texas supplement presentation for rele 1319 spring 2014

Financing Residential Real Estate

Financing Residential Real Estate

Texas Supplement

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Texas SupplementIntroduction

Topics to be covered:

Texas Veterans Land Board

Low income bond programs

Community property laws

Homestead laws

Mortgage broker/banker licensing

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Texas SupplementTexas Veterans Land Board

TVLB Programs

Provides low-interest rate, long-term loans to Texas veterans for land and housing

Bonds are used to fund the program, not taxes

Bonds are repaid by the veteran loan repayment

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Eligibility

90 days continuous active duty or 20 years reserves

Have served after 9/16/1940

Not dishonorably discharged

Have had Texas as home of record or legal resident of Texas for 12 months or more

Have successfully repaid any prior TVLB loan of similar nature

Unmarried, surviving spouse

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TVLB Land Program

Contract for deed to veteran

Land must be:

Located in Texas

5 or more acres

Access to public road

Be surveyed

May be contiguous tracts financed together

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TVLB Land Program

TVLB will finance 95% of value

Up to $40,000

All costs and down payment paid at application

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TVLB Housing Assistance Program

(a.k.a. VHAP)

Loans permitted to conforming limit

Most types of housing allowed:

SFR

Attached or detached

Townhouses, condos or PUD

2-4 unit at least five years old at closing

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VHAP

Home must be in state of Texas

Veteran must occupy as primary residence within 60 days of closing

Home must remain primary residence at least three years

May be fashioned as

VA

FHA

Conventional to 90% or 80-10-10

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Veterans Home Improvement

Located in Texas

Veteran may borrow up to $25,000

Alterations, repairs or improvements eligible are those of FHA Title I Loan Program, i.e.,

Protect or improve livability

Improve energy efficiency

Correct damage from natural disaster

Correct hazardous conditions

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Examples of eligible improvements

Carpeting

Fencing

Room Additions

Patios

Driveways

Garages

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Examples of ineligible improvements

Exterior spas, sauna, whirlpool

Swimming pools

Satellite dish

Barbecue pit

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Texas SupplementLow Income Bond Programs

TDHCA

HOMEbuyer Assistance Program (HOME HBA)

Texas Bootstrap Loan Program

My First Texas Home

Texas Mortgage Credit Certificate Program

Texas Statewide Homebuyer Education Program (TSHEP)

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TSAHC

Down payment assistance

The Professional Educators

Homes for Texas Heroes

Home Sweet Texas Home Loan

Mortgage Credit Certificate

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TSAHC - MCC Program

Dollar for dollar tax credit not deduction from income
Mortgage Amount$125,000Interest Rate3.875%Interest Paid$4,867.50MCC Rate40%Tax Credit$1,875

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Texas SupplementTexas Community Property Laws

Property undivided and shared equally

Acquired during marriage

Separate property through separate funds

Not mingled with community property

Acquired prior or through gift/inheritance

Mutual agreement is not allowed

Borrowing or selling requires spouses knowledge

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Texas SupplementHomestead

Homestead Protections

Lien protections allow forced sale for non-payment of

Federal income taxes

Property taxes

HOA dues

Purchase money loans

Proper home equity or reverse mortgage

Contractor who improved the subject

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Texas SupplementMortgage Broker/Banker Licensing

Licensing in Texas

TDSML is regulator

Mortgage broker means both broker and mortgage banker company

Loan officer is the individual who works for the mortgage broker

Must be an employee and may not work for more than one company

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Texas SupplementMortgage Broker/Banker Licensing

Licensing in Texas

Loan officer must have unique National Mortgage License System (NMLS) number

Be photographed and fingerprinted

Not have certain criminal convictions nor poor credit

Pass 20 hours coursework and test

Continuing education of eight hours/year

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Texas Supplement

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