Down Payment Assistance Course #27376

Provider: Texas Association of REALTORS®

Instructor: Sandy Battise TREC ID#3045

Objectives

• Learn the di�erent types of programs • Identify agencies providing assistance • Understand loan timelines impacting contract • Ability to guide buyers through the process • Identifying lenders

General Information

• Geographic Location • Income Guidelines • Sales Price Limit • Investor Guidelines vs Lender Guidelines • Repayment • Recapture Tax for some programs • Homebuyer Education Required

City of Austin

• Down Payment Assistance – Up to $10,000 deferred, forgiveable – Forgiven if owner-occupied for 10 years – Zero Interest Loan for 10 years – Additional $1000 if used with MCC – Additional $4999 if person has a disability – Covers DPA and eligible closing costs & prepaids

COA - Shared Equity

• Up to $40,000 • Deferred 0% interest loan for 30 years • Payback of DPA loan plus % of equity • % of equity payback = % of COA contribution • AHFC – right of �rst refusal

General Info

• Income Guidelines Based on Family Size • First Time Homebuyer • Asset limit • Property must pass HQS Inspection • See Application for Program Guidelines

Texas Department of Housing & Community A�airs

• Assistance Guidelines – Set Interest Rate – Down Payment Assistance

• Second Lien • 5% of the Loan Amount

– First Time Home Buyer

• Mortgage Credit Certi�cate – First Time Home Buyer Requirement

Programs available

• Local – City entity – County entity – Housing Finance Corporation

• State of Texas – Texas Department of Housing and Community

A�airs (TDHCA) – Texas State A�ordable Housing Corporation

(TSAHC)

Identifying Lenders

• Go to websites for each provider to review the list of participating lenders and contact a lender that is in your local market.

• Identify lender BEFORE referring a buyer to that lender

TDHCA Requirements • First Time Homebuyer

– No ownership in past 3 years

• Income Limit • Purchase Price Limit

– Tax-Exempt Mortgage Revenue Bonds – Recapture Tax

http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm

Recapture Tax

• Sale of home after ninth year • No net gain on sale • Insu�cient increase in income between

time of purchase and sale • Sale due to death or divorce

Texas State A�ordable Housing Corporation (TSAHC)

• A 30-year �xed interest rate mortgage loan • No upfront origination points charged to you • Net 3%, 4%, or 5% in down payment assistance • You do not need to be a �rst-time homebuyer • You do not need to live in the home for any set

period of time • First-time buyers can also use TSAHC's Mortgage

Credit Certi�cate Program-

http://www.tsahc.org/homebuyers-renters/loans-down-payment-assistance

Professional Educators

• Full-time (FT) Classroom Teacher • FT Paid Teacher’s Aide • FT School Librarian • FT School Counselor • FT School Nurse • Allied Health Program Family Member • Professional Nursing Faculty Member

Homes for Texas Heroes

• Fire�ghters • Corrections O�cer or Juvenile CO • Public Security O�cer • Peace O�cer • Emergency Medical Service Personnel

Home Sweet Texas Home Loans

• Other category • Lower income eligibility guideline

$200,000.00 $193,000.00

$7000.00 $3072.00 $1383.00

$11455.00 $9818.85 $1636.15

Prepaid Items include: interest per day, property taxes and homeowner’s insurance

Sales Price

Down Payment Closing Costs Prepaids Total Investment Assistance/GrantFrom Homebuyer

Loan Amount (3.50% down)

• $1054.19 P & I* ($818.24 interest) • $ 80.00 (homeowners insurance) • $ 450.00 (property taxes) • $ 135.66 (mortgage insurance premium) $1719.85 (PITII) *P & I only – does not include property taxes, insurance

P & I – based on 5% interest rate set by agency o�ering the down payment assistance

PITII

• 5% interest rate – 5% down payment amount calculated

based on the loan amount • 4.75% interest rate

– 4% of assistance • 4.50% interest rate

– 3% of assistance

TSAHC Options

Mortgage Credit Certi�cate • Provided by TDHCA • Provided by TSAHC • Local agencies with their assistance programs • Follows IRS Tax Code • First Time Homebuyer Requirement • Recapture Tax • 3 years of tax returns • Rental veri�cations for the past 3 years

Keep in Mind • Contract to close dates • Guidelines/overlay for funding source • Types of �nancing

– FHA, VA, USDA Conventional – Conventional loans (TSAHC or TDHCA)

• Not all lenders allow Conventional Option

• Geographic Restriction • Income Restriction • Sales Price Limit

Thank you

• Texas REALTORS® University • www.texasrealtorsuniversity.com