Episode 62, Segment 4: The SETH 5-Star Texas Advantage Program
John Schutze and Andrew Thurston of Supreme Lending sat down to talk about one of their favorite down payment assistance programs: the Seth 5-Star Texas Advantage Program.
This program provides assistance for homebuyers in the form of a gift and can be used for the borrower’s down payment and closing costs. There are several options of assistance available. Borrowers will select the amount of assistance that best meets their needs and loan product. The actual amount of assistance is based on the final loan amount. The maximum amount of assistance provided is the 6% Grant, which is 6% of the total loan amount.
There is no repayment expected for this grant and no 2nd lien on your home. This program can help reduce your out of pocket expenses and make home ownership easier to achieve!
BORROWER ELIGIBILITY REQUIREMENTS:
-Primary residence, owner occupied.
-Qualifying income of up to 115% of the area median income regardless of family size and is based on the income provided on the 1003. Income limits will be revised approximately December 1st of each year as released by HUD.
- As of 4/11/16, the max income is $89,470 for Austin-Round Rock-San Marcos MSA (Travis, Williamson, Bastrop, Hays and Coldwell counties)
-Minimum credit score of 640 for all Borrowers.
-Maximum Debt to Income (DTI) of 50% for Borrowers with credit scores of 660 and higher. If the score is below 660, the DTI ratio must not exceed 45%.
-No minimum investment required from the Borrower’s own resources.
-Maximum purchase price of $274,050
Bonus: These mortgage loans are not subject to typical bond requirements.
-There is no first-time homebuyer requirement.
-No “federal” recapture.
This program is available for the entire State of Texas with the exception of the following cities: El Paso, Grand Prairie, McKinney, and Travis County. Local Down Payment Programs and MCC Programs may be combined with this program. Buyers do NOT need to be First Time Homebuyers (except when combining this with an MCC program) but must be income-eligible based on the location of the home. Contact a Participating Lender to get started today!