TDHCA Releases First Funds Under $500 Million Of New Bond Authority For First Time Homebuyers
May 31, 2010
The Texas Department of Housing and Community Affairs (TDHCA) announced that beginning today the State will make available the first $50 million under an unprecedented $500 million in new mortgage revenue bond authority. The funds will be used for mortgage loans to eligible homebuyers offered through TDHCA’s Texas First Time Homebuyer Program, opening the door to homeownership for greater numbers of low to moderate income Texans, as well as creating more cohesive neighborhoods and an economic windfall to the state.
This announcement represents the single largest financing initiative for state homebuyer funds in the 27- year history of the program and serves as the state’s response to the recent expiration of the federal homebuyer tax credit. Funds will also be available for down payment and closing cost assistance, helping families overcome what is often the biggest obstacle to buying a home.
“Today’s initial release of up to $500 million in homebuyer funds sounds a clarion call to all Texans who have longed to buy a home of their own but thought it was beyond their reach,” said Michael Gerber, TDHCA Executive Director. “The demand for homeownership in our state remains high, as evidenced by the popularity of the homebuyer tax credit, and TDHCA is ready to meet this demand with safe, reliable lending products for qualifying borrowers. Not everyone who wants to buy a home is ready to do so, but for those households who are prepared this represents perhaps their greatest opportunity ever to buy a home. I encourage any interested Texan to not pass up this chance.”
Interest rates on these 30-year, fixed-rate mortgage loans will either be 4.99 percent or 5.74 percent, depending on which of two types of loans the borrower selects: assisted loans, which will feature the higher rate but also offer down payment and closing cost assistance up to 5 percent of the mortgage amount in the form of a 30-year repayable second lien; and unassisted loans, at the lower interest rate but with no additional funds for down payment and closing cost assistance.
Gerber pointed out that no monthly payments are due on the down payment portion of the assisted loan, and therefore will not be required to be included in the borrower’s debt-to-income-ratios. However, the loan is due and payable upon sale, refinance or payoff of the original mortgage loan.
TDHCA’s First Time Homebuyer Program offers qualifying households who have not owned a home in the previous three years an opportunity to obtain reliable mortgage loans who might otherwise resort to subprime loans or exotic mortgage products. Eligible households can earn up to 115 percent of the area median family income, depending on the number of individuals living in the home, as long as all other program requirements are met.
Loans are available through the program’s network of over 45 participating lending institutions with more than 235 branches located throughout the state. Applicants must qualify under FHA, RHS, VA, Fannie Mae, or Freddie Mac guidelines.
According to Gerber, the extraordinary volume of homebuyer funds also has the potential to make a major economic impact in communities throughout the state. He cited a study from the National Association of Home Builders that estimates that the one-year local impact of constructing 100 single-family homes in a typical metropolitan area includes 324 local jobs, $21.1 million in local income, and $2.2 million in taxes and other revenue for local governments.
Texans wanting additional information are encouraged to visit the Texas First Time Homebuyer Program Web site at www.myfirsttexashome.com or call 1-(800) 792-1119 to learn more about income and eligibility requirements, loan guidelines, or to find a participating lender.
For San Antonio residents, register below to work with a local Direct Realty Group Realtor to assist you:
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Texas Voted Best State For Business 2010
May 17, 2010
Chief Executive magazine’s annual Best & Worst States survey measures business conditions in all 50 states, evaluating proximity to markets and resources, regulation, tax policies, workforce quality, education resources, quality of life and infrastructure.
Top executives rate Texas as the No. 1 state in which to do business for the fifth year in a row.
Top 10 states selected as the best places to do business are:
1. Texas
2. North Carolina
3. Tennessee
4. Virginia
5. Nevada
6. Florida
7. Georgia
8. Colorado
9. Utah
10. South Carolina
Bottom 5 states identified as the worst places to do business are:
1. California
2. New York
3. Michigan
4. New Jersey
5. Massachusetts
By contrast, Texas, the second-most populous state and the world’s 12th largest economy, is where 70 percent of all new U.S. jobs have been created since 2008. Unsurprisingly, it scores high in all the areas CEO’s value most. “You feel like state government understands the value of business and industry to create jobs and growth,” observed one CEO. Its tax credits and incentives to business choosing to locate or expand are among the most aggressive. The Texas Enterprise Fund is by far the largest deal-closing fund of any state, with grants totaling $377 million disbursed in 2008.
Little wonder then that while Texas gained over 848,000 net new residents in the last 10 years, according to the Census Bureau, California lost 1.5 million. New York State’s net loss exceeded 1.6 million – the highest of any state. High-tax, big- government New Jersey ranked fourth, with a net loss of almost 460,000, enough to drop it from 10th to 11th place in population.
Source: Chief Executive
