The Capital Area Housing Finance Corporation bond program is designed to help homebuyers purchase a newly constructed or existing home by providing a below market mortgage interest rate of 4.25% without down payment assistance or a 3.6% rate with a 4% grant for down payment and closing cost assistance.
The loans are either FHA-insured, VA guaranteed, or Rural Housing Service (RHS) 30-year fixed-rate mortgages. A 1.00% origination fee and 1.00% discount fee, payable by the borrower or seller, plus customary closing costs will be due at closing. Please consult with a participating lender listed on the back of this brochure for more information regarding the program.*
First-time homebuyers may purchase a home throughout the nine-County area of the Capital Area HFC: Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Lee, Llano, or Williamson Counties including the City of San Marcos in Hays County.
Eligible homebuyers cannot have owned a home in the past 3 years
Qualified Veterans are exempt from the first-time homebuyer requirement
The program may only be used to purchase a home (i.e., no refinancing)
Standard loan underwriting guidelines exist for qualification (i.e. adequate income, acceptable credit, and down payment requirement)
Household income and purchase prices may not exceed the limits shown in the table
Household Income limits
2 Or Fewer Persons
3 Or Fewer Persons
Bastrop, Caldwell & Williamson Counties
Program mortgages can be made for the following types of residences:
Single family detached houses
Duplexes older than five years
Planned Unit Developments (PUDs)
Down Payment Assistance
As noted above, the program provides at the borrower’s option (1) “assisted” loans that will provide for a non-repayable grant of 4.00% for DPA, or (2) “low rate” loans without DPA. All qualifying borrowers under the program are eligible for the assisted loans.* Remember, you should never hesitate to ask questions. Ask Candy for any information you need to ensure you understand the entire mortgage loan process.