Down Payment Assistance
Course #27376
Provider: Texas Association of REALTORS®
Instructor: Sandy Battise
TREC ID#3045
Objectives
•
•
•
•
•
Learn the different types of programs
Identify agencies providing assistance
Understand loan timelines impacting contract
Ability to guide buyers through the process
Identifying lenders
General Information
•
•
•
•
•
•
•
Geographic Location
Income Guidelines
Sales Price Limit
Investor Guidelines vs Lender Guidelines
Repayment
Recapture Tax for some programs
Homebuyer Education Required
City of Austin
• Down Payment Assistance
–
–
–
–
–
–
Up to $10,000 deferred, forgiveable
Forgiven if owner-occupied for 10 years
Zero Interest Loan for 10 years
Additional $1000 if used with MCC
Additional $4999 if person has a disability
Covers DPA and eligible closing costs & prepaids
COA - Shared Equity
•
•
•
•
•
Up to $40,000
Deferred 0% interest loan for 30 years
Payback of DPA loan plus % of equity
% of equity payback = % of COA contribution
AHFC– right of first refusal
General Info
•
•
•
•
•
Income Guidelines Based on Family Size
First Time Homebuyer
Asset limit
Property must pass HQS Inspection
See Application for Program Guidelines
Texas Department of Housing &
Community Affairs
• Assistance Guidelines
– Set Interest Rate
– Down Payment Assistance
• Second Lien
• 5% of the Loan Amount
– First Time Home Buyer
• Mortgage Credit Certificate
– First Time Home Buyer Requirement
Programs available
• Local
– City entity
– County entity
– Housing Finance Corporation
• State of Texas
– Texas Department of Housing and Community
Affairs (TDHCA)
– Texas State Affordable Housing Corporation
(TSAHC)
Identifying Lenders
• Go to websites for each provider to review
the list of participating lenders and contact
a lender that is in your local market.
• Identify lender BEFORE referring a buyer to
that lender
TDHCA Requirements
• First Time Homebuyer
– No ownership in past 3 years
• Income Limit
• Purchase Price Limit
– Tax-Exempt Mortgage Revenue Bonds
– Recapture Tax
http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm
Recapture Tax
• Sale of home after ninth year
• No net gain on sale
• Insufficient increase in income between
time of purchase and sale
• Sale due to death or divorce
Texas State Affordable Housing
Corporation (TSAHC)
•
•
•
•
•
A 30-year fixed interest rate mortgageloan
No upfront origination points charged toyou
Net 3%, 4%, or 5% in down paymentassistance
You do not need to be a first-time homebuyer
You do not need to live in the home for any set
period of time
• First-time buyers can also use TSAHC's Mortgage
Credit Certificate Programhttp://www.tsahc.org/homebuyers-renters/loans-down-payment-assistance
Professional Educators
•
•
•
•
•
•
•
Full-time (FT) Classroom Teacher
FT Paid Teacher’s Aide
FT School Librarian
FT School Counselor
FT School Nurse
Allied Health Program Family Member
Professional Nursing Faculty Member
Homes for Texas Heroes
•
•
•
•
•
Firefighters
Corrections Officer or Juvenile CO
Public Security Officer
Peace Officer
Emergency Medical Service Personnel
Home Sweet Texas Home Loans
• Other category
• Lower income eligibility guideline
$200,000.00
$193,000.00
$7000.00
$3072.00
$1383.00
$11455.00
$9818.85
$1636.15
Sales Price
Loan Amount (3.50% down)
Down Payment
Closing Costs
Prepaids
Total Investment
Assistance/Grant
From Homebuyer
Prepaid Items include: interest per day, property taxes and
homeowner’s insurance
PITII
•
•
•
•
$1054.19 P & I* ($818.24 interest)
$ 80.00 (homeowners insurance)
$ 450.00 (property taxes)
$ 135.66 (mortgage insurance premium)
$1719.85 (PITII)
*P & I only – does not include property taxes, insurance
P & I – based on 5% interest rate set by agency offering the down
payment assistance
TSAHC Options
• 5% interest rate
– 5% down payment amount calculated
based on the loan amount
• 4.75% interest rate
– 4% of assistance
• 4.50% interest rate
– 3% of assistance
Mortgage Credit Certificate
•
•
•
•
•
•
•
•
Provided by TDHCA
Provided by TSAHC
Local agencies with their assistance programs
Follows IRS Tax Code
First Time Homebuyer Requirement
Recapture Tax
3 years of tax returns
Rental verifications for the past 3 years
Keep in Mind
• Contract to close dates
• Guidelines/overlay for funding source
• Types of financing
– FHA, VA, USDA Conventional
– Conventional loans (TSAHC or TDHCA)
• Not all lenders allow Conventional Option
• Geographic Restriction
• Income Restriction
• Sales Price Limit
Thank you
• Texas REALTORS® University
• www.texasrealtorsuniversity.com