Q: Do I have to have a sales contract and loan approval before I apply?

 A: No, although SETH recommends that you have a pre-approval from your lender, it is not required.  Once you are approved for assistance, we will allow you 30 days to obtain Loan Approval.
 

Q: Do you have funds for your programs?

A: On our website under the section named “First Time Homebuyer,” we have listed all of our active programs.  Here you can read information about the programs, the areas it covers, and the process for applying for that program.  When funds are exhausted for a program, we remove that program from our website.  If this happens, please call us and ask if we have started a waiting list   for funds.
 

Q: What is the processing time for an application?

A: The average processing time for our programs is around thirty days.  Some programs may even take longer.  However, programs like our MCC Program are much faster.  The best way to help your application process is to start the process before you select a home and turn in all the items necessary for application approval.

Q: Who is a “First Time Homebuyer”?

 A:  A first time homebuyer is someone that has not owned a home in the past 3 years.  There are other exceptions to this rule.  Some programs make allowances for divorce situations and inhabitable living conditions.  Call and talk to us if you think there is a circumstance that may allow you to be considered a first time homebuyer.

Q: How do I apply for a SETH Program?

A:  Applications are available on-line for our Down Payment Assistance Programs.  These include the City of Pasadena, TDHCA HOME Program and our Fort Bend County NSP Program.  Completed applications should be turned in with the documents listed on the “Items Needed” page.  Other programs, like our MCC and Bond Programs require that your first step be to contact a participating lender listed on our website.  All programs will require that you attend a homebuyer education class and SETH recommends that you do that as early as you can in the process. 

Q: Where do I turn in my application?

 A: Applications can be mailed to SETH at 11111 S Sam Houston Parkway East, Houston, TX 77089. They can also be sent via fax: 281-484-1971 or email: sfitch@sethfc.com.  Don’t forget to mail your application fee.
 

Q: Whose income does SETH use to see if I qualify?

A: SETH will include the income received by all household members, regardless if they are on the loan or not. 

Q: How does SETH calculate my income?

A: Unlike the traditional historical calculation method used by lenders, SETH determines income by projecting forward.  For example, SETH will request the past 3 months of pay stubs and use that average to “anticipate” your income for the next 12 months.

Q: How does SETH determine my income if I am self-employed?

A: SETH will need the last 3 years of tax returns and a current profit and loss statement and use these documents to determine your income.

Q: What if I am court ordered to receive child support, but don’t?

A: SETH will require a copy of the court order and use it in your income, unless you can provide sufficient documentation showing no payments have been received. (ie: OAG print out or letter from the court)  If this documentation is provided, SETH will not include the child support in your income.

Q: What if I do not receive pay stubs or I am paid in cash?

A: SETH requires a Verification of Employment Form from each employer.  If you are unable to provide pay stubs, SETH will calculate your income with the verification form that we send to your employer and will also ask your employer to provide a print out or a letter on company letterhead showing what you have been paid for the past 3 months.

Q: Once I have received assistance and purchased my home, will SETH check my income again?

A: No, eligibility is determined when you apply for assistance.  After you close on your home and continue with your life, we hope you will experience increases in your family income and wish the best for your family.

Q: Why do I have to take a Homebuyer Education Class?  Where are they offered and when?

A: SETH and HUD require all buyers using the programs to complete an 8 hour homebuyer education course.  Recent studies have shown that buyers who complete a classroom based homebuyer education class are less likely to default on their loan.  SETH offers classes twice a month.  Classes are always on a Saturday and are completed the same day.  Class times are 8am- 4pm.  A complete list of upcoming classes and fees are listed on our website under “Homebuyer Education.”  We recommend that you register early for the class time that best fits your schedule as seats are limited.
 

Q:  Do you have different classes for down payment assistance, Bond and MCC Programs?

A: No.  If you are combining programs you only have to take the SETH Homebuyer Education Class once and it will be accepted for all SETH Programs.

Q: Are SETH Homebuyer Education Classes available in Spanish?

A: Currently, we do not offer classes in Spanish.  Call and talk to our staff about referrals to education providers that offer classes taught in Spanish.

Q: I have the completion certificate from my SETH Homebuyer Education Class.  Where’s my money to close?

A: SETH encourages you to attend our Homebuyer Education Class as early as you can in the home buying process.  Getting your education is a great first step.  But in order to get approved for the assistance programs, you will still need to apply for the program and follow the necessary steps.  This will include providing documents to verify your income and assets.
  

Q: Do you have a list of houses we have to choose from?

A: No.  With our programs, you are able to select the home of your choosing.  Homes will have to be within the program areas defined by each program.

Q: Do SETH Programs require an inspection on the home I have chosen?

A: Our Down Payment Assistance Programs, such as the TDHCA HOME Program and Fort Bend NSP Program do require an inspection.  We send our inspector to complete a report on the home.  The SETH Bond and MCC Programs do not require an inspection.  Regardless if SETH requires and inspection or not, we encourage all our buyers to get an inspection on the home they are purchasing.

Q: How do I get the SETH inspector to inspect the property I want to purchase?

A: Typically the buyer submits the application and it is reviewed to determine the buyer is income eligible.  Once the buyer is approved for assistance and we have an executed sales contract, our inspector will perform an inspection within 72 hours.  A copy of the report is sent to the buyer and real estate professionals involved in the transaction.

Q: Do the utilities need to be on in the house for the inspection?

A: Yes.  The electric, water and gas services must be active.  It is not possible to conduct an accurate inspection of the home’s electrical and plumbing systems without active utilities. 

Q: Do the appliances need to be in the home before the inspection is conducted?

A: Not all appliances need to be present, but the home must have the water heater, stove, and heating and cooling systems.

Q: What if the house does not pass inspection?

A: If the house does not pass inspection, your report will contain a list of items that need to be corrected.  These repairs must be completed before assistance will be provided.  Once the required repairs have been completed, our inspector will have to return to the home and verify they have been completed.

Q: Is there a charge for the SETH inspection?

A: Yes.  The SETH inspection fee is disclosed on the applications for the Down Payment Assistance Programs and is $200.  There is no additional charge if the inspector has to make multiple trips.  The inspection charge will be billed to you at loan closing.

Q: Does SETH lend money or finance homes?

A: No.  The SETH Down Payment Assistance Programs provide help with your down payment and closing costs.  Our MCC Program provides a tax credit for the life of the mortgage.  You will still need a mortgage loan to purchase the residence.  Our Bond Program does provide a low mortgage interest rate, and you can contact one of our Bond Lenders listed on our website under “First Time Homebuyer Programs.”

Q: Does SETH allow “Owner Financing?”

A: No.  Assistance is only provided to buyers who obtain a Mortgage Loan.  Acceptable loan programs will include: FHA, VA, RHS, and conventional mortgage loan financing.

Q: What if I do not need all of the assistance the program provides?

A: Buyers can not receive any money back at closing.  Any funds not used in the purchase transaction may go toward a principal reduction and reduce the amount owed on your mortgage loan. 

Q: Is there a list of mortgage lenders that I have to choose from?

A: Our Bond and MCC Programs do have a list of required lenders.  We maintain a list of these lenders on our website under the program guidelines for each of these programs.  Our Down Payment Assistance Programs ( Pasadena TDHCA and Fort Bend) do not have a requirement that you work with a certain lender and you are able to select your own lender.  If you would like to combine programs, be sure your lender can offer the program you wish to use.

Q: Is there a credit score requirement for SETH Programs?

A: We do not have a credit score requirement for our programs except for our Bond Program.  It does require that your credit score be a minimum of 620.  Credit plays a very crucial role in purchasing a home.  While most of our programs do not have a credit score requirement, your lender will.  If you need help working on your credit, please let us direct you to some great resources that we have available in the community.

Q: Do you have to be a first time homebuyer to use these programs?

A: Yes with very few exceptions.  Our Bond and MCC Programs do require that you be a first time homebuyer to use the program but exceptions to this requirement are still available for some Veterans.  We refer to HUD’s definition of a homebuyer and that is someone that has not owned a home in the last 3 years.

Q: What is a Bond Program?

A: The Bond Program provides a 3.6% 30-yr fixed mortgage rate and a 3% grant (based on the loan amount). More information on this program is available on our website under “Current Programs.”

Q: What is an MCC Program?

A: An MCC Program provides a tax credit for the life of the mortgage loan.  The SETH MCC is a 35% tax credit of the total interest you pay annually on your mortgage loan.  This is a tax credit not available to those not using the MCC Program.  A tutorial on this program is posted on our website under “Current Programs.”

Q: Do I have to use a certain lender with the Down Payment Assistance Programs?

A: No.  Programs like the TDHCA HOME Program and the Fort Bend NSP Program are open to any lender.

Q: Do you have a list of houses we have to choose from?

A: No.  With our programs, you are able to select the home of your choosing.  Homes will have to be within the program areas defined by each program.

Q: Can I choose any lender for the Bond or MCC Programs?

 A: You must choose a lender from our “Participating Lender List” for these programs. 

Q: What happens if I sell my home during the forgiveness period?

A: With our Down Payment Programs, if you sell your home before the end of the forgiveness period, you may have to pay back a portion of your “un-used” assistance.