The Texas State Affordable Housing Corporation, also known as TSAHC, is a nonprofit organization created to promote affordable housing across the state. Supreme Lending is proud to offer TSAHC home financing programs to help more people achieve their dream of homeownership. Here’s an overview of TSACH’s offerings and homebuying assistance.
Homes for Texas Heroes Program
The Homes for Texas Heroes program is designed for just that – our Texas heroes who work hard to serve our communities. Eligible professions include teachers, police and corrections officers, firefighters, EMS personnel, Veterans and active military, and nursing professionals. The program offers eligible buyers down payment assistance with fixed interest rate home loans.
Home Sweet Texas Program
The Home Sweet Texas program is targeted to help low- and moderate-income families achieve homeownership, regardless of your profession. To qualify, buyers will need to meet certain income criteria along with other specified guidelines.
TSAHC Down Payment Options
For the down payment assistance offered through both TSAHC programs, there are two options to receive the funds:
- A grant, which doesn’t have to be repaid
- A deferred forgivable second loan, which only must be repaid if you sell or refinance within three years
Mortgage Credit Certificate (MCC) for First-Time Homebuyers
If you are buying your first home through a TSAHC program, you may also apply for a mortgage interest tax credit known as a Mortgage Credit Certificate (MCC). With an MCC, the qualified homebuyer is eligible to apply a portion of the annual interest paid on the mortgage as a federal tax credit during each year that the borrower occupies the home as their principal residence. The portion or amount of the tax credit is equal to the mortgage credit rate on the MCC (20%) multiplied by the annual interest paid.
To qualify, first-time homebuyers must meet certain income requirements, and the property must meet specified sales price restrictions.
Additionally, the $500 MCC Issuance Fee will not be charged to borrowers in the Homes for Texas
Heroes program who are receiving non-bond government down payment assistance in combination with the MCC.
Program Highlights
Other features of TSAHC’s loan programs include:
- 620 minimum credit score for FHA, VA, and USDA options
- 640 minimum credit score for Conventional
- Income limits apply by geography
- First-time homebuyer and repeat buyers allowed
- Homebuyer education required
- Tiered assistance from 2% to 5% available based on market conditions
These affordable housing programs offered by the Texas State Affordable Housing Corporation (TSAHC) provide valuable assistance to those looking to achieve their dream of homeownership in Texas. Whether you’re a first-time buyer, a veteran, or a public servant, TSAHC is designed to make owning a home more accessible, and Supreme Lending is here to help every step of the way.
Questions or want to learn more? Contact our team today!