Loan Assistance Programs for the First Time Home Buyer in Texas

When you are a first time home buyer, various loan assistance programs are available that can enable you to afford your dream home. It can be difficult for potential homebuyers to find out various loan programs available. Even when a suitable loan program is identified, knowing the eligibility criteria and following the procedure can be difficult. That is why it is always a good idea to hire a reputed lending firm. Consulting with a loan officer can resolve many doubts and you get a loan that is best to fulfill your financial needs.

A highly experienced loan officer not only helps you find the ideal loan assistance program, he/she will also ensure that the processing of your loan is expedited. Some loan assistance programs include annual tax credits and down payment assistance programs for first time home buyers.

Annual tax credit for eligible home buyers in Texas
You can reduce your federal tax liability by $2000 per year with a Texas Mortgage Credit Certificate. This is an annual tax credit program designed for home loan borrowers in Texas. If you fulfill certain income, home mortgage loan criteria, you can get up to a $2000 tax credit annually. However, the condition is that the home you bought should be your primary residence.

This mortgage credit program is meant for veterans, first time home buyers and low income home buyers. If you fulfill all the criteria mentioned above, a Mortgage Credit Certificate will be given that entitles you for tax relief. The certificate can get 40% off for you on the annual interest that you pay on mortgage as a tax credit on Federal Tax return. This relief is available for your mortgage term or as long as the home is not your primary residence. Down payment assistance programs for Texas

Homebuyers can get down payment assistance and closing cost assistance for buying an existing home in Dallas, Texas. It is offered by the City of Dallas Housing Department. Eligible borrowers can get a down payment assistance of $8500 in the form of a loan, but without any obligation to pay interest. The loan balance needs to be repaid only in the case of the following three situations:

1. When you sell the home
2. If you transfer the deed
3. When you stop using the home as your primary residence

Besides using the funds for down payment, you can also use up to $4000 towards closing costs. Alternatively, $1500 of the loan can be used for minor repairs by complying with the City’s Minimum Housing Standards.

The loan assistance programs mentioned above are not easy to obtain as there are several procedures to follow that frustrate homebuyers. You need services of a capable lending firm to expedite the loan processing for you. At the beginning, they will tell you about all the financing options available, and the one that suits you best after assessing your current financial condition and affordability. Their expert guidance can surely help you get a loan approved in a hassle-free way.