Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to gather all the necessary funds for a down payment and closing costs. 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 Overview

• Program Name: City of Frisco Targeted Down Payment Assistance Program
• Source of Funding: Funded by the City of Frisco

Eligibility Criteria

• Employment: At least one applicant must be a full-time employee of the City of Frisco or Frisco ISD for a minimum of six months.
• First-Time Homebuyer Status: Applicants should be first-time homebuyers, defined as individuals who haven’t owned a home in the last three years. Exceptions exist for displaced homemakers and single parents who previously owned a home with a spouse.
• Income Limit: Household income must not exceed $144,567.
• Personal Contribution: Applicants must contribute at least 1% of the purchase price from personal funds.
• Homebuyer Education: Completion of an 8-hour HUD-approved homebuyer education course and a one-hour counseling session is required.

Benefits

• Financial Assistance: Up to $10,000 in forgivable loan assistance for down payment, closing costs, prepaids, and discount points.
• Loan Forgiveness: Zero percent interest, 5-year deferred forgivable loan. Each year, 20% is forgiven, and after five years, the full amount is forgiven.

Potential Drawbacks

• Residency Requirement: To achieve full loan forgiveness, homeowners must live in the home for at least five years. If the home is sold, refinanced (cash-out), or no longer used as a primary residence within this time, the unforgiven loan balance must be repaid.
• Employment Condition: If the homeowner leaves employment with the City of Frisco or Frisco ISD before five years, the remaining unforgiven loan amount is due.

Application Process

1. Mortgage Pre-Qualification: Obtain a mortgage pre-qualification letter.
2. Application Submission: Visit the City of Frisco’s official website to review qualifications and submit an online application.
3. Homebuyer Education: Complete an 8-hour HUD-approved course and one-hour counseling session, then submit completion certificates.
4. Approval and Funding: Upon approval, a commitment letter is issued, and funds are reserved for four months. Funds are transferred at closing.

Additional Details

• Property Eligibility: Homes must be within Frisco city limits and cannot exceed a purchase price of $563,500.
• Inspections: Homes must meet Texas Minimum Construction Standards (TMCS). Pre-1978 homes require a lead-based paint assessment.

More Information

For detailed program information, check out the official Targeted Down Payment Assistance Program Policy.

If you’re considering buying a home in Frisco and meet these criteria, this program could be a game-changer for you! For assistance, contact the City’s Grants Coordinator at 972-292-5112 or via email at [email protected].