Denton County's housing finance corporation wants to turn its 2026 allotment of tax-exempt mortgage bond authority over to the Texas Department of Housing and Community Affairs, which would use it to make below-market home loans to buyers in the county. Commissioners take up a resolution approving the arrangement at 9 a.m. Tuesday, Oct. 20.
A TDHCA presentation attached to the agenda item recommends a $40 million assignment. The agency estimates that amount would help about 132 households buy a home and provide about $1.39 million in down payment assistance in Denton County.
Why the county is passing it along
Under the partnership, the state agency would issue the bonds, line up lenders, handle compliance and run the program, according to a memo from County Judge Andy Eads. The county housing finance corporation would avoid those duties and earn an annual fee of 4.75 basis points on the outstanding loan balances. The memo says no county money or financial obligation is involved.
The memo also says the arrangement keeps the bond authority working in the county instead of letting it be reallocated elsewhere in Texas. The corporation's board approved the assignment agreement June 1.
Who the loans have reached
TDHCA's slides include a snapshot of its lending in the county since January 2025: 49 loans totaling $15 million. The average purchase price was $314,839 and the average loan $305,082. Borrowers' average household income was $66,695, their average age was 38 and their average credit score was 708, with an average interest rate of 6.03%.
Buyers received an average of $10,474 in down payment help, and 35% earned under half of the area median income.
