On May 15th the Texas Department of Housing and Community Affairs (TDHCA) introduced a new bond program to assist buyers with their down payment on a home purchase. "Bond 77" is it's largest allotment to date and is $500 million in funds. The program will systematically release $50 million per month and it will be dispersed on a first-come-first-served basis.
This program was released just in time to fill the void left behind by the first-time home buyer tax credit, which closings must be performed before June 30th, 2010. With generous income limits and available to existing home buyers in addition to first-time home buyers, this affordable alternative for a down payment will surely be a hit. Below are some major guidelines of the program.
"Targeted Area" is defined as a census tract in which 70% or more of the families have incomes that are 80% or less of the statewide median income or an area of chronic economic distress. A "first-time home buyer" is defined as someone who has not owned a home in the past three years.
- Targeted areas: 1-2 persons = $87,960 / 3+ persons = $102,620
- Non-targeted area: 1-2 persons = $73,300 / 3+ persons = $84,295
Home Purchase Price Limits:
- Targeted areas: $316,177
- Non-targeted areas: $258,690
Bond 77 is available to BOTH first-time home buyers and previous home owners in targeted areas and ONLY first-time home buyers in non-targeted areas.
Down Payment assistance is in the form of a "silent" 2nd lien which means there is no interest, no payments, but when you sell the home you must pay the amount back. If you live in the home for 30 years, the loan "balloons" at that time, which means the entire amount is due.
Feel free to contact me with more questions (info in the side bar) or go here: http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm