Misinformation about Down Payment Assistance programs costs Texas families thousands of dollars every year. Let’s separate fact from fiction and reveal the truth about these life-changing programs available through ACE Home Mortgage’s TSAHC partnership.
For Homebuyers: Don’t Let Myths Cost You Money
The biggest tragedy in real estate is qualified families who don’t pursue Down Payment Assistance because of misconceptions. Here are the facts that could save you $20,000+.
Myth #1: “It’s Not Really Free Money”
The Myth: Down payment assistance programs are just loans you have to pay back immediately.
The Truth: Most TSAHC programs offer grants or forgivable loans that become free money over time.
The Facts: – Grants: Never have to be repaid (up to $15,000 available) – Forgivable loans: Forgiven over 5-10 years of occupancy – Deferred loans: No payments until you sell or refinance – MCC tax credits: Literal free money back from the IRS annually
Real Example: The Johnson family received $18,000 in Down Payment Assistance as a forgivable loan. After living in their home for 7 years, the entire amount was forgiven. Total cost: $0.
Myth #2: “The Process Takes Forever”
The Myth: DPA applications add weeks or months to the home buying process.
The Truth: DPA processing adds only 2-3 days to a typical mortgage timeline.
The Facts: – Traditional mortgage: 30-32 days average – DPA mortgage: 32-35 days average – Additional time: 2-3 days maximum – Savings per day: $5,000-$10,000
Time Investment Analysis: Would you work 2 extra days to earn $20,000? That’s exactly what you’re doing with DPA programs.
Myth #3: “I Make Too Much Money to Qualify”
The Myth: DPA programs are only for very low-income families.
The Truth: Many middle-class families qualify for substantial assistance.
The Facts – Income Limits (80% AMFI): – Harris County (Houston): Up to $96,000 for family of 4 – Travis County (Austin): Up to $105,150 for family of 4 – Dallas County: Up to $99,050 for family of 4 – Heroes programs: Special consideration regardless of income – Veterans: Additional flexibility in many situations
Real Example: A Dallas family earning $94,000 annually qualified for $22,000 in Down Payment Assistance plus $2,000 annual MCC benefits.
Myth #4: “There Are Too Many Restrictions”
The Myth: DPA programs have so many rules they’re not worth pursuing.
The Truth: Most restrictions are standard homebuying requirements.
The Facts – Actual Requirements: – Primary residence: Must live in the home (standard for most mortgages) – Income limits: Generous limits that include most middle-class families – Purchase price limits: Often exceed $400,000 in major markets – First-time buyer: Many exceptions for veterans and targeted areas
What’s NOT Required: – Perfect credit scores – Large cash reserves – Specific employment history – Particular home types or locations
Myth #5: “It’s Too Complicated”
The Myth: DPA applications are overwhelmingly complex and confusing.
The Truth: ACE Home Mortgage handles all the complexity for you.
The Facts: – Single application covers both mortgage and DPA – Expert guidance through every step – Document checklists provided – TSAHC coordination handled by professionals – Technology platform streamlines the process
Client Experience: “ACE Home Mortgage made it incredibly simple. They told me exactly what I needed and handled everything else. I just showed up to closing and saved $25,000.” – Maria S., Austin
For Real Estate Agents: Combat Myths with Facts
Help your clients overcome misconceptions that cost them money:
Myth #6: “My Agent Says It’s Not Worth It”
The Myth: Some agents discourage DPA because they don’t understand the programs.
The Truth: Educated agents know DPA programs close more deals and create happier clients.
Agent Education Facts: – DPA deals close at higher rates than traditional loans – Clients are more grateful when they save thousands – Referrals increase significantly from DPA clients – Professional reputation improves as the agent who finds “free money”
Myth #7: “Sellers Won’t Accept DPA Offers”
The Myth: Sellers prefer traditional financing over DPA loans.
The Truth: DPA buyers often make stronger offers because they have more cash available.
The Facts: – DPA buyers have more cash for earnest money and repairs – Approval rates are higher with pre-qualified DPA buyers – Closing timeline difference is minimal (2-3 days) – Financing is more secure with government-backed programs
Myth #8: “You Can’t Use DPA with Other Programs”
The Myth: DPA programs can’t be combined with VA loans, FHA loans, or other benefits.
The Truth: DPA programs complement most loan types and other benefits.
The Facts: – VA loans: Can be combined with DPA for maximum benefit – FHA loans: Work perfectly with DPA programs – USDA loans: Compatible in eligible areas – Conventional loans: Full compatibility with DPA benefits – MCC programs: Can be stacked with DPA for double savings
Myth #9: “The Interest Rates Are Higher”
The Myth: DPA programs come with higher interest rates that offset the benefits.
The Truth: TSAHC programs often offer below-market interest rates.
The Facts: – Bond-funded loans: Often 0.25-0.50% below market rates – Conventional DPA: Market rates with assistance benefits – MCC benefits: Effective rate reduction through tax credits – Total cost analysis: Always favors DPA programs
Example: Market rate 7.0%, TSAHC rate 6.75%, plus MCC effective reduction to 6.25% equivalent.
Myth #10: “It’s a Government Handout”
The Myth: DPA programs are welfare or charity that comes with stigma.
The Truth: These are legitimate homeownership incentive programs that benefit communities.
The Facts: – Economic development tools that strengthen communities – Homeownership incentives that create stable neighborhoods – Tax revenue generators through increased property ownership – Workforce retention programs that help communities grow
The Real Numbers: Myth vs. Reality
What families actually experience:
Myth Reality: – “It takes months” → Actually takes 2-3 extra days – “I won’t qualify” → 70%+ of applicants qualify – “It’s too complicated” → ACE handles everything – “Rates are higher” → Often lower than market – “Too many restrictions” → Standard homebuying requirements
Financial Reality: – Average DPA benefit: $20,000 – Average MCC annual savings: $1,800 – First-year total benefit: $21,800 – 30-year total value: $74,000 – Time investment: 2-3 days
Success Story: Myth Buster
The Williams Family, Plano: “We believed every myth about DPA programs. ‘Too complicated,’ ‘takes too long,’ ‘we make too much money.’ ACE Home Mortgage debunked every misconception. We saved $23,000 in our first year, and the process took just 3 extra days. Don’t let myths cost you money like they almost cost us.”
The Truth About “Free Money”
Yes, Down Payment Assistance is essentially free money: – Grants: Never repaid – Forgivable loans: Become free over time – MCC tax credits: Annual cash back from the IRS – Reduced payments: Lower monthly costs – Increased equity: More ownership from day one
Don’t Let Myths Cost You Thousands
The only thing standing between you and substantial savings might be outdated information or misconceptions.
Get the facts: – Homebuyers: Schedule a free myth-busting consultation with ACE Home Mortgage – Real Estate Agents: Get educated on DPA facts to better serve your clients
The truth about Down Payment Assistance: It’s real, it’s substantial, and it could save you tens of thousands of dollars. Don’t let myths cost you money – get the facts today!
