SETH 5 Star Program
Best For: First Time Homebuyers, Low Credit Scores, Zero Down
The SETH 5 Star Program provides up to 5% down payment and closing cost assistance for your home purchase.
This loan program is not available in Spalding County, GA
Program Description
Up to 5% down payment and closing cost assistance for Texas homebuyers (repeat or first time) in the form of either a 3-year forgivable second mortgage or a grant. The 5 Star Program offers competitive interest rates for a variety of 30-year fixed rate home loans from the Southeast Texas Housing Finance Corporation (SETH).
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SETH 5 Star Program
Min. Credit Score
640
Min. Down Payment
0%
Max Loan Amount
$472,030
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to 5.00% of 1st Loan Amount
Type: Bond Grant Program - Forgivable
Assistance is provided in the form of a forgivable community second loan, forgiven after 3 years. Additionally, grants are available with select FHA and Charter Level Income Conventional options.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
- SETH VA Purchase Loan
- SETH FHA Purchase Loan
- SETH USDA-RD Purchase Loan
- SETH Conventional Purchase - Low Income
- SETH Conventional Purchase - Median Income
Pros & Cons
- Assistance available, between 2% and 5% of the loan amount
- Available in most of Texas
- Forgivable and repayable assistance options
- Low and median income options
- Also available to repeat homebuyers
- Subject to purchase price limits
- Subject to income limits
- Subject to 1st mortgage loan amount limits
Program Availability
SETH 5 Star Programs are available in 1 state.
*Limited Availability: Eligible homes must be located in Texas but outside of Travis County and the cities of El Paso, Grand Prairie and McKinney.
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“SETH down payment assistance programs help Texas homebuyers alleviate the pressures of coming up with cash up-front for closing."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
$472,030 - $571,550
Income Limit
$9,640 - $166,180
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- A grant or deferred second, worth up to 5% of the home's loan amount
- Funds may be used for closing cost and/or down payment assistance
- No first time homebuyer requirement
Additional Conditions
- This program is available in Texas but outside of Travis County and the city limits of El Paso, McKinney and Grand Prairie
- Buyers must meet program guidelines, complete home buyers education course, occupy as primary residence, and not exceed any program limits
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: SETH Online Homebuyer Education
The SETH online homebuyer education course is the only one accepted. A completion certificate will be provided upon completion of the 8-hour course and is valid for 12 months. The course is offered in English and Spanish.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: SETH Servicer's Funding Fee
SETH charges a flat rate $400 Servicer’s Funding Fee for its down payment and closing cost assistance programs.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5% 0.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
SETH GoldStar Program
Best For: First Time Homebuyers, Low Credit Scores, Zero Down
The SETH GoldStar Program provides up to 7% down payment and closing cost help as a forgivable second mortgage.
Chenoa 5% Forgivable DPA
Best For: First Time Homebuyers, Zero Down
Forgivable Second requires a 30 year term, 0% interest, no monthly payments
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Texas Home Buyer Education Classes
Purchasing your first home is a big milestone and the process can seem overwhelming. Before you begin looking for a home, it is a good idea to complete a homebuyer education course.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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