By Sue Martin
Coldwell Banker Myers-Gallagher
361-758-7534

As first time home buyers, we recognize the sacrifices you make in an effort to save enough money to not only make a down payment on a home, but meet the total amount necessary to actually close on your desired home loan. For some, it just seems impossible!
Unfortunately, many eligible future home buyers simply have no idea where to turn to get real home buyer grant money that helps meet down payment assistance requirements and in many instances, money that helps with all the costs to close on that mortgage loan. Your success will very much depend upon your Lender, Broker, Banker.
Charity Not-For-Profit Home Buyer Assistance
There are two types of down payment assistance. The first type is from Charity/Not-For-Profit 501c3 organizations, does not require you to be a first time home buyer, and is based upon certain critical factors relating to seller contributions.
Seller contributions? What do we mean by this? Basically, the seller must agree to make a donation to the organization equal to the amount being gifted by them at closing. (Less a small administrative fee).
What occurs is basically an "an exchange of paper", with a seller making a contribution for a dollar amount that is deducted from the sellers proceeds. These funds are later wired to the Not-For-Profit 501c3 as a donation. Don't be fooled by 501c3 organizations that call funds grants.
This program allows thousands of people to close on their home loans every month. There are absolutely no income restrictions, no housing price caps and no restrictions on prior home ownership. Is this legal? Absolutely! As long as the process is done correctly, you can't go wrong.
This is why, if using this system, you really need an experienced Lender/Broker/Banker Representative and Real Estate Professional to correctly facilitate the contracted purchase and funding of YOUR home loan!

First Time Home Buyer Grants
Government Grants for first time home buyers, make up the second type of down payment assistance. They have no seller conditions or contribution requirements. The only requirement to satisfy government assistance housing guidelines is that your family income must meet the stipulated minimum, which varies according to the number of your dependents and the median income for the area in which you intend to purchase. (Grants for the State of Texas are listed below)
The higher your income means the greater number of dependents that are needed to qualify for the maximum amount of home buyer grant assistance. Since median income varies by area, there are many programs designed to fit the area you reside in. There may be 3, 4 or 5 different programs available! The great part is, if they don't use the funds, they risk losing them in the following funding year!!
These government downpayment programs are typically done in the form of "Silent Seconds". This means there is no monthly payment, no interest is charged, accrued or paid and why we say "Free Money". The funds sit as a second mortgage on the home until the house is either sold (whereby the funds are repaid) or forgiven by the government (typically 5 to 15 years).
Some down payment assistance programs actually require the funds to be repaid in the form of a monthly payment. This repayment becomes part of the qualifying process for the initial mortgage loan.
Why use them? Typically, it's free money! There is no better reason than that!
Now, for the most important question, how do you qualify? Well, it's pretty simple. The number one qualifying factor is income. You must meet the median income requirements established for your area. Then, you must be able to qualify and be approved for a low interest mortgage loan, and as a first time home buyer, you cannot have owned a home within the last three years. Your approval for a government assistance loan is almost assured if you can meet these three criteria.
Typical Disqualifications:
• Excessive Income
• Default on a Government Loan
• Tax Liens
• Bankruptcy discharge not 24 months old
• Unpaid Child Support
• Prior Foreclosure
• The Home Buyer has owned a home within the last three years.
For detailed information on down payment assistance in our area check out the following websites.
www.tdhca.state.tx.us
www.rurdev.usda.gov
www.glo.state.tx.us

For more information about purchasing homes in the Coastal Bend, I invite you to talk to a local Realtor at Coldwell Banker Myers-Gallagher. 361-758-7534, info@texascoastproperty.com, www.texascoastproperty.com