Program Overview

In an effort to monetize the $8,000 tax credit and to assist borrowers with down-payment and closing costs, TDHCA created the 90-Day Down Payment Assistance Program.

TDHCA has the authority to offer tax credit advances with second liens. The 90-Day Down Payment Program may be used with FHA 15 & 30-year fixed-rate, first-lien mortgage loans.

Subordinate DPA Funds and Terms

Funds Available:   $5 Million, First come First Served

Amount of Assistance Available:   5% of the total mortgage amount including MIP up to a maximum of $7,000

First 90 Days:   0% Interest Rate (encourage borrowers to payoff 2nd lien with tax credit refund). Thereafter, 2-Year term at 10% interest rate, Max CLTV 100%.

Credit: Min credit score of 620 is required.

Qualified and Eligible Borrowers

  • Borrowers must meet the federal first-time homebuyer requirements
  • First-time homebuyers must be purchasing a home – new or resale that will be used as a principal residence.  Includes: single-family detached homes, attached homes such as townhomes & condominiums.
  • First-time homebuyer is a buyer who has not owned a principal residence during the 3 year period prior to the purchase.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
  • Home purchase must occur on or after 01/01/09 and before 12/01/09.  The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.
  • Income limit for single taxpayers is $75K; the limit is $150K for married taxpayers filing a joint return.

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