The home/condo property must be located within Travis County, Texas.
The current Annual Income Limit is $80,250. This is the annual gross
income of the Lessee/Tenant and any other person who is expected
to both live in the home and be one of the parties who is leasing/assuming
the home loan per the program guidelines. In addition, to qualify
you must have a stable income (so that you can make the monthly lease
payments) with a 45% maximum back-end debt ratio.
We have limited funds available and so families and individuals
should apply as soon as possible for their home ownership opportunity.
The maximum first loan amount is $359,650 (or current Freddie-Mac
conforming loan limit)
The maximum closing cost assistance (provided by the Program) 6.25%
of the First Mortgage Loan Amount.
You will lease the house from Strategic Housing Finance Corporation
of Travis County for 39 months and then will have the right to assume
the mortgage balance and be the home owner subject to the program
guidelines.
You will pay the following to participate in the lease to purchase
program:
- 1% of the sales price of the home for a commitment and
participation fee
- First months lease
- Renters Insurance Policy (to protect personal belongings
and liability)
At lease one person whose income was used to qualify for the program
will attend a homebuyer education program.
All properties must undergo inspection by a Property Inspection
Provider and to make sure the home/condo meets the program guidelines.
Each
property must be covered by a Home Warranty provided by American
Home Shield (or Program’s vendor) that must remain enforce
for the entire thirty-nine month lease term. A one-year home warranty
provided by the Builder of a newly constructed property may be substituted
for the first year of the American Home Shield Home Warranty.
During the 39 month lease period, you will be asked to participate
in the following
- Annual inspection of the property by a designee from
the Program
- Periodic review of your credit standing and mortgage
readiness including any on-going debt and/or credit management
- Review of your credit report at the 12 and 18 month
mark during the 39 month lease period
- Any other action that may be appropriate to ensure your
ability to meet the requirements of the Assumption at the end
of the 39 month lease
All leases have a 39 month term. Freddie Mac Guidelines are available
for those who choose to qualify early (prior to the 39th month) to
assume the mortgage and become the home owner early. There is an
early fee to repay a portion of the advanced subsidy (for the down
and closing costs). Please note that if a participant completes the
entire 39 months lease period and then assumes the loan, there are
no additional advance subsidy fees.
If at the end of the 39 month lease, you do not qualify for the
assumption (due to loss of income or other contributing negative
credit factors), it is at the sole discretion of the Program Administrators
to choose whether to extend the lease.
If you vacate the property for any reason prior to exercising the
option to purchase the home/condo, the Issuer may enter into a lease
with a substitute Lessee/Tenant, such lease having a term of not
less than 24 months. The substitute Lessee/Tenant(s) must meet the
same requirements as the original Lessee/Tenant and must be underwritten
by the Master Servicer or a Participating Lender.
You will be responsible for the payment of all closing costs (normally
at 39 months) related to the assumption. These may include adjustments
for real estate taxes, hazard insurance premiums, mortgage insurance
premiums, and escrow/title fees required by the Servicer.
You may email the Program Administrator by submitting the following
form:
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