Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to make that down payment. But don’t worry—if you’re considering purchasing a home in Dallas, the City of Dallas offers a fantastic resource called the Dallas Homebuyer Assistance Program (DHAP) that might be just what you need.

What is the Dallas Homebuyer Assistance Program (DHAP)?

DHAP is designed to help low- and moderate-income individuals and families achieve homeownership within the city limits of Dallas. The program provides financial assistance for down payments, closing costs, and principal reductions, making it easier to purchase a home.

Program Extensions

DHAP offers three distinct extensions to cater to various needs:

• Dallas Homebuyer Assistance Program: Assists low- to moderate-income homebuyers in purchasing a home within Dallas.
• Targeted Occupations Homebuyer Assistance Program: Designed for professionals in education, healthcare, and protective services, providing homeownership opportunities to those who have a direct impact on Dallas communities.
• Anti-Displacement Homebuyer Assistance Program: Aims to help current Dallas residents who have lived in the city for at least ten years purchase property in designated targeted areas.

Funding Source

The program is funded by the U.S. Department of Housing and Urban Development (HUD) through HOME Investment Partnership Funds and Community Development Block Grants (CDBG). Since 1991, DHAP has assisted over 7,900 families in achieving homeownership.

Eligibility Criteria

Dallas Homebuyer Assistance Program

• U.S. Citizen, Permanent Resident, or Eligible Immigration Status with a valid Social Security card.
• Annual household income at or below 80% of the Area Median Income (AMI) for household size.
• Executed real estate sales contract and mortgage lender approval for a first lien mortgage loan.

Targeted Occupations Homebuyer Assistance Program

• U.S. Citizen, Permanent Resident, or Eligible Immigration Status with a valid Social Security card.
• Homebuyer incomes above 80% and not exceeding 120% of the AMI for household size.
• Professionals in education instruction and library services, healthcare practitioners and technical occupations, healthcare support occupations, and protective services occupations.

Anti-Displacement Homebuyer Assistance Program

• U.S. Citizen, Permanent Resident, or Eligible Immigration Status with a valid Social Security card.
• Homebuyer incomes between 50% and 120% of the AMI for household size.
• Current Dallas residents who have lived in the city for at least ten years.

For detailed eligibility requirements, please refer to the DHAP Program Manual.

Benefits

The assistance provided is based on need and may not exceed the following limits:

• High Opportunity Areas: Up to $60,000
• All other locations in Dallas: Up to $50,000

The assistance is structured as a forgivable deferred loan with interest-free terms and no monthly payments. The loan is prorated annually based on the affordability period (residency term of the loan). Partial repayment is due upon sale, lease, transfer, or refinancing.

Application Process

Interested applicants must follow these steps:

1. Attend a HUD-approved homebuyer education course.
2. Obtain a mortgage pre-approval from a participating lender.
3. Find a home that meets DHAP requirements (must be located in Dallas and pass inspections).
4. Submit a completed application along with required documents.
5. Await approval and funding allocation.

Pros and Cons

Pros

• Significant financial assistance for down payments and closing costs.
• Forgivable loan structure with no monthly payments.
• Specialized programs for community professionals and long-term residents.
• Support from HUD-approved homebuyer education programs.

Cons

• Strict eligibility criteria based on income and employment.
• Home must be located within Dallas city limits.
• Loan forgiveness requires long-term residence.
• Limited funding availability.

Where is the Program Available?

This program is only available in Dallas, Texas.

Sources

• City of Dallas Official Website
• U.S. Department of Housing and Urban Development (HUD)