Buy A Home ZERO DOWN.

By Troy Corman, t2realestate.com

This is no late-night infomercial. I must admit I'm truly skeptical when I hear something that sounds too good to be true. But the Texas "Bond 77" Program, when combined with a seller paying all of a buyer's closing costs (up to 6% on FHA loans), a home buyer can now buy a home with ZERO OUT OF POCKET.

Act quickly, however as the FHA has announced IT WILL REDUCE SELLER PAID CLOSING COSTS FROM 6% TO 3% THIS SUMMER.

The Texas Bond 77 Down Payment Assistance program was formed by our state, following the expiration of the home buyer tax credit. It appears to be off the radar at the moment, but that could change quickly. Texas has pledged $500 million ($50 million a month) statewide to assist 1st-time home buyers with down payment funds, or lower interest rates, that meet certain requirements.

This program is only available for owner occupied single-family homes. And it's available on a first-come, first-serve basis.

All areas are available for the program but "targeted areas" where median incomes are lower, have greater incentives for both first-time and repeat home buyers - and in the Bond 77 targeted areas, the 1st-time home buyer requirement is waived.

A "first-time home buyer" is defined as someone who has not owned a home in the past three years.

Bond 77 Limits For All Texas Homes:
 - Maximum Income of 1-2 persons = $73,300
 - Maximum Income of 3+ persons = $84,295
 - Maximum purchase price: $258,690 (ONLY 1ST-TIME HOME BUYERS ARE ELIGIBLE)

Bond 77 Income Limits For TARGETED AREAS:
- Targeted areas: Maximum Income of 1-2 persons = $87,960
- Maximum Income of 3+ persons = $102,620
- Maximum purchase price: $316,177

The Bond 77 Program is for SINGLE FAMILY HOMES (owner-occupant) only. Rental homes, investment homes and multifamily homes do not qualify for the down payment assistance program.

Down Payment assistance is in the form of a "silent" 2nd lien which means there is no interest, no payments, but when you sell the home you must pay the amount back. If you live in the home for 30 years, the loan "balloons" at that time, which means the entire amount is due.

Also, if you refinance the home, or convert it to a rental you must pay back the down payment assistance amount at that time.

A home buyer education course is required for home buyers who wish to qualify for the program. Many are online and take about an hour to complete.

For further details, or maps of the Bond 77 Texas targeted areas, contact Troy Corman at 214.690.9682.