Hey there! Navigating the journey to homeownership can feel overwhelming, but understanding the resources available can make it much smoother. Let’s delve into the City of Killeen’s First Time Homebuyer Assistance Program (HAP) to see how it might assist you.

Program Overview

The City of Killeen’s First Time Homebuyer Assistance Program (HAP) was designed to support low- to moderate-income individuals and families in purchasing their first home within the city limits. The program provided up to $7,500 in assistance for down payment and closing costs, making homeownership more accessible.

Funding Source

HAP was funded through the federal HOME Investment Partnerships Program, administered by the U.S. Department of Housing and Urban Development (HUD). These funds were allocated to the City of Killeen to promote affordable housing initiatives.

Eligibility Criteria

To qualify for the program, applicants needed to meet several requirements:

• First-Time Homebuyer: No ownership in a principal residence during the three years preceding the purchase.
• Income Limits: Household income between 60% and 80% of the Area Median Income (AMI) for the Killeen/Temple/Fort Hood area.
• Legal Residency: Applicants had to be legal residents or citizens of the United States.
• Creditworthiness: Ability to qualify for a mortgage loan through a participating lender.
• Homebuyer Education: Completion of homebuyer education classes and housing counseling sessions.
• Personal Contribution: A minimum of $500 is contributed toward the purchase, typically as earnest money.
• Primary Residence: Commitment to occupy the purchased home as the primary residence for at least five years.
• Property Location: The home had to be within the corporate city limits of Killeen.

Additionally, applicants were required to use a HAP-certified real estate agent and mortgage lender.

Benefits

The primary benefit of HAP was the financial assistance of up to $7,500, which could be applied toward:

• Down Payment: Reducing the initial financial burden of purchasing a home.
• Closing Costs: Covering expenses such as loan origination fees, title insurance, and appraisal fees.

This assistance aimed to make homeownership more attainable for eligible individuals and families.

Potential Drawbacks

While the program offered significant advantages, there were some considerations:

• Occupancy Requirement: Participants were required to maintain the home as their primary residence for a minimum of five years. Selling or moving out before this period could result in the need to repay a prorated portion of the assistance received.
• Property Standards: Homes purchased through the program had to meet specific property standards, which might limit the selection of eligible properties.
• Program Availability: Due to factors such as rising housing costs and funding limitations, the program was placed on hold until further notice.

Application Process

For those interested in the program when it was active, the typical application process included:

• Completing a homebuyer education course.
• Applying through a HAP-certified lender.
• Finding an eligible home within Killeen city limits.
• Submitting an application for HAP funds.
• Meeting all required income and eligibility guidelines.