Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to gather all the necessary funds. If you’re employed by the City of Frisco or the Frisco Independent School District (ISD), there’s a fantastic program designed to make this journey a bit smoother for you.

Program Name

City of Frisco Targeted Down Payment Assistance Program

Source of Funding

This initiative is funded by the City of Frisco.

Eligibility Criteria

• Employment: At least one adult in your household must be a full-time employee of the City of Frisco or Frisco ISD for a minimum of six months.
• First-Time Homebuyer: You should be a first-time homebuyer, meaning you haven’t owned a home in the last three years. Exceptions exist for displaced homemakers or recent single parents who didn’t receive a home through a divorce settlement.
• Income Limit: Household income should not exceed $144,567.
• Personal Contribution: A minimum of 1% of the home’s purchase price must come from your own funds.
• Homebuyer Education: Completion of an 8-hour HUD-approved homebuyer education course and a one-hour counseling session is mandatory.

Benefits

• Financial Assistance: Offers a forgivable loan of up to $10,000 for down payment and closing costs.
• Forgiveness Terms: Interest-free and forgivable over five years, with 20% forgiven annually as long as you continue living in the home and remain employed with the City of Frisco or Frisco ISD.

Potential Drawbacks

• Residency Requirement: If you sell, refinance (cash-out), or move before five years, or your employment with the City or ISD ends, you must repay the remaining unforgiven loan amount.
• Property Restrictions: Home must be within Frisco city limits and cannot exceed a sale price of $563,500.
• Inspection Requirements: Property must meet Texas Minimum Construction Standards.

Application Process

1. Mortgage Pre-Qualification: Contact a lender for pre-qualification.
2. Gather Documentation: Collect tax returns, paycheck stubs, bank statements, and ID.
3. Submit Application: Complete the online application with required documents.
4. Homebuyer Education: Complete the required education and counseling session.
5. Approval and Funding: Once approved, receive a commitment letter reserving funds for four months. At closing, the City transfers funds to the title company.

Program Availability

Geographic Scope: Available within the city limits of Frisco, Texas.

Pros and Cons

Pros

• Provides up to $10,000 in assistance for down payment and closing costs.
• Forgivable loan with no interest over five years.
• Exclusive to City of Frisco and Frisco ISD employees.

Cons

• Must remain employed with City of Frisco or Frisco ISD and live in the home for five years to avoid repayment.
• Property must be within Frisco and not exceed $563,500 in price.
• Liquid assets over $20,000 must be used before program funds can be applied.

Application Process

1. Obtain mortgage pre-qualification.
2. Submit an online application with required documents.
3. Complete an 8-hour HUD-approved homebuyer education course and a one-hour counseling session.
4. Upon approval, receive a commitment letter reserving funds for four months.
5. At closing, the City transfers the funds, and loan documents are signed.

Program Type

Assistance Form: Forgivable loan for down payment and closing cost assistance.

Program Timeline

Availability: Currently active (specific start and end dates not provided).

Sources

For more detailed information, visit the official program page: City of Frisco Down Payment Assistance Program