A Quick Guide to First Time Buyer Programs in Texas
Buying a home for the first time is a huge step. Not only are you getting out of the rental market, but you’re investing in your future. For many first-time buyers, coming up with the money they need to get a great loan for a new home can be tough. Luckily, there’s a comprehensive first-time home buyer program in Texas that makes it easier. We’ve put together a quick and easy guide to help.
My First Texas Home
The My First Texas Home program helps first-time buyers secure an affordable home loan and gives you an additional loan to help cover the cost of your down payment or closing costs on the house. The program is only valid for first-time buyers or people who recently moved to Texas and are looking to buy their first home in the state. You need a credit score of 620 or higher to qualify.
Texas Mortgage Credit Certificate Program
This first-time home buyer program in Texas allows you to claim up to 40 percent of your annual mortgage interest payments as a federal tax credit. This used to be a separate program, but it’s now rolled into the My First Texas Home program. The only downside is that you can’t use the program to get more than $2,000 in tax credits each year.
Texas Bootstrap Loan
If you’re not wanting to buy a pre-built house and instead want to build your dream home right off the bat, the Bootstrap Loan Program is the best first-time home buyer program in Texas. There’s a catch: you’re going to have to do at least 65 percent of the work yourself. You also need to be supervised by a Nonprofit Owner-Builder Housing Provider (NOHP) who will make sure everything is up to code. To qualify, you have to live in Texas for at least 6 months and have a debt-to-income ratio of 45 percent or lower.
Get Pre-Qualified Now
Before you start shopping for a home, make sure you’re able to finance the purchase. Apply today to get pre-qualified for a home loan and get into your Texas dream home as soon as possible.