Teachers & Home Town Hero's That are First Time Home Buyers

First Time Homebuyer Programs

Single The Texas State Affordable Housing Corporation offers two types of programs to first-time homebuyers.  Please read below for more information on our Home Loan Programs and Mortgage Credit Certificate Program. Please note that assistance is subject to funding availability and that both types of programs cannot be used together.

However, the American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time homebuyers purchasing a primary residence on or after January 1, 2009 and before December 1, 2009.  This tax credit may be used in combination with the Professional Educators, Homes for Texas Heroes, Home Sweet Loan, and Mortgage Credit Certificate Programs.

Home Loan Programs – Funds Currently Available!

The Professional Educators, Homes for Texas Heroes, and Home Sweet Texas Home Loan Programs provide 30-year fixed rate mortgage loans to eligible first-time homebuyers wishing to achieve the American dream of homeownership. In addition to a low interest rate, these programs offer down payment and closing cost assistance in the form of a grant. These programs are available through a network of participating lenders across the state. 

The current interest rate on a 30-year fixed FHA, VA or USDA (RHS) mortgage loan is 5.25%.  In addition to this rate, these programs are providing 3% of the loan amount as a grant for downpayment and closing cost assistance.

Program Qualifications

In order to qualify for our Home Loan or Mortgage Credit Certificate Programs homebuyers must meet be one of the following:

• A Professional Educator: Defined as a full time Classroom Teacher, Teacher Aide, School Librarian, School Nurse or School Counselor employed by a public school district in the state of Texas; or a full time faculty member * of either an undergraduate or graduate professional nursing  or allied health program in the State of Texas; or
• A Texas Hero: Defined as a full time, paid Firefighter, Emergency Medical Services Personnel, Peace Officer, Corrections Officer, Juvenile Corrections Officer, County Jailer, or a Public Security Officer working in the State of Texas.

Additionally, a homebuyer must:

• Be a first-time homebuyer, have not had an ownership interest in any principal residence during the last three years, or purchasing a home in a targeted area;
• Reside in the State of Texas;
• Meet the income and home purchase price limits;
• Meet standard mortgage underwriting requirements which demonstrate credit worthiness; 
• Occupy the purchased home as their primary residence; and
• Complete a HUD approved homebuyer education course prior to closing on the home loan.  To find a homebuyer education provider in your area, please click here.  Once you are on HUD's website, you can further narrow your search by entering your city and by selecting "Homebuyer Education Programs". 

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