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Zero Down, Zero Closing Costs: A Client Success Story and How it Happened!




"Is it possible to purchase a home without any upfront payment or funds for closing costs?"


Under certain favorable circumstances, yes. Let me guide you through the process. NOTE: Prior to beginning on your home search, it's essential to proactively refine your financial profile by optimizing your credit scores and improving your overall financial health.


First and foremost, let's identify USDA-approved locations, offering the advantage of a zero-down payment opportunity. There are many areas in the state of Texas! Let's see if any of these work for you!


Now, let's delve into the eligibility for Down Payment Assistance (DPA), taking into consideration the specific regulations applicable in Texas. These rules can vary based on your location and individual financial circumstances. DPA programs are designed to provide financial assistance to home buyers, helping to cover the costs associated with the down payment.


The assistance may manifest in various forms such as forgivable grants, second mortgages, or even tax credits. These provisions can help offset expenses like loan origination fees, appraisal costs, title insurance, recording fees, property taxes, homeowners insurance, and prepaid interest.


Across the nation, the standard income cap for eligibility in down payment assistance is roughly $111,000 for households with one to four members. In the Texas region, however, DPA programs follow distinct income limit ranges, often reaching up to $116,000. It's important to note that eligibility is always subject to various factors that are unique to each buyer's individual financial situation.


General eligibility criteria encompass income limits, which vary based on the program, location, and household size. Typically, a credit score in the low to mid-600s is considered, with some flexibility for exceptions. Finally, while there is a primary focus on first-time buyers, there are also options available for repeat buyers, taking into account their home ownership status.


There are several program types available. First, forgivable grants provide down payment assistance, with the repayment typically triggered only if you sell or refinance in the future. Another option is a second mortgage, offering additional funds at lower rates, although it may necessitate monthly payments alongside your primary mortgage. Lastly, there are down payment credits that can lower your taxes and down payment burden through special tax credits.


Here are three well-regarded Texas DPA programs. Firstly, the Texas Homebuyer Down Payment Assistance Program (TH DPA) extends forgivable grants and second mortgages to eligible home buyers throughout the state. The Neighborhood Home Investment Program (HOME) provides grants and loans designed to aid low and moderate-income families in acquiring homes within specific targeted areas. Lastly, the Texas Veterans Home Loan Program (VHLP) offers low-interest rate loans along with down payment assistance tailored for eligible veterans and their families.


In Texas, the FHA (Federal Housing Administration) and VA (Veteran Affairs) loan programs serve as additional avenues, providing the benefit of 0 down payment options for eligible home buyers.


Let me share a real client scenario from the Royse City area. My clients successfully acquired a $350,000 home using a USDA loan with a remarkable 0 down payment. By leveraging the down payment assistance (DPA) program, they covered all closing costs. To their surprise, not only did this ensure a smooth closing process, but it also left them with a check of over $400.00. It made their home purchase truly cost-effective with no out-of-pocket expenses.


If you'd like additional details about USDA locations, whether you're interested in exploring properties or specifically looking into VA or other types of 0 down loans, please feel free to reach out to me or Roan Hernandez. We're here to assist you. You can find all the contact information in our enclosed video. We look forward to helping you!




Amanda Allen, Realtor

GRI-SFC-MRP

(903) 603-0648

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