Hey there! Navigating the journey to homeownership can feel overwhelming, but I’m here to share some good news that might make the process a bit smoother for you. If you’re considering buying your first home in Tyler, Texas, the City of Tyler offers a Homebuyer Assistance Program designed to help folks like you achieve that dream.

Program Name:

City of Tyler Homebuyer Assistance Program

Source of Funding:

This program is funded by the City of Tyler’s Neighborhood Services Department, utilizing federal funds to support local residents in purchasing their first homes.

Eligibility Criteria:

• First-Time Homebuyer: You should be purchasing your first home or not have owned a home in the past three years.
• Income Requirements: Your household income must be at or below 80% of the area median income, adjusted for family size.
• Residency Status: Applicants must be U.S. citizens or legal resident aliens.
• Asset Limitations: Liquid assets should not exceed $15,000.
• Property Location: The home must be a single-family dwelling located within the city limits of Tyler.
• Property Standards: The selected home must pass a City inspection to ensure it meets federal and local property standards, including compliance with lead-based paint regulations.

Benefits:

• Financial Assistance: The program offers up to $50,000 in assistance, which can be used for down payment and closing costs.
• Notably, in the Hidden Palace area—Tyler’s premier affordable housing neighborhood in the north end of the city—first-time homebuyers may qualify for this maximum assistance amount.
• Forgivable Loan: The assistance is provided as a no-interest, deferred, and forgivable loan.
• If you maintain the home as your primary residence for the duration of the lien period (which varies based on the assistance amount), the loan is forgiven entirely.
• However, if the property is sold, leased, or rented within the lien period, all or part of the loan must be repaid to the City.

Potential Drawbacks:

• Lien Requirement: A lien is placed on the property for the amount of assistance provided. This lien remains for a specified period, and any change in the property’s status (like selling or renting it out) within this time frame could trigger a repayment obligation.
• Funding Availability: Assistance is subject to available funding, so it’s essential to apply early.

Application Process:

1. Pre-Qualification: Start by getting pre-qualified for a mortgage loan through a lender.
2. Contact the Homebuyer Specialist: Once pre-qualified, reach out to the Homebuyer Specialist at (903) 531-1303 to schedule an appointment.
3. Documentation: Bring a copy of your pre-approval letter and recent earnings, income, and benefits statements for all household members to your appointment.
4. Home Selection: Find a single-family home within Tyler’s city limits that meets your needs.
5. Inspection: Ensure the home passes the required City inspection.
6. Final Steps: Complete the necessary paperwork and proceed to closing with the assistance provided by the program.

For more detailed information and to access application documents, visit the City of Tyler’s official website: City of Tyler Homebuyer Assistance Program.