TSAHC Homes for Texas Heroes w/ MCC
Best For: Low Down Payments, Zero Down
Up to 5% down payment and closing cost assistance for Texas Heroes and a Mortgage Credit Certificate (MCC) for tax benefits.
Program Description
Up to 5% down payment and closing cost assistance for Texas Heroes (see applicable job types in conditions section) in the form of either a 3-year forgivable second mortgage or a grant, combined with the TSAHC Mortgage Credit Certificate (MCC). Adding the MCC adds purchase price limits and a first time homebuyer requirement to the program. Homes for Texas Heroes offers competitive interest rates on a 30-year fixed rate home loan from the Texas State Affordable Housing Corporation (TSAHC).
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TSAHC Homes for Texas Heroes w/ MCC
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
The Homes for Texas Heroes program offers two options, either a 3-year forgivable second mortgage or a grant. The deferred payment option generally offers lower interest rates than the grant 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.
- TSAHC USDA Purchase Loan
- TSAHC VA Purchase Loan
- TSAHC Conventional Purchase - Median Income
- TSAHC FHA Purchase Loan
Pros & Cons
- Assistance available, between 2% and 5% of the loan amount
- Available in all of Texas
- Forgivable and repayable assistance options
- MCC helps you save on your annual taxes
- Subject to county income limits
- Subject to purchase price limits
- Must be a first time homebuyer
Program Availability
TSAHC Homes for Texas Heroes w/ MCCs are available in 1 state.
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“Adding the Mortgage Credit Certificate (MCC) can help you save a significant amount on your federal taxes, but using it adds purchase price limits to the program that could potentially disqualify many homes from your home search."
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
$349,525 - $401,305
Income Limit
$85,300 - $119,200
Annual Household (1-2) 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
- Includes the TSAHC Mortgage Credit Certificate (MCC)
- Must work in one of the approved fields of professions
Additional Conditions
- Buyers must meet program guidelines, complete home buyers education course, occupy as primary residence, and not exceed the county income limits
- Available for public school teachers, corrections officers, EMS personnel, fire fighters, police officers, school librarians, school counselors, school nurses and veterans/active-duty military
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: 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.
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.
TSAHC Home Sweet Texas Home
Best For: Low Down Payments, Zero Down
Up to 5% down payment and closing cost assistance for Texas homebuyers with no first time homebuyer requirement.
TSAHC Homes for Texas Heroes
Best For: Low Down Payments, Zero Down
Up to 5% down payment and closing cost assistance for Texas Heroes with no first time homebuyer requirement.
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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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