Financing is one of the most important considerations when buying a house. Homebuyers need to research about the available home loans to choose one that suits them best. The decision can be difficult, particularly for first time homebuyers, as they have limited knowledge about where they can look for the best deals. To make homeownership more affordable and easy to obtain, the state of Texas runs My First Texas Home Program. To help spread awareness about the program, the post discusses some important info about it. Take a look.
Eligibility Criteria
- Available for households that fall in moderate and low income group.
- The property must be located in Texas or a federally declared disaster area.
- The borrower must be a first time homebuyer. Buyers who have not owned a home in the last three years are also eligible.
- The property must be the buyer's primary residence.
Types of Homes Financed
You can get a first time homebuyer loan to finance a new, existing or under construction house subject to a couple of conditions:
- The price of the home must not exceed $370,379.
- The house must have a permanent base and should comply with FHA guidelines.
Advantages
- Competitive interest rates.
- Down payment assistance available.
- Long repayable mortgage (30 years).
Documents Required
When applying for a My First Texas Home loan, applicants would be required to submit certain documents that the lender will study to determine whether the borrower is in a financial position to afford the mortgage. Some of the common documents required by most lenders are:
- Salary stubs and tax statements for the last three months.
- Copy of the sale contract.
- Recent bank statements of all the accounts held by the borrower.
- Credit report.
- Details about the outstanding amount, account numbers, and the nature of debt owed (in case of long term debts).
- Proof of additional income.
Application Process
My First Texas Home loan program is backed by The Texas Department of Housing and Community Affairs. Loans are provided by private lenders recognized by the body. After the applicant files the application and submits necessary documents, the lender will evaluate different factors such as the individual’s debt obligations, income, employment status, and credit rating to determine whether they’d be able to abide by payment timelines. The lender would also pre-qualify the applicant on the basis of their financial standing.
