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TDHCA Texas Homeownership Division FAQs


What are the loan options and assistance available to help an individual purchase a home in Texas?

TDHCA Texas Homeownership Division offers the following options:

  • 30-year fixed below-market interest rate mortgage loans (subject to availability);
  • 30-year fixed low interest rate mortgage loans with up to 5% of loan amount to assist with down-payment and/or closing cost;
  • Mortgage Credit Certificates that provide the home buyer with up to $2,000 every year as a special federal income tax credit based on the interest paid on the mortgage loan.


Who is eligible for the homeownership programs?
TDHCA's homeownership programs are designed for first time homebuyers or homebuyers who have not owned a home as their primary residence within the past three years. My Choice Texas Home is designed for someone who is a repeat homebuyer and needs access to our competitive interest rate home loan with down payment and closing cost assistance. Potential homebuyers must also meet program income guidelines and program purchase price limits. Additional credit and underwriting guidelines may apply. top

Is there a requirement to repay the assistance provided for down-payment / closing cost?
In an effort to create responsible sustainable homeownership, TDHCA does require the assistance provided to be repaid if the home is sold, refinanced or paid off.  By recycling funds, other future homebuyers can be assisted through the program. The assistance is provided to the borrower through a no interest, no monthly payment 2nd lien.  The 2nd lien is not considered in loan qualifying for the mortgage loan. top

Can the low-interest rate mortgage loan and assistance provided through My First Texas Home be combined with the Texas Mortgage Credit Certificate?
Absolutely! TDHCA makes it easy to combine the benefits of both programs. The same guidelines apply to both programs; one-step process for the lender; and low-cost to the borrower. It's a great opportunity to access the immediate benefit of the assistance to get into the home, and the long-term benefit of tax savings to sustain homeownership. The programs are also available individually. Unfortunately My Choice Texas Home cannot be combined with the Mortgage Credit Certificate Program. top

Are there restrictions to income or type of profession?
TDHCA's homeownership programs are available statewide to any profession or individual/family who meet the program guidelines. Income limits are set at up to 115% of the area median family income (AMFI) and vary based on the county the home is purchased in. View the income/purchase price limit table (PDF). If you do not see your county listed, please reference the "balance of state" row at the bottom of the chart. top

What type of home can I buy?
Any new or existing home in the state of Texas that does not exceed the maximum purchase price limits of the program. All homes purchased under this program must meet certain quality standards. top

Are there credit and debt requirements?
Yes. The loan options available through My First Texas Home have a minimum credit score requirement of 620.

The DTI shows how much of your gross monthly income is needed to cover all your debt obligations. For homebuyers maximum DTI follow loan product guidelines.

There is no minimum credit score/DIT requirement to use the TDHCA MCC program as a stand-alone option. If combining with the My First Texas Home, the credit/DTI requirements mentioned above will apply. top

How do I apply for the funds?
TDHCA does not actually loan you the money. The mortgage loan funds are available through a network of participating lender partners located throughout the state. If you experience difficulty with one of the participating lenders, please contact us at 1-800-792-1119. top

How do I find a lender in my area?
Visit our Lender Locator to find a lender in your area. If you are already working with a lender, please call the TDHCA Homeownership Division at 1-800-792-1119 to see if that lender's mortgage company is approved to assist with TDHCA's Homeownership Programs. New lenders are always welcome to participate. top

How do I know if I qualify for a mortgage loan through My First Texas Home, My Choice Texas Home or a certificate through the Texas MCC?
A participating lender will determine your ability to repay a 30-year mortgage loan by reviewing your employment and income information, total monthly debt obligations and your past experience with credit along with information about the value of the property you want to buy. These lenders will pre-qualify you so that you will know the approximate price range of homes to shop for. The lender will complete all necessary paperwork for loan approval and assist in the coordination of loan closing with your real estate professional and closing agent. It's a good idea to get pre-qualified by one of the participating lenders prior to shopping for a home. If you do not qualify for a loan due to credit problems, visit Help for Texans to locate a certified consumer credit counseling provider in your area. top

Is this a free program, or are there any costs involved?
As with most mortgage loans, there are fees (closing costs) associated with this program. TDHCA does, however, limit the fees participating lenders may charge to help minimize your costs of closing the loan. TDHCA is committed to making their loan programs affordable, and offer low program fees in comparison to other loan program options. top

How long does the mortgage process typically take?
In general, the mortgage process takes between 45 to 60 days from the time of application to closing. This time frame is dependent upon a number of factors including the individual lender's process and any potential qualifying issues. top

What comprises a monthly mortgage payment?
Your monthly mortgage payment includes a payment to the principal balance of your loan, the interest payment, and your escrow payment (monthly payments collected to pay your hazard insurance, mortgage insurance, flood insurance, if applicable, and property taxes.) This is commonly referred to as P.I.T.I. (principal, interest, taxes and insurance). Payments may vary depending on the loan product option. Lenders can talk through all options to determine payment differences and best option for homebuyer/borrower. top

Is homebuyer education required?
Yes. Studies show that homebuyers who receive pre-purchase homebuyer education are 33% less likely to fall behind on their mortgage compared to homebuyers who do not take a homebuyer education course. A homebuyer education course is required for all TDHCA homeownership programs, and the requirement can be satisfied through completion of a course provided by a HUD-approved, non-profit organization or government entity, or a HUD-approved online course, or using TDHCA’s FREE Online Homebuyer Education “Becoming A Homebuyer” Course available through Texas Homebuyer U. top

Can I rent my home obtained under this program?
No, you may not rent a home obtained under this program. The home must be your primary residence. top

What is a targeted area?
Again, you may purchase a home anywhere in Texas and receive TDHCA's assistance. However, in the event that you are purchasing a home in a targeted area, you are allowed to have a higher income and purchase price limit. A targeted area is a designated census tract or an area of chronic economic distress. For more information on targeted areas, please visit Step 2. Find Properties. top



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