Lender Guidelines: 1.1 General Information
The Texas State Affordable Housing Corporation (TSAHC) provides (1) fixed-rate mortgage loans with down payment assistance (DPA) to qualified mortgagors, and (2) mortgage credit certificates (MCCs) to qualified mortgagors.
The DPA is provided from two different sources: (i) “Non-Bond DPA” which is financed through non-bond, market sales of mortgage-backed securities backed by the loans, and (ii) “Bond DPA” which is provided from the proceeds of tax-exempt single family mortgage revenue bonds issued under Section 143 of the Internal Revenue Code.
MCCs, which are issued under Section 25 of the Internal Revenue Code, provide a tax credit to the borrower based on the amount of the loan interest paid. MCCs may be issued with respect to (1) loans with Non-Bond DPA (but not Bond DPA) and (2) loans which are made by lenders which do not have Non-Bond or Bond DPA.
Non-Bond DPA, Bond DPA and MCCs are available to teachers, veterans, police officers, corrections officers, fire fighters, and low- to moderate-income home buyers through our Homes for Texas Heroes Program and Home Sweet Texas Loan Program (each a “Program” and together the “Programs”).
TSAHC provides an online reservation and compliance system (Lender Portal) at www.tsm-online.org where interest rates are locked and funds are reserved. TSAHC also provides these Program Guidelines (also referred to below as these “Guidelines”) and applicable forms and affidavits, and reviews compliance packages to ensure TSAHC’s eligibility requirements are met.
The Program Guidelines describe the current rules and requirements, outline the role of TSAHC, and set forth the requirements for Lenders to participate. TSAHC may revise the Program Guidelines from time to time. The most current version can be found on TSAHC’s website at www.tsahc.org and on the Lender Portal at www.tsm-online.org. TSAHC’s master servicer for loans with DPA is Lakeview Loan Servicing, LLC (“Lakeview”). All loans with Non-Bond DPA, whether with or without an MCC, and all loans with Bond DPA, will be sold to and serviced by Lakeview. Loans with DPA must also follow the Lakeview Selling Guide and product matrices found on www.tsm-online.org.
To access TSAHC's full guidelines, click here.