Current mortgage rates in Texas

Mortgages in Texas

The Texas Department of Housing and Community Affairs (TDHCA) created the Texas Homebuyer Program to help low- to moderate-income people find affordable housing. To that end, you’ll have to fall at or below certain income requirements as well as the organization’s purchase price limits.

Alongside your TDHCA mortgage loan, you’ll also receive a 0% interest second loan to help you cover the upfront costs of buying a home. You only have to pay it back when you sell, refinance or pay off your mortgage.

TDHCA doesn’t actually grant loans and assistance directly. Instead, you’ll work with one of the department’s [participating mortgage lenders to secure approval for a loan as well as access to down payment and closing cost assistance and a federal tax credit.

More: Get a free credit score and credit monitoring from Credit Sesame.

My First Texas Home Loan

This program is open to first-time homebuyers and qualified veterans. Alongside your low-interest, 30-year mortgage, you’ll get a second loan to help with your down payment and closing costs.

That second loan has a 0% interest rate and will be worth between 2% and 5% of your mortgage, depending on your needs.

To qualify, you’ll need to have a minimum credit score of 620 and meet the TDHCA’s income and purchase price limits.

More: Use these savings accounts to build up your down payment.

Texas Mortgage Credit Certificate Program

A Mortgage Credit Certificate (MCC) is a dollar-for-dollar reduction of the amount you owe on your federal income taxes. The reduction will be a percentage of the interest you pay on your mortgage.

You can use the MCC in combination with your My First Texas Home Loan or as a stand-alone benefit. However, even if you’re not using the other program, you will still have to meet the TDHCA’s income and purchase price limits to get the credit. It’s also limited to first-time homebuyers and veterans.

You can apply for the MCC through one of TDHCA’s participating lenders.

The Best Lenders for a Mortgage

See Lenders

About the Author

Sigrid Forberg

Sigrid Forberg

Staff Writer

Sigrid is a staff writer with MoneyWise. Before joining the team, she worked for a B2B publication in the hardware and home improvement industry and ran an internal employee magazine for the federal government. As a graduate of the Carleton University Journalism program, she takes pride in telling informative, engaging and compelling stories.

You May Also Like

Title Fraud Can Mean the Loss of Your Home — Here’s How To Protect Yourself

Prevent scammers from stealing your biggest assets and demolishing your credit.

Looking to Protect Your Portfolio Against Inflation? Don’t Overlook Farmland

As a commodity-producing asset, farmland is an excellent hedge against inflation.

Sprucing Up Your Home? Don't Decorate Without This Money-Saving Secret

This 30-second trick can save you a surprising sum on any big project.

Here’s How to Find Better Deals When You Shop Online

There’s an easy way to automatically scan for lower prices, and it’s totally free.