With median home values of around $172,000, buying a home in Texas is more affordable than most states in the country. While a property costing this much may be affordable to some people, it’s still useful to look into first time home buyer grants in Texas.
While property prices are cheaper, down payment requirements still require a substantial amount of cash. One way to offset the cost is to look for homebuyer grants applicable to first time home buyers in the state. Here’s a list of some programs you can check out when you are looking for a new home in Texas.
If you’re looking for first time home buyer grants and programs available anywhere in the state check out this list.
First Time Home Buyer Grants in Texas – Statewide
There are state-wide grants providing assistance to first time home buyers in Texas and here are some of them.
Homeownership Across Texas (HAT)
Homeownership Across Texas grants could provide up to 5 percent of your mortgage loan as down payment or closing cost assistance. This program is open not just to first-time home buyers but to anyone planning to purchase a new primary residence.
This grant covers single-family homes whether new or existing within a certain purchase price limit. The program is open to all counties in Texas except for El Paso, Austin in Travis County, McKinney, and Grant Prairie.
You may be eligible for this program if your credit score is at least 620. Aside from that, your income should be within the limit.
Homes for Texas Heroes Program
Are you a teacher, police or correctional officer, veteran, firefighter or EMS personnel? If yes, you may be eligible for a down payment assistance grant of up to 6% of your loan amount.
This program under the Texas State Affordable Housing Corporation is open to all home buyers. Whether you are a first-time homebuyer or not, this grant can be useful to you.
Moreover, there are purchase price and income limits for this program and the levels vary depending on where you live.
Home Sweet Texas Home Loan Program
Low to moderate-income earners may qualify for the Home Sweet Texas Down Payment Help for Home Buyers Program. You may receive up to 6% of your loan amount whether you are a first time home buyer or not.
In addition, you should borrow from one of the participating lenders. Similar to the Texas Heroes Program, this program is under the Texas State Affordable Housing Corporation.
Texas Mortgage Credit Certificate
Aside from receiving down payment and closing cost assistance, you can also take advantage of Mortgage Credit Certificates. MCC is available to first time home buyers. An MCC won’t help you directly with paying for your new home, but it can ease your federal tax burden.
The MCC can be deducted from your annual tax liability for the duration of your loan. In this case, your tax credit is equal to 20 percent of the mortgage interest payments you make each year. Moreover, you can claim a tax credit for the entire length of your loan as long as you live in your new home.
SETH 5 Star Texas Advantage Program
For home buyers with a FICO score of at least 640, the SETH 5 Star Texas Advantage Program could provide down payment assistance. Take note that the eligibility requirements include a maximum sales price of $484,350. Additionally, the assistance will be forgiven after three years.
For this program, you need to take the Homebuyer Education class and the maximum assistance is up to 5% of your loan amount.
My First Texas Home Program
This program which is also known as TMP 79 provides down payment and closing cost assistance of up to 5% of the loan or $8,000. The $8,000 down payment assistance is available to buyers of low-priced homes who need additional financing.
To qualify, you need to meet the area median family income limits in the area.
First Time Home Buyer Grants in Texas – Specific Area
Austin Homebuyer Down Payment Assistance
Are buying a condominium or a single-family home in Austin? If you are a first-time home buyer, you may be eligible for up to $40,000 assistance under the city’s Homebuyer Down Payment Assistance program.
Like most first-time home buyer grants in Texas, your income should be at most 80% of the area median family income in Austin to take advantage of this program.
The Dallas Homebuyer Assistance Program
If the maximum sales price of the property you’re planning to buy is $212,000 (existing) or $241,000 (new), this program may be open to you. Under the Dallas Homebuyer Assistance program, you need to be a US citizen or a permanent resident holding a Social Security card. In addition, you should also invest at least $1,000 and make at least two months payment after closing the deal.
How much you receive as assistance will be based on need.
San Antonio Homeownership Incentive Program
Also known as HIP, San Antonio’s Homeownership Incentive Program provides assistance between $1,000 to $12,000. After 10 years, 75% of the loan will be forgiven and you can use the loan for the down payment or to pay for additional costs.
A similar program, Homeownership Program for Employees or Hope provides assistance between $5,000 to $10,000. This program is open to full-time purchasing homes located in the Inner City Reinvestment/Infill Policy and the Community Revitalization Action Group Area within the city limits.
Upper Gulf Coast
Houston Home Buyer Assistance Program
Houston Home Buyer Assistance Program is open to first time home buyers considered as low to moderate income earners. Additionally, the applicant should be US citizens or permanent resident aliens whose income are within 80% of the Area Median Income.
The home buyer assistance program may receive up to $30,000 as assistance. On top of that, this grant will be free as long as you occupy the property as your primary residence for five years. You can choose any lender for this program.
Take Advantage of First Time Home Buyer Grants in Texas
Buying a home is a major financial commitment. Learn as much as you can about the process. Check out our article on the 23 Real Estate Websites You Should Never Miss Out if you need more reading material about the process of buying a home.
If you are worried about the cost, check your local housing authority or consult your mortgage broker. Applying for first time home buyers grants in Texas may be the key to finally buying your dream home without going broke.