Texas Loan Programs: Alternatives to TexVet

The State of Texas offers loan programs to veterans that can help first-time home buyers and experienced homeowners alike. One option is well-known in the area — the TexVet Home Loan program allows veterans to find affordable homes. But there are other options, including:

• Texas Department of Housing and Community Affairs (TDHC) My First Texas Home Loan
• TDHC My Choice Texas Home Loan
• Texas State Affordable Housing Corporation (TSAHC) Homes for Texas Heroes Home Loan Program
• TSAHC Sweet Texas Home Loan

Texas Department of Housing and Community Affairs (TDHC) My First Texas Home Loan

This program is for veterans, first-time home buyers, and house hunters who have not owned property in the last three years. It features closing cost help, down payment assistance, a mortgage tax credit, and the home loan itself.

The loans offered via this program are 30-year fixed-rate mortgages, which avoid the uncertainty of an adjustable-rate mortgage and the accompanying rate adjustments.

This TDHC program features income limits and a minimum FICO score requirement. Ask your participating lender for the most current numbers, as they may change.

My First Texas Home Loan options include down payment and closing cost assistance up to 5% of the total loan amount (as opposed to a percentage of the home’s sale price).

This program is available through the TDHC network of lenders and may be offered in conjunction with government-backed mortgage loan programs, including VA mortgages and FHA home loans.

This program includes an option to reduce federal taxes through the Texas Mortgage Credit Certificate Program — ask your participating lender what is required to use this option and how. This offer is for first-time buyers only.

Texas State Affordable Housing Corporation My Choice Texas Home loan

TSAHC offers help for veterans, new borrowers, and experienced homeowners — there is no first-time homebuyer requirement with My Choice Texas.

Services through this program include the mortgage itself through a network of participating mortgage lenders, plus down payment help and closing cost assistance. Like the TDHC program mentioned above, these loans are 30-year fixed-rate mortgages, with closing costs and down payment assistance capped at 5% of the loan amount.

And like the TDHC program, My Choice Texas is offered with government-backed mortgage programs, including VA mortgages. Features of this program also include:

• Available for conventional, VA, FDA, USDA mortgages
• Income caps apply
• Purchase price caps apply
• Minimum FICO score requirements
• The My Choice Texas Home loan cannot be used in conjunction with the Texas Mortgage Credit Certificate.

TSAHC Homes for Texas Heroes Home Loan Program

The Homes for Texas Heroes Home Loan Program is a home loan option aimed explicitly at Texas professionals, including:

• Teachers
• Police Officers
• Firefighters and EMS
• Corrections Officers
• Veterans

This program offers loans through a Texas network of participating lenders, including 30-year fixed-rate mortgages with down payment assistance as a grant or forgivable loan of up to 5% of the loan amount.

First-time home buyer status is NOT required for this program, and income limits apply. Purchase price caps may also be applicable.

For this program, first-time home buyers may qualify for a Mortgage Credit Certificate (MCC), and there are additional perks for those who use down payment assistance in conjunction with MCC. Exclusions may apply, so you will need to discuss this option with a participating lender.

Texas State Affordable Housing Corporation Home Sweet Texas Home Loan

Aimed at borrowers with low to moderate incomes (not just first-time buyers), this program also features a network of participating lenders offering 30-year fixed-rate mortgages with down payment assistance (DPA) up to 5% of the loan amount.

This program makes the DPA available as either a forgivable second lien on the mortgage (subordinate to the first lien) or as a grant that does not have to be repaid. These loans are offered statewide through the network; borrowers do not have to use a realtor, and income limits apply.