Bond 77 servicer ends participation in Down Payment Assistance for first time home buyers.
The latest news for first time home buyer down payment assistance in Texas is that one program is transitioning to another servicing company. Deadline of December 15th has been moved to October 31st.
If your loan is not registered with TDHCA by Monday October 31st and closed and funded by November 18th you will not receive the bond 77 down payment assistance funds until a the program is re-launched no earlier than November 21, 2011. This information is correct and accurate as of today, Wednesday May 22nd 2013.
Although additional funds have not been allocated to the Bond 77 down payment assistance program funds that were not used in previous allocations have been recycled and will be available when the program re-launches. It is the intent of TDHCA to have as little down time as possible. The importance of down payment assistance to first time home buyers in Texas is key to housing recovery and TDHCA is aware of this and is working to minimize the downtime of this down payment assistance program in Texas.
Bond 77 allotment 15 funds are now exhausted. As noted in my previous post in an effort to lengthen the amount of time that Bond 77 Down Payment assistance is available TDHCA has slashed the amount of down payment assistance available to each buyer by 20%.
The interest rate for the TDHCA Texas down payment assistance for the new allotment #16 is only slightly lower since previous allotments even though market rates have fallen dramatically . The program is rapidly running out of money and is not expected to last much longer. As mentioned above TDHCA says down payment assistance under this program will be temporarily unavailable beginning November 1, 2011. To make sure you are on the list for the next allocation of Texas down payment assistance funds you need to have your current lender register your loan by October 31st and close your loan by November 18th. If you are not working with a lender that can do Texas Down Payment Assistance programs you will want to fill out our online application here as soon as possible before funds are gone. As mentioned on my original post the program will not be re-funded once funds are exhausted. Based on current usage even with the reduced down payment assistance it is estimated that down payment assistance from the state of Texas will be exhausted by the early next year.
If you are already working with another lender you MUST contact them to obtain the assistance. If they cannot do bond 77 we will be happy to assist you and transfer your application to our office. You may start the process by using our online application here.
To qualify for these programs you must be able to qualify for a regular FHA Mortgage. If you cannot qualify and be approved by an approved TDHCA Lender you cannot receive the funds for bond 77. To find out if you qualify you will need to fill out our online application here or simply call our office at the number below and we will be happy to assist you.
Texas Down payment assistance Interest Rates are set in allotments or “LOT”s. Each Bond 77 “lot” is good for a maximum of 90 days. Once Funds are exhausted for a given allotment a borrower must wait for the next allotment to reserve their Texas down payment assistance funds.
If you have specific questions about Income Caps, Purchase price limits or other details of the program in your area call our office at the numbers below and speak to a Mortgage Banker. If you are currently working with another lender on your Bond 77 loan you must transfer your loan to our office before we may assist you.
Here are the revised details and rates for TDHCA Bond 77 Lot 16 or allotment #16
- Loan must now close by 11/18/2011
- “ Lot 16“ now expires on 11/18/2011 – all loans on this program must close by 12/18/2011. Loans that will close after that date will lose their down payment assistance.
- You can find the current interest rate for bond 77 lot 16 by calling our office
- 4% Down Payment Assistance – DPA, DPA is due on sale, Refinance or no longer occupies the primary residence (In other words, the assistance that you receive you must pay back when you sell or refinance the home during a specified time See the details here)
Future Lot Details – TBD