Hey there! Navigating the journey to homeownership can feel overwhelming, but understanding the resources available can make a big difference. Let’s chat about the City of Killeen’s First-Time Homebuyer Assistance Program (HAP) to see how it might have been a helpful option for you.

Program Overview

The City of Killeen’s First-Time Homebuyer Assistance Program 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 to cover down payment and closing costs, making the dream of homeownership more attainable for many residents.

Funding Source

This initiative was funded through the HOME Investment Partnerships Program (HOME), a federal grant from the U.S. Department of Housing and Urban Development (HUD). The goal was to promote affordable housing opportunities for low-income individuals and families.

Eligibility Criteria

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

• First-Time Homebuyer Status: Applicants should not have owned a home in the past three years.
• Income Limits: Household income had to fall between 60% and 80% of the Area Median Income (AMI) for the Killeen/Temple/Fort Hood area. For example, as of July 1, 2020, a single-person household needed a minimum income of $27,600 and could not exceed $36,800. These figures are adjusted based on household size.
• Creditworthiness: Applicants had to qualify for a mortgage loan through a program-approved lender, ensuring they met specific debt-to-income ratios.
• Homebuyer Education: Participation in homebuyer education classes and housing counseling was mandatory to prepare applicants for the responsibilities of homeownership.
• Personal Investment: A minimum contribution of $500 toward the purchase was required from the buyer.
• Residency Commitment: Applicants needed to occupy the purchased home as their primary residence for at least five years.

Benefits

The primary advantage of the program was the financial assistance of up to $7,500, which could significantly reduce the initial costs of purchasing a home. Additionally, the mandatory education classes equipped buyers with valuable knowledge about the home-buying process, budgeting, and maintenance, fostering long-term success in homeownership.

Potential Drawbacks

• Occupancy Requirement: The five-year residency requirement meant that if a participant decided to sell or move out of the home before this period ended, they might have to repay a portion of the assistance received.
• Property Restrictions: Eligible properties had to be within Killeen city limits and meet specific standards, which could limit the options available to buyers.
• Program Availability: Due to factors like rising housing costs and funding limitations, the program was placed on hold until further notice.