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About TSAHC
The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit
housing corporation created by the Texas Legislature to facilitate the
creation of safe, decent and affordable housing for low-income Texans.
TSAHC Accomplishes this by:
• Helping developers Build affordable housing
• Helping people Buy a home
• Helping people Stay in their homes
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Agenda
1. The importance of homebuyer education and the kick-off of “Get Ready:
Making Texans Homeowners for Life”
2. TSAHC’s Homeownership Programs
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What is Homebuyer Education?
What is homebuyer education?
A class, workshop, or online course aimed at potential homebuyers who are
either first-time homebuyers or need to educate themselves on the home
buying process. Most organizations that offer down payment assistance
programs require borrowers take a homebuyer education class to access the
program.
Who offers homebuyer education?
Homebuyer education is offered by nonprofit housing organizations, often HUDapproved, or government entities such as a city housing department. Only
organizations can be HUD-approved, not individuals. There are also quality
online homebuyer education providers.
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Why is homebuyer education important?
It helps reduce mortgage delinquencies and foreclosures.
•A study released in 2013 by NeighborWorks America showed that
homebuyers who received pre-purchase homebuyer education were 1/3 less
likely to fall behind on their mortgages 90 days or more, compared to
homebuyers who didn’t take a homebuyer education course.
•TSAHC requires the completion of a homebuyer education class from those
who access our down payment assistance or mortgage credit certificate
programs. We’ve helped more than 8,600 individuals and families purchase a
home.
•Less than 0.09% of those who have used our homebuyer programs have lost
their home through foreclosure.
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Why is homebuyer education important?
Homebuyer education also helps you:
• Work with better prepared clients,
• Spend less time educating potential homebuyers, and
• Assist homebuyers that may be eligible for homeownership assistance
programs, i.e. down payment assistance or mortgage credit certificates.
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What is taught in homebuyer education?
A good homebuyer education class should provide detailed information on
the technical, financial and practical aspects of preparing to buy a home,
buying a home and being a successful homeowner. Topics often include:
• understanding, establishing or rebuilding your credit, reducing debt, and saving
for the future;
• determining if you are ready to buy a home;
• understanding mortgage loans and recognizing and avoiding predatory loans and
services;
• navigating the home buying process;
• finding local and state down payment assistance programs; and
• understanding the ongoing responsibilities of homeownership and how to be a
successful homeowner for life.
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Homebuyer education, time and cost
A quality homebuyer education class can vary in cost and time commitment
for the homebuyer. But here are some basics:
• Homebuyer education classes taught in person by a HUD approved nonprofit or
government entity can last anywhere from 6 – 8 hours.
• Some classes are taught in one day, while other organizations break up the class
material over several days or evenings.
• Online courses can take anywhere from 4 – 8 hours to complete.
• The cost to take a homebuyer education class can also vary. Homebuyers can
expect to pay anywhere from $0 to $50 for a quality homebuyer education
course.
• An online course can cost anywhere from $50 to $100.
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TSAHC’s Commitment to Homebuyer Education
• TSAHC requires the completion of a homebuyer education class for those
who access our homeownership programs.
• TSAHC administers the Texas Statewide Homebuyer Education Program
(TSHEP).
• TSHEP is a Texas-based training program for housing counselors. TSAHC
contracts with NeighborWorks America to provide continuing education
courses at least twice a year, providing housing counselors with the latest
information to homebuyers.
• In January we launched a new section on our website, “Counselor
Connection,” which provides a forum for housing counselors to interact
with each other and pose questions, challenges and share ideas.
• Counselor Connection also provides housing counselors with information on
training opportunities, including TSHEP and quarterly webinars hosted by
TSAHC
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TSAHC’s Commitment to Homebuyer Education
• TSAHC supports the “Texas Affordable Housing Specialist” certification
offered through TAR and participates in the instruction of the United Texas
course, which is a cornerstone of this certification.
• TSAHC has created a consumer brochure available for Texas REALTORS®
and housing counselors on the importance of homebuyer and financial
education, because not all homebuyer education courses provide quality
information.
• The Texas Financial Toolbox (www.texasfinancialtoolbox.com) is an online
resource TSAHC created to give consumers, Texas REALTORS® and lenders
an easy way to find entities who provide homebuyer education, foreclosure
prevention counseling, financial education and credit counseling.
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Public Awareness Campaign
Get Ready: Making Texans Homeowners for Life
Goal: To promote through a public awareness campaign the benefits of taking a
quality homebuyer education course prior to purchasing a home.
The campaign will be a joint effort of the Texas Association of REALTORS® and
the Texas State Affordable Housing Corporation.
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Get Ready: Making Texans Homeowners for Life
Public Awareness Campaign Target Audiences: Potential Homebuyers,
REALTORS®, Lenders/Loan Officers, & Housing Industry Partners
Campaign Strategies:
• Craft messages for each target audience
• Brand all communications as a partnership of TAR and TSAHC
• Encourage Texas REALTORS®and lenders to promote homebuyer education to
their clients
• Drive potential homebuyers to locate a homebuyer education provider on
www.texasfinancialtoolbox.com
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Get Ready: Making Texans Homeowners for Life
TAR and TSAHC will create a campaign communication plan and calendar that
will include the following activities:
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News releases
Advertisements or PSAs (radio, TV, online)
Collateral material for REALTORS® and lenders
Placed media stories
Website updates
Email marketing
Social media posts
Events
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Who’s ready to help make Texans
homeowners for life?
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TSAHC’s Homeownership Programs
Two types of assistance are made available to homebuyers:
1.Low Interest Rate Loans with Down Payment Assistance:
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A 30-year fixed interest rate FHA, VA or USDA mortgage loan
Down payment and closing cost assistance of up to 5% of the loan amount
Down payment assistance is a gift and never needs to be repaid
Available for the purchase of a home or refinance of an existing loan
You do not need to be a first-time homebuyer
2.Mortgage Credit Certificate:
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A dollar for dollar savings of up to $2,000 every year as a special tax credit
Saves the homebuyer thousands of dollars over the life of the loan
Exclusively for first-time homebuyers or individuals who have not owned a home in the last
three years
Can be used with TSAHC’s Down Payment Assistance
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How to Qualify a Homebuyer
1.
Profession or Income Level
Homes for Texas Heroes:
•Classroom Teacher, Teacher Aide, School Librarian, School Nurse, School Counselor,
or Nursing and Allied Health Faculty, Veteran, Firefighter, EMS Personnel, Peace
Officer, Corrections Officer (TDCJ or TJJD), County Jailer, or Public Security Officer.
Home Sweet Texas Loan: An individual or family at or below 80% Area Median
Family Income (AMFI)
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Borrower cannot exceed Income and Purchase Price Limits
3.
Underwriting/Credit Requirements
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How to Qualify a Homebuyer
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Borrowers need to complete a homebuyer education course prior to closing on
the home loan
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Met by attending a one-on-one session through TSAHC’s network of housing
counseling agencies, an online course, or a HUD, Fannie Mae or Freddie Mac
approved counseling program.
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Visit www.texasfinancialtoolbox.com to find a course near your borrower.
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Work with an approved participating lender
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MCC Requirement ONLY: Must be a first-time homebuyer
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No ownership interest in any principal residence in the past 3 years
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Visit www.tsahc.org
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Unsure if a client qualifies? Take the Eligibility Quiz under the Homeownership tab
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Find a list of participating lenders in your area.
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Homebuyers can find a Texas REALTOR® with the Texas Affordable Housing Specialist
designation
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Marketing materials available at no cost to you.
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Visit www.financialtoolbox.com to find a homebuyer education course for your
client.
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For additional information, please contact:
Paige Omohundro
Homeownership Finance Manager
pomohundro@tsahc.org
512-477-3561
www.tsahc.org
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