San Antonio's first-time home buyers are missing out on millions of dollars in state assistance, and those millions are going fast. The Texas Department of Housing and Community Affairs recently released $255 million to help people buy homes. Already, all but $65 million has been used or earmarked for specific regions and projects.

That $65 million is open to all of Texas, but few San Antonians have applied for a share. Area residents have gotten only $1.1 million of the available funds so far.  Most of the money instead has gone to Central Texas and Dallas-area home buyers, along with people in the upper Gulf Coast region that was hit by Hurricane Rita last year.

Every year, the TDHCA releases funds to help lower-income families get low-interest mortgage loans, pay closing costs and make a down payment.  To participate, home buyers must meet income requirements and cannot have owned a home in the past three years.

The program offers buyers two loan programs and interest rates below market rate: 5.625 percent interest for buyers who have saved their down payment and closing costs; 6.125 percent for people who also receive a 5 percent grant to help with the down payment and closing. Both loans are for 30-year, fixed-rate mortgages.

A lack of San Antonio-area participation is one reason the TDHCA is working to drum up interest among residents, Gerber said. English- and Spanish-language radio commercials will start airing in the region this week.