Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to cover that hefty down payment. But don’t worry—if you’re looking to buy a home in Brownsville, Texas, there’s a fantastic program designed to help folks just like you.

Homebuyer Assistance (HBA) Program

The City of Brownsville offers the Homebuyer Assistance (HBA) Program to assist low- to moderate-income families in purchasing new or existing single-family homes. Qualified homebuyers can receive a no-interest, deferred loan of up to $25,000 to cover down payment, closing costs, and eligible pre-paid expenses associated with buying a home.

Eligibility Criteria

• Income: Your household income must be at or below 80% of the area median family income for Brownsville.
• First-Time Homebuyer: You should not have owned a home in the last three years.
• Property Location: The home you’re purchasing must be a single-family residence located within the Brownsville city limits.
• Credit Score: A minimum credit score of 600 is required.
• Mortgage Approval: You must obtain approval for a mortgage loan from a participating lender, ensuring that loan underwriting ratios do not exceed 38/48 for both new and existing homes.
• Personal Contribution: You’re expected to contribute $1,000 to cover the initial mortgage application processing expense.

Benefits

• Financial Assistance: Receive up to $25,000 in a no-interest, deferred loan to help with down payment and closing costs.
• Affordable Homeownership: The program makes purchasing a home more attainable for families with low to moderate incomes.

Potential Drawbacks

• Deferred Loan: While the loan is interest-free and deferred, it’s essential to understand the terms of repayment, which may be required upon sale, transfer, or refinancing of the property.
• Property Restrictions: The assistance is limited to single-family homes within Brownsville city limits, which may limit your options.

Application Process

1. Participating Lender: Begin by contacting a participating lender from the HBA Participating Lenders list. These trained loan officers will assist you in completing your HBA application.
2. Homebuyer Education: Complete a HUD-approved homebuyer education course to prepare for the responsibilities of homeownership.
3. Program Application: Your lender will submit your application to the City of Brownsville’s Office of Strategic Initiatives for review.
4. Approval and Closing: If approved, you’ll proceed with the home purchase, utilizing the assistance for your down payment and closing costs.

Program Availability

This program is available exclusively within the city limits of Brownsville, Texas.

Funding Source

The HBA Program is funded through the HOME Investment Partnerships Program (HOME), a grant received annually by the City of Brownsville from the U.S. Department of Housing and Urban Development (HUD).

Pros and Cons

Pros:

• Substantial Financial Support: Up to $25,000 available for down payment and closing cost assistance.
• Interest-Free Loan: The loan is deferred, meaning no immediate monthly payments.
• Encourages Homeownership: Helps low- to moderate-income families achieve homeownership.

Cons:

• Repayment Conditions: The loan may need to be repaid if you sell, refinance, or transfer the property.
• Geographic Limitation: Assistance is only available for homes within Brownsville city limits.