Homeownership Programs

The Texas State Affordable Housing Corporation offers two types of programs to homebuyers. Please read below for more information on our Home Loan Programs and Mortgage Credit Certificate (MCC) Program. Please note that assistance is subject to funding availability.

NEW - BOTH PROGRAMS CAN NOW BE USED TOGETHER IF YOU ARE A FIRST-TIME HOMEBUYER.

Home Loan Programs with Down Payment Assistance- Funds Available

The Professional Educators, Homes for Texas Heroes, and Home Sweet Texas Home Loan Programs provide 30-year fixed rate mortgage loans to eligible homebuyers wishing to achieve the American dream of homeownership. In addition to a low interest rate, these programs offer down payment and closing cost assistance in the form of a grant. These programs are available through a network of participating lenders across the state.  

The current interest rate on a 30-year fixed FHA, VA or USDA (RHS) mortgage loan is 3.50%. In addition to this rate, these programs are providing 5% of the loan amount as a grant for downpayment and closing cost assistance.  To see if you meet the basic requirements, please click on How to Qualify.

If you meet the requirements, you will need to work directly with one of our approved participating lenders. For a list of our lenders, please click on Lenders List.

 

 

MCC Program - Funds Available

With an MCC, the qualified homebuyer is eligible to take a portion of the annual interest paid on the mortgage as a tax credit, up to $2,000, each year they occupy the home as their principal residence.  The amount of the tax credit is equal to the mortgage credit rate of 35% multiplied by the annual interest paid.  The MCC has the potential of saving the MCC holder thousands of dollars over the life of the loan. 

The example below assumes a family purchases a home for $120,000 at a 6.00% interest rate.  Interest paid the first year is approximately $7,200.  An MCC tax credit of 35% of the interest paid would equal $2,520 (35% x $7,200 = $2,520).  However, the maximum annual credit allowable is $2,000.

Mortgage Amount

$120,000

Interest Rate

6.00%

Interest Paid

$7,200

MCC Rate

35%

Tax Credit

$2,520

In this example, the homebuyer would be entitled to a tax credit of $2,000.00.  Any remaining credit amount, $520 in this example, may be carried forward in the subsequent 3 years.  It is also important to note that the homebuyer will still be able to deduct the $5,200 ($7,200 - $2,000 credit) in interest paid when they file their taxes that year. 

To see if you meet the basic requirements, please click on How to Qualify

For a list of our lenders, please click on Lenders List.