Read-on to Learn About My First Texas Home Program

Finding the house of your dreams is a daunting task. You need to deal with the realtor, negotiate with the owner, and comply with various legalities and paperwork, before you can call yourself a proud owner of the house. Additionally, you also need to acquire finance, usually through a home loan. The loan application process usually proves to be the most challenging for those who rush-in without adequate groundwork. Things are, however, different for first time home buyers in Texas. The state runs a mortgage program called My First Texas Home Program, or Bond Program 77, which seeks to make homeownership affordable for first time homebuyers. The blog discusses the loan program in detail.

Eligibility criteria Ideal candidates are those who haven’t owned a home in the last three years. The target property should be located in Texas. The program aims provides aid to first time homeowners, however, there’s an exception to this rule and those who own homes in federally designated target areas or regions declared federal disaster areas (region affected by natural, social, or technological hazards) are also eligible. Additionally, the program only applies to households with low or moderate incomes.

Application process The Texas Department of Housing and Community Affairs oversees the program but does not offers loans to buyers. You need to apply for a loan with a private lender. Once you file your application, the lender takes into account various factors like your income and employment status, debt obligations, and credit rating to decide whether you’re a suitable candidate or not. The lender also informs you about the price range of properties you can purchase. You may also need to bear nominal closing charges once you receive approval.

Types of homes that the program finances The maximum sale price of the property should not exceed $370379. You can buy a new, existing, or an under construction house that has a permanent base and complies with FHA guidelines.

Documents you need to file The lender will require certain documents to judge your financial standing and take a decision on your candidature. It is therefore, imperative that you keep the following papers ready at the time of filing the application.

Most recent bank statements of accounts that you hold Salary slips and tax returns for the last three months Detailed Information about long term debts mentioning the amount you owe, creditor

details, and account numbers Proof of additional income, if any The sales contract

There are many other programs for first time home buyers in Texas. It is imperative that you learn about these lending schemes before taking a final decision to ensure that terms and conditions of the arrangement suit your requirements. If you find understanding the regulations difficult, don’t hesitate to seek assistance and clarification from your lender.