The Carvajal Group Blog

How to buy a home with 0% down in Austin, Texas!

January 23rd, 2012

There were many 0% down programs before the financial crisis.  Many of these programs have been abolished in the wake of financial and mortgage reform.  However,  qualifying borrowers can still purchase a home with little or no money down.  Some specific programs and basic qualifying criteria are outlined below.  The first step in anyone’s Austin home search should be talking to a lender and getting pre-approved for a mortgage.

Capital Area Bond

  • 3.49% rate, 30 year fixed loan
  • 4% Down Payment assistance grant can be used for down payment and/or closing costs
  • Household Income limits $74,900(1-2 people) or $86,135(3 or more people)
  • Must be 1st time home buyer or eligible Veteran
  • close by April 2, 2012
  • Property in Williamson, Bastrop, Caldwelll, or Hay county
  • Minimum Credit Score of 600
TDHCA Bond 77
  • 3.95% rate with 4% down payment assistance
  • 3.35% unassisted
  • Household income limits $74,900(1-2 people) $86,135(3 or more)
  • Purchase Price limit $263,164
  • State of Texas
  • Must be 1st time buyer or eligible veteran
  • FHA, VA, or USDA loans(no conventional
  • with $10,000 down payment assistance, Debt to Income ratio may not exceed 45%
  • Minimum credit score of 620
Standard City of Austin Down Payment assistance

 

  • 80% of house hold  median income ( see table at right)
  • Up to $10,000 10 year deferred forgivable 0% interest loan
  • Loan is forgiven if borrower does not sell or transfer title for 10 years!
  • Need based:  loan “bridges the  financial gap” for borrowers 
  • within Austin city limits
  • first time home buyer
  • purchase price under FHA loan limits
  • single family home, townhome, or condo
Shared Equity City of Austin Dow Payment Assistance
  • Same criteria as standard plus the following
  • Up to $40,000 in deferred, 0% loan for 30 years
  • not forgivable
  • 1997 or newer construction
  • borrower pays back loan amount plus percentage of equity when selling or transferring title
  • when selling, borrower gives AHFC the first right to purchase the property at market rate
  • Program flyer available here.
100% financing options are clearly not as prevalent as they were 5 years ago, but there are still several programs designed to make the dream of home ownership a reality for certain buyers.  These programs are designed primarily for first time buyers in Austin  who intend to live in the house they are purchasing.  To begin your Austin home search or to be referred to a lender who is experienced in the Down Payment Assistance Programs, please contact the Carvajal Group today at (512)496-0215.

Tags: Austin Home Search · Austin Living · Austin Real Estate · Buying a home in Austin · Uncategorized