Some SERIOUS Cash Now Available for Qualified Texas Buyers
The Texas Department of Housing and Community Affairs (TDHCA) has recently announced the largest ever financing initiative for Texas homeowners in the history of the agency – TDCHA Bond 77.
It secures $500,000,000 dollars to be released in monthly $50,000,000 phases that is being made available for mortgage loans to help low and moderate income Texans who are attempting to purchase a home. The program’s huge dollar amount and relatively high purchase price limits means it’s going to be a huge boon for assistance for first time (and in some cases, move-up) homebuyers and is forecasted to help in excess of 4000 Texas families purchase homes.
Most particularly, it will have an enormous impact on low and moderate income homebuyers who are relatively stable financially but may be having a difficult time coming up with the money for a downpayment. Below is a summary with Q + A style information about the program that highlights the most important aspects of the proposal, and there are links as well as additional criteria information at the bottom of the post.
How does the program work? The TDHCA Bond 77 program will release money every 30 days in $50,000,000 increments which will be made available on a first come, first serve basis to qualified home buyers (primarily, but not exclusively limited to first time home buyers). The initial amount (“Lot 1″) of $50,000,000 was released just last week.
What does it offer? The primary objective of the program is to make available 30-year fixed mortgages that are below market rate as well as provide assistance with down payments. The interest rates for the loans will be around 4.99% if they are being provided without down payment and closing cost assistance, or 5.74% on loans with down payment and closing costs assistance. While the rates will changes monthly with each new release of funds, the rates are guaranteed to be below-market.
Who Qualifies? The major goal is to help first time home buyers so they will constitute the majority of those benefiting from he program, but some some existing homeowners (if they are purchasing in Targeted Census Tracts) will be eligible as well. Only those classified as low to middle income borrowers (more about this in the slide below) are eligible to be a part of the program.
What kinds of loans are available? The bond program provides funds for multiple types of loans, including FHA (with low down payment programs for first time home buyers), Conventional, USDA, and VA (veterans) loans.
What kinds of properties qualify? Single Family, Approved Condos, and Planned unit developments (PUDS) are all eligible for the program. The limit on the home prices is $316,177 in the “Targeted Census Areas” (There are 6 qualified Census Tracts in Travis County – more info on the TDHCA website), and $258,690 in “non-Targeted areas”. These limits are a good deal higher than those previously set in similar programs, which is a big benefit to moderate-income buyers.
What makes this program unique? The generous limits for income amount and home cost are the biggest factors setting the Bond 77 program apartment from others like it, and it’s also not exclusive to “Targeted” areas. The program offers below market rates, and down payment assistance specifically for borrowers with little or no money down. They also have a first-come first-serve system that requires a one-time payment of only $350 to reserve a spot, and it’s hands down the largest single financing initiative ever offered by TDCHA.
Want more details on this program to determine if you and your family qualify? Confused about how the mortgage bond programs works and what it can do for you? Don’t hesitate to contact us so we can connect you with the right lenders.
Feel free to check out the TDCHA website’s page on the program here and a detailed page on Lot 1 (the first release) of the program here. There’s also a super helpful set of images below with a summary of the income limits and the targeted areas for the program.
About Red Home Realty
Red Home Realty is a forward-thinking group of ambitious real estate professionals that look at real estate differently because the old way is broken. Traditional real estate brokers have had their fun, and now it’s our turn – We’re changing the game in Austin real estate.
We’re Tech Nerds - While some Austin Realtors are struggling to sync their Blackberry, we live and breathe technology. From our powerful Austin Home Search tool for buyers to our online and social media marketing for sellers, we use technology and common sense to connect with the market.
20% Cash Back Rebate – We make it easy for savvy consumers to find their new home online so when you buy with us, you get 20% cash back. It’s like one of those big bailouts you’ve heard about, except the money goes in your pocket, not to Wall Street.
It’s all about YOU – You’re not just a lead, you’re a guest in our home where you can expect Ritz-Carlton level service. We are ladies and gentleman empowering ladies and gentleman with new tools on new platforms backed by market data and facts – good, bad, or ugly.
Connect with us at rojorealestate.com, or learn about the Austin market on our company blog. You’ve got questions – now you have help.