Home Buyer FAQ: What is Mortgage Insurance and When is It Required?

Mortgage insurance makes it possible for you to buy a home with a down payment of less than a 20% by protecting the lender against the additional risk associated with low down payment lending. By purchasing mortgage insurance, lenders are comfortable with down payments as low as 3.5% (for FHA-insured loans) or 3% (for conventional loans) of the home's value. Use TSAHC’s Loan Comparison [...]

Home Buyer FAQ: What is the Difference Between Closing Costs and the Required Down Payment?

The down payment for a home is applied directly toward lowering your total loan amount. Normally based on a percentage of the total sales price, the amount is typically established early in the loan application process with your lender. Required down payment amounts vary by loan type and can be as low as 3% for certain conventional loans or 3.5% for FHA loans. Closing costs are fees [...]

Home Buyer FAQ: Can I Buy a Rental Home or Vacation Home Using TSAHC’s Homeownership Programs?

To qualify for TSAHC’s Homeownership Programs, the home you purchase must be or become your primary residence. Vacation, rental and second homes do not qualify under TSAHC’s Homeownership [...]

Home Buyer FAQ: What Type of Home Can I Buy with TSAHC’s Homeownership Programs?

You may purchase the following property types if using TSAHC Down Payment Assistance (DPA) alone, OR combining TSAHC’s DPA with a Mortgage Credit Certificate. FHA/USDA/VA Loans- New or existing homes Unit in a condo, townhome, or PUD An entire duplex, triplex, or fourplex (one unit must be owner-occupied) Manufactured homes (FHA/USDA only) Conventional Loan- New or [...]

Home Buyer FAQ: What is a Targeted Area?

You may purchase a home anywhere in Texas using TSAHC’s Home Buyer Programs. However, higher income and purchase price limits are available to home buyers that purchase a home in a targeted area. Targeted areas are census tracts designated as areas of economic distress. Click here to see if a property is located in a targeted [...]