down payment assistance course #27376
TRANSCRIPT
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Down Payment Assistance Course #27376
Provider: Texas Association of REALTORS®
Instructor: Sandy Battise TREC ID#3045
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Objectives
• Learn the di�erent types of programs • Identify agencies providing assistance • Understand loan timelines impacting contract • Ability to guide buyers through the process • Identifying lenders
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General Information
• Geographic Location • Income Guidelines • Sales Price Limit • Investor Guidelines vs Lender Guidelines • Repayment • Recapture Tax for some programs • Homebuyer Education Required
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City of Austin
• Down Payment Assistance – Up to $10,000 deferred, forgiveable – Forgiven if owner-occupied for 10 years – Zero Interest Loan for 10 years – Additional $1000 if used with MCC – Additional $4999 if person has a disability – Covers DPA and eligible closing costs & prepaids
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COA - Shared Equity
• Up to $40,000 • Deferred 0% interest loan for 30 years • Payback of DPA loan plus % of equity • % of equity payback = % of COA contribution • AHFC – right of �rst refusal
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General Info
• Income Guidelines Based on Family Size • First Time Homebuyer • Asset limit • Property must pass HQS Inspection • See Application for Program Guidelines
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Texas Department of Housing & Community A�airs
• Assistance Guidelines – Set Interest Rate – Down Payment Assistance
• Second Lien • 5% of the Loan Amount
– First Time Home Buyer
• Mortgage Credit Certi�cate – First Time Home Buyer Requirement
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Programs available
• Local – City entity – County entity – Housing Finance Corporation
• State of Texas – Texas Department of Housing and Community
A�airs (TDHCA) – Texas State A�ordable Housing Corporation
(TSAHC)
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Identifying Lenders
• Go to websites for each provider to review the list of participating lenders and contact a lender that is in your local market.
• Identify lender BEFORE referring a buyer to that lender
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TDHCA Requirements • First Time Homebuyer
– No ownership in past 3 years
• Income Limit • Purchase Price Limit
– Tax-Exempt Mortgage Revenue Bonds – Recapture Tax
http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm
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Recapture Tax
• Sale of home after ninth year • No net gain on sale • Insu�cient increase in income between
time of purchase and sale • Sale due to death or divorce
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Texas State A�ordable Housing Corporation (TSAHC)
• A 30-year �xed interest rate mortgage loan • No upfront origination points charged to you • Net 3%, 4%, or 5% in down payment assistance • You do not need to be a �rst-time homebuyer • You do not need to live in the home for any set
period of time • First-time buyers can also use TSAHC's Mortgage
Credit Certi�cate Program-
http://www.tsahc.org/homebuyers-renters/loans-down-payment-assistance
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Professional Educators
• Full-time (FT) Classroom Teacher • FT Paid Teacher’s Aide • FT School Librarian • FT School Counselor • FT School Nurse • Allied Health Program Family Member • Professional Nursing Faculty Member
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Homes for Texas Heroes
• Fire�ghters • Corrections O�cer or Juvenile CO • Public Security O�cer • Peace O�cer • Emergency Medical Service Personnel
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Home Sweet Texas Home Loans
• Other category • Lower income eligibility guideline
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$200,000.00 $193,000.00
$7000.00 $3072.00 $1383.00
$11455.00 $9818.85 $1636.15
Prepaid Items include: interest per day, property taxes and homeowner’s insurance
Sales Price
Down Payment Closing Costs Prepaids Total Investment Assistance/GrantFrom Homebuyer
Loan Amount (3.50% down)
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• $1054.19 P & I* ($818.24 interest) • $ 80.00 (homeowners insurance) • $ 450.00 (property taxes) • $ 135.66 (mortgage insurance premium) $1719.85 (PITII) *P & I only – does not include property taxes, insurance
P & I – based on 5% interest rate set by agency o�ering the down payment assistance
PITII
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• 5% interest rate – 5% down payment amount calculated
based on the loan amount • 4.75% interest rate
– 4% of assistance • 4.50% interest rate
– 3% of assistance
TSAHC Options
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Mortgage Credit Certi�cate • Provided by TDHCA • Provided by TSAHC • Local agencies with their assistance programs • Follows IRS Tax Code • First Time Homebuyer Requirement • Recapture Tax • 3 years of tax returns • Rental veri�cations for the past 3 years
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Keep in Mind • Contract to close dates • Guidelines/overlay for funding source • Types of �nancing
– FHA, VA, USDA Conventional – Conventional loans (TSAHC or TDHCA)
• Not all lenders allow Conventional Option
• Geographic Restriction • Income Restriction • Sales Price Limit
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Thank you
• Texas REALTORS® University • www.texasrealtorsuniversity.com