Title
Consider/Discuss/Act on Southeast Texas Housing Finance Corporation (SETH) 5 Star Texas Advantage Program
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
MEETING DATE: March 10, 2017
DEPARTMENT: Housing and Community Development Department
CONTACT: Cristel Todd, Affordable Housing Administrator
ITEM SUMMARY:
• Provides eligible Homebuyers several options for a loan program.
• Buyers get a 30 Year fixed rate mortgage and a Grant to be used for the down payment and closing cost associated with their home purchase.
• The maximum Grant is 6%, and is based on your actual loan amount. Grants range from 3%-6%.
• There is no repayment expected for this Grant and no 2nd lien on your home.
• The Program is available for the entire State of Texas with the exception of the following cities: El Paso, Grand Prairie, McKinney, and Travis County.
• Local Down Payment Programs and MCC Programs may be combined with this program.
o No First Time Homebuyer Requirement
o Must be Income Eligible (list below)
o Minimum of a 640 Credit Score
o Must Purchase in Program Area
BACKGROUND INFORMATION:
• The MHFC declined participation in January 2013.
FINANCIAL SUMMARY:
• No cost to the McKinney Housing Finance Corporation.
• The MHFC will receive a participation fee equal to .3% of the principal amount of the mortgage loan.