Down Payment Assistance

Need Down Payment Assistance?

Saving up for a down payment can be an obstacle to owning a home. There are a number of down payment assistance programs that can overcome this challenge. Not all lenders are experienced with these options. Fortunately, Park Cities Mortgage has the experience and knowledge needed to guide you through the process.

Types of Down Payment Assistance

Down payment assistance can come in two forms: a grant or a second lien. Grants function like financial gifts and do not need to repaid. Second liens function like typical second home purchase loans, and repayment could be required when the home is refinanced or sold.

Eligibility for Down Payment Assistance

Specific down payment assistance requirements vary by program. The requirements are typically based on income, family size, property location, and minimum credit guidelines.

Heroes and Educators

If you’re a public servant like a teacher or police officer, down payment assistance is available under the Homes for Texas Heroes program. The program also offers FHA loans and closing cost assistance up to 5 percent of the mortgage’s total balance. The Homes for Texas Heroes is grant-based and does not require repayment.

Eligible candidates for Homes for Texas Heroes are:

• Police officers
• Firefighters
• Emergency medical service professionals
• Public security officers
• Corrections officers
• County jailers
• K-12 teachers and educators
• Teacher’s aides
• School librarians, nurses, and counselors
• Allied health and nursing faculty members

To learn more about the Homes for Texas Heroes program, visit TSAHC.org.

Mortgage Credit Certificates

Mortgage Credit Certificates, or MCCs, offer homebuyers a tax credit for a portion of their annual mortgage interest payments. Homeowners can use these credits every year the home serves as their primary residence. MCCs are capped at $2,000 per year. Speak to a licensed credit/tax adviser for further information regarding the deductibility of interest rates and charges.

MCCs might be right for you if you:

• Have not owned a primary residence in three years
• Plan to use the new property as your primary residence
• Qualify for a mortgage loan
• Meet certain income and home purchase requirements
• Have an annual tax liability

First-Time Homebuyers

If you’re a first-time buyer, there are several home loan programs that offer low fixed interest rates, as well as down payment and closing cost assistance through a second lien or grant. These typically offer assistance up to 5 percent of the loan’s balance. Program offerings vary among agencies and are influenced by income, property location, as well as other factors.

Want to learn more about down payment assistance programs and eligibility requirements, contact a loan officer at Park Cities Mortgage for guidance. They are knowledgeable of the available programs and requirements.