Author Topic: Texas - Free Money for Downpayment (2% gift program, 1% down)  (Read 1004 times)

alwayslearning

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Texas - Free Money for Downpayment (2% gift program, 1% down)
« on: January 25, 2018, 08:49:15 AM »
Hello fellow mustachians!

I've been an investor/mustachian for 5 years now and love this forum! I'm a loan officer in Austin and wanted to share a program that my company has that gives primary residence borrowers 2% down for home purchases. They don't have to be first time homebuyers, but it does have to be their primary residence. Their credit score has to be 680 or better and there are some income requirements in certain areas. But, under this program, people who are buying 300k properties in the area are getting a 6k gift for down payment (no payback requirements at all). Kind of amazing! Hope this helps someone on the forum trying to purchase a home!

I truly just want to help, so if anyone has any questions or thinks they may benefit from the program, message me!

the_fella

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #1 on: January 25, 2018, 07:36:54 PM »
Does a multi-unit building count, assuming you live in one of the units?

Another Reader

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #2 on: January 25, 2018, 09:04:47 PM »
Where is the money originating?  Is it a government program?  Or is your company kicking in two percent in exchange for a higher interest rate?

alwayslearning

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #3 on: January 26, 2018, 08:07:12 AM »
Does a multi-unit building count, assuming you live in one of the units?

Unfortunately, it has to be a SFR (single family residence). I know! I thought about house hacking with it, but it can only be 1 unit. :/

alwayslearning

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #4 on: January 26, 2018, 08:12:54 AM »
Where is the money originating?  Is it a government program?  Or is your company kicking in two percent in exchange for a higher interest rate?

Our company is subsidizing the cost of the program and is NOT increasing the borrower's interest rate to fund the cost of the down payment gift. The rates are actually really competitive in the market. I personally wouldn't promote it if it was charging the client more money.

CheapskateWife

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #5 on: January 26, 2018, 08:50:52 AM »
Does your program work for a refi? 

alwayslearning

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #6 on: January 29, 2018, 10:24:43 AM »
No, sorry. It's only for a purchase to help with a down payment.

jc4

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #7 on: January 31, 2018, 10:57:57 AM »
1. Do you have to live in Texas.
2. Do you have to put 1% down. Can you put down 18% plus 2% gift and get a conventional loan with no PMI?

alwayslearning

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #8 on: February 01, 2018, 09:00:16 AM »
1. Do you have to live in Texas.
2. Do you have to put 1% down. Can you put down 18% plus 2% gift and get a conventional loan with no PMI?

Good questions!
1. You don't have to live in Texas, but you do have to buy in Texas.
2. Unfortunately, the min LTV (Loan to Value) is 95%, so you can put down 3% and get the 2% gift or 1% and get a 2% gift, but not 18% and get a 2% gift. The program was designed to help people purchase homes that weren't able to make a large down payment.

surfer349

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Re: Texas - Free Money for Downpayment (2% gift program, 1% down)
« Reply #9 on: May 14, 2018, 02:13:00 PM »
bumping this post.  is this stilll an active thing?