Hey there! Buying your first home is a big step, and if you’re looking to purchase in Garland, Texas, you’re in luck! The City of Garland Homebuyer Assistance Program can provide financial help to make homeownership more affordable. Let’s break it down so you know exactly how it works and whether you qualify.

Program Overview

The Garland Housing Finance Corporation (GHFC) offers a Mortgage Credit Certificate (MCC) with Down Payment Assistance (DPA) to help first-time homebuyers. This program provides both tax benefits and financial assistance, making it easier to afford a home.

Benefits

• Mortgage Credit Certificate (MCC) – A federal tax credit that lets you claim up to 30% of your annual mortgage interest (maximum $2,000 per year) for the life of your loan. This credit can increase your net earnings and make it easier to qualify for a mortgage.
• Down Payment Assistance (DPA) – Up to $15,000 in assistance:
  • $10,000 second lien (non-forgivable, repayable when selling, refinancing, or paying off the home).
  • $5,000 grant (no repayment required).

Eligibility Criteria

To qualify, you must meet the following conditions:

• First-Time Homebuyer – You must not have owned a home in the past three years, unless you are buying in a targeted area or are a qualified veteran.
• Income Limits:
  • Non-Targeted Areas:
    • $110,300 (1-2 people)
    • $126,845 (3+ people)
  • Targeted Areas:
    • $132,360 (1-2 people)
    • $154,420 (3+ people)
• Purchase Price Limits:
  • $577,842 in non-targeted areas
  • $706,251 in targeted areas
• Property Location – The home must be in Garland, Texas.
• Primary Residence – You must live in the home (investment properties do not qualify).
• Mortgage Requirements – Must meet loan guidelines for FHA, VA, USDA, Fannie Mae, or Freddie Mac.

Application Process

1. Choose a Participating Lender – Work with a lender approved by Hilltop Securities for this program.
2. Apply Before Closing – Your lender will submit your MCC/DPA application before finalizing your mortgage.
3. Complete the Paperwork – Sign the required affidavits and application forms provided by your lender.
4. Approval & Closing – If approved, funds will be sent to the title company before closing. You’ll sign an MCC Closing Affidavit when finalizing the loan.

Pros and Cons

✔ Pros:

• Provides up to $15,000 in assistance.
• The MCC tax credit can save you thousands over time.
• Can increase your mortgage approval amount by lowering tax liability.

❌ Cons:

• The $10,000 second lien is non-forgivable and must be repaid.
• There are fees (including a 1% MCC issuance fee and other charges).
• Limited to Garland, Texas – Not available elsewhere.

Program Type

• Grant (for $5,000 portion)
• Down Payment Assistance Loan ($10,000 second lien)

Where is this program available?

📍 Garland, Texas

Source & Official Links

For full details and official application materials, visit:

➡ City of Garland Homebuyer Assistance Program