(a) To be eligible for a mortgage loan under this subchapter, a homebuyer must:
(1) qualify as a first-time homebuyer under this subchapter;
(2) have an income of not more than 115 percent of area median family income or 140 percent of area median family income in targeted areas; and
(3) meet any additional requirements or limitations prescribed by the department.
(b) To be eligible for a loan under this subchapter to assist a homebuyer with down payment and closing costs, a homebuyer must:
(1) qualify as a first-time homebuyer under this subchapter;
(2) have an income of not more than 80 percent of area median family income; and
(3) meet any additional requirements or limitations prescribed by the department.

(c) The department may contract with other agencies of the state or with private entities to determine whether applicants qualify as first-time homebuyers under this section or otherwise to administer all or part of this section.