Hey there! Navigating the journey to homeownership can feel overwhelming, but Fort Worth offers a fantastic resource to make the process smoother for first-time buyers. Let’s dive into the details of the City of Fort Worth’s Homebuyer Assistance Program (HAP) to see how it might benefit you.

Program Name:

City of Fort Worth Homebuyer Assistance Program (HAP)

Source of Funding:

This program is funded by the U.S. Department of Housing and Urban Development (HUD) and administered by the City of Fort Worth’s Neighborhood Services Department.

Eligibility Criteria:

• First-Time Homebuyer: You must 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 should be at or below 80% of the Area Median Income (AMI), adjusted for family size. As of June 10, 2024, the maximum annual income for a household of four is $81,500.
• Property Location: The property must be within Fort Worth city limits.
• Home Price Limits: The maximum sales price is $309,000 for existing homes and $329,000 for new constructions as of September 2024.
• Additional Requirements: Completion of a homeownership training program from a HUD-certified counseling agency, a minimum personal contribution towards the purchase, and the property must pass specific inspections.

Benefits:

• Financial Assistance: Up to $25,000 is available to assist with down payment and closing costs. Three percent of the loan amount can be used for closing costs, with the remainder applied to the down payment.
• Deferred Forgivable Loan: The assistance is provided as a deferred forgivable loan. If you remain in the home as your primary residence for the required affordability period (five or ten years, depending on the assistance amount), the loan is forgiven.

Potential Drawbacks:

• Occupancy Requirement: You must occupy the home as your principal residence for a set period (five or ten years). Selling or renting the home before this period ends may require repayment of the assistance.
• Property Standards: The home must meet Minimum Acceptable Standards and pass an environmental review, which could necessitate repairs before purchase.

Application Process:

1. Pre-Qualification: Obtain pre-qualification from a city-approved lender to determine your loan amount.
2. Homeownership Training: Complete an eight-hour homeownership training program from a HUD-certified counseling agency.
3. Property Search: Work with a real estate agent to find a home within your price range and the program’s guidelines.
4. Offer and Contract: Make an offer on the home and ensure the contract includes a clause about obtaining assistance from the HAP.
5. Application Submission: Your lender will assist you in completing and submitting the HAP application to the City of Fort Worth.
6. Inspections and Approval: The city will conduct necessary inspections and reviews. Once approved, funds will be allocated for your closing.

Program Availability:

This program is available exclusively within the Fort Worth city limits.

Pros:

• Substantial Financial Assistance: Offers significant aid for down payment and closing costs, reducing the financial burden on first-time homebuyers.
• Forgivable Loan: The loan forgiveness feature incentivizes long-term homeownership.

Cons:

• Strict Eligibility Requirements: Income limits and property standards may exclude some potential buyers.
• Occupancy Commitment: The requirement to occupy the home for a set period may not suit those anticipating relocation.

Additional Information:

• Program Type: This is a deferred forgivable loan program providing down payment and closing cost assistance.
• Program Updates: As of September 2024, the maximum sales prices for eligible homes were updated. It’s advisable to check for the most current information.

For more details, visit the official City of Fort Worth Homebuyer Assistance Program page: City of Fort Worth HAP.

Embarking on the path to homeownership is a significant step, but with programs like HAP, Fort Worth is committed to making the journey more accessible for first-time buyers. If you have further questions or need assistance with the application process, feel free to reach out!