Making Homeownership a Reality in Texas

Making Homeownership a Reality in Texas

The Southeast Texas Housing Finance Corporation (SETH) understands the financial hurdles that can prevent aspiring homeowners from realizing their dreams. While many can manage monthly mortgage payments, the upfront costs, including the down payment and closing expenses, can be daunting. To address this challenge, SETH has launched the Homeownership Across Texas (HAT) Program, offering eligible homebuyers valuable down payment and closing cost assistance in the form of a grant.

The primary goal of the HAT Program is to provide financial support to qualified applicants looking to purchase a home. These funds can alleviate the burden of upfront expenses associated with homeownership, enabling individuals and families to transition from renting to owning a home, a significant step towards financial stability.

The program offers a grant of 5 percent of the loan amount for homebuyers financing their purchase with an FHA, VA, or USDA home loan. If opting for a conventional mortgage, borrowers still receive a generous 3 percent grant. What sets the HAT Program apart is that this grant comes with no repayment or recapture requirements, and there is no prerequisite for applicants to be first-time homebuyers.

Eligibility Criteria: To qualify for the HAT Program, applicants must meet specific income limits that vary by county. These limits ensure that the program effectively assists those who need it most.

All borrowers must secure a mortgage loan through a participating program lender. Whether it’s an FHA, VA, USDA, or conventional mortgage with a fixed interest rate, as long as it meets these criteria, it qualifies for the HAT Program. Adjustable rate mortgages, however, do not qualify.

Property Guidelines: The property being purchased must be situated within the state of Texas but outside the city limits of El Paso, Grand Prairie, and McKinney, as well as Travis County.

While there is no strict requirement for applicants to be first-time homebuyers, the purchased property must serve as their primary residence. Secondary homes or investment properties do not qualify under the HAT Program.

Homebuyer Education: To equip applicants with the knowledge and skills necessary for successful homeownership, all borrowers named on the mortgage must complete the SETH Homebuyer Education Class, which is conveniently available online.

The Homeownership Across Texas (HAT) Program by SETH is a crucial initiative aimed at helping potential homeowners bridge the financial gap that often stands in the way of their homeownership aspirations. By offering grants that alleviate the burden of down payments and closing costs, SETH is making homeownership more accessible and achievable for individuals and families across the state of Texas.

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