SPECIALIZED HOUSING PROGRAMS AND

COMMUNITY / MUNICIPAL DOWN

PAYMENT ASSISTANCE PROGRAMS

OVERVIEW

Legacy Financial Group offers access to hundreds of loan programs in the marketplace, many of which are designed specifically for targeted “employment” segments of the population in an effort to provide our country’s valued workers the tools they need to

overcome obstacles in their journey towards homeownership.

TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

The Texas Deparment of Housing and Community Affairs (TDHCA) currently offers one bond program, #70.

The TDHCA Bond Program 70:

• Statewide assisted non-targeted or targeted area (low income) loans with a 5% downpayment assistance and interest rate of 6.2%
• Statewide unassisted non-targeted area loans with no downpayment assistance and interest rate of 5.65%.

TEACHERS / EDUCATORS

(1) Fannie Mae’s “My Community Mortgage”

This program is especially designed for an employee of an accredited or state recognized private or public school; a certified teacher or administrator in an education agency; or an employee of a post-secondary level education institution.

This program allows for:

�� Loans up to 100% for single unit properties

�� Flexibility on credit histories, including acceptance of non-traditional credit history

�� Income-source and limit flexibilities

�� Higher qualifying ratios

�� Flexible guidelines for closing costs and reserves

�� Part-time and overtime income is considered with 12 month history

�� Can be partnered with mortgage revenue bond programs offered by Housing Finance Agencies

 POLICE AND FIRE PROFESSIONALS

(1) Fannie Mae’s “My Community Mortgage”

This program is especially designed for an employee of a law enforcement agency or fire department administered by an agency or subdivision of a state or local government; or a sworn law enforcement officer responsible for crime prevention and detection, law enforcement, or criminal incarceration; or a sworn member of a fire department involved in the fire suppression or prevention, emergency medical response, hazardous materials response, or management or response to terrorism.

This program allows for:

�� Loans up to 100% for single unit properties

�� Flexibility on credit histories, including acceptance of non-traditional credit history

�� Income-source and limit flexibilities

�� Higher qualifying ratios

�� Flexible guidelines for closing costs and reserves

�� Part-time and overtime income is considered with 12 month history

�� Can be partnered with mortgage revenue bond programs offered by Housing Finance Agencies

(2) FHA’s “Officer Next Door” Program

HUD’s Officer Next Door (OND) program is designed to further the goal of making American communities safer by encouraging police officers to buy homes in HUDdesignated Revitalization Areas.  The OND program is open to any full-time, sworn law enforcement officer who is “employed full-time by Federal, state, county or municipal government; or a public or private college or university.” You must be “sworn to uphold, and make arrests for violations of, Federal, state, county, or municipal law.” Your employer must certify that you are a full-time police officer with the general power of arrest.

This program allows for:

�� Qualified buyer may purchase the property at a 50% discount off the list price

�� First time or previous homeowners allowed

�� Property eligible for FHA insurance

�� $100 down payment and all closing costs financed

�� Can use with FHA’s 203K renovation / repair program

�� Primary residency requirement limited to first three years only

�� Single family homes for sale by HUD in revitalization areas

�� “Silent second” lien for the discounted amount of the house

HEALTH CARE PROFESSIONALS

(1) Fannie Mae’s “My Community Mortgage”

This program is especially designed for a certified, accredited, or licensed health care worker who is a medical resident or fellow; a nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, or medical technician, technologist or

therapist.

This program allows for:

�� Loans up to 100% for single unit properties

�� Flexibility on credit histories, including acceptance of non-traditional credit history

�� Income-source and limit flexibilities

�� Higher qualifying ratios

�� Flexible guidelines for closing costs and reserves

�� Part-time and overtime income is considered with 12 month history

�� Can be partnered with mortgage revenue bond programs offered by Housing Finance Agencies

MILITARY PERSONNEL AND ELIGIBLE VETERANS

(1) Veterans Administration

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other types of mortgage loans. For VA housing loan purposes, the term “veteran” includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.

Some of the benefits of the VA loan include:

�� Equal opportunity provided to all veterans without regard to race, color, religion, sex, handicap, familial status or national origin

�� Zero down payment option

�� Negotiable fixed and adjustable interest rate options competitive with conventional mortgages

�� Limitations on buyer’s closing costs

�� Seller contributions allowed up to 4% of the sales price

�� Assumable mortgage to qualified buyers

�� No prepayment penalty

�� Home warranty requirements for new construction

�� Forbearance extended to worthy VA homeowners experiencing financial difficulty

�� Can be used in conjunction with other subsidy assistance or down payment assistance programs

(2) Texas Veterans Land Board

The Texas Veterans Land Board (TVLB) offers its Veterans Housing Assistance Program (VHAP) to provide financing up to $240,000 toward the purchase of a home to qualified Texas veterans.

Some of the requirements are:

�� TVLB will guarantee the interest rate up to $240,000, usually discounted below current market rates by about 0.375-0.50% subject to certain conditions

�� The VHAP must be originated in conjunction with FHA, VA or conventional financing

�� For use for purchase transaction only

�� For use with 15, 20, 25 or 30 year terms

�� Escrows required

�� Co-signers or guarantors accepted under certain conditions

�� Two-notes allowed for financing over $240,000 under certain conditions

CITY OF ARLINGTON

The City of Arlington has two primary down payment assistance programs for qualified applicants.

�� Arlington Homebuyers’ Assistance Program (AHAP)

�� Arlington Housing Finance Corporation (HFC) Mortgage Revenue Bond Arlington Homebuyers’ Assistance Program (AHAP) provides down payment and closing cost assistance to low and moderate-income homebuyers. 

Arlington HAP program allows for:

�� $5000 forgivable loan for down payment and closing cost assistance

�� $10,000 in assistance is available in designated revitalization areas

�� 0% interest deferred payment fully forgiven after 5 years

�� First time homebuyer requirements apply

�� Income and asset limits apply

�� Property must be for owner-occupancy and located within the City of Arlington

�� Must work with approved participating lender

�� HUD certified homebuyer counseling required

�� City inspections required and property must meet HQS standards

The Arlington Housing Finance Corporation is a not-for-profit corporation created by the City of Arlington and incorporated in August 1991. The mission of the AHFC is “to provide residents of our community with low to moderate-income with the opportunity to obtain cost effective housing with the City of Arlington.”

Arlington HFC Bond Program allows for:

�� 4% grant assistance for down payment or closing costs

�� Affordable interest rate and term of 28 years to be used on conjunction with FHA, VA, and conventional underwriting

�� Purchase of new or existing owner-occupied, single family houses, townhouses and condominiums within the City of Arlington

�� Purchase price limitations apply

�� Income limitations apply

�� Must work with approved participating lender

TARRANT COUNTY HOUSING PARTNERSHIP

The mission of Tarrant County Housing Partnership (TCHP) is to revitalize distressed neighborhoods in Tarrant County and increase the amount of decent, safe, and affordable housing available to low and moderate-income families and individuals with special housing needs.

TCHP has several homebuyer programs including:

�� Down payment and closing cost assistance available in Tarrant County and Arlington outside the city limits of Fort Worth

�� ADA Barrier Removal Program offered to disabled individuals or families who have a disabled member living in the household

�� Free HUD-certified counseling services for Credit Counseling, Pre-Purchase Counseling, Homeownership Certificates, Budget Counseling, Homebuyer Orientations and Workshops

�� Acquisition / Rehab / Resale Program to purchase homes from HUD at a discount and rehab and resale at reduced prices to qualified buyers

�� New Construction Program to build new homes at reduced prices and then pass along the reduced cost to qualified buyers

Currently, TCHP is developing 9 single family lots in the heart of Arlington. Toliver Acres is located on Peach Street just west of Collins Street. Houses range from 1,500-1,800 square feet and are priced between $107,000 - $117,000. Qualified buyers can

receive up to $10,000 in down payment and closing cost assistance.

CITY OF FORT WORTH

The City of Fort Worth’s Homebuyers’ Assistance Program (HAP) provides low to moderate-income families affordable homeownership opportunities. 

The City of Fort Worth HAP provides a range of down payment and closing cost assistance:

�� $3,000 in Closing Cost Assistance (CCA)

�� $8,500 in down payment and closing cost assistance in non-targeted areas

�� $14,999 in down payment and closing cost assistance in targeted areas / model blocks

The City of Fort Worth HAP program allows for:

�� Forgivable loan for down payment and closing cost assistance

�� $10,000 in assistance is available in designated revitalization areas

�� 0% interest deferred payment

�� First time homebuyer requirements apply

�� Income, asset and qualifying ratios apply

�� Property must be for owner-occupancy and located within the City of Fort Worth

�� Must work with approved participating lender

�� HUD certified homebuyer counseling required

�� City inspections required and property must meet HQS standards

MORTGAGE REVENUE BONDS

Single Family Mortgage Revenue Bond programs are available in the surrounding areas and municipalities as well as throughout the state. Typically, the bond program allows for a percentage of down payment assistance (in the 4 to 5 percent range based on the actual total loan amount) while assigning a specific term and interest rate to the note for the use of the monies.

Some of the current available Mortgage Revenue Bond programs are offered for the following cities and counties:

�� Arlington

�� Collin

�� Dallas

�� Denton

�� Garland

�� Tarrant

Funds are subject to availability and applicants must meet certain criteria as it relates to:

�� Household income

�� 1st Time Homebuyer status

�� Overall loan qualification for standard FHA, VA, and conventional underwriting

�� These monies can be used in conjunction with other down payment assistance programs

TEXAS STATE AFFORDABLE HOUSING CORPORATION

The Texas State Affordable Housing Corporation (TSAHC) offers its Single Family Mortgage Revenue Bond program to professional educators, firefighters and police officers employed throughout the State of Texas. The program was created to

acknowledge firefighters, police officers, and professional educators for their commitment to their respective professions and their contributions to the safety, welfare and future of all Texans; and to provide an incentive to continue in their noble professions by helping them achieve their goal of homeownership.

Funds are subject to availability on a first-come, first-serve basis and applicants must meet certain criteria as it relates to:

�� Professional employment criteria

�� Income

�� Price of home to be purchased

�� Lender’s underwriting criteria

�� Homeownership status

�� Residency

�� Household income per geographic region

Other program terms include:

�� 5% down payment and closing cost assistance based on the total loan amount

�� 30 year term

�� Fixed rate

�� 1st Time Homebuyer requirements apply

�� No minimum requirements for length of time on job

If you are interested in obtaining additional information about homebuyer assistance programs and/or scheduling Homebuyer Education training and seminars for your employees, group or organization, please contact us at info@legacyfinancial.com.