Section 2306.754 - Amount of Loan; Loan Terms(a) The department may establish the minimum amount of a loan under this subchapter, but a loan made by the department may not exceed $45,000.(b) If it is not possible for an owner-builder to purchase necessary real property and build or rehabilitate adequate housing for $45,000, the owner-builder must obtain the amount necessary that exceeds $45,000 from other sources of funds.(c) A loan made by the department under this subchapter:(1) may not exceed a term of 30 years;(2) may bear interest at a fixed rate of not more than three percent or bear interest in the following manner:(A) no interest for the first two years of the loan;(B) beginning with the second anniversary of the date the loan was made, interest at the rate of one percent a year;(C) beginning on the third anniversary of the date the loan was made and ending on the sixth anniversary of the date the loan was made, interest at a rate that is one percent greater than the rate borne in the preceding year; and(D) beginning on the sixth anniversary of the date the loan was made and continuing through the remainder of the loan term, interest at the rate of five percent; and(3) shall be secured by: (A) a first lien by the department on the real property if the loan is the largest amortized, repayable loan secured by the real property; or(B) a co-first lien or subordinate lien as determined by department rule, if the loan is not the largest loan as described by Paragraph (A).(d) If an owner-builder is purchasing real property under a contract for deed, the department may not disburse any portion of a loan made under this subchapter until the owner-builder:(1) fully completes the owner-builder's obligation under the contract and receives a deed to the property; or(2) refinances the owner-builder's obligation under the contract and converts the obligation to a note secured by a deed of trust.Tex. Gov't. Code § 2306.754
Amended by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 1020,Sec. 1, eff. 6/15/2017.Amended By Acts 2009, 81st Leg., R.S., Ch. 1365, Sec. 5, eff. 6/19/2009.Amended by Acts 2001, 77th Leg., ch. 1367, Sec. 2.09, eff. 9/1/2001.Added by Acts 1999, 76th Leg., ch. 1548, Sec. 1, eff. 8/30/1999.