligible for the program, but
it’s meant to serve low to moderate income families, it’s a great
program. Yes that is a great program and I find that interesting how you’re able to
incorporate it into either a FHA or all these different other types of loans
that are available and get that benefit of a down payment assistance. With this
we’ve even incorporated that with a VA loan so where that’s very useful
with a VA loan is because VA doesn’t require a down payment then that
entire 4% can go towards closing costs and taxes and insurance, it’s a
great program for veterans also. Well there’s also another one I think
it’s called a TDHAC? It’s called the TDHCA which is the Texas Department of
Housing and Community Affairs, that’s very similar to the TSAHC
program in that the rates are similar and the down payment assistance amounts are similar, you can get up to a 4% grant with this program, it also has
similar income requirements but the only difference is that with the
TDHCA, that does require you to be a first-time homebuyer. But other than that, you can also
incorporate that with a Conventional loan or you can do that with an FHA
loan or even with a VA loan. And if you incorporate it with a Conventional loan
they will provide you with assistance for that downpayment, so you’re okay?
Absolutely, yes absolutely and that loan can be 3% down for Conventional or with the FHA it’s 3.5%
down, so if the FICO scores are a little on the higher side, then we always
are going to look at the Conventional option for the borrower if they have
the higher FICO scores. So for you as a loan agent and let’s say you’re helping
your client, how would you decide which one of these two or how would you help
them just steer them a little bit into either the TSAHC or the TDHCA program? It’s goIng to depend upon the individual, we a lot of times we’ll give
them different choices, to make the decision we help run numbers for them ,will give them different options and we usually let
the customer make that decision ultimately, but we’re there to give them
factual information. I see that’s good to know. There’s also another program
called the Seth goldstar program can you tell us a little bit about that? The Seth Goldstar program is a great program, that’s the Southeast Texas
Housing Finance Corporation, they’ve been around for a long time, they also target
first-time home buyers. The down payment assistance on that program ranges
anywhere from 2% of the sales price to 7%. I mean
7% of the sales price! There are some differences though,
obviously with any down payment assistance program in return for getting
the benefit of the downpayment assistance, these programs usually carry a higher interest rate, on the high side with
the SETH program – the last time I checked which was a couple of
days ago the 7% down payment assistance carries a 6% fixed-rate interest
rate, you can also couple this with either a conventional loan or a FHA loan. The Conventional will allow you to do as little as 3% down and the FHA loan
will allow you to do as little as 3.5% down, but with these programs and and having so much flexibility, we will help design a
situation that’s most beneficial for a buyer, a good example of that is let’s
say we’ve got a buyer that is eligible for the 4% grant and we send that buyer
pre-approved to the realtor, to you and we suggest because of the amount of
assets that the buyer has that it would be beneficial for the realtor to
negotiate a seller contribution, so we could couple a seller contribution with
a down payment assistance grant and create a situation where a buyer comes
to the closing table with less money that it takes to rent a home, there are
many instances even when a buyer’s getting money back at closing. Let’s say
they’ve gone under contract and they’ve done a $1,500 earnest money deposit and
because of the way we’ve designed the loan with the realtor and the
downpayment assistance program and the seller contribution variable to walk
away from the table closing table with money, that’s not an uncommon
situation. That’s absolutely awesome
to have that. Absolutely, and usually what happens is the buyer is not aware of all
the different options and once they come to us for a consultation, we can help
point them in the right direction for the right program. Now what are the kinds
of people, are there certain professions or certain
kinds of groups that would be best suited for these types of programs?
Absolutely, that’s a great question, teachers and nurses, first responders
firefighters, paramedics, police officers, peace officers, those all are people that
are targeted to benefit from specifically the TSAHC program and
the TDHCA program. Under the TSAHC program, there’s the Heroes program that
targets first responders and nurses and medical workers. So if you’re in
those professions this is something you really want to look into, there’s a great
benefit to you and a great help, when it comes to purchasing a home right so.
Absolutely it’s worth it to at least take a look. A consultation with a
professional mortgage banker won’t cost you a dime and of course if you’re not
in those professions there some of these other programs are still available to
them. Absolutely. So you’ve got to ask that question there’s a lot of
opportunity out there for you and there’s available contributions to help
you purchase that home, so if you’re thinking, gee I can’t afford it right now,
don’t be so quick about that, call your loan agent, call David, make
sure, don’t miss out on having that contribution that can make a difference
between you owning a home or having to have to wait to own that home. David I’m
sure that they have dozens more questions for you, now if they want to
get a hold of you, what do they need to do. They could call me on my direct
line, that phone number is (713) 819-3031. I don’t view this as an 8 to 5 job. I understand that there are many instances where somebody cannot discuss their financial affairs while at work so I welcome phone calls after hours, there
are many instances where when I’m talking to folks after hours because
they can’t talk at work, so feel free to call me, I would love to answer any of
your questions. Also if somebody would like to actually go on and just do an
application online my website is www.davidrmortgage.com. Also we have a lot of great videos coming up, so be sure to hit the subscribe button and the
notification bell so that you don’t miss out. Also if you like this video please
hit the like button and if there are other questions that have come up in
light of what we’ve discussed, please ask those questions in the comment sections. In later videos we can begin discussing this and we’ll help you get the answers
you need. So once again my name is alfredo with Houston Katy Homes Group, AmeriChoice Realty, thank you for watching, we look forward to seeing you
on the next one, till then all the best!

3 thoughts on “Down Payment Assistance Programs Texas

  1. What are some of the Down Payment Assistance Programs available to Home Buyers in Texas, how much is on offer for assistance and who can qualify? These are some of the most frequently asked questions I get from home buyers, so in this video with a mortgage expert, there are some helpful answers for you, but of course it's hard to cover everything, so if you have remaining questions please write them in the comments below and I will get the answers for you!

  2. Down payment assistance is huge

  3. Great Info. Alfredo for Down Payment Help !

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