Hey there! Navigating the home-buying process can feel overwhelming, especially when it comes to gathering enough funds for a down payment and closing costs. But don’t worry—if you’re considering purchasing your first home in Mesquite, Texas, there’s a fantastic program designed to help folks just like you.

Program Overview

• Program Name: City of Mesquite Down Payment Assistance Program (DPAP)
• Source of Funding: This program is funded through the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) and is administered by the City of Mesquite.

Eligibility Criteria

• First-Time Homebuyer Status: You should be a first-time homebuyer or not have owned a home in the last three years.
• Property Location: The home you’re looking to purchase must be within the city limits of Mesquite.
• Homebuyer Education: Completion of an 8-hour Homebuyer Education course from a HUD-approved provider is required.
• Citizenship: You must be a U.S. Citizen, Citizen National, or Qualified Alien.
• Income Limits: Your annual household income must be at or below 80% of the area median income (AMI) for Dallas County.

  Example: As of June 2023, the limit is $57,750 for a single-person household and $82,500 for a family of four.

• Primary Residence: You need to intend to occupy the property as your primary residence for at least five years.

Program Benefits

• The DPAP offers financial assistance covering 50% of the required down payment and/or closing costs, up to a maximum of $10,000.
• This assistance comes in the form of a zero-interest, deferred forgivable loan.
• If you maintain the home as your primary residence for five years, the loan is fully forgiven.

Potential Drawbacks

• Occupancy Requirement: If you sell the home or cease to occupy it as your primary residence before the five-year period ends, you’ll be required to repay a prorated portion of the assistance.
• Property Restrictions: The property must pass a home inspection and meet specific standards, which could limit eligible properties.

Application Process

1. Homebuyer Education: First, complete the required 8-hour Homebuyer Education course from a HUD-approved provider.
2. Application Submission: Fill out the DPAP application and gather all necessary supporting documents. Applications are processed on a first-come, first-served basis.
3. Property Selection: Identify a property within Mesquite city limits and ensure it meets the program’s property standards.
4. Inspection: Schedule a housing quality standards inspection through the City of Mesquite.
5. Loan Processing: Once all requirements are met, the City will reserve assistance funds and coordinate with your lender and title company for closing.

Pros and Cons

Pros:

• Financial Relief: Significantly reduces the financial burden of down payment and closing costs.
• Forgivable Loan: The loan is fully forgiven after five years of primary residence occupancy.
• Homeownership Education: The required course equips buyers with valuable knowledge for successful homeownership.

Cons:

• Residency Commitment: Requires a five-year commitment to reside in the home to avoid repayment.
• Property Eligibility: Not all properties may qualify, especially if they don’t meet specific inspection standards.
• Funding Limitations: Assistance is capped at $10,000, which may not cover all expenses for some buyers.

Additional Notes

• Homebuyer Contribution: Buyers are required to contribute at least 1% of the sales price from their own funds.
• Asset Limitation: Applicants with liquid assets exceeding $20,000 may see a reduction in assistance.
• Application Closure: Files with no activity for three months will be automatically closed, requiring reapplication.

Program Availability

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

Learn More & Apply

For more detailed information and to access application materials, visit the City of Mesquite’s official website:

• Official DPAP Guidelines
• DPAP Application

I hope this helps you feel more confident about the resources available to support your journey to homeownership in Mesquite. If you have any more questions or need further assistance, feel free to ask!