If you have never owned a home (or not with the last 3 years) and are interested in becoming a home owner you may be eligible for the Texas First-Time Home buyer Program depending upon your income and purchase price ratio. Additionally, your home purchase must meet FHA guidelines and be the buyer’s primary residence.
In order to apply you must complete the appropriate paperwork with a lender that participates in the program.
Assistance includes down payment and closing cost assistance on a 30-year fixed note with an interest slightly higher then the current market rate. Repayment of the assistance is required when the loan is paid or the home is sold or refinanced. What is not commonly known is you can take advantage of the program without receiving loan assistance. The only benefits in this case is a reduced interest rate and limits on lender fees.
Regardless of which assistance course you take you need to beware of the federal recapture tax that can occur if you sell the home within the first nine years, you make a profit on the home, and your income has gone up significantly since the home was purchased.
For more information on program requirements please see the first time home buyers website.