TDHCA FHA Purchase Loan
Best For: First Time Homebuyers, Easy Qualification
FHA program for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
This loan program is not available in USA
Program Description
We offer a 30-year, low-interest rate mortgage with up to 4% of the 1st Lien Mortgage amount, that can be used for down payment and closing cost assistance.
Tags
Do you match this loan?
Our loanSMART system will tell you if this loan program is a good fit your scenario.
TDHCA 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, either 2%, 3%, or 4% of loan amount
- Available in all of Texas
- Subject to purchase price and income limits
- Rarely used as a standalone program
- Lower max loan amount than other TDHCA programs
Program Availability
TDHCA FHA Purchase Loans are available in 1 state.
Talk to an Expert
An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“The FHA option comes in handy when using TDHCA down payment assistance programs and you need more flexible loan qualification guidelines."
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.
Buying a Home?
Answer a few short questions and we'll build you a custom list of home loan program options. You're homeownership journey is in good hands.
Key Features
- FHA loan program option from TDHCA; easier qualification than other options
- Can be combined with "My First Texas Home" and "My Choice Texas Home"
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.
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: TDHCA Homebuyer Education Course
This two-hour course will walk you through three important phases of the home buying process: one, preparing for homeownership; two, financing your home; and three, purchasing your home. Once you have completed the course, provide your lender with a copy of the Certificate of Completion. This will satisfy the homebuyer education requirement for TDHCA’s first time homebuyer programs.
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 TDHCA FHA program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
TDHCA My Choice Texas Home
|TDHCA 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%
TDHCA My First Texas Home
|TDHCA FHAUp to 5% down payment and closing cost assistance for Texas first time homebuyers with either forgivable or repayable assistance.
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.
TDHCA Texas Mortgage Credit Certificate (MCC)
TDHCA's Texas Mortgage Credit Certificate (MCC) is an interest tax credit that is used to reduce your federal income tax responsibility each year. It is specifically for first time homebuyers and veterans and must be paired with TDHCA's "My First Texas Home" program.
TDHCA Bonus Gift Dollars
The Texas Homebuyer Program has partnered with local Housing Finance Agencies in certain eligible counties in Texas to offer free gift funds to be used in conjunction with the TDHCA Down Payment Assistance Programs.
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.
TDHCA USDA Purchase Loan
Best For: First Time Homebuyers, Zero Down
USDA program for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
TDHCA Conventional Purchase Loan
Best For: First Time Homebuyers, Zero Down
Conventional option for Texas residents seeking down payment assistance, offered by the Texas Department of Housing and Community Affairs (TDHCA).
Related Resources
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read More
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
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.
Read More
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.
Read More
High Balance FHA Loans Explained
Explore high balance FHA loans: low down payment, relaxed credit guidelines, and higher loan limits in high-cost areas. Ideal for first-time homebuyers.
Read More
DPA Explained - Down Payment Assistance and Building Generational Wealth
Ever wondered how you could bridge the wealth gap through homeownership without the mythical 20% down payment?
Read More
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.
* 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
Mortgage Program by:
ReviewMyMortgage.com is in no way affiliated with the companies or institutions listed here.
Start Your Journey
Whether your are buying a new home, or refinancing your current home loan, let the experts at Review My Mortgage guide you on your homeownership journey.
Are you a mortgage professional?
Learn about our unique sponsorships, including RMM PROLender, that can take your production to the next level.
Get in Touch