Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 27 - TEXAS FIRST TIME HOMEBUYER PROGRAM RULE › Section 27.2 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
The following words and terms, when used in this chapter,
				  shall have the following meanings unless the context or the Participation
				  Packet indicates otherwise. Other definitions may be found in Texas Government
				  Code, Chapter 2306; Chapter 1 of this title (relating to Administration); and
				  Chapter 2 of this title (relating to Enforcement).
(1) Applicable Median Family Income--The
				Department's determination, as permitted by Texas Government Code, §
									RSA
				2306.123, of the median income of an
				individual or family for an area using a source or methodology acceptable under
				federal law or rule. The Applicable Median Family Income, as updated from time
				to time, may be found on the Department's website in the "Combined Income and
				Purchase Price Limits Table."
(2)
				Applicant--A person or persons applying for financing of a Mortgage Loan under
				the Program.
(3) Areas of Chronic
				Economic Distress--Those areas in the state, whether one or more, designated
				from time to time as areas of chronic economic distress by the state and
				approved by the U.S. Secretaries of Treasury and Housing and Urban Development,
				respectively, pursuant to §143(j) of the Code.
(4) Average Area Purchase Price--With respect
				to a Residence financed under the Program, the average purchase price of
				single-family residences in the statistical area in which the Residence is
				located which were purchased during the most recent twelve (12) month period
				for which statistical information is available, as determined in accordance
				with §143(e) of the Code.
(5)
				Code--The Internal Revenue Code of 1986, as amended from time to
				time.
(6) Contract for Deed
				Exception--The exception for certain Mortgage Loan eligibility requirements, as
				provided in the Master Mortgage Origination Agreement, available with respect
				to a principal residence owned under a contract for deed by a person whose
				family income is not more than 50% of the area's Applicable Median Family
				Income.
(7) Federal Housing
				Administration--A division of the U.S. Department of Housing and Urban
				Development, also known as FHA.
(8)
				First Time Homebuyer--A person who has not owned a home during the three (3)
				years preceding the date on which an application under this program is filed. A
				person will be considered to have owned a home if the person had a present
				ownership interest in a home during the three (3) years preceding the date on
				which the application was filed. In the event there is more than one person
				applying with respect to a home, each Applicant must separately meet this three
				year requirement.
(9) Homebuyer--An
				Applicant that is approved by the Program and purchases a Residence.
(10) Master Mortgage Origination
				Agreement--The contract between the Department and a Mortgage Lender, together
				with any amendments thereto, setting forth certain terms and conditions
				relating to the origination and sale of Mortgage Loans by the Mortgage Lender
				and the financing of such Mortgage Loans by the Department.
(11) Mortgage Lender--the entity, as defined
				in §
									RSA
				2306.004 of the Tex. Gov't Code, that is
				participating in the Program and signatory to the Master Mortgage Origination
				Agreement.
(12) Participation
				Packet--The application submitted to the Department by the proposed Mortgage
				Lender to participate in the Program.
(13) Program--The Texas First Time Homebuyer
				Program.
(14) Purchase Price
				Limit--The Purchase Price Limits published and updated from time to time in the
				"Combined Income and Purchase Price Limits Table" found on the Department's
				website equal to 90% of the Average Area Purchase Price, subject to certain
				exceptions for Targeted Area Loans.
(15) Qualified Veteran Exemption to First
				Time Homebuyer Requirement--A qualified veteran who has not previously received
				financing as a First Time Homebuyer through a single family mortgage revenue
				bond program is exempt from the requirement to be a First Time Homebuyer. The
				veteran must certify that he or she has not previously obtained a Mortgage Loan
				financed by single family mortgage revenue bonds, and is utilizing the veteran
				exception set forth in §143(d)(2)(D) of the IRS Code. Qualified veterans
				must also complete a worksheet evidencing qualification as a veteran and
				provide copies of discharge papers.
(16) Regulations--The applicable proposed,
				temporary or final Treasury Regulations promulgated under the Code or, to the
				extent applicable to the Code, under the Internal Revenue Code of 1954, as such
				regulations may be amended or supplemented from time to time.
(17) Residence--A dwelling in Texas in which
				an Applicant intends to reside as the Applicant's principal living space. This
				is intended to have the same meaning as Home as defined in §
									RSA
				2306.1071 of the Tex. Gov't Code.
(18) Rural Housing Service--A division of the
				United States Department of Agriculture, also known as RHS.
(19) Targeted Area--A qualified census tract,
				as determined in accordance with §6(a)103A-(2)(b)(4) of the Regulations or
				any successor regulations thereto, or an Area of Chronic Economic Distress.
				Applicants purchasing in Targeted Areas may have higher income and purchase
				price limits as set forth in the "Combined Income and Purchase Price Limits
				Table" found on the Department's website.
(20) Targeted area exemption to First time
				Homebuyer Requirement--Applicants purchasing homes in targeted areas financed
				through the program are exempt from the requirement to be a First Time
				Homebuyer and income and purchase price limits may be higher as found in the
				"Combined Income and Purchase Price Limits Table" located on the Department's
				website.
(21) United States
				Department of Veterans Affairs--Also known as VA.