Are you thinking about buying your first home in Waco? That’s fantastic! I know the process can feel a bit overwhelming, but don’t worry—there’s a great program that might make things easier for you.

What is the City of Waco Homebuyer Down Payment Assistance Program?

The City of Waco offers financial assistance to help first-time homebuyers like you with down payments and closing costs. You could receive up to $25,000 through this program.

Funding Source

This assistance comes in the form of a loan provided by the City of Waco’s Housing and Community Development Department.

Eligibility Criteria

To qualify, you need to meet the following requirements:

• First-Time Homebuyer: You shouldn’t have owned a home in the past three years.
• Income: Your household income must be at or below 80% of the area median income (AMI).
• Mortgage Qualification: You must qualify for a first-lien mortgage with terms not exceeding 30 years.
• Personal Investment: You’re required to invest at least $750 of your own money into the home purchase.
• Owner Occupancy: The property must be your primary residence; it can’t be an investment property.

Benefits

• Financial Support: Receiving up to $25,000 can significantly reduce the financial burden of purchasing your first home.
• Homebuyer Education: The program partners with organizations like Grassroots Community Development and NeighborWorks Waco to offer homebuyer education, helping you navigate the path to homeownership.

Potential Drawbacks

• Loan Repayment: Since the assistance is provided as a loan, you’ll need to repay it over time, which will add to your monthly financial obligations.
• Eligibility Restrictions: The program has specific eligibility criteria, so not everyone may qualify.

Application Process

Ready to apply? Here’s how:

1. Register an Account: Access the City’s application portal and register your account.
2. Start the Application: Once logged in, select the Homebuyer Down Payment Assistance Program and begin your application.
3. Provide Necessary Documentation: Be prepared to submit required documents, such as proof of income and mortgage qualification.
4. Seek Assistance if Needed: If you have questions or need help during the application process, you can call (254) 750-5656 or email hcd@wacotx.gov.

Additional Resources

Consider exploring the Individual Development Account (IDA) Program, which allows lower-income families to save money for a down payment. For every dollar you save, two dollars are added to your account, up to a maximum $2,000 match.

To learn more, contact Grassroots Community Development at (254) 235-7358.

For more details and to apply, visit: City of Waco Housing and Community Development