TSAHC FHA Purchase Loan
Best For: First Time Homebuyers, Low Credit Scores
FHA program for Texas residents seeking down payment assistance, offered by the Texas State Affordable Housing Corporation (TSAHC).
This loan program is not available in Spalding County, GA
Program Description
TSAHC provides 30-year fixed interest rate FHA mortgage loans, down payment assistance grants, and mortgage credit certificates through their program. This option is offered through a network of approved mortgage lenders, and provides more flexible qualification guidelines than other first mortgage program options.
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TSAHC FHA Purchase Loan
Min. Credit Score
620
Min. Down Payment
3.5%
Max Loan Amount
$472,030 - $571,550
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.
Pros & Cons
- Assistance available, between 2% and 5% of the first loan amount
- Available in all of Texas
- Forgivable and repayable assistance options
- Subject to income limits and purchase price limits when combined with MCC
- Rarely used as a standalone program
- Lower max loan amount than other TDHCA programs
Program Availability
TSAHC FHA Purchase Loans are available in 1 state.
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“For those home buyers that are in need of a little assistance in securing the property of their dreams, this FHA program from TSAHC may be the solution."
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
55.00%
Purchase Price Limit
No Limits
Income Limit
$106,625 - $149,000
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
- FHA loan program option from TSAHC; easier qualification than other options
- Lower credit scores allowed
- Can be combined with "Home Sweet Texas Home" and "Homes for Texas Heroes"
Additional Conditions
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the county income limits.
- Can be combined with TSAHC's Mortgage Credit Certificate (MCC), but the program then becomes subject to purchase price 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 may be required for this loan program.
Class Name: Framework® Homebuyer Ed
Framework Homebuyer Ed satisfies the homebuyer education requirement for Fannie Mae, Freddie Mac, and a variety of other lender's mortgage products (including this TSAHC program). The course costs around $75 and can be completed online.
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.
Required On All FHA Loans
Type: Annual Mortgage Insurance Premium (MIP)This FHA program requires the Annual Mortgage Insurance Premium (MIP) regardless of the amount of your down payment or home equity.
Type: FHA UFMIP
The FHA Up Front Mortgage Insurance Premium (UFMIP) is a one-time fee equal to 1.75% of your loan amount. This fee can either be paid at closing or financed into your loan amount.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
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.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this TSAHC FHA program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
TSAHC Homes for Texas Heroes
|TSAHC FHAUp to 5% down payment and closing cost assistance for Texas Heroes with no first time homebuyer requirement.
Max. Loan Amount
$472,030 - $571,550
Min. Credit Score
620
Min. Down Payment:
0%
TSAHC Home Sweet Texas Home
|TSAHC FHAUp to 5% down payment and closing cost assistance for Texas homebuyers with no first time homebuyer requirement.
Max. Loan Amount
$472,030 - $571,550
Min. Credit Score
620
Min. Down Payment:
0%
Special Offers
Occasionally, there are special offers that can be added to this mortgage program that provide additional benefits, such as a reduction in your federal taxes (mortgage credit certificates), extra cash for your down payment, and more.
TSAHC Texas Mortgage Credit Certificate (MCC)
TSAHC's Texas Mortgage Credit Certificate is an interest tax credit that is used to reduce your federal income tax responsibility each year. They are specifically for first time homebuyers and must be paired with either TSAHC's Homes for Texas Heroes or Home Sweet Texas Home program.
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.
TSAHC Conventional Purchase - Low Income
Best For: First Time Homebuyers, Low Credit Scores
Conventional option for low income Texas residents seeking down payment assistance, offered by the Texas State Affordable Housing Corporation (TSAHC).
TSAHC Conventional Purchase - Median Income
Best For: First Time Homebuyers, Low Credit Scores
Conventional option for Texas residents seeking down payment help and making above 80% AMI, offered by the Texas State Affordable Housing Corporation.
Related Resources
2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
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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 More
This is for Single-Income Homebuyers
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First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
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A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
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Freddie Mac's Revised Housing Market Forecast for 2024-2025
Initially predicting more substantial growth, Freddie Mac has adjusted its 2024 and 2025 home price increase forecast to just 0.5% annually. This change reflects subdued home sales expectations and ongoing market challenges, including high mortgage rates and limited housing inventory.
Read MoreVisit our Mortgage Education Center for more resources.
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