- 0% downpayment with a USDA loan. Only certain areas qualify for a USDA loan and this loan requires a slightly better debt-to-income ratio that other loans, but it is a great option for someone who has no money for a downpayment
- 3.5% downpayment with a FHA loan. This loan is probably the most common loan first-time home buyers use and has some of the lowest requirements to qualify.
- 5% downpayment with a Conventional loan. Conventional loans require a higher credit score but can provide a lower monthly payment amount for buyers because it has a lower cost for mortgage insurance. There are conventional loan programs for 10% or 20% down as well that might have better terms and some lenders even offer a conventional loan with only 3% down.
Texas HOMEbuyer Assistance Program
Receive up to $20,000 in Down-Payment Assistance when you buy a home in the Greater Austin area, but outside Austin city limits!
The Texas HOMEbuyer Assistance Program is a new program funded through the U.S. Department of Housing and Urban Development and offers Texans up to $20,000 in down payment and closing cost assistance! This is a great resource for low- to moderate-income households who want to buy a home and applicants do not have to be first time homebuyers. The program offers a 0% interest forgivable loan of up to $20,000, and does not require repayment if the buyer remains in the home throughout the term of the assistance (5-10 years). This assistance is offered to homebuyers in the counties of Bastrop, Blanco, Burnet, Caldwell, Hays, Travis (outside of Austin city limits only) and Williamson Counties.
- Household must complete an eligible homebuyer education course
- Homebuyer my occupy the home as his principle place of residence for the entire loan term
- Household’s mortgage payment must be at least 25% of total household income
- Household’s mortgage payment and monthly debt must be no more than 45% of total household income
- Property must be a single family home, condo or new manufacture home
- Property must be environmentally cleared by the TDHCA
- Property value may not exceed 95% of the applicable FHA Mortgage limit
- Loan must have a fixed interest rate; no ARMs
- No subprime loan products
- The loan-to-value ratio must be at or below 100%
This is not an exclusive list of requirement for this program but will give you a good idea of whether or not you will likely qualify. If you have any questions, please give us a call or contact your lender. If you interested in buying a home and have questions about this program, how to buy or sell your home or other financing questions, PLEASE give us a call at 512-636-9707!
Kyle Pfaffe, REALTOR