First-time home buyer programs in San Antonio

How much you really need

The 20% down myth keeps a lot of people renting longer than they need to. Here's the minimum down payment by loan type:

• VA and USDA: 0% for eligible buyers.
• Conventional: as little as 3% for some buyers.
• FHA: 3.5% with a credit score of 580 or higher.

On a $280,000 home, 3.5% down is $9,800. On top of the down payment, plan for three other costs:

• Closing costs: lender fees, title insurance, the appraisal, and prepaid taxes and insurance. Sellers can often pay part of them.
• Earnest money and the option fee: in Texas you pay these soon after your offer is accepted. Earnest money counts toward your purchase at closing.
• A cushion: some savings left after closing for moving and the first few months.

My closing cost calculator estimates your cash to close, and the affordability calculator shows a comfortable price range. Neither one pulls your credit.

Down payment help I offer: TSAHC

I offer the programs from the Texas State Affordable Housing Corporation (TSAHC), a nonprofit that helps Texans buy homes. They work anywhere in Texas, inside or outside city limits.

• Homes for Texas Heroes: for full-time teachers, police officers, firefighters, EMS personnel, corrections officers, nursing faculty and veterans.
• Home Sweet Texas: the same kind of help for buyers who meet the income limits but aren't in one of those professions.
• How much: up to 5% of your loan for the down payment and closing costs.
• How it comes: as a grant you never repay, or as a second loan that's forgiven after 3 years if you don't sell, refinance or move out.
• Who qualifies: income limits by county and household size, a 620+ credit score on FHA and VA loans or 640+ on conventional, and an approved homebuyer education course.
• Mortgage credit certificate: first-time buyers can add one, worth a federal tax credit of 15% of the mortgage interest you pay each year. It's free when you combine it with TSAHC's down payment help.

On a $280,000 home with 3.5% down, 5% assistance on a loan of about $270,000 is roughly $13,500, enough to cover the down payment and part of the closing costs.

Other programs in San Antonio

The City of San Antonio and the Texas Department of Housing and Community Affairs (TDHCA) also run assistance programs. I don't offer these, but you should know they exist. Each one works only through lenders approved for that program.

How the City's help is forgiven: HIP 80 loans up to $15,000 are forgiven over 5 years, and larger loans, up to $30,000, over 10 years. HIP 120 forgives 75% over 10 years; the other 25% is repaid when you sell, refinance for cash, or transfer the home.

Which program fits you

1. Teacher, first responder, nurse educator or veteran? Homes for Texas Heroes, which I offer.
2. Meet the income limits but not in one of those jobs? Home Sweet Texas, which I also offer.
3. Have the down payment but want lower taxes? A mortgage credit certificate, alone or with TSAHC's help.
4. Buying a lower-priced home inside city limits on a modest income? The City's HIP programs can offer more dollars, but they have tight price limits and you'd need a City-approved lender. If that's your best fit, I'll tell you straight.

Tell me your income, where you want to buy and your price range, and on a free 15-minute call I'll tell you what you'd qualify for.

Your first steps

1. Check your credit. Pull your free reports at AnnualCreditReport.com and dispute anything wrong.
2. Take a homebuyer class early. Most assistance requires one, and it's useful either way.
3. Save for earnest money and the option fee, even if assistance covers your down payment.
4. Get pre-approved. Assistance has to be set up together with your loan, so tell me early if you want to use it.

The six steps from renting to keys on my homepage walk through the rest, from shopping with your agent to closing.