Hey there! Navigating the journey to homeownership can feel overwhelming, but Fort Worth offers a fantastic resource to make it more accessible: the Homebuyer Assistance Program (HAP). Let’s break it down together.

Program Overview

The City of Fort Worth’s Homebuyer Assistance Program (HAP) provides up to $25,000 in mortgage assistance for income-eligible first-time homebuyers within the city limits. This assistance can be used for down payments and closing costs, making the dream of owning a home more attainable.

Source: City of Fort Worth HAP

Funding Source

HAP is funded by the City of Fort Worth, utilizing federal grants to support low- to moderate-income families in achieving homeownership.

Eligibility Criteria

• First-Time Homebuyer: You should be a first-time homebuyer or not have owned a home in the last three years. Displaced homeowners may also be eligible.
• Income Limits: Your household income must be at or below 80% of the Area Median Income (AMI). For example, as of June 10, 2024, the maximum annual income for a household of four is $81,500.
• Property Location and Price: The property must be within Fort Worth city limits. The maximum sales price is $309,000 for existing homes and $329,000 for new constructions as of September 2024.
• Homebuyer Contribution: A minimum contribution of $1,000 or 2% of the purchase price (whichever is less) is required.
• Homeownership Training: Completion of an eight-hour homeownership training course from a HUD-certified agency is mandatory.
• Creditworthiness: Applicants must qualify for a first-lien mortgage from a city-approved lender.
• Property Standards: The home must pass a Minimum Acceptable Standards Inspection and a City of Fort Worth Environmental Review.

Benefits

• Financial Assistance: Receive up to $25,000 to cover down payment and closing costs.
• Deferred Payment Loan: The assistance is forgivable after five to ten years, depending on the amount.
• Homeownership Education: Required training helps prepare buyers for successful homeownership.

Potential Drawbacks

• Occupancy Requirement: You must live in the home as your principal residence for five to ten years.
• Property Standards: The home must meet inspection requirements, which could require repairs before purchase.
• Funding Availability: Assistance is subject to funding and is first-come, first-served.

Application Process

1. Pre-Qualification: Get pre-qualified by a city-approved lender.
2. Homeownership Training: Attend an eight-hour training course.
3. Property Search: Work with a real estate agent to find a suitable home.
4. Make an Offer: Ensure your offer is contingent upon HAP assistance.
5. Application Submission: Your lender will assist in completing and submitting the application.
6. Inspections and Reviews: The property will undergo necessary inspections.
7. Closing: Upon approval, proceed to closing where assistance is applied.

Program Type

HAP provides both down payment and closing cost assistance in the form of a deferred payment loan.

Availability

The program is currently active and available to eligible applicants within the Fort Worth city limits.

Contact Information

Phone: 817-392-7395

Email: lilia.escobedo@fortworthtexas.gov

Website: City of Fort Worth HAP

Pros and Cons Summary

Pros:

• Substantial financial assistance up to $25,000.
• Deferred payment loan forgivable after a set period.
• Mandatory homeownership education enhances buyer preparedness.

Cons:

• Mandatory occupancy period to avoid repayment.
• Property must meet specific inspection standards.
• Assistance is subject to funding availability.

Geographic Availability

The Homebuyer Assistance Program is available exclusively within the Fort Worth city limits in Texas.

Sources

• City of Fort Worth Homebuyer Assistance Program
• Housing Channel