Hey there! Thinking about buying your first home in Brownsville, Texas? That’s fantastic! I know the process can feel a bit overwhelming, but don’t worry—I’m here to help. Let’s chat about the City of Brownsville’s Homebuyer Assistance (HBA) Program, which could be just what you need to make your homeownership dreams come true.

What Is the HBA Program?

The HBA Program is designed to assist low to moderate-income families in purchasing new or existing single-family homes within Brownsville city limits. Qualified applicants can receive a no-interest, deferred loan of up to $25,000 to help cover down payment and closing costs. The exact loan amount depends on your financial need and the availability of funds.

Who Is Eligible?

To qualify for the program, you’ll need to meet the following criteria:

• First-Time Homebuyer: You haven’t owned a home in the last three years.
• Income Level: Your household income is at or below 80% of the area’s median family income.
• Credit Score: A minimum credit score of 600 is required.
• Property Location: The home must be a single-family residence located within Brownsville city limits.
• Mortgage Approval: You must secure a mortgage loan from a participating lender, ensuring that loan underwriting ratios do not exceed 38/48 for both new and existing homes.
• Personal Investment: You’re able to contribute $1,000 toward the initial mortgage application processing expense.

Additionally, you’ll need to complete a HUD-approved homebuyer education course to prepare for the responsibilities of homeownership.

How Does It Work?

Once you’re approved, the program provides a no-interest, deferred loan of up to $25,000. This assistance can be used for your down payment, closing costs, and eligible prepaid expenses associated with buying your home. The loan amount is based on your financial need and is subject to the availability of HOME funds.

Pros and Cons

Pros:

• Financial Assistance: Significant help with upfront costs makes homeownership more accessible.
• No Interest: The loan is interest-free, reducing your financial burden.
• Deferred Payment: Repayment is deferred, allowing you to focus on other expenses.

Cons:

• Eligibility Requirements: Strict criteria may limit availability for some applicants.
• Funding Limitations: Assistance is subject to the availability of HOME funds, which may vary.

How to Apply

1. Check Eligibility: Review the program guidelines to ensure you meet all requirements.
2. Find a Participating Lender: Only trained loan officers listed on the HBA Participating Lenders list may submit HBA applications for borrowers.
3. Complete the Application: Your participating lender will help you complete your HBA application.
4. Attend Homebuyer Education: Complete a HUD-approved homebuyer education course.

For more information, you can contact the Office of Strategic Initiatives at (956) 548-6167 or visit their website.

Program Availability

• Location: City of Brownsville, Cameron County, Texas.

Sources

• City of Brownsville Homebuyer Assistance Program