Dateline: October 11, 2007

State releases millions for first time homebuyers

AUSTIN – Keeping the dream of homeownership alive despite a slow-down in the mortgage market, and hot on the heels of slowing mortgage lending activity nationwide, the Texas Department of Housing and Community Affairs (TDHCA) today announced the release of $160 million for 30-year fixed rate mortgage loans starting at 5.75 percent for qualifying first time homebuyers. 

“We’re excited that during a time when some homebuyers may be wary, we can offer a safe and reliable mortgage product and help qualifying Texas families get into their first home,” said Michael Gerber, TDHCA Executive Director.  “The Texas First Time Homebuyer Program is now in its third decade, and Texans can be confident in our program because we partner with a pool of reputable, responsible lenders.”

Gerber explained that loans through this program will be available in two forms: unassisted loans, with no additional funds for down payment and closing costs, and assisted loans which come with a 5 percent grant for down payment and closing cost assistance.

Interest rates will range from 5.75 percent for statewide unassisted loans to 6.50 percent for assisted loans statewide.  The program is designed to serve households earning no more than 115 percent of the area median family income, depending on the number of individuals in the family.

TDHCA is working with approximately 50 lenders with more than 500 branch offices throughout the state to offer the below-market interest rate loans. Interested homebuyers may visit the program’s website at www.myfirsttexashome.com or call (800) 792-1119 to learn more about eligibility requirements, program details, or to find a participating lender.

TDHCA also is providing a special highlight with this release of funds as it is waiving certain program requirements for veterans.

Funding for the program is being made available through bonds issued earlier in the month by the Department on behalf of the State of Texas.