Introducing the all new…
Texas HOMEbuyer Assistance Program
Administered by
Because there’s no place like HOME.
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Program Description Provides up to $20,000 down payment and closing cost assistance Assistance provided as 0% interest deferred forgivable loan Serves low income households in the following counties: - Bastrop - Caldwell - Williamson - Blanco - Hays - Burnet - Travis (excluding the City of Austin) Funded by the US Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program (HOME Program)
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Loan Requirements Fixed interest rate No subprime loan products VA, FHA, USDA and Conventional acceptable as long as other guidelines are met. Loan-to-value ratio at or below 100% Buyer may not receive any cash back at closing Maximum lender charges and origination fees of $2,500 Fees used in conjunction with single family mortgage revenue bond and mortgage credit certificate programs and permanent interest rate buy downs (which are an acceptable use of HOME funds) are excluded from $2,500 calculation Front-end ratio must be no less than 25% Back-end ratio must be no greater than 45% Cannot be used for construction loans
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Household Eligibility Factors Household is not required to be a first time homebuyer Household must complete an eligible homebuyer education course TDHCA has a suggested list of providers on website Lender or Realtor may also host a homebuyer education class Homebuyer must occupy the home as their principal place of residence for the entire loan term
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Household Eligibility Factors – (continued) This program may include types of income that would be normally be excluded from other programs; e.g., unemployment benefits, child support, periodic deposits from relatives, and sporadic employment income TDHCA will perform an Income Verification to determine eligibility TDHCA will verify front and back end ratios to ensure accuracy Entire household income (including income from non-borrowing parties) cannot exceed 80% Area Median Income for the county in which the new home is located
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Household Eligibility Factors Income Limits by Household Size by County County
1 Person
2 Persons
3 Persons
4 Persons
5 Persons
6 Persons
Bastrop
$41,950
$47,950
$53,950
$59,900
$64,700
$69,500
Blanco
$34,100
$39,000
$43,850
$48,700
$52,600
$56,500
Burnet
$32,600
$37,250
$41,900
$46,550
$50,300
$54,000
Caldwell
$41,950
$47,950
$53,950
$59,900
$64,700
$69,500
Hays
$41,950
$47,950
$53,950
$59,900
$64,700
$69,500
Travis
$41,950
$47,950
$53,950
$59,900
$64,700
$69,500
Williamson
$41,950
$47,950
$53,950
$59,900
$64,700
$69,500
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Property Requirements Property must be a single family home (including new manufactured housing) or condominium unit Property must pass a Housing Quality Standards (HQS) inspection conducted by TDHCA HQS has different requirements than a Texas Real Estate Commission (TREC) inspection Property must be environmentally reviewed and cleared by TDHCA Property must be located in the participating service area Property value may not exceed the Section 203(b) mortgage limits (preEconomic Stimulus Act) established by HUD for the applicable county: Bastrop
Blanco
Burnet
Caldwell
Hays
Travis
Williamson
$218,595
$200,160
$200,160
$218,595
$218,595
$218,595
$218,595
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Lender Role and Responsibilities Household Application intake 1003 Texas HOMEbuyer Supplemental Application Texas HOMEbuyer Loan Calculator Generation of the TIL and GFE Collection of documents from household Provide documents to TDHCA’s HOME Division Approval and provision of suitable first lien mortgage Provision of preliminary HUD-1 to TDHCA at least 10 business days before loan closing Upon discretion of TDHCA, additional documentation may be requested to verify household and property eligibility 8
Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
TDHCA Role and Responsibilities Household income qualification for the Texas HOMEbuyer Assistance Program Perform Housing Quality Standards (HQS) inspections Perform environmental review Provide Texas HOMEbuyer Assistance Program loan funds at time of closing Service the Texas HOMEbuyer Assistance Program loan
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Household Role and Responsibilities Provide all documents required by TDHCA in a timely manner to the lender Certify accuracy of documents provided Complete an approved homebuyer education course TDHCA has a suggested list of providers on website Lender or Realtor may also host a homebuyer education class Fulfill obligations of loan term, or make arrangements with TDHCA for repayment
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Assistance Amount Determination Texas HOMEbuyer Assistance Program funds may be used for downpayment and closing costs. Front-end ratio must be equal to or greater than 25% of gross household income, based on: 30 year mortgage at the applicable percentage rate, and TDHCA’s income determination method Back-end ratio cannot exceed 45% of gross household monthly income The total amount of assistance provided by the Texas HOMEbuyer Assistance Program may not exceed $20,000 per household The assisted household may not receive any cash back at closing
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Assistance Amount Example Determine minimum monthly housing contribution (PITI) from family Gross monthly income x 25%, or ($30,000/12) x 25% = $625 monthly PITI If monthly PITI… Does not exceed $625, household is not eligible for assistance through the Texas HOMEbuyer Assistance Program Exceeds $625, down payment assistance may be provided, but total assistance will be limited to a maximum of : The amount needed to reduce monthly PITI to $625 plus closing costs assistance, or $20,000 12
Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Process Timeline Lender identifies potential assistance recipient Lender contacts the Texas HOMEbuyer Assistance Program at TexasHOMEbuyer@tdhca.state.tx.us Lender submits the following to TDHCA to refer the household: 1003 Texas HOMEbuyer Loan Calculator Texas HOMEbuyer Supplemental Application
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Process Timeline (continued) Lender submits the following to TDHCA to refer the household (continued): Household verification documents Consecutive paystubs for most recent 3 months for each full-time and part-time job, for all household members Bank statement(s) & asset verifications for all accounts for all household members TIL GFE Executed Sales Contract **Please note that property does not need to be identified at this time** 14
Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Process Timeline (continued) If there is child support for any household member (debt or income), a copy of Divorce Decree Child support agreement or other documentation of payments Most recent evidence of social security, VA, and/or disability benefits for all household members Information on the liabilities of all household members (i.e., credit card payments, loan payments, etc.) TDHCA reviews application submission & issues pre-approval, denial, or deficiency letter within 10 days 15
Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Process Timeline (continued) After the household is pre-approved, TDHCA will complete the following for household signature: Household Income Certification (HIC) Revised Texas HOMEbuyer Loan Calculator, if applicable
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME.
Process Timeline (continued) After the previously-referenced information has been submitted to TDHCA, TDHCA staff will: Conduct environmental review Issue HOME Commitment Contract for borrower’s signature Schedule HQS inspection after property has been environmentally cleared Once executed HOME Commitment Contract has been received by TDHCA and property passes HQS inspection, TDHCA will notify lender
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Process Timeline (continued) Lender forwards the following documents to TDHCA for closing: Preliminary Settlement Statement (HUD-1) Title Commitment (dated within the past 90 days) First lien commitment letter or underwriting approval Certificate of completion for homebuyer education course Copy of property appraisal Copy of Tax & HOA Certificates Copy of final 1003 or Certification of no changes, executed by the household
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Texas HOMEbuyer Assistance Program Because there’s no place like HOME. Process Timeline (continued) Lender forwards the following documents to TDHCA for closing (continued): Evidence of flood insurance (if applicable) Table funding request documents (samples to be provided) Subject to TDHCA review and approval of documents… Texas HOMEbuyer Assistance Program Loan closes in conjunction with first lien & household moves in! AVERAGE TOTAL PROCESSING TIMEFRAME IS 30-45 DAYS
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Texas HOMEbuyer Assistance Program For More Information Contact TDHCA’s HOME Division Direct: 512-463-8921
Toll Free: 800-525-0657
Questions: TexasHOMEbuyer@tdhca.state.tx.us Visit the HOME Division online at: www.tdhca.state.tx.us/home-division Administered by
Because there’s no place like HOME.
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