TSAHC offers the HFA™ Preferred Conventional Loan with a grant for down payment assistance (DPA). Home buyers should consider this loan option, because it can save them thousands of dollars through reduced mortgage insurance costs.
Benefits of the HFA Preferred™ Conventional Loan:
- 30-year fixed interest rate mortgage loan
- Only 3 percent down payment required
- TSAHC DPA up to 5 percent of the loan amount
- TSAHC DPA is a gift and never needs to be repaid
- No upfront mortgage insurance premium (as compared to an FHA loan)*
- Lower monthly MI rates (as compared to an FHA loan) for well-qualified buyers
- Homeowner able to cancel MI when home equity reaches 20 percent (as compared to an FHA loan which requires MI for the life of the loan)
*Mortgage insurance is required on all Federal Housing Administration (FHA) loans, regardless of down payment size, and on conventional loans with a down payment less than 20 percent.
Reference the chart below to see an example of the savings a home buyer can expect with the HFA Preferred™ Conventional Loan through reduced mortgage insurance costs.