Denton County commissioners are set to vote Tuesday, Oct. 20, on handing up to $40 million in tax-exempt mortgage bond authority to the state housing agency, which would use it for below-market home loans and down payment help for buyers in the county. Celina homes west of the Collin County line, in Denton County, fall within that area.
The request comes from the Denton County Housing Finance Corporation, which wants to assign its 2026 single-family private activity bond allocation to the Texas Department of Housing and Community Affairs under the agency's partnership program. A resolution in the agenda packet sets the maximum at $40 million.
According to a memo from County Judge Andy Eads, the housing finance corporation would not have to issue bonds, make loans or run a program itself. The state agency would handle bond sales, lenders and compliance. The memo says joining the program would keep the allocation in use locally instead of letting it be reallocated elsewhere in Texas.
The county would put up no money, and the corporation would collect a yearly fee of 4.75 basis points on outstanding loan balances. The corporation's board approved the agreement June 1.
What buyers could get
A state presentation attached to the item says the $40 million assignment is expected to help 132 households buy homes and to provide about $1.39 million in down payment assistance in Denton County.
The loans run through the agency's My First Texas Home program, which the presentation describes this way:
- Open to first-time homebuyers and qualified veterans, who must meet income and purchase price limits.
- 30-year fixed-rate mortgages, with FHA, VA and USDA loans eligible.
- Down payment assistance of up to 5% as a 0% interest, deferred second lien with no monthly payment, repaid later.
- Mortgage credit certificates, which provide a federal tax credit equal to 15% of yearly mortgage interest.