Texas Supplement Presentation for RELE 1319 Spring 2014
Transcript of 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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
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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Texas SupplementTexas Veterans Land Board
Veterans Home Improvement
Examples of eligible improvements
Carpeting
Fencing
Room Additions
Patios
Driveways
Garages
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Texas SupplementTexas Veterans Land Board
Veterans Home Improvement
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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Texas SupplementLow Income Bond Programs
TSAHC
Down payment assistance
The Professional Educators
Homes for Texas Heroes
Home Sweet Texas Home Loan
Mortgage Credit Certificate
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Texas SupplementLow Income Bond Programs
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$1,87514
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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