TSAHC USDA Purchase Loan
Best For: Low Credit Scores, Zero Down
USDA program for Texas residents seeking down payment assistance, offered by the Texas State Affordable Housing Corporation (TSAHC).
Program Description
When combined with one of TSAHC's (Texas State Affordable Housing Corporation) down payment assistance programs "Home Sweet Texas Home" or "Homes for Texas Heroes", Texas residents purchasing a home in a rural area can finance up to 105% of their purchase and closing costs.
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TSAHC USDA Purchase Loan
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$336,500 - $386,400
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 bond/grant options
- Only available in USDA rural areas
- Subject to income limits and purchase price limits when combined with MCC
- Lower max loan amount than other TSAHC programs
- Rarely used as a standalone program
Program Availability
TSAHC USDA Purchase Loans are available in 1 state.
*Limited Availability: There are parts of Texas that don’t qualify for a USDA Loan. To verify property or area eligibility, visit the official USDA website at https://eligibility.sc.egov.usda.gov/eligibility/.
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“The USDA option comes in handy when using TSAHC down payment assistance programs in a rural area."
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
$336,500 - $386,400
Income Limit
$106,625 - $149,000
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
- USDA loan program option from TSAHC; use with down payment assistance
- 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.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: USDA Gurantee Fee
The USDA loan program requires the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.00% of the loan amount and can be financed into the loan.
Type: USDA Annual Fee
The USDA loan charges an annual fee based on the total remaining balance of the mortgage at a .35% rate.
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 USDA 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 USDAUp to 5% down payment and closing cost assistance for Texas Heroes with no first time homebuyer requirement.
Max. Loan Amount
$336,500 - $386,400
Min. Credit Score
620
Min. Down Payment:
0%
TSAHC Home Sweet Texas Home
|TSAHC USDAUp to 5% down payment and closing cost assistance for Texas homebuyers with no first time homebuyer requirement.
Max. Loan Amount
$336,500 - $386,400
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.
IHFA Tax-Exempt RD Targeted
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Tax-Exempt RD rural development loan program for targeted Idaho Counties with below market interest rates and down payment assistance options.
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).
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