Down Payment Assistance Guidelines in Houston
Houston has a Housing and Community Development Department (HCDD) that administers the city’s Homebuyer Assistance Program (HAP) that provides down payment assistance in Houston for those families with low-to-moderate monthly incomes, making them unable to purchase a home. However, in order for a person to qualify, there are certain qualifications:
· Applicant must be a first time homebuyer or one who has not own a house in the last 3 years.
· Should not have more than $15000 in liquid assets.
· A fixed-rate mortgage is a must since the program does not accept seller-financed mortgages or adjustable-rate mortgages (ARM).
Apart from that, there are a few guidelines that must be followed in order to obtain down payment assistance in Houston.
· The home that you are selecting must be within the City of Houston’s property tax jurisdiction.
· Property types that are eligible for down payment assistance in Houston include single-family homes, attached townhomes, cooperative units, duplexes, triplexes or quadraplexes and condominiums.
· Homebuyer is at or below 70% AMI may receive up to $25,000 in assistance.
· Homebuyer is at or below 80% AMI (but above 70% AMI) may receive up to $15,000 in assistance.
· A homebuyer Education Course is a must a must for an applicant to be eligible.
· Maximum of 50% down payment assistance in Houston will be provided to the lender.
· The applicant has to maintain and occupy the home as their principle residence for at least 5 years.
It’s essential that the property pass an inspection and environmental review.
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