If you are planning to buy your first home, it is a milestone in your life. If you are in Texas, you can take the help of various programs made to help first-time home buyers. However, you need to qualify for the first-time home buyer loan. To be eligible, you need to fulfil certain criteria, including a link to income, credit score, residency, and property eligibility. Today, we at Aliton Finance Texas detail a few aspects you need to know.
Understand What “First-Time Home Buyer” Means
If you have not bought a home in Texas in the last three years, you are considered a first-time home buyer. It might be that you have a home of your own; however, you qualify for the first-time home buyer loan if it is before three years old.
Meet Income and Purchase Price Limits
There are first-time home buyer loans in Texas that set a limit on the income and price of the home. There is an income restriction if you intend to avail a loan from Texas State Affordable Housing Corporation or the Texas Department of Housing and Community Affairs. It is stated that the income of all members of the house should not be more than 80% to 115% of the area median income. The percentage varies according to the loan program you opt to avail.
Maintain a Good Credit Score
You need to have a minimum credit score to avail of a loan. You need to have a credit score of 620 if you desire to avail a loan from TSAHC. If you have a higher score, it will be helpful to have various loans at lower interest rates and better loan terms.
Complete a Home Buyer Education Course
You need to complete a home buyer education course from any HUD-approved provider if you desire to avail first-time buyer loans. The course will help you understand the process of buying a home, mortgage terms, and the financial responsibilities that come with buying a home.
Choose an Eligible Property
The home you plan to buy must be your primary residence in Texas. Some programs may have restrictions on the type or value of the property. For instance, investment properties and vacation homes generally do not qualify.
Apply for the Right Loan or Assistance Program
Texas offers several helpful options for first-time home buyers:
My First Texas Home – Offered through TDHCA, it provides down payment and closing cost assistance, along with low-interest mortgage loans.
Homes for Texas Heroes and Home Sweet Texas Loan Programs – Available through TSAHC, these are tailored for specific professions (like teachers and first responders) or income-qualified individuals.
Qualifying for a first-time home buyer loan in Texas involves meeting income, credit, and property criteria. With the right preparation and the help of Texas-specific assistance programs, achieving homeownership can be within reach. Before you begin the process, it’s a good idea to consult with a local lender or housing counselor like us to explore your options and ensure you meet all requirements.
