Texas - First Time Home Buyer Assistance

[Austin Spitzenberger]

Good morning BP friends. I am currently looking to use an owner occupied loan to purchase a small multifamily (two-four plex). I have qualified for both 3.5% FHA and 5% conventional. I am aware of the benefits of each and understand how the loans differ. Here is my question.

For FHA. I am being told that the closing costs can be wrapped into a second mortgage in Texas via "first time home buyers assistance program" that is forgiven after a 3 year period. What does "forgiven" really mean? Can someone please explain?

Thanks in advance!