Financial Aid for Low Incomes

Getting a home mortgage loan in Houston can give you some definite advantages versus other areas. This is because there are some valuable programs to help homebuyers offered both by the city of Houston as well as the state of Texas.

For example, the City of Houston Housing and Community Development Department (HCDD) offers a program that helps those with low and moderate incomes to buy a home in the incorporated areas of Houston. This program, known as HAP (Homebuyer’s Assistance Program) will help to offset parts of the down payment, closing costs and other expenses that purchasing a home will incur.

Some of the eligibility conditions of this program include the demonstrated ability of the applicant to obtain a loan and the family’s income must be below 80% of the average income of the area.

The value of the home you intend to purchase cannot exceed a value of $200,000 according to the Single Family Mortgage Limits of the National Housing Act and it must be located within the taxation boundaries of the city.

As an applicant, you must invest a minimum of $500 in the purchasing transaction, according to the program. The HAP can award approximately $19,000 in financial aid to families whose earnings are below 80% of the average income for that area.

This should amount to approximately $45,000 for a family of three across most areas. Remember that this is the combined income of the whole family. If you’re in doubt about eligibility, always check before proceeding.

The state of Texas also provides financial assistance for first time homebuyers via a down payment assistance program or via the Texas Mortgage Credit program. The First Time Homebuyer Program is a relatively new program which offers up to 4% assistance on the first lien mortgage sum and a 10 year deferred second lien to assist with the down payment and closing costs.

While you must make regular repayments on the first lien, the program does not require you to make monthly payments on the second lien. However, if you sell the property or refinance before the 10 year period is up then you will have to repay the amount in full.

The Texas Mortgage Credit Program aims to make home buying more affordable for all the residents of the state with a low to moderate income, especially for first time buyers. This is probably one of the best options for those seeking a Houston home mortgage loan at affordable rates.

To find out more about financial assistance for Houston home mortgage loans, especially eligibility conditions, you should visit www.houstontx.gov . If you look under the housing heading you will find the information pertinent to financial aid for homebuyers.