First-time Texas homebuyers get holiday gift: 5.65% loans
Hoping to bring a new meaning to the phrase "home for the holidays" for hundreds of low-to-moderate income Texans, the Texas Department of Housing and Community Affairs (TDHCA) is releasing $132 million in funds through its First Time Homebuyer Program. The funds will be used to create low-interest-rate home loans for qualifying households with interest rates starting as low as 5.65%.

The funds became available Nov. 15 through the program's network of participating lenders. The Department estimates that the funds will assist 1,171 households with the purchase of their first home.

Loans for most of the state will be available in two forms: assisted loans, which come with a grant equal to 5% of the mortgage amount for downpayment and closing cost assistance; and unassisted loans,  with no additional funds. Unassisted loans will feature a very attractive rate of 5.65%, while assisted loans will carry a 6.2% interest rate. Interested Texans should contact TDHCA or a Texas REALTOR®.

Source: Texas Dept. of Housing & Community Affairs; HUD