Lender Guidelines: 4.4 Targeted Areas

Targeted Areas are areas identified by the IRS as “qualified census tracts” or “areas of chronic economic distress”. The benefits of originating a mortgage loan in a Targeted Area are significantly higher income limits and significantly higher purchase price limits. Additionally, for borrowers utilizing Bond DPA or receiving an MCC, the first-time home buyer requirement is waived. Targeted Areas [...]

Lender Guidelines: 4.3 Purchase Price Limitation

The purchase price of the residence cannot exceed the applicable maximum purchase price limit. The applicable maximum purchase price limits are set forth on TSAHC’s website at https://www.tsahc.org/lenders/resources-for-lenders#Income_and_Guidelines https:// https://www.tsahc.org/lenders/resources-for-lenders#Income_and_Guidelines [...]

Lender Guidelines: 4.2 Qualifying Residences and Mortgage Loans

Set forth below are tables showing the types of residences and first lien mortgage loans that qualify for such assistance. Definitions of certain terms are set forth below the tables. Non-Bond DPA (with or without MCCs) Type of Residence Government Loans (FHA/VA/USDA-RHS) HFA Conventional Loans Traditional Conventional Loans New or existing detached single family home [...]

Lender Guidelines: 4.1 Eligible Loan Area

The home being purchased must be located in the State of Texas. The Lender should verify the property’s location by reviewing the property appraisal and location where the property taxes are paid. For access to the full TSAHC DPA & MCC Guidelines, please click [...]

Lender Guidelines: 3.5 Mortgage Subsidy Recapture Tax

A borrower who receives Bond DPA or an MCC (with Non-Bond DPA) may be subject to a federally imposed mortgage subsidy recapture tax (“Recapture Tax”) if the mortgagor sells his or her residence within nine years of settlement. The tax, if any, will always be the lesser of: (a) 50% of the gain from the sale of the home, and (b) an amount based on a formula which takes into consideration: (1) the [...]