1st Time Buyer Fact Sheet
USDA Government Loan Program
- Purchased Home must be primary residence
- Family Income must be less than $ 123,625.00 Any Family Size
- No Down Payment
- Austin Round Rock MSA Loan Limits same as FHA 362,452.00 Before MIP
- Monthly Mortgage Insurance only .4% annually ( Saves $ 85.00 to $ 150.00 monthly) versus an FHA Loan
- 0% funding fee added to mortgage
- Seller allowed to contribute up to 6.0% of sales price for closing costs
- Limited to geographic area Manor, Del Valle, Leander, Liberty Hill, Kyle, Jarrell
- Minimum FICO score is 640 or higher.
- Must owner occupy the home purchased
- May be combined with MCC ( Mortgage Credit Certificate) Programs
- Income limits to 29.0% of gross annual income allocated for house payment
- Income limits to 44.5% of gross annual income allocated for house payment plus monthly debts
- May not Exceed ratios
- No late payments allowed in the last 2 years
- Bankruptcy allowed after 2 years from discharge date with reestablished credit
- Non purchasing Spouse is allowed
- Married couples will be scored on the lower of the spouses Mid Fico score
- Foreclosure allowed after 3 years from disposition date
- Will Not allow Non Occupant cosigner
FHA Insured Government Loan
- Buyer must contribute 3.5% of their own funds
- 5% contribution may come from Down Payment Assistance programs
- 5% contribution may come a blood relative gift
- No limits on family income
- Austin Round Rock MSA Loan limits are $ 362,452.00 not including MIP Roll-in
- FHA charges upfront MIP( mortgage Insurance Premium)
- MIP is 1.75% of amount borrowed may be added back to loan.
- MIP is also charged monthly .85% of the amount borrowed annually.
- Seller may contribute up to 6.0% of buyers closing costs
- If using Bond Down payment assistance seller can still contribute 6.0%
- Minimum FICO score is 580 but most lenders all requiring 620 or higher
- All credit Scores between 580 and 660 subject to a .25% discount point premium and 90% LTV
- Must owner occupy the home purchased
- May be combined with MCC( Mortgage Credit Certificate) Programs
- May be combined with 1st time buyer Bond Programs
- Income limits to 35% of gross annual income allocated for house payment
- Income limits of 45% allocated for house payment plus all monthly debts
- May exceed ratios with compensating factors 401K, job longevity, no payment shock
- May use Non Purchasing Spouse
- Married couples will be scored on the lower of the spouses Mid Fico Score
- Bankruptcy allowed after 2 years from discharge date and reestablished credit
- Foreclosure allowed after 3years from disposition date
- Will allow Non Occupant Cosigner
MCC (Mortgage Credit Certificate)
- Must be a 1st time Home Buyer ( Can not have owned a home in the last 3 years)
- 40% of annual mortgage interest is an up front tax credit
- Tax Credit is limited to lesser of 40% of annual interest or $ 2,000.00 which is $ 167.00 monthly
- Buyers receive a Certificate to take to their employers to adjust with holding in their pay checks
- Buyer will not owe this back and still gets other itemized tax deductions
- $ 500.00 application fee
- May be used with FHA, USDA, or Conventional Loans
- Must Make under $ 98,900.00 annually 1-2 Persons
- Must Make Under $ 113,735.00 Annually 3 or more persons.
- Buyer still gets to itemize and deduct the remaining 60.0% of annual mortgage interest on tax return ( Double Dip the IRS)
- Funds Limited 1st come 1st serve
TDHCA Bond
- No longer requires being a 1st time buyer
- 5% Down Payment assistance in the form of a 2nd lien interest free, must be repaid UPON SALE OF HOME
- Interest rate fixed for 30 years 4.25% subject to change daily.
- May use with the MCC Program
- May be used with FHA , Conventional and VA
- Must have a 620 or higher credit score
- Family Income cannot exceed $ 98,900.00 annually 1-2 Persons
- Family Income cannot exceed $ 113,7350.00 annually for 3 or more persons
- FHA loan limits
- Ratios may exceed 45% up to as high as 57% underwriters discression.
- If Credit Score is under 640 cannot exceed ratios
Travis County Bond Money
- Do not have to be a 1st time buyer.
- Cannot currently own a Home
- Total Household Income cannot exceed more than $ 118,000.00 per year
- FHA Loan Limits
- 640 or higher credit score
- May be used with FHA, VA, or USDA, or Conventional
- Down Payment Assistance is 5.0% of Sales Price
- No Recapture after 9 Years
- Current rate is 4.75%
BBVA Compass Zero Down Payment Program
- Do not have to be a 1st time Home Buyer cannot currently own
- 620 or higher credit score
- Family income limits under $ 65,120.00
- No income limits for low income areas
- 100% LTV Zero Down
- Debt to income ratio only .45
- Imputed payment of 2.0% of student loans total indebtedness
- No monthly or upfront mortgage insurance
- FHA Loan limits
- Up to a 6.0% seller contribution
- Lender pays up to $ 4,500.00 in closing costs
- Cannot use MCC with this program
Prosperity Bank HOPP Loan
- 100% Financing Zero Down Payment Loan
- Maximum Sales Price $ 250,000.00
- No Mortgage Insurance upfront or monthly
- Only a 600 Mid FICO score to qualify
- No Origination Fees or Mortgage Fees
- Moderate Income Limits 1 Person Under $ 57,000.00 annually
- 2 People under $65,100.00 annually. 3 People under $ 73,250.00
- Annually, 4 People Under $ 81,400.00 Annually
- 3 months taxes and insurance for escrows
- Typical loan closing costs and escrows will run about $ 4,500.00
- May use an ITIN Persons income with a Spouse having Citizenship or green card.
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