USDA Government Loan Program

• Purchased Home must be primary residence
• Family Income must be less than $ 87,000.00 Annually 1-4 persons
• No Down Payment
• Austin Round Rock MSA Loan Limits same as FHA 305,000.00 Before MIP
• Monthly Mortgage Insurance only .40% annually ( Saves $ 85.00 to $ 150.00 monthly) versus an FHA Loan
• 2.0% funding fee added to mortgage
• Seller allowed to contribute up to 6.0% of sales price for closing costs
• Limited to geographic areas, Portion of Hutto, Small Portion of Leander, Liberty Hill, Buda, Jarrell
• Minimum FICO score is 640 or higher, No exceptions.
• All credit scores between 640 and 660 subject to .25% discount point premium this affects the 6.0% seller contribution
• Must owner occupy the home purchased
• May be combined with MCC ( Mortgage Credit Certificate) Programs
• May Be combined with the Seth Bond Program
• If using with the MCC Program 6.0% seller contribution will not be enough for a $ 0 move in buyer must pay the 1.0% MCC cost and the $250.00 application fee from their own funds
• Income limits to 35% of gross annual income allocated for house payment
• Income limits to 45% of gross annual income allocated for house payment plus monthly debts
• May Exceed ratios with compensating factors 401K, Job longevity, no payment shock
• No late payments allowed in the last 2 years
• Bankruptcy allowed after 2 years from discharge date with reestablished credit
• Non purchasing Spouse is allowed
• Married couples will be scored on the lower of the spouses Mid Fico score
• Foreclosure allowed after 3 years from disposition date

FHA Insured Government Loan

• Buyer must contribute 3.5% of their own funds
• 3.5% contribution may come from Down Payment Assistance programs
• 3.5% contribution may come a blood relative gift
• No limits on family income
• Austin Round Rock MSA Loan limits are $ 305,000.00 not including MIP Roll-in
• FHA charges upfront MIP( mortgage Insurance Premium)
• MIP is 1.75% of amount borrowed may be added back to loan.
• MIP is also charged monthly 1.35% of the amount borrowed annually.
• Seller may contribute up to 6.0% of buyers closing costs
• If using Bond Down payment assistance seller can still contribute 6.0%
• Minimum FICO score is 580 but most lenders all requiring 640 or higher
• All credit Scores between 640 and 660 subject to a .25% discount point premium this affects the 6.0% seller contribution
• Must owner occupy the home purchased
• May be combined with MCC( Mortgage Credit Certificate) Programs
• May be combined with 1st time buyer Bond Programs
• Income limits to 35% of gross annual income allocated for house payment
• Income limits of 45% allocated for house payment plus all monthly debts
• May exceed ratios with compensating factors 401K, job longevity, no payment shock
• May use Non Purchasing Spouse
• Married couples will be scored on the lower of the spouses Mid Fico Score
• Bankruptcy allowed after 2 years from discharge date and reestablished credit
• Foreclosure allowed after 3years from disposition date

MCC (Mortgage Credit Certificate)

• Must be a 1st time Home Buyer ( Can not have owned a home in the last 3 years)
• 40% of annual mortgage interest is an up front tax credit
• Tax Credit is limited to lesser of 40% of annual interest or $ 2,000.00 which is $ 167.00 monthly.
• Buyers receive a Certificate to take to their employers to adjust with holding in their pay checks
• Buyer will not owe this back and still gets other itemized tax deductions
• 1.0% of sales price participation fee
• $ 250.00 application fee
• May be used with FHA, USDA, or Conventional Loans
• Must Make under $ 74,000.00 annually
• Williamson County MCC must also make under $ 74,000.00 annually
• Remember if using MCC with USDA the 6.0% seller contribution will not be enough to cover all the costs. It will cost the buyer 1.0% of sales price plus $ 250.00 application fee.
• Buyer still gets to itemize and deduct the remaining 65.0% of annual mortgage interest on tax return ( Double Dip the IRS)
• Travis County Hero’s MCC Program limited to $ 53,000.00 Annual Income
• Travis County Hero’s Program is for Teachers, Fire Fighters, and Policemen
• Funds Limited 1st come 1st served

TSHAC Bond (Hero’s Program)

• Must be a 1st time home buyer( can Not have owned in the last 3 years)
• Hero’s are teachers, fire fighters, police officers
• Must Have a 640 or higher credit score
• Income is $ 76,900.00
• Non Hero’s allowed income limit is $ 60,700.00 for the family
• May be used with MCC
• Interest Rate is 4.5% fixed 30 years
• Features a 5.0% Down Payment assistance Grant that is forgivable after 9 years

State of Texas Bond 79

• No longer requires being a 1st time buyer
• 5% Down Payment assistance in the for of a 2nd lien interest free, must be repaid UPON SALE OF HOME
• Interest rate fixed for 30 years 5.0%
• May use with the MCC Program
• May be used with FHA , USDA, and VA
• Must have a 640 or higher credit score
• Must not make over $ 76,000.00 annually
• FHA loan limits

SETH BOND

( Southeast Texas Home Buyer Assistance Program)

• No longer requires being a 1st time buyer
• 5% Down Payment assistance with FHA and Conventional Loans does not have to be repaid after 9 years
• 3.0% Down Payment assistance with USDA Loans does not have to be repaid after 9 years
• Interest rate fixed for 30 years 4.75%
• May use with the MCC Program
• May be used with FHA , USDA, and VA
• Must have a 640 or higher credit score no Exceptions
• Must not make over $ 76,900.00 annual Household Income including anyone living in the home.
• FHA loan limits