Hey there! Thinking about buying your first home in Galveston? That’s fantastic! Navigating the home-buying process can feel overwhelming, but the City of Galveston offers a wonderful program to help make your dream of homeownership a reality.

What is the City of Galveston Homebuyer Assistance Program (HAP)?

This program provides financial assistance to eligible first-time homebuyers in Galveston, helping with down payments and closing costs.

Funding Source

The program is funded through the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program.

More details can be found on the official Galveston government website.

Eligibility Criteria

• First-Time Homebuyer: You must not have owned a home in the past three years.
• Income Requirements: Your household income must be at or below 80% of the area’s median income, adjusted for household size.
• Legal Residency: All household members must be legal residents or U.S. citizens.
• Mortgage Qualification: You must qualify for a mortgage loan through a recognized lender.
• Personal Contribution: A minimum of $500 must be contributed toward the purchase.
• Homebuyer Education: Completion of an eight-hour homebuyer education class is required.

Benefits

• Financial Assistance: Eligible participants can receive up to $14,500 for down payments and closing costs.
• Forgivable Loan: The assistance comes as a forgivable second mortgage with 0% interest. If you live in the home as your primary residence for at least five years, the loan is forgiven.

Potential Drawbacks

• Occupancy Requirement: If you sell, lease, or move out before five years, you may have to repay a portion of the assistance.
• Property Standards: The home must meet certain property standards, and any required repairs must be completed before purchase. HAP funds cannot be used for repairs.

Application Process

1. Pre-Approval: Submit an application to the City’s Grants & Housing Department.
2. Mortgage Pre-Qualification: Obtain pre-qualification for a mortgage loan from a recognized lender.
3. Home Selection: Choose a home within Galveston’s city limits that meets the program’s standards.
4. Inspection: The property must be inspected by a Grants & Housing staff member.
5. Closing: Once all requirements are met, the City provides the assistance funds at closing.

For more details, visit the official HAP guidelines.

Additional Information

Geographic Availability

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

Pros

• Substantial financial assistance up to $14,500.
• Forgivable loan with 0% interest after five years.
• Mandatory homebuyer education provides valuable knowledge.

Cons

• Strict occupancy requirement—moving or selling within five years triggers repayment.
• Homes must meet specific property standards.
• Buyers must contribute a minimum of $500.

Application Process Details

• Applicants must submit a comprehensive application packet.
• After eligibility confirmation, funds are reserved for 180 days.
• Applicants must work with a real estate agent and mortgage lender.
• The selected property undergoes inspection.
• Once approved, assistance funds are provided at closing.

Type of Assistance

This program provides both down payment and closing cost assistance as a forgivable loan.

Program Availability

The program has been active since at least 2017, based on available guidelines.

Category

Texas First Time Homebuyer Program

Subcategory: Galveston County