Mortgage Grant Fund

The Mortgage Grant Fund is administered by the Texas Department of Savings and Mortgage Lending and was established by the Texas Legislature to support financial education related to homeownership. The program is governed by Texas Finance Code Chapter 156 and supporting administrative rules, and is designed to expand access to mortgage-related education for Texas residents. The fund is overseen by the Commissioner of the Department, with advisory input from the Mortgage Grant Advisory Committee, which evaluates applications and provides recommendations for funding decisions. The primary purpose of the grant program is to provide funding to qualified organizations that deliver adult financial education focused on mortgage loans. This includes helping consumers understand the benefits and risks of homeownership, the various types of mortgage loans available, and the criteria lenders use to evaluate borrowers. The program also emphasizes education around financial assistance programs, such as down payment support, and provides resources for improving financial readiness through credit counseling, budgeting, and savings strategies. Train-the-trainer initiatives are also supported to expand the reach of these educational efforts. Eligible applicants include nonprofit organizations, political subdivisions of Texas, and certain regulated entities such as auxiliary mortgage loan activity companies and nonprofit mortgage loan servicers registered with the Department. Other licensed or registered entities are not eligible unless they fall within these specified categories. Applicants must demonstrate that their proposed activities align with the program’s purpose and must establish measurable goals, which are incorporated into the grant agreement if awarded. Funding is distributed on a reimbursement basis, meaning grantees must incur allowable expenses and submit documentation before receiving payment. Grant awards typically range from 5000 to 100000 per cycle, with total funding levels determined by the Commissioner prior to each grant cycle. Allowable uses of funds are governed by the grant agreement and the Mortgage Grant Administration Manual, which also outlines prohibited expenditures such as real estate purchases, capital expenditures over certain thresholds, and activities not aligned with program goals. The application process is competitive and occurs on a biennial cycle. Applications are generally announced in the summer of even-numbered years, with submissions due by the end of August. The grant cycle itself begins on January 1 of the following odd-numbered year and may last one or two years. Applications are reviewed for eligibility, completeness, and risk factors before being evaluated by the advisory committee and finalized by the Commissioner. Award notifications are typically issued by the end of the year preceding the grant cycle. Grantees are required to comply with extensive reporting and documentation requirements. Semi-annual reports must be submitted covering January through June and July through December, with deadlines of July 31 and January 31 respectively. These reports serve as the basis for reimbursement requests and must include detailed supporting documentation such as invoices, payroll records, and program participation data. Additional reporting tools include personnel time trackers, surveys, and inventory records for any purchased equipment. The program operates on a recurring basis, with new grant cycles expected every two years. As of the most recent update, the current cycle is closed, and information about the next cycle is anticipated to be released in July of the upcoming year. Organizations interested in applying should monitor official communications and prepare to align their programs with the fund’s educational mission and compliance requirements.

Ensure strong alignment with mortgage education goals and demonstrate measurable outcomes and reporting capability