In an effort to mitigate the problem of foreclosed homes for sale in Austin, TX and in the rest of the state, Texas Department of Housing and Community Affairs (TDHCA) has launched the Texas First Time Homebuyer Program and has released part of the funds for eligible borrowers.
The TDHCA has announced that the state has made available $50 million as part of the first set of funds under the mortgage revenue program designed to help families and individuals who plan to buy homes. The program is also part of a statewide effort to mitigate the problem of Texas foreclosure homes.
The money will be provided as mortgage loans to low income homebuyers to allow them to afford houses of their own. It is also designed to create better neighborhoods and provide economic windfall to the area, state authorities have revealed.
The program has a total budget of $500 million and is the largest financing effort for state homebuyers in the history of the project. The TDHCA has stated that the funds were provided to cope with the expected effects of the expiration of the tax credit initiative launched by the federal government.
The funds are designed to help buyers afford down payment and costs of closing transactions, the two aspects of home buying that are considered the most challenging for low-income home buyers. The monetary injection is expected to also contribute in solving the problem of escalating number of foreclosed homes for sale in Austin, TX and in the rest of the state.
Officials from TDHCA have stated that demand for ownership of residences remains high in the area, with sale of foreclosed homes increasing every month. The project will help provide opportunities even to those who cannot initially afford such residences on their own.
The First Time Homebuyer Program will provide qualified individuals and families with mortgage loans to prevent them from resorting to subprime loans and other troublesome mortgage products. It also aims to lower the number of foreclosed homes for sale in Austin, TX and in the rest of the state by making mortgage payment easier for those who do not have the means to meet high mortgage rates.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.