10/17/2024
Texas offers some great Down Payment Assistance (DPA) programs that make it easier for buyers, especially first-time homeowners, to afford a home by lowering or even eliminating the need for a down payment, all while offering competitive interest rates. Now, here's where it gets interesting.
If you’re eligible for a USDA loan, which is designed for rural and suburban buyers, you can get 100% financing—no down payment needed—and the interest rates tend to be lower. That means you could qualify for a lower interest rate than if you were going the conventional route. Pair that with down payment assistance, and you could be looking at an even better deal.
Let’s talk specifics:
USDA Loans: These give you the benefit of no down payment, and they generally have lower interest rates compared to conventional loans. So, if you qualify, this could be a big win.
DPA Programs: Texas has several statewide programs that help with down payments and closing costs. Programs like the TDHCA’s My First Texas Home and TSAHC’s Homes for Texas Heroes offer anywhere from 3% to 5% assistance. The best part? Some of this assistance doesn’t have to be paid back.
Now, here’s the strategy: If you can bring your own down payment, you might qualify for something like a 5.5% interest rate. But if you qualify for a USDA loan, you could lock in a lower rate and still get assistance with closing costs, often resulting in little to no money out of pocket at the closing table. That’s where I come in. I can help you navigate these options/contract negotiations and get you connected to my preferred lenders for the best deal possible—sometimes $0 or very little at closing. Ready to own your own home?
Do you have questions or not sure where to start, text or call me: 903.744.2341
