Hey there! Navigating the journey to homeownership can feel overwhelming, but I’m here to share some good news that might make the process a bit smoother for you. If you’re considering buying your first home in Odessa, Texas, the city’s Community Development Department offers a Homebuyer Assistance Program designed to help folks like you achieve that dream.

Program Details

Program Name:

Homebuyer Assistance Program

Source of Funding:

This program is funded through the U.S. Department of Housing and Urban Development (HUD) and managed by the City of Odessa’s Community Development Department.

Eligibility Criteria

• First-Time Homebuyer: You should be purchasing your first home or not have owned a home in the past three years.
• Income Limits: Your household income must be below the limits set by HUD, which vary based on household size. For example, as of 2023, the limit for a single-person household is $43,900, and for a four-person household, it’s $62,700. These limits are updated annually, so it’s a good idea to check the latest figures.
• Credit Score: A minimum credit score of 580 is required. If your score is below this, organizations like Odessa Affordable Housing, Inc. offer credit counseling to help you improve it.
• Property Requirements: The home must be within Odessa city limits, meet Housing Quality Standards, and cannot be a manufactured or mobile home. For existing homes, the purchase price should not exceed $270,632.

Benefits

• Down Payment Assistance: The city provides assistance of 5% or 10% of the purchase price for existing homes. For newly constructed homes, assistance ranges from $2,500 to $20,000, depending on family income and size.
• Closing Cost Assistance: Up to $3,500 for existing homes and up to $4,000 for new constructions to cover eligible closing costs.
• Loan Terms: The assistance is offered as a zero-interest, deferred payment loan, with the total aid (down payment plus closing costs) not exceeding $10,000 for existing homes and $24,000 for new constructions.

Potential Drawbacks

• Owner Investment: You’ll need to contribute at least 1% of the home’s purchase price from your own funds.
• Savings Requirement: Before closing, you must have savings equivalent to two months of principal and interest payments.
• Property Restrictions: The program doesn’t support the purchase of owner-financed properties or manufactured/mobile homes.

Application Process

1. Credit Counseling: If needed, contact Odessa Affordable Housing, Inc. at 432-362-0415 for assistance.
2. Pre-Approval: Get pre-approved for a mortgage through one of the city’s approved lenders.
3. Application Submission: Complete the Homebuyer Assistance Program application and gather all required documents, including proof of income, bank statements, and tax returns.
4. Homebuyer Education: Attend a Homebuyer’s Education Course provided by Odessa Affordable Housing, Inc.
5. Home Selection: Once approved, find a home within the specified guidelines and ensure it meets the program’s standards before making an offer.

More Information

For more details, visit the City of Odessa’s official website.