Texas - Government Backed Loans

TDHCA's mission is to help Texans achieve an improved quality of life through the development of better communities. The Department accomplishes this mission by acting as a conduit for federal grant funds for housing and community services. However, because several major housing programs require the participation of private investors and private lenders, TDHCA also operates as a housing finance agency.

Purchase Programs

Texas Lone Star Program

The Texas Lone Star Program enables homebuyers the opportunity to purchase a home by providing downpayment and closing cost assistance. This assistance is available in the form of a second mortgage loan up to 8% of the home's purchase price, and is ideal for homebuyers who are able to afford monthly mortgage payments but unable to produce a downpayment. Income and purchase price limits apply.

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Texas First Time Homebuyer Program

This program provides first-time homebuyers with below market interest rate mortgages There are two types of loans available through the Texas First Time Homebuyer Program: the "Unassisted Rate," which offers the lowest interest rate possible, and "Assisted Rate" loan, which provides a downpayment and closing costs assistance in the form of grant funds of up to 5% of the mortgage amount.

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Mortgage Credit Certificate Program

Eligible homebuyers are able to save money via Mortgage Credit Certificates, as this program offers income tax benefits, and homebuyers are to use savings toward monthly mortgage payments. The benefits are procured by taking a 20% credit against their Federal income tax liability, and an 80% deduction for the mortgage interest paid.

Continue reading about the Mortgage Credit Certificate Program.