Hey there! Navigating the home-buying process can feel overwhelming, especially when it comes to financing your first home. But don’t worry—Harris County offers a Down Payment Assistance Program (DAP) designed to make homeownership more accessible for first-time buyers like you.

Program Overview

Program Name: Harris County Down Payment Assistance Program (DAP)

Source of Funding: This program is funded by the Harris County Housing and Community Development Department, utilizing federal funds to support eligible residents in purchasing homes within Harris County.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the last three years prior to applying for assistance.
• Income and Credit Requirements: Applicants need to meet specific income qualifications and have a minimum credit score of 580.
• Debt-to-Income Ratio: Your front-end ratio (housing expenses) should not exceed 39%, and your back-end ratio (total debt) should not exceed 42%.
• Homebuyer Education: Completion of a homeownership education course from a HUD-approved provider is mandatory.
• Personal Investment: A minimum contribution of $1,000 towards the purchase is required.
• Asset Limitations: You should have no more than $15,000 in liquid assets, such as cash, stocks, or bonds.
• Residency Status: Applicants must be U.S. citizens or permanent resident aliens.

Benefits

• The DAP provides financial assistance to help cover down payment and eligible closing costs, making it easier to purchase a home in Harris County.
• The exact amount of assistance is determined based on your financial need and the program’s guidelines.

Potential Drawbacks

• Geographic Restrictions: The home must be located in the unincorporated areas of Harris County.
• Property Price Limits: The maximum purchase price is $261,000 for pre-existing homes and $268,000 for newly constructed homes.
• Affordability Period: The assistance is provided as a deferred forgivable loan, secured by a deed of trust with a five-year affordability period. If you sell or move out of the home before the end of this period, you may be required to repay a portion of the original loan amount.

Application Process

1. Pre-Qualification: Ensure you meet all eligibility criteria, including income, credit score, and first-time homebuyer status.
2. Homebuyer Education: Complete a HUD-approved homeownership education course.
3. Find a Participating Lender: Work with a lender approved by the program to obtain a mortgage pre-approval.
4. Property Selection: Choose a home within the eligible areas and price limits.
5. Application Submission: Submit your application through the participating lender, including all required documentation.
6. Program Review: The program administrators will review your application and determine the assistance amount.
7. Closing: Upon approval, proceed to close on your home purchase with the assistance provided.