SETH FHA Purchase Loan
Best For: First Time Homebuyers, Low Down Payments, Easy Qualification
FHA program for Texas residents seeking down payment assistance, offered by the Southeast Texas Housing Finance Corporation (SETH).
This loan program is not available in Upland, CA
Program Description
The Southeast Texas Housing Finance Corporation (SETH) offers a 30-year FHA mortgage option that can be paired with either the SETH 5 Star Program or the SETH GoldStar Program. The assistance can be used towards down payments and closing costs.
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SETH FHA Purchase Loan
Min. Credit Score
640
Min. Down Payment
3.5%
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.
Pros & Cons
- Flexible qualification guidelines
- Can be combined with up to 7% in down payment assistance
- Also available for manufactured homes
- Allows up to 50% DTI (Debt-to-Income)
- Limitations on property location
- Not available for second homes or investment properties
- Requires UFMIP (Upfront Mortgage Insurance Premium)
- Mortgage Insurance (MIP) is required for the life of the loan
Program Availability
SETH FHA Purchase Loans 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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“If you're ready to buy a home but need assistance offsetting costs, programs such as SETH can provide down payment and closing funds."
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
- FHA loan program option from SETH; easier qualification than other options
- Can be combined with "SETH 5 Star" and "SETH GoldStar" programs
- Online homebuyer education
Additional Conditions
- Eligible homes must be located in Texas but outside of Travis County and the cities of El Paso, Grand Prairie and McKinney
- Also allows for multifamily properties between 1 and 4 units
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.
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 SETH FHA program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
SETH 5 Star Program
|SETH FHAThe SETH 5 Star Program provides up to 5% down payment and closing cost assistance for your home purchase.
Max. Loan Amount
$472,030
Min. Credit Score
640
Min. Down Payment:
0%
SETH GoldStar Program
|SETH FHAThe SETH GoldStar Program provides up to 7% down payment and closing cost help as a forgivable second mortgage.
Max. Loan Amount
$472,030
Min. Credit Score
640
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.
SETH "Extra Credit" Texas Mortgage Credit Certificate (MCC)
SETH's "Extra Credit" 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 can be paired with either the "5 Star" or "GoldStar" down payment assistance programs. Additionally, the savings from the tax credit certificate can help the borrower qualify for their mortgage.
SETH "Extra Credit" Bonus Grant
For a limited time, SETH is including a $2,500 bonus grant for down payment and closing costs that first time Texas homebuyers using the SETH MCC (Mortgage Credit Certificate) program can claim. Must be a first time homebuyer to qualify, and must get approved through a SETH approved lender.
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 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).
SETH VA Purchase Loan
Best For: First Time Homebuyers, Low Down Payments
VA program for Texas Vets and active-duty military seeking down payment assistance, offered by the Southeast Texas Housing Finance Corporation (SETH).
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* 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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