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How To Get A Homes For Heroes Loan In Texas

November 2, 2022 | By Reef Merhi
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Are you a hero? Chances are, you might be surprised to find out that you are. The Homes for Heroes program is designed to help everyday heroes save money when they buy, sell or refinance a home. Whether you are a police officer, firefighter, nurse, or teacher, you could qualify for special benefits through this unique program.

Read on to learn more about who qualifies as a hero and what they can save using this program for the homebuying process. We will also give an overview of the Texas Department of Housing and Community Affairs' assistance programs and Texas State Affordable Housing Corporation's Homes for Texas Heroes Program and how it can benefit you. So whether you are ready to buy your dream home or are just doing some research, stay tuned!

What Is Homes For Heroes?

The Homes for Heroes program was created in 2009 to help those who serve our country and communities. How does it work? Homes for Heroes affiliated real estate agents and mortgage loan officers donate a portion of their income from working with “hero clients” to the Homes for Heroes Foundation. These funds are used to provide grants and scholarships to help heroes achieve their dreams of homeownership, higher education, and more.

It’s all part of a Circle of Giving. You see, when heroes buy or sell a home using Homes for Heroes, they also help other heroes in need. That’s because Homes for Heroes, Inc. donates a portion of its earnings back to the Homes for Heroes Foundation. And the cycle continues!

In addition to the Homes for Heroes Foundation, many states have their own programs that offer special benefits to heroes. One of these is the Texas Department of Housing and Community Affairs' (TDHCA) Homes for Texas Heroes Program.

-Who qualifies as a hero?

There are so many community heroes. Are you one of them? Qualifying here positions include current and former firefighters, paramedics, EMTs, law enforcement, and other first responders. 

Additionally, all ranks of active military, reserves, and veterans of the U.S. Army, Navy, Air Force, Marine Corps, and Coast Guard qualify. Medical personnel, including all nurses, doctors, and many other healthcare professionals, are heroes, as well. Also, Pre-K, elementary, secondary, and post-secondary educators, teachers, professors, and education administrative staff. Even this list isn’t comprehensive, so you can always reach out if you think you may qualify!

What is the Texas Hero Home Buying Program?

The Homes for Texas Heroes Home Loan Program provides a 30-year fixed-rate mortgage loan to eligible first-time homebuyers wishing to achieve the American dream of homeownership. In addition to a low-interest rate, these programs offer down payment and closing cost assistance in the form of a grant.

Lowering your amount of annual interest paid through this program can also help keep your monthly mortgage payment affordable. There are a variety of assistance funds to help low-income families, as well.

To qualify for this program, you must have a credit score of 620 and meet certain income requirements. If you don’t meet these requirements, you may still be eligible for the Home Sweet Texas Home Program, which also offers home-buying assistance to Texans who don’t qualify under the heroes program. 

If you find that you do qualify, Texas State Affordable Housing Corporation (TSAHC), which administers this program, will provide you with a mortgage loan and funding to use for your down payment. TSAHC was created in 1994 as a self-sustaining nonprofit housing organization. You can opt to receive the down payment assistance either as a grant that does not have to be repaid or a deferred forgivable second lien loan. You would only have to repay the second lien loan if you sell or refinance within three years.

Texas Department of Housing and Community Affairs

The Texas Department of Housing and Community Affairs (TDHCA) is the state agency offering additional homebuyer assistance programs. This includes the Homebuyer Assistance with New Construction or Rehabilitation (HANC) program, Texas Bootstrap Loan Program, My First Texas Home (MFTH) program, and others. 

What Does the Homes for Texas Heroes Program Offer?

Let’s get to the good stuff. What are the benefits of the Homes for Texas Heroes program?

-What can a hero typically save?

Heroes can typically save thousands of dollars when they buy, sell or refinance a home through the Homes for Heroes program or the Homes for Texas Heroes program.

On average, heroes save $3,000 when they buy or sell a home with Homes for Heroes. The Homes for Texas Heroes Program can save you thousands of dollars over the life of the loan by locking in lower interest rates plus providing funding to cover the down payment. 

-Is there down payment assistance?

Yes! The Homes for Texas Heroes program offers down payment and closing cost assistance to eligible heroes. The Homes for Heroes program doesn’t include down payment assistance, but when you work with a Home for Heroes real estate specialist to buy a house, you can save 0.7% of the home purchase price ($700 on every $100,000). After closing on a house, Homes for Heroes will send you a check!

-Is there closing cost assistance?

Yes! The Homes for Texas Heroes program offers both down payment and closing cost assistance to eligible heroes. Closing cost fees can make homebuying prohibitive for some, but assistance programs make purchasing a primary residence much more attainable!

-What if I am already working with an agent or loan officer?

If you are already working with an agent or loan officer, you can still participate in the Homes for Heroes program. Just ask your agent or loan officer if they are affiliated with the program. If not, you can search for participating Homes for Heroes agents and loan officers on the homes for heroes website.

Texas United Mortgage proudly helps eligible applicants and Texas residents obtain homeownership. Our loan officers are well-versed in the various Texas home-buying programs and can help you make the best decision to save money and purchase your dream home. 

-What if I'm not ready to buy, sell or refinance?

If you are not ready to buy, sell or refinance right now, you can still sign up with Homes for Heroes. When you're ready, a program affiliate will be there to help you achieve your homeownership goals.

Check Your Eligibility

Are you curious if you qualify for the Homes for Heroes or Homes for Texas Heroes programs? The best way to find out is to check your eligibility online. All you need is your name, email address, and zip code. Once you enter your information, you will be able to see if you qualify for benefits.

-What if I have credit issues?

If you have credit issues, don't worry! The Homes for Heroes program can still help you achieve your homeownership goals. You might even meet more minimum credit score requirements than you think! Just ask your homes for heroes affiliate about what options are available to you.

Bottom Line

Homes for Heroes, Homes for Texas Heroes, and many other TDHCA programs offer great opportunities for those who serve our country and communities to access financial assistance and save money when buying, selling, or refinancing a home. If you are a hero, make sure to check your eligibility and take advantage of this program. Reach out to one of our experienced loan officers today to get started!

 

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