Making Homeownership Affordable in Texas
What is a TSAHC Loan?
The Texas State Affordable Housing Corporation (TSAHC) offers loan programs designed to help low- to moderate-income Texans achieve homeownership. TSAHC loans provide affordable mortgage options, down payment assistance, and other benefits to make purchasing a home more accessible. These programs are particularly beneficial for first-time homebuyers, veterans, and public service professionals such as teachers, police officers, and firefighters.
Benefits of this TSAHC Loans
Down Payment Assistance:
TSAHC offers down payment and closing cost assistance, which can significantly reduce the upfront cost of purchasing a home.
Competitive Interest Rates:
TSAHC loan programs provide access to competitive interest rates, making monthly mortgage payments more affordable.
Mortgage Credit Certificates (MCC):
Some TSAHC programs include MCCs, which allow eligible borrowers to claim a tax credit for a portion of the mortgage interest paid each year.
Homebuyer Education:
TSAHC provides homebuyer education courses to help borrowers understand the homebuying process and make informed decisions.
Support for Public Service Professionals:
Special programs are available for teachers, police officers and firefighters, offering additional support and benefits.
Frequently Asked Questions About Buying a Home
Who is eligible for a TSAHC loan?
Eligibility varies by program but generally includes low- to moderate-income Texans, first-time homebuyers, veterans, and public service professionals such as teachers, police officers, and firefighters. Specific income and purchase price limits apply.
What is the minimum credit score required for a TSAHC 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 TSAHC 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 TSAHC loan to refinance my existing mortgage?
TSAHC loans are primarily designed for home purchases, but some programs may offer refinancing options. Check with TSAHC 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 TSAHC 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 TSAHC website or consult with your lender for specific income limits.
How do I apply for a TSAHC loan?
To apply for a TSAHC 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 TSAHC 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 TSAHC loan with other assistance programs?
Yes, TSAHC 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.
