San Antonio Homeownership Incentive Program | Texas Housi...

San Antonio Homeownership Incentive Program is administered by the local housing department to boost

sustainable homeownership and neighborhood revitalization throughout Texas. The program combines a 30‑year

fixed‑rate mortgage with up to $30,000 0% loan plus free HUD‑approved counseling. Participants may layer

additional benefits such as Mortgage Credit Certificates or USDA Rural Development guarantees to maximize

affordability. Funds are reserved via an online lender portal and disbursed on a first‑come, first‑served

basis. Properties must pass Texas Minimum Property Standards, and rehabilitation escrows are released in draws

after third‑party inspections. Borrowers who purchase ENERGY STAR‑certified homes qualify for a

0.125 percentage‑point rate discount. First‑time buyers may waive the first‑time requirement when purchasing

in targeted census tracts. Forgivable second mortgages are forgiven at 20 percent per year (My Choice Texas

Home, 5‑year term) while deferred second liens carry 0 percent interest until payoff or refinance. Mobile

homes on permanent foundations and condominiums approved by FHA, VA, or Fannie Mae are eligible.

• U.S. citizen, lawful permanent resident, or qualifying non‑citizen.

• Household income ≤ county limits (e.g., $131,100 in Travis County, 2025 for a family of four).

• Purchase price ≤ $481,176 for existing homes or $600,000 for new construction in high‑cost counties.

• Minimum 620 FICO score (680 for conventional loans under Freddie Mac HFA Advantage).

• Combined debt‑to‑income ratio ≤ 50 % (45 % for FHA borrowers below 640 FICO).

• Completion of an approved online or in‑person homebuyer education course (TDHCA “Texas Homebuyer U” or equivalent).

• Owner‑occupancy within 60 days of closing; property cannot be used as a short‑term rental.

• Up to $30,000 0% loan applied toward down payment, closing costs, or principal curtailment.

• Competitive 30‑year fixed interest rate, often 0.25 % below market.

• Option to pair with a $2,000/year MCC for additional tax savings.

• Forgivable or deferred second mortgage structures reduce monthly burden.

• Access to foreclosure‑prevention hotline and disaster recovery grants.

1. Pre‑approval: Select a TDHCA/TSAHC‑participating lender; review credit and income documents.

2. Education: Complete the TDHCA "Texas Homebuyer U" 6‑hour course; upload certificate.

3. Reserve funds: Lender locks rate and requests down‑payment funds via the eHousingPlus portal.

4. Underwriting & appraisal: FHA/VA/USDA or conventional appraisal, compliance review, and title work.

5. Closing: Sign first‑mortgage note and subordinate‑lien documents; assistance wired to title company.

6. Post‑purchase: Occupy home; retain records for recapture tax exemptions; contact housing counselor if hardship arises.