Angie Francis

Today I attended the final class for my Texas Affordable Home Certification called United Texas. It was a small class and I estimate there was at least 75 years of experience combined among the Realtors in the class. Despite being very active Realtors with many a closing under our belts we all learned something new today about the many programs available to Texas home buyers that are being under utilized!

I intend to try to take better advantage of some of these programs. I'm anticipating that a well qualified loan officer who has experience using the programs will be a useful ally in claiming some of this money for my clients.

Here are some highlights:

TEXAS VET

We met a great guy named Jim Mickler who had some great information to share about this benefit. The Texas Veterans Land Board has various loan programs available including Home Loans, Home Improvement Loans and Land Loans. They have great interest rates (4.96 today, even lower if the veteran has a disability) and some down payment assistance program. The also have a Zero down Home Improvement Loans up to $25,000 and $80,000 Land Loans.

TEXAS MORTGAGE CREDIT PROGRAM

This is a tax credit based on the amount of mortgage interest paid out each year over the life of the loan. The purchaser has the ability to qualify for a tax credit up to $2000 each year. The tax credit is given in the amount of 30% of the mortgage interest paid per year. Again, this is for THE LIFE OF THE LOAN! For each year of the tax credit, the purchaser must have a tax liability (receiving a refund is ok as long as some amount of taxes were paid). Qualification include not having owned a primary residence in the last 3 years, meet certain income and purchase price limitations and use the home as a principle residence. There is a 1% Issuance Fee but the savings over the life of the loan could be considerable!

TDHCA TEXAS FIRST ITME HOMEBUYER PROGRAM

There are several programs available for lower income families and also special programs for heros and educators. Some of these programs also offer down payment assistance. There are also limits on buyers income and purchase price. Availability for these funds vary.

USDA: GUARANTEED AND DIRECT LOAN PROGRAM

The news for the ZERO down Guaranteed program was not terribly good today. In many areas of Texas, these are a great opportunity to help first time home buyers buy homes in smaller markets. This has been a popular program in Kyle and surrounding Austin areas. However, it appears that USDA is nearly out of funds until September 2010 and it is uncertain if any additional funds will be allocated before then.

The other program offered by USDA is the Direct Loan Program. This is for low income families with excellent credit scores. It is also a Zero down loan and the monthly payment and interest is dependent on the purchasers income. This is an excellent program but hold on to your hat because the approval process can take 3-4 months for this type of loan. However, in today's market there may be some buyers and sellers willing to wait the process out for a successful transaction.

These programs along with the current Federal Tax Credits, low interest rates and lower market values make right now the perfect time to purchase a new home. Call me at 512-587-7989 to find out if you qualify for any of these or other financing options.