(a) Texas Bootstrap Loan Program funds may be used
to finance affordable housing and promote homeownership through acquisition,
New Construction, or Rehabilitation of single family residential housing
subject to Program Manual and Survey requirements. Administrators
may reserve funds by submitting a loan application on behalf of an
Owner-Builder Applicant for the Texas Bootstrap Loan Program.
(b) Manufactured Housing Units are not eligible housing
types for the Texas Bootstrap Loan Program.
(c) All Texas Bootstrap Loan Program Loans will be
evidenced by a promissory note and will be secured by a lien on the
subject property. The following Activities are permitted by the Department
under the Program:
(1) Purchase Money Loans. All Program funds are used
to finance the purchase of a single-family dwelling unit and/or a
piece of real property. The Department makes a loan to the Owner-Builder
and the Owner-Builder's repayment obligation begins immediately. In
certain situations, eligible closing costs may be financed by the
loan proceeds;
(2) Residential Construction Loans. This transaction
is treated as a purchase money loan and is a one-time closing with
the Owner-Builder. Construction period may be up to 12 months;
(3) Interim Construction (Closing with Administrator)
Loans. Interim construction is a commercial transaction between the
Administrator and the Department that is with respect to a specific
Owner-Builder. The construction period may be up to 12 months. Once
the construction of the home is completed, the closing with the Owner-Builder
will take place as a purchase money loan; and
(4) Purchase of Mortgage Loans. The Department may
purchase and take assignments from Mortgage lenders of notes and other
obligations evidencing loans or interest in loans for purchase money
transactions as described in paragraph (1) of this subsection.
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