Texas Loan Programs: Alternatives to TexVetUpdated: November 10, 2022
The State of Texas offers loan programs to veterans that can help first-time home buyers and experienced homeowners alike. One option is very well-known in the area–the TexVet Home Loan program helps veterans 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 avoids 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 about the most current numbers as these may be subject to change.
My First Texas Home Loan options include down payment assistance and closing cost assistance up to five percent of the total loan amount (as opposed to a percentage of the sale price of the home).
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 for a reduction in federal taxes via 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 home owners–there is no first-time home buyer 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 cost and down payment assistance capped at five percent of the loan.
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 (620 in FY 2020 as an example, but these requirements are subject to change)
- 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 specifically aimed at Texas professionals including:
- Police Officers
- Firefighters and EMS
- Corrections Officers
This program offers loans through a Texas network of participating lenders; 30-year fixed-rate mortgages which include down payment assistance as a grant or forgivable loan for up to five percent 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 (and 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) offered for up to five percent of the loan.
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 never has to be repaid. These loans are offered statewide through the network, borrowers do not have to use a realtor, and income limits apply.
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News