Texas county unveils $40 million program to help families buy homes with less money upfront

Denton County, Texas, is turning to a $40 million bond to help families buy homes without adding county debt.

The arrangement pairs financial assistance for buyers with a state-managed lending program to help cover upfront costs that can stand in the way of homeownership.

Here's what to know

Denton County commissioners will direct the county housing finance corporation's bond to the Texas Department of Housing and Community Affairs, according to a news release.

The state agency plans to help about 132 households buy homes, offering down payment aid totaling nearly $1.4 million along with additional funding for closing costs.

Beyond the upfront support, participating buyers will have access to low-interest, 30-year mortgages.

More background

The agency's mortgage support in the county totaled around $15 million for 49 borrowers over the two years before the announcement, the release reported.

"I remember being a first-time homebuyer and trying to save enough for a down payment," former Denton County Commissioner Kevin Falconer said. "That can be a significant hurdle for families, and this program can help make homeownership more attainable."

What's being done?

Under the arrangement, the state housing agency will take over lending and administrative responsibilities from the county housing finance corporation.

Federal rules cap the amount of tax-exempt private activity bonds each year. The corporation's year-end share of that allocation supplies the $40 million.

The bond will generate annual fees for the corporation to put toward future housing projects.

"By working with TDHCA, we can help more working families achieve the dream of homeownership while supporting our local workforce, all without taking on additional county debt," Denton County Judge Andy Eads said. 

Where can I learn more?

Across Texas, efforts to make housing more affordable go beyond down payment assistance. 

• Houston's $2.5 million investment supports a complex with 90 affordable apartments among 100 units.

• In Cameron County, veteran households can get help with home repairs, upgrades, and bills.

• In Texas, 60% of homeowners 65 and older pay no school property taxes.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.