Texas Supplement PowerPoint Presentation for RELE 1319 Spring 2014

1. Financing Residential Real Estate
Texas Supplement

2. Texas Supplement
Introduction
Topics to be covered:
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Texas Veterans Land Board
Low income bond programs
Community property laws
Homestead laws
Mortgage broker/banker licensing

3. Texas Supplement
Texas Veterans Land Board
TVLB Programs
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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

4. Texas Supplement
Texas Veterans Land Board
Eligibility
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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

5. Texas Supplement
Texas Veterans Land Board
TVLB Land Program
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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

6. Texas Supplement
Texas Veterans Land Board
TVLB Land Program
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TVLB will finance 95% of value
Up to $40,000
All costs and down payment paid at
application

7. Texas Supplement
Texas Veterans Land Board
TVLB Housing Assistance Program
(a.k.a. VHAP)
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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

8. Texas Supplement
Texas Veterans Land Board
VHAP
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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

9. Texas Supplement
Texas Veterans Land Board
Veterans Home Improvement
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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

10. Texas Supplement
Texas Veterans Land Board
Veterans Home Improvement
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Examples of eligible improvements
 Carpeting
 Fencing
 Room Additions
 Patios
 Driveways
 Garages

11. Texas Supplement
Texas Veterans Land Board
Veterans Home Improvement
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Examples of ineligible improvements
 Exterior spas, sauna, whirlpool
 Swimming pools
 Satellite dish
 Barbecue pit

12. Texas Supplement
Low Income Bond Programs
TDHCA
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HOMEbuyer Assistance Program (HOME
HBA)
Texas Bootstrap Loan Program
My First Texas Home
Texas Mortgage Credit Certificate Program
Texas Statewide Homebuyer Education
Program (TSHEP)

13. Texas Supplement
Low Income Bond Programs
TSAHC
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Down payment assistance
• The Professional Educators
• Homes for Texas Heroes
• Home Sweet Texas Home Loan
Mortgage Credit Certificate

14. Texas Supplement
Low Income Bond Programs
TSAHC - MCC Program
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Dollar for dollar tax credit not deduction
from income
Mortgage Amount
Interest Rate
Interest Paid
MCC Rate
Tax Credit
$125,000
3.875%
$4,867.50
40%
$1,875

15. Texas Supplement
Texas Community Property Laws
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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 spouse’s
knowledge

16. Texas Supplement
Homestead
Homestead Protections
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Lien protections allow forced sale for nonpayment of
 Federal income taxes
 Property taxes
 HOA dues
 Purchase money loans
 Proper home equity or reverse mortgage
 Contractor who improved the subject

17. Texas Supplement
Mortgage 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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18. Texas Supplement
Mortgage 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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19. Texas Supplement