First Time Homebuyers are Better off in Texas

According to research by the National Association of Realtors (NAR), first time homebuyers have not been contributing much to the recovery of the housing market in the U.S. However, certain areas of the West and Midwest are likely to witness a rise in home purchases by the millennial generation. The research conducted by NAR considered the population and job trends in the metropolitan areas across the country to arrive at this conclusion.

The purpose of the research was to determine the most suitable markets for these young homebuyers. The finding of the research is good news if you belong to the millennial generation and are looking to buy your first home in Texas. Among other property markets, Austin is found to be one of the best Texas cities where these potential buyers are likely to purchase their first home. This region is in a better economic state, offers high job growth rates and affordable home prices compared to other metropolitan centers.

This optimism is in sharp contrast to the plight of millennial homebuyers in the other top US cities such as San Francisco and New York. The young populations in these cities are reeling under student debt, limited job prospects, restricted wage growth and tight credit conditions. Anyone looking to buy their first home in Texas needs to know all of their options before taking out a home loan.

Despite Texas being better off than other housing markets in the country, homebuyers need to ensure that they fulfill all the conditions in order to get all of the mortgage benefits. In this way, buyers could become eligible for several convenient loan options and downpayment assistance programs.

Easy loan options for first time homebuyers in Texas
Even first time homebuyers who belong to the low income bracket can buy a home in Texas. They can apply for a Federal Housing Administration (FHA) loan and qualify for a loan with as low as 3.5% down payment. If coming up with this amount of down payment becomes difficult for homebuyers, they can apply for one of the down payment assistance programs that have specifically been designed for Texans.

To learn more about these loan options, contact a credible mortgage firm today. Use any popular web search engine to look for one that offers the assistance of expert loan officers on all kinds of specialty mortgages.

Know your options amidst the Boom in the Texas housing market

The home buying market in many parts of Texas is booming, limiting options for first time home buyers. Home prices rose by nearly 10% in 2013 in Texas, and the trend continues today. Properties are selling very quickly, many over the asking price with multiple bids driving prices even further upwards.

In the current scenario, home buyers have to make buying decisions quickly, while some others are left too afraid to take the risk. The last recession left such an impact on buyers that many have become tentative to invest in home buying, despite good credit scores. These buyers could benefit from learning about the various state and federal home loan assistance programs. In fact, there is more assistance available now than ever before.

Home finance options for first time home buyers in Texas
Some home loan programs make home buying easy for the Texas first time home buyer include:

Texas First Time Home buyer Program or Bond Program – This program gives a home mortgage to a qualified borrower at a competitive interest rate. Assistance for down payments and closing costs are also a part of this program. A person with low or moderate income can apply for this program.

Texas Mortgage Program or TMP-79 – This program offers home loan mortgages to Texas home buyers at a lower interest rate than other programs, as well as lower down payment and closing cost assistance.

Texas Department of Housing and Community Affairs (TDHCA) – If making a down payment is a problem, the “My First Texas Home” program can help you with down payment assistance. Borrowers with a credit score of 640 or higher with a total debt-to-income ratio of less than 45%, and a price which falls under the stipulated income and purchase price limit (county wise) are eligible for this program.

Assistance by the Texas State Affordable Housing Corporation (TSAHC) – The assistance from TSAHC for home buyers in Texas also aims at lowering their down payment and closing cost burden. However, interest rates offered by them are on the higher side.

To make sure that there are no regrets after you buy your first home in Texas, you need to consult a reputed mortgage company. In this way, the market conditions, pressure sales tactics or other reasons won’t affect your home buying process. Find a reliable mortgage company that will guide you in every step. Such a company can advise you on the most favorable government assistance options.

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.

Opportunities and Support for First Time Home Buyers in Texas

If you qualify as a first time home buyer in Texas, you can get the advantage of the $600 million home-buyer assistance program announced by the Texas Department of Housing & Community Affairs (TDHCA) through securities initiative backed by mortgage. It would be interesting to know that you need not actually buy a home for the first time to qualify for such a loan program. These programs are open to anyone who has not purchased a home in the last three years.

In Texas, eligible first time buyers can get the benefit of lower down payment, low interest rates and income tax credits on their mortgage. In order to check whether you qualify for these programs, look for a reliable lender who can inform you about the income, credit score and other requirements. A program even gives federal income tax credit on mortgage of up to $2000 payments annually to qualified borrowers.

Income eligibility for First time home buyer in Texas
First time home-buyers in Texas need to show their income to qualify for down payment assistance. This is determined by a simple formula based on the home buyer’s family size and what is known as the area median family income. The income limits range from 80% -115% of the area median family income and the variations are based on county in which a particular property is located. If you are a veteran, professional public educator or a first responder, the income limits will be higher.

Lesser Restriction for areas of economic distress
The first time home buyer program is for those who have not owned a home in the last three years. This criterion is flexible for buyers in areas of chronic economic distress. In these areas, the criteria for home buyers are less stringent.

Types of properties available for first time buyers
Before considering various properties that are available, a first time buyer needs to prove the following:
1. Should be living in Texas
2. Should buy a property to use it as their primary residence.
You can choose to finance a single family home, condominium and even duplex properties. To get a home loan on a duplex property, it should have been first occupied as a residential property five years prior to the closing date, and you intend to live in one section of the property.

Eligibility for borrowers
In order to get the benefits of the first time home buyer loan program, borrowers need to choose a reputed lender, meet some essential qualification criteria, and pay the required fees. The home buyers need to have credit score of 580 to be eligible for the Mortgage Credit Certificate program designed to give them tax benefits. To get the benefit of the down payment assistance program, borrowers need to have a credit score of 640.

For buying your first home in Texas, an expert lending firm can assist you the best. Else it could be difficult to comprehend the relevant terms and conditions to receive the loan approval.