Homebuyer Assistance Program

Homebuyer Assistance Program is sponsored by City of Houston Housing and Community Development Department. This program offers down payment and closing cost assistance to income-qualified first-time homebuyers within Houston city limits. The assistance is provided as a no-interest, forgivable loan.

Homebuyer Assistance | Housing and Community Development Department EPA Notice for Fifth Ward / Kashmere Gardens Area The U.S. Environmental Protection Agency (EPA) is currently investigating potential adverse health impacts associated with the former Union Pacific Railroad (UPRR) wood preservation site located in the Houston Fifth Ward/Kashmere Gardens area.

Therefore, all Housing and Community Development Department (HCD) homebuyer assistance and home repair programs will temporarily suspend assistance for properties located within the Fifth Ward / Kashmere Gardens UPRR sampling zone boundaries. This suspension will remain in place for the duration of the EPA’s investigation. HCD programs will continue outside of the sampling zone boundaries.

NOTE: Program funding is subject to strict spending deadlines, and we are unable to reserve funds for properties that have not yet completed the environmental review process. Therefore, homeowners and homebuyers will be required to submit a new application in the event of a status change. Due to the exhaustion of available program funds, we are no longer accepting or processing additional applications at this time.

No extensions will be granted for anyone who has previously received a pre-approval letter. Please refer to your current pre-approval letter for the expiration date. Moving forward, all pre-approval letters will be valid for three months with no possible extensions.

If your letter expires, you will receive a denial letter, and your file will be closed. You may reapply once the program funding has been replenished and reopened to accept new applications; all applications will be processed on a first-come, first-served basis.

The City, in its commitment to serving the community, reserves the right to assign or adjust program priorities and re-allocate program funds, if doing so would better serve the affected communities and their residents.

Complaints, Appeals, & Fraud Tenant / Landlord Relations New Home Development Program Affordable Home Development Program Community Housing Development Organization (CHDO) Funding/Contract Opportunities Community Housing Development Organization (CHDO) Affordable Home Development Housing Research & Data Center Complaints, Appeals, & Fraud Harvey Homebuyer Assistance Program 2. 0 (HbAP 2. 0) With more than $19 million invested, HbAP 2.

0 helps Houstonians impacted by Hurricane Harvey take the next step toward homeownership. Eligible first-time homebuyers can receive up to $125,000 in down payment and closing cost assistance. This initiative is about turning the dream of homeownership into a reality, especially for those who need it most.

Important Program Funding Update Due to limited funding availability, applications that have not yet received pre-approval are now on hold until further notice. We are currently not processing additional applications; if additional funding becomes available, we will continue processing your application on a first come first serve basis. What if I already have pre-approval?

You should continue working within your current timeline to identify a home and move toward closing. Will extensions be granted? No. Extensions are not available at this time.

Homeownership is a dream for many Houstonians but is out of reach for many residents. The City of Houston offers up to $75,000 to income-qualified residents. The City assists first-time homebuyers in the city limits through our Homebuyer Assistance Program.

U.S. citizen or permanent resident. (This includes the co-applicant, and spouse) First-time homebuyer (or have not owned a home in the last 3 years). Household income at or below 80% of the Area Median Income (Español) .

The home you want to purchase pays taxes to the City of Houston. Our assistance is a no-interest, forgivable loan secured by a lien. The loan is fulfilled if the buyer lives in the home for five years.

If the buyer sells or moves out of the home before the end of five years, they will repay the City for a portion of the original loan amount. Key Documents and Resources Frequently Asked Questions Join us for Virtual Community Office Hours every Wednesday from 1–4 PM.

During these weekly office support hours, you’ll have the opportunity to speak directly with a team member about our HCD programs and available resources, including the Homebuyer Assistance Program (HAP) If you have questions or concerns, our team is available at 832-394-6200 , select the option Homebuyer Assistance Program.

Homebuyer Assistance Program (HAP) The City of Houston Housing and Community Development Department (HCD) offers programs designed to expand pathways to homeownership and equip homebuyers, realtors, and lenders with the knowledge and support they need to succeed. Through our Homebuyer Assistance Program, we offer free quarterly virtual training sessions for residents, real estate professionals, and lending partners.

These sessions are crafted to deliver practical guidance, valuable tools, and essential insights that support participants at every stage of the homebuying journey. Each training is designed to reinforce core concepts, clarify key processes, and connect you with resources that help make the path to homeownership clear, informed, and achievable. Realtor & Lender Workshop Have questions?

Contact Latasha Smith at Latasha. Smith@houstontx. gov .

Seven Easy Steps to Homeownership It is reccomended to have your documentation ready at the appropriate steps. Before submitting an application, the applicant must call 832. 394.

6200 to receive their applicant HAP ID number Incomplete applications cannot be processed. Please be sure that you have collected all the documents on the Applicant Document Checklist before submitting your application. Once submitted, the City reviews all documentation and will issue a Conditional Reservation Letter to accepted applicants.

Obtain a home loan through a lender. See a list of Lenders and Realtors who have worked with us before. Realtor & Lender Requirements for list inclusion Obtain a homebuyer education class certificate through a HUD-Approved Agency.

See a list of accepted locations Call 832. 394. 6200 to complete an application and determine your eligibility.

Find a home that is taxed by the City of Houston. Need help picking a home? Visit our Homebuyer Hub.

Pass environmental review, an inspection, and underwriting review. Sign the terms and conditions disclosure. The Homebuyer Assistance Program takes about six weeks, provided there are no external delays.

Please note that the six weeks is measured from the time the applicant submits a complete application. We cannot begin work on an incomplete application. Application Step Details a nd Documents The applicant should submit all documents on the Applicant Document Checklist .

Below are links to all of our internal forms: Affidavit of Child Support: Non-Delinquent Statement and Explanation of Facts (Form 1010) Statement and Explanation of Facts for Bank Deposits (Form 1010) First-Time Homebuyer Status and Certification of Property Ownership Conflict of Interest Form Certificate of Zero Income Asset and Income Certification Household Member Composition Form Once you receive a Conditional Reservation Letter, it is time to put a property under contract.

The lender will need to submit all the documents on the Property & Lenders Checklist Below is a list of all our internal documents: Lead Based Paint Acknowledgement Sellers Occupancy Certification Form Please note TREC inspections will only be accepted if they were completed after construction. The City then reviews all documentation provided while the file is in underwriting.

Meanwhile, the property will go through an environmental review, then will be inspected. If approved, the City will then issue a Commitment Letter . Once you receive a Commitment Letter , you will be informed of a possible closing date and will sign the Terms and Conditions of the assistance being provided by the City.

Instructions and loan closing documents are sent to the title company and lender, who submit pre-closing documents, including: Wiring Instructions for funds Preliminary Closing Disclosure (should include funds as City of Houston DPA & show no cash back to borrower) Binder for Casualty Insurance/Flood Insurance, if applicable Title Commitment (include copies of exceptions and restrictive covenants) Electronically (Preferred) Camera pictures of documents are not accepted, please scan and upload.

Scan Instructions (Android) Housing & Community Development Department 2100 Travis Street, 9th Floor Electronically (Preferred) Camera pictures of documents are not accepted, please scan and upload. Scan Instructions (Android) Housing & Community Development Department 2100 Travis Street, 9th Floor Frequently Asked Questions - Applicants Q: What is the five-year second lien?

- Answer A: When the City assists someone in buying a home, we invest in someone to live in the home for the long term. We require them to live in the home for five years, secured through a forgivable loan. The loan is forgiven at the end of the five-year residency period.

At the end of the five years, please submit this Release of Lien Request to HCDDLoanServicing@houstontx. gov . Q: How much subsidy can I receive?

- Answer A: You could receive up to $75,000 in subsidy, based on your household financial need. Q: Is there a maximum amount of liquid assets I can have? - Answer A: You must have less than $50,000 in liquid assets at the time of eligibility determination and at closing.

Q: Do I have to be a U.S. Citizen? - Answer A: The Applicant, Co-Applicant, and Spouse must be U.S. Citizens or a permanent resident. Q: Can I utilize the down payment assistance if I have previously owned a home?

- Answer A: You must be a first-time homebuyer to participate in this program. Q: How long does the process take? - Answer A: The eligibility process can take up to six weeks, provided there are no external delays.

Please note that the six weeks are measured from the time the applicant submits a complete application. We cannot begin work on an incomplete application. Q: What if I must sell my home or move out before my affordability period is over?

- Answer A: In these cases, the City will collect a portion of the investment proportional to the remaining residency period. To begin this process, please submit this Payoff Statement Request form to HCDDLoanServicing@houstontx. gov .

Q: Is this program only available in certain areas? - Answer A: No, the Homebuyer Assistance Program applies to any home that pays taxes to the City of Houston . Q: Are there any fees associated with the program?

- Answer A: The buyer must contribute a minimum of $350 towards the transaction, which could be the inspection, down payment, appraisal, etc., but no fees are paid to the City of Houston. If someone tells you that there are participation fees, please report them for fraud . Q: Are credit reports required for all household adults?

- Answer A: No. All household income must be reported, but only the loan applicant’s credit is reviewed during underwriting. Q: Is there a credit score requirement? - Answer A: No, the Homebuyer Assistance Program does not consider credit score.

Q: Is there a debt-to-income requirement? - Answer A. Yes, the program requires a 33% front-end ratio and a 45% back-end ratio.

The front-end ratio is calculated by adding the new monthly payment plus taxes and insurance and dividing the sum by the borrower’s monthly gross income. The back-end ratio is calculated by adding together the mortgage and all of a borrower’s monthly debt payments and dividing the sum by the borrower’s monthly gross income.

For example, if a borrower has a monthly gross income of $5,000 and monthly debt payments of $2,000, their back-end ratio is 40% ($2000/$5000). Q: Is there a maximum home price? - Answer A: No. The buyer can select any home that fits their needs and budget as long as the front and back-end ratios are within our guidelines.

Q: What can the assistance provided be used for? - Answer A: The assistance CAN be used for: Pre-paid items (homeowner’s insurance, mortgage interest, property taxes, etc.) Subsidize mortgage interest rate Reduce principal amount of first mortgage payment The assistance CANNOT be used for: Q: What if I need to refinance my home?

- Answer A: If your mortgage information changes, you will need to share the new information with our department. Please submit this Subordination Agreement Request to HCDDLoanServicing@houstontx. gov .

FAQs - Real Estate and Lending Professionals Q: Can the appraisal be less than the sales price of a home? - Answer A: No, the sales price of a home cannot be more than the appraised amount of the home. Q: Does this program follow FHA guidelines?

- Answer A: No. The Single Family Eligibility sets and follows its own internal guidelines. Our underwriting includes calculating debt-to-income ratio, ensuring that there are no outstanding collections for government services or utilities, and verifying that there are no defaulted student loans. Q: Is there a cost for the City’s inspection?

What does this inspection include? - Answer A: The inspection is a free service conducted by our department. A sample of the inspection can be downloaded ( alternative version .

Please note that the City’s inspection does not replace an independent inspection. We strongly recommend that the buyer obtain their own inspection. A TREC inspection is required and must be conducted after construction is completed on newly constructed properties.

Q: What is the environmental review, and why is it needed? - Answer A: The environmental review primarily looks at where the home is located relative to the floodway and floodplains. Homes located in flood zones are required to have flood insurance to complete the purchase.

Q: Is there mandatory training that lenders and realtors must take to participate in the program? - Answer A: No. Any lenders and realtors may participate. events calendar for additional information and to gain knowledge of the program.

--> Q: Who is the loan servicer? - Answer A: HCD’s programs are serviced internally with our Loan Servicing Division. The loan is not amortized; however, there is a 6% fee applied to the defaulted loan balance.

Q: Can the program funds be used to pay realtor commissions? - Answer A: No, the funds are strictly for down payment, closing costs, pre-paid items, and principal reduction. Should the buyer choose to pay a realtor commission, they will have to do so from their personal funds.

Realtors and Lender Requirements for List Inclusion For reference, to be added to the Preferred List, Realtors and Lenders must: Have completed at least five (5) files using the City of Houston’s down payment assistance programs. Attend our Realtor & Lender Workshop, which must be completed annually to remain active on the list. Attend the entire workshop and receive an Acknowledgement of Completion.

Complete and pass the post-training quiz (sent within 24 hours of the session). Submit at least one post-training survey or client feedback form each year. 2100 Travis Street, 9th Floor