TDHCA My Choice Texas Home
Best For: Low Credit Scores, Zero Down
Up to 5% down payment and closing cost assistance for Texas homebuyers with no first time homebuyer requirement.
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 30-year deferred repayable second mortgage. The deferred payment option generally offers lower interest rates than the forgivable option. My Choice Texas Homes offers competitive interest rates on a 30-year fixed rate home loan from the Texas Department of Housing and Community Affairs (TDHCA).
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TDHCA My Choice Texas Home
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$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.
Program Benefits
Benefit type: Up to 5.00% of 1st Loan Amount
Type: Bond Deferred Payment Program - Forgivable
My Choice Texas Home offers two options, either a 3-year forgivable second mortgage or a 30-year deferred repayable second mortgage. The deferred payment option generally offers lower interest rates than the forgivable option.
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.
- TDHCA FHA Purchase Loan
- TDHCA USDA Purchase Loan
- TDHCA VA Purchase Loan
- TDHCA Conventional Purchase Loan
Pros & Cons
- Assistance available, between 2% and 5% of the loan amount
- Available in all of Texas
- Forgivable and repayable assistance options
- No purchase price limits
- Higher income limits than the "My First Texas Home" program
- Subject to county income limits
- No Mortgage Credit Certificate (MCC) option
Program Availability
TDHCA My Choice Texas Homes are available in 1 state.
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“This program has higher income limits and no first time homebuyer requirement when compared to the "My First Texas Home" program."
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
- A forgivable 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
- Buyers must meet program guidelines, complete homebuyer education courses, must occupy the property as a primary residence, and must 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.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5% 1%
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.
TDHCA My First Texas Home
Best For: First Time Homebuyers, Zero Down
Up to 5% down payment and closing cost assistance for Texas first time homebuyers with either forgivable or repayable assistance.
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* Can be used with Conventional, FHA, VA, and USDA programs. Income limits apply. Forgivable 2nd lien option available.
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