Amongst the several government loan programs in Texas, the Single Family Home Loan is a program that assists approved lenders to provide moderate to low income households purchase a home in a rural area. However, like most of the government loan programs in Texas, this program too has its own set of requirements that one must meet in order to be considered eligible for the loan.
Since this loan program provides a loan guarantee of 90% to the lender, it reduces their risk thereby making the whole process a lot easier on the homebuyer.
In order for a homebuyer to avail a loan through this program, one must meet the certain requirements that are set by the department which includes:
- An important requirement is that the applicant must be a U.S. citizen, a U.S. non-citizen national or a Qualified Alien
- The applicant must meet the income eligibility requirements
- The applicant must agree to occupy the home as their primary residence personally
- The applicant needs to have the legal capacity to meet the loan obligation
- The property that the applicant purchases must meet the program criteria
- The applicant must be able to meet the credit obligations and make timely payments
- The applicant must not be debarred from participating in a federal program
The funds through this loan program guarantees can be used for the following:
- An existing or new residential property for use as a permanent residence
- To refinance eligible loans
- A site with existing or new dwelling
- Installation or purchase of energy efficiency measures
- Site preparation costs, including plantings, seeding or sod installation, trees, fences and driveways and fences
- Purchase of household equipments that are essential such as ovens, heating and cooling equipment, wall-to-wall carpeting, refrigerators, washers, dryer, etc
The application process for this program is relatively simple and to apply, and all the applicant needs to do is contact an approved mortgage lender.
Joan Gallardo with his 18+ years of experience as Senior Loan Officer is a wealth of knowledge dealing with different Government loan programs in Texas. Read his articles to know about the specific requirements and eligibility criteria for Government loan programs in Texas.