When it comes to financing your Texas home purchase, you have choices. The question isn’t whether you can get a traditional loan – it’s whether you can afford NOT to explore Down Payment Assistance options through ACE Home Mortgage’s TSAHC partnership.
For Homebuyers: The Numbers Tell the Story
Let’s compare two identical scenarios – same buyer, same house, different financing approaches:
Traditional Loan Scenario: – Home price: $400,000 – Down payment (5%): $20,000 – Closing costs: $8,000 – Total out-of-pocket: $28,000 – Monthly payment: $2,280
Down Payment Assistance Scenario: – Home price: $400,000 – DPA grant: $20,000 – Out-of-pocket: $8,000 (closing costs only) – MCC annual savings: $2,000 – Monthly payment: $2,100 (with MCC benefit)
The difference: $20,000 less upfront, $180 less monthly, plus $2,000 annual tax savings.
The “Extra Time” Investment Analysis
Traditional loan processing: 30-45 days DPA loan processing: 32-47 days Additional time investment: 2 days Financial benefit: $20,000+ in first year
That’s $10,000 per day in savings for the extra processing time. Show us another investment with that kind of return!
Why Some Buyers Choose Traditional Loans (And Why They Shouldn’t)
Common misconceptions about DPA programs:
Myth: “It’s too complicated” Reality: ACE Home Mortgage handles all the complexity for you
Myth: “It takes too long” Reality: 2 extra days to save $20,000+ is the best investment you’ll ever make
Myth: “I make too much money to qualify” Reality: Income limits are higher than most people think (often $80,000-$120,000+)
Myth: “The programs have too many restrictions” Reality: Most restrictions are standard homebuying requirements anyway
Mortgage Credit Certificates: The Game Changer
This is where DPA programs really shine. Traditional loans don’t offer MCCs, but TSAHC programs do:
MCC Benefits: – 15% tax credit on mortgage interest paid – Up to $2,000 annually in federal tax savings – Counts as income for qualification purposes – Lifetime benefit as long as you own the home
30-Year MCC Impact: On a $350,000 mortgage, the MCC could save you $60,000+ over the life of the loan.
For Real Estate Agents: Position Yourself as the Smart Money Expert
Agents who understand the financial advantages of DPA programs close more deals and build stronger client relationships.
How to Present the Options:
Traditional Loan Presentation: “You can get approved for a conventional loan with 5% down, which means you’ll need about $25,000 to close on this $400,000 home.”
Smart Money DPA Presentation: “I can show you how to buy this same $400,000 home with just $5,000 out of pocket, save $180 per month on payments, and get $2,000 back in taxes every year. It takes two extra days to process, but you’ll save over $20,000 in the first year alone.”
Which presentation do you think closes more deals?
The Qualification Advantage
DPA programs often help buyers qualify for larger loan amounts:
Traditional Loan Qualification: Based solely on current income and debt ratios
DPA with MCC Qualification: – Current income PLUS – MCC tax savings counted as additional income – Often increases buying power by $30,000-$50,000
Potential Situation
The Johnson Family, Austin:
Traditional Route (what they almost did): – $375,000 home purchase – $18,750 down payment (5%) – $7,500 closing costs – Total out-of-pocket: $26,250 – Monthly payment: $2,150
DPA Route (what they actually did): – Same $375,000 home – $18,000 DPA grant – $7,500 closing costs – Total out-of-pocket: $7,500 – Monthly payment: $1,980 (with MCC) – Annual tax savings: $1,950
First-year savings: $20,690 Monthly savings: $170 Processing delay: 2 days
Mrs. Johnson’s quote: “Two days to save over $20,000? That was the easiest decision we ever made.”
When Traditional Loans Make Sense
To be fair, traditional loans are appropriate when: – Buyer exceeds DPA income limits significantly – Home price exceeds DPA purchase limits – Buyer needs to close in less than 30 days – Buyer has substantial assets and doesn’t need assistance
But for most Texas homebuyers, DPA programs offer superior value.
The Bottom Line Analysis
Over a 30-year period, the typical DPA borrower saves: – $15,000-$30,000 in upfront costs – $60,000+ in MCC tax credits – $50,000+ in reduced monthly payments – Total savings: $125,000-$140,000
For two extra days of processing time.
Make the Smart Money Choice
The math is clear, the benefits are substantial, and the process is streamlined. Don’t let outdated thinking cost you tens of thousands of dollars.
Ready to make the smart money choice? – Homebuyers: Get your free DPA vs. traditional loan comparison analysis – Real Estate Agents: Learn how to position DPA as the smart money option
Two extra days. Tens of thousands in savings. The choice is obvious.
