Low Interest Mortgage Programs for Houston Homebuyers

By AJ Fanter
Local Lender Columnist
Apr 21, 2006
The Texas Department of Housing and Community Affairs (TDHCA) has programs to assist homebuyers in the Houston, Texas area. While some programs are for first-time home buyers who have enough money to make a monthly mortgage payment, some of these low interest rate loans are available to anyone meeting the necessary criteria.

In addition to their low interest First Time Homebuyer Program loans, the TDHCA offers 2 other mortgage programs for qualifying Houston area homebuyers: The Loan Star Mortgage Program and the Mortgage Credit Certificate Program.

Loan Star Mortgage Program for Houston Residents

Designed to assist would-be homeowners in overcoming the two biggest hurdles of buying a home - lack of down payment and qualifying income - the Loan Star Mortgage program provides up to eight percent of the purchase price. This included both down payment and closing cost assistance in the form of a repayable low interest second mortgage that can be serviced along with the first mortgage.

While you don't need to be a first-time homebuyer to qualify for this program, you must meet certain income requirements and price of your Houston home must fall within established guidelines.

Mortgage Credit Certificate Program

Another option for Houston homebuyers is Mortgage Credit Certificate (MCC) Program. Designed for low to moderate income households, the MCC is a tax credit that reduces your federal income taxes if you purchase a qualified residence in the Houston area. This credit increases your disposable income, making it easier to qualify for a low interest loan and meet the mortgage payments on your Houston home.

To be eligible for this program, which cannot be used for the refinancing of an existing loan, you must use a participating lender and be a "first-time homebuyer," which the State of Texas defines as a person who has not had an ownership interest in a "principal residence" within the past three years.

Sources:

• Texas First Time Homebuyer Program, Related Programs

About the Author
AJ Fanter is a freelance writer based in Reno, NV.