Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What type of loan is specifically provided to assist first-time homebuyers with low incomes?

1. Government-backed loans

2. Conventional loans

3. Texas State Affordable Housing Corporation programs

4. Adjustable-rate mortgages

The correct answer is: Texas State Affordable Housing Corporation programs

The type of loan specifically designed to assist first-time homebuyers with low incomes is found in the Texas State Affordable Housing Corporation (TSAHC) programs. These programs are tailored to aid individuals and families who may encounter difficulties in affording a home due to their income levels. TSAHC offers various financial assistance options, including down payment assistance and low-interest rate mortgage loans, making homeownership more accessible for low-income first-time buyers. While government-backed loans can also provide assistance to first-time homebuyers, the TSAHC programs are uniquely centered around the needs of residents in Texas, particularly those with low income. Additionally, conventional loans typically require higher income levels and credit scores, which may not be suitable for first-time homebuyers with limited income. Adjustable-rate mortgages are a type of loan that can result in fluctuating payments and need not necessarily be designed for low-income individuals or first-time buyers. Thus, the TSAHC programs stand out as the most specific resource aimed at supporting first-time homebuyers in this financial demographic.