Hey there! Thinking about buying your first home in Arlington, Texas? That’s fantastic! I know the process can feel a bit overwhelming, but don’t worry—there’s a great program that might just be the helping hand you need.

Introducing the Arlington Homebuyers’ Assistance Program (AHAP)

The City of Arlington offers AHAP to assist first-time homebuyers with down payment and closing costs. Qualified applicants can receive up to $20,000 in assistance, which comes as a no-interest, deferred loan forgivable over a period of 5 to 10 years, depending on the amount.

Funding Source

This program is funded by the U.S. Department of Housing and Urban Development (HUD) through the City of Arlington.

Eligibility Criteria

• First-Time Homebuyer: You must be purchasing your first home or not have owned a home in the past three years.
• Income Limits: Your household income should not exceed 80% of the area median income (AMI). For example, as of June 15, 2023, the limit for a family of four is $76,550.
• Employment: A continuous employment history for the past six months and verifiable employment for a minimum of one year are required.
• Creditworthiness: You should demonstrate a responsible credit history and be approved by a participating mortgage lender.
• Homebuyer Education: Completion of a HUD-approved Homebuyer Education Course is mandatory.

Benefits

• Financial Assistance: Receive up to $20,000 for down payment and closing costs.
• Forgivable Loan: The assistance is a no-interest, deferred loan forgivable over 5 to 10 years, provided you continue to reside in the home.
• Homeownership Education: Gain valuable knowledge through required homeownership training, covering topics like budgeting and home maintenance.

Potential Drawbacks

• Occupancy Requirement: You must occupy the purchased property during the entire affordability period (up to 10 years). Renting or leasing the property during this time is prohibited.
• Asset Limitation: Your liquid assets may not exceed $15,000 at the time of closing.
• Repayment Obligation: If you sell or transfer the property before the end of the affordability period, a portion of the assistance may become due.

Application Process

1. Complete the AHAP Application: Obtain and fill out the application forms available on the Housing Channel website.
2. Gather Required Documentation: Prepare necessary documents, including income verification, employment history, and credit information.
3. Submit Application: Deliver the completed application and documents to Housing Channel for processing.
4. Attend Homebuyer Education: Complete the required HUD-approved Homebuyer Education Course.
5. Obtain Mortgage Approval: Work with a participating lender to secure a market-rate mortgage loan.
6. Property Selection and Inspection: Choose a qualifying property in Arlington and ensure it meets AHAP property standards through inspection.
7. Finalize Purchase: Complete the closing process with the assistance of Housing Channel and your lender.

Geographic Availability

This program is available exclusively within the city limits of Arlington, Texas.

Program Availability

The AHAP is currently active and accepting applications. Assistance is provided on a first-come, first-served basis, subject to funding availability.