1 Guidelines for Down Payment Assistance (Bond and Non-Bond) and mortgage Credit Certificates Revised: April 29, 2021. Texas State Affordable Housing Corporation website: 6701 Shirley Ave toll-free phone: 888-638-3555. Austin, TX 78752 social media: TSAHC Program Guidelines for Homeownership Programs Disclaimer: The Texas State Affordable Housing Corporation (TSAHC) provides these Program Guidelines (these Guidelines ) as a service to its participating lenders ( Lenders ). While TSAHC. strives to make the information in these Guidelines as accurate as possible, we make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of these Guidelines .
2 TSAHC. expressly disclaims liability for errors and omissions in the contents of these Guidelines related to the eligibility and underwriting requirements of Lakeview Loan Servicing, LLC, Fannie Mae, Freddie Mac, FHA, USDA-RHS, and/or VA. For those requirements, Lenders should rely on their agreements with, and Guidelines published by, the relevant entity. Revisions Table. Section Page Description of Revisions Date Revised to reflect Lakeview Loan Servicing, LLC ( Lakeview ), as Various - 3/20/2017. master servicer for the Programs. Clarified process for requesting rate lock extensions and fees for 22-25 3/30/2017.
3 Same 22-25 Post-Closing package due within five (5) calendar days of closing 4/06/2017. 19-20 FHA Manual Underwrite 640 FICO Minimum 4/19/2017. Added active military to veteran definition in reference to Homes 5-8 1/15/2018. for Texas Heroes Revised rental history requirement for first-time home buyers 9-10 1/15/2018. using MCC. Clarification of Texas resident requirement for the Homes for Texas 10-11 1/15/2018. Heroes program Clarification of cosigner and non-occupying co-borrower 20 1/15/2018. requirements 22 Revised down Payment Assistance funding process 1/15/2018. 14-17, , Addition of manufactured housing to eligible property types 5/01/2018.
4 19-20. 9-10 Clarification for using TSAHC Assistance multiple times 5/01/2018. Clarified veteran definition in reference to waiving first-time home , 5-8, 9-10 5/01/2018. buyer requirement for mortgage Credit Certificate Revised completion by at least one borrower of home buyer 11 5/05/2018. education course 12-14, 19- Introducing TSAHC's new soft second lien down Payment , , 8/20/2018. 20, 22-25 Assistance 12-14 Clarified soft second lien repayment requirement 8/29/2018. 12-14 Revised MCC credit rate from 40% to 30% 2/04/2019. 14 Clarified usage of additional subsidy 2/04/2019. Revised MCC credit rate from 30% to 20% and removed $2,000.
5 12-14 2/27/2019. max credit Various - Added Bond DPA-related provisions 4/03/2019. Added HFA Preferred PLUS product including additional second Various - 4/03/2019. lien options Various - Clarified changes to the HFA Preferred PLUS product 9/05/2019. Revised Texas State Affordable Housing Corporation Page 2 of 36. TSAHC Program Guidelines for Homeownership Programs Added back the option to combine the MCC to the HFA Preferred 11-12 9/05/2019. Conventional DPA. 9-10 Revised rental history requirement for first-time home buyers 10/01/2019. Eliminated TSAHC's grant and soft second lien for use with Various - 11/29/2019.
6 Conventional loan types 12-14, 19- Introducing TSAHC's new 3-year Deferred Forgivable Second Lien , , 12/02/2019. 20, 22-25 for all loan types Now accepting Freddie Mac HFA Advantage with LPA AUS up to 19-20 12/02/2019. 115% AMFI. 19-20 Fannie Mae HFA Preferred Conventional limited to < 80% AMFI 12/02/2019. Cosigners or non-occupying co-borrowers are now permitted on 20 12/02/2019. all government loans Clarified cosigners or non-occupying co-borrowers are not 20 2/03/2020. permitted on conventional 9-10 Changed IRS printouts to read IRS transcripts 2/03/2020. Now accepting Fannie Mae HFA Preferred Conventional up to 19-20 2/03/2020.
7 115% AMFI. In response to the COVID-19 pandemic, the following interim guidance will be effective with all locks on or after May 4,2020, the 19-20 5/04/2020. minimum FICO score for FHA, VA and USDA products is 700 when the DTI is >45%. 12-14 Clarified that the DPA is based on TOTAL loan amount 9/2/2020. 12-14 Clarified that a principal reduction is acceptable use of DPA 9/2/2020. Clarified only occupying borrowers and non-purchasing spouses 20 4/15/2021. (NPS) may have an ownership interest in the subject property 7,2 24 Update to reservation extension fees 4/15/2021. Removed the minimum 700 FICO score when the DTI is >45% for 19 FHA, VA and USDA products effective with new reservations April 4/29/2021.
8 29, 2021. Revised Texas State Affordable Housing Corporation Page 3 of 36. TSAHC Program Guidelines for Homeownership Programs Table of Contents. Revisions Table SECTION 1 - INTRODUCTION TO THE TSAHC HOMEOWNERSHIP PROGRAMS. General SECTION 2 MORTGAGOR ELIGIBILITY. Eligible Borrowers Income Limitation First-Time Home Buyer Requirement New mortgage Requirement/No Refinancing Principal Residence Requirement Residency Requirements Home Buyer Education SECTION 3 LOAN ELIGIBILITY. Types of Loans Purpose of Loan Assistance Options Non-Bond DPA (with or without MCC), Bond DPA or MCC Only Using Additional Subsidy Programs mortgage Subsidy Recapture Tax SECTION 4 PROPERTY ELIGIBILITY.
9 Eligible Loan Area Qualifying Residences and mortgage Loans Purchase Price Limitation Targeted Areas SECTION 5 mortgage LOAN UNDERWRITING AND PURCHASE. General mortgage Underwriting Cosigners and Non-Occupant Co-Borrowers SECTION 6 PROGRAM FEES AND CHARGES. Program Fees Lender Compensation Fees and Charges on the Closing Disclosure SECTION 7 LOAN RESERVATION, COMPLIANCE & FUNDING PROCEDURES. Lender Portal Reservation, Compliance and Closing Steps Electronic Submission of Required Documents SECTION 8 MODIFICATIONS. Changes in Current Income Change in Purchase Price Changes in Property Address Change in Loan Amount Lender's Obligation to Notify TSAHC of Material Changes SECTION 9 ADDITIONAL PROVISIONS.
10 Cancellation and Commitment Expirations Delinquent Closing Documentation Penalties for Borrower Misrepresentation Revocations of MCC. Reissued MCCs Replacement MCCs SECTION 10 MCC REPORTING. Lender Record Keeping and Federal Report Filing TSAHC Reports APPENDIX: INCOME Guidelines FOR BORROWERS RECEIVING BOND DPA OR MCCs Revised Texas State Affordable Housing Corporation Page 4 of 36. TSAHC Program Guidelines for Homeownership Programs Section 1 - Introduction to the TSAHC Homeownership Programs. General The Texas State Affordable Housing Corporation (TSAHC) provides (1) fixed-rate mortgage loans with down Payment Assistance (DPA) to qualified mortgagors, and (2) mortgage credit certificates (MCCs) to qualified mortgagors.