#Texas Bad Credit Mortgage Lenders

Texas is the lone star state, and after Alaska, the largest state in the union. The cowboy mystique has never really left Texas, with cowboy hats and bolo ties still a common sight on the streets today. While once a wild place with a good portion of outlaws, Texas has since lost its danger and is now a safe and comfortable place to live. With nearly 9 million homes, there is also an amazing range of available homes for the prospective home buyer. Those looking to buy a home in Texas will have to be canny however, as it is traditionally a renters market. Although, the housing market exists with such a huge number of homes both sides of the market are well covered. In fact, a state funded housing agency provides assistance to those looking to buy a home for the first time.

The funding is provided by the Texas Department of Housing and Community Affairs, and the program is designed to help people get into a home while avoiding high interest rates and fees. The Texas First Time Homebuyer Program is available with below market interest rate mortgage loans throughout a collection of participating lenders to eligible families and individuals who are buying their first home or who have not owned a home in the past three years. Two varieties of loans exist through this program. An Unassisted Rate loan typically offers the lowest interest rate available and does not provide funds for down payment and closing cost assistance. For borrowers needing assistance with their down payment, an Assisted Rate loan is offered to income-eligible borrowers that provides grant funds up to 4% of the mortgage amount. These loans are offered at a slightly higher interest rate.

The state housing department also offers a Mortgage Credit Certificate program that raises a family s disposable income by reducing its federal income tax obligations. The tax credit is available for the life of the loan as long as the borrower occupies the property as their primary residence.

Even those who do not participate in the state mortgage program will benefit from the capped market which results from having a below market interest lender operating in the area. The mortgage market is safer in places with active, state run housing departments who educate and even provide low interest mortgages for home buyers. Buying a home in Texas offers a great range of possible home options, and once you do decide on a home, a great range of loans and mortgage rates as well.