Texans – You Can Now Use Your First-Time Homebuyer Tax Credit for DPA

The Texas Department of Housing and Community Affairs announced new down payment assistance programs for first time homebuyers. These programs will help fulfill the down payment need for many first-time Texas homebuyers.

Below are some bullet points:

• Borrowers must have a 620 or higher FICO score
• TDHCA has three different programs to use: 90-Day DPA Program (FHA Only), Mortgage Advantage MCC, Mortgage Advantage Bond
• Borrowers can receive up to $7k from the 90-day program and up to $6k with the others
• Borrowers must be first-time homebuyers (or not owned a home in the last three years) – TDHCA will verify this with previous 3 years’ tax returns
• Borrowers must qualify with the payment in their ratios – $323/mo with the 90-day program and $120/mo with the others
• Income limits do apply – $75,000 single buyer, $150,000 married buyers
• Borrowers must occupy the property for 3 years or the IRS will recapture the assistance in the tax year the property is sold
• $250 cashiers check from borrowers to TDHCA is required
• TDHCA is telling us to expect 20 business days from submission to closing…..This is important. DO NOT expect a 2 week closing. I would advise at least 45 days to be safe.
• Funds are first come first serve and rather limited

 

Again, this will be a great program which will help many Texans buy homes.

 

For more complete details, call Chad Underwood at (972) 672-1744.  Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com