In recent decades, owning a home has become more and more difficult for people who aren’t yet on the property ladder. To get a mortgage in Montgomery, TX, you’ll have to save up for a down payment and have a certain amount of income each month. Fortunately, the Texas State Affordable Housing Corporation has come up with several programs for home buyers, such as down payment assistance. Your mortgage broker can help you to access these.
There are several programs, each designed to assist a certain group of the population in achieving the dream of homeownership. If you’d like to find out more, speak to a local loan officer like Gary from Home Loans with Gary. He will help you to check whether you’re eligible and if so, make sure you get all the assistance you deserve.
How Can the TSAHC Loan Program Help You Buy a House?
The TSAHC is an organization that helps people to buy homes, even if they don’t have a high income. In partnership with certain lenders, the TSAHC offers a program for people in the lower income brackets and another one for local heroes, like firefighters and public school teachers. This kind of assistance helps residents to access down payment grants, better mortgages, mortgage credit certificates, and more.
HSTH Loan Program
The Home Sweet Home program is designed for local residents on a low or moderate income. It allows you to get a grant or loan that you can use for your down payment as well as a mortgage loan at a reasonable rate. To find out whether you qualify, you’ll need to speak to either TSAHC or a loan officer near you. You might need to prove that you have a high credit score and your income can’t exceed a certain amount. There is also a home purchase price limit.
HFTH Loan Program
The Homes for Heroes program is available to people in certain professions. Some of the eligible people might include police officers, first responders, school counselors, school nurses, corrections officers, veterans, people active in the military, public school teachers, firefighters, and school librarians. The program is similar to HSTH, and you can receive both funding for your down payment and a reasonably priced mortgage loan.
Down Payment Assistance
Many people, especially those on a low income or those with very stressful jobs, find it hard to save up for a down payment. To get a traditional mortgage, you might have to save between five and twenty percent of the home’s purchase price. For many families, this is unachievable, especially since home prices have risen sharply in the last few years.
The TSAHC offers eligible families two forms of assistance. The first one is a grant, which doesn’t have to be repaid, and the second one is a deferred forgivable second lien loan, which you have to pay back if you sell or refinance your home in the next three years. Down payment assistance is important because it allows you to reduce the size of your mortgage so you have a more manageable monthly payment.
Mortgage Credit Certificates
Mortgage credit certificates are mortgage tax credits available to first-time buyers. Each year, you can get 20% of what you spend on mortgage interest back as a tax credit, so you don’t have to pay so much in taxes. This effectively reduces your mortgage rate.
To qualify, you must fulfill certain income requirements, and your home’s value can’t exceed a certain amount. If you’re a first-time buyer, speak to your Texas mortgage broker. They can help you ensure you don’t miss out on MCC when getting your first mortgage in Montgomery, TX.
What Is the Definition of a “First-Time Buyer?”
“First-time buyer” is harder to define than you might think. While some people are very clearly first-time buyers, others find themselves in a more ambiguous situation. For example, is someone still a first-time buyer if they owned 10% of another property in the past? What about someone who hasn’t been a homeowner in several decades and is looking to get back into the market?
The TSAHC defines a first-time buyer as someone who hasn’t owned or had an ownership interest in a home for at least three years. This means that a person who has lived in a property and been listed on the Deed of Trust is excluded, and so is their spouse. However, it’s still worth contacting your broker even if you don’t qualify as a first-time buyer because programs are available for people already on the property ladder.
What Can I Do to Increase My Chances of Getting a TSAHC Loan?
Only people with a credit score of over 620 qualify for a TSAHC loan. For this reason, you’ll need to pay close attention to the amount of debt you take on and how you use it. If you don’t yet have a credit history, get some credit cards, and use less than a third of your available monthly balance. Always pay all your bills on time, and don’t make too many credit requests at once.
Every month, check that your credit report is accurate. Sometimes, people’s scores are lower because someone stole their identity or because a reporting agency made a mistake. By getting any such issues cleared up, you can instantly improve your score and your chances of getting a TSAHC loan.
Listen to the video here on TSAHC
Accessing a Mortgage in Montgomery, TX
The best way to access a TSAHC loan is to reach out to a local lender who collaborates with this organization. An experienced loan officer can take you through the whole home-buying process one step at a time. They will start by analyzing your situation and determining what kind of assistance you’re entitled to. Then, they will help you to contact the relevant institutions and to put together your documents so that you can get pre-qualified.
Next, you can find a property that works for you and your family and meets the TSAHC’s requirements. Once you’ve agreed with the seller, you can return to your loan officer, who will then help you to finalize your mortgage application. To make sure you’re getting a good deal, you’ll need to get the property appraised and inspected before you can move in.
How to Find the Best Texas Mortgage Broker
There are many loan officers in the local area, and to find the best one, you’ll have to reach out and speak to them in person. The initial consultation is the best time to evaluate whether a broker is right for you because you can see how they communicate with you and whether they are passionate about helping you find the right home.
After you tell the broker about your financial situation and requirements, they’ll let you know what programs are available to you. Don’t hesitate to ask whether they can offer you TSAHC loans. This organization has helped countless buyers to get on the property ladder, and it can do the same for you.
In collaboration with local lenders, the TSAHC can help you to access better mortgages, down payment assistance, and mortgage credit certificates. This makes it easier for first-time homebuyers and people on a low income to access a mortgage in Texas. Reach out to us at Home Loans with Gary to speak to an experienced mortgage broker and to find out what kind of mortgage in Montgomery, TX is right for you.