Hey there! Navigating the home-buying process can feel overwhelming, but I’m here to share some good news that might make your journey a bit smoother. If you’re considering purchasing a home in Dallas, the Dallas Homebuyer Assistance Program (DHAP) could be a valuable resource to help you achieve your dream of homeownership.

What is the Dallas Homebuyer Assistance Program (DHAP)?

DHAP is a program designed to assist low- and moderate-income individuals and families in purchasing homes within the city limits of Dallas. The program offers financial assistance to eligible homebuyers, making the path to owning a home more accessible.

Funding Source

The program is funded by the U.S. Department of Housing and Urban Development (HUD) through HOME Investment Partnership Funds and Community Development Block Grant Funds (CDBG). Since 1991, DHAP has provided assistance to over 7,900 families.

Eligibility Criteria

To qualify for DHAP, applicants must meet the following requirements:

• Citizenship: Be a U.S. citizen, permanent resident, or have eligible immigration status with a valid Social Security card.
• Income: Household income must be at or below 80% of the Area Median Income (AMI) for the Dallas area. For example, as of June 1, 2024, the income limit for a household of four is $88,250.
• Employment: Applicants should have been employed for at least six consecutive months before applying.
• Homebuyer Education: Completion of a pre-purchase Homebuyer Education Course through a DHAP and HUD-approved education provider is required.

Benefits of the Program

DHAP provides financial assistance that can be used toward down payment and closing costs. The amount of assistance is based on need and may not exceed the following limits:

• High Opportunity Areas: Up to $60,000
• All Other Areas in Dallas: Up to $50,000

The assistance is provided as a second lien in the form of a forgivable deferred loan, which is interest-free with no monthly payments. The loan is prorated annually based on the affordability period (residency term of the loan). Partial repayment is due upon sale, lease, transfer, or other disposition of the property.

Potential Drawbacks

While DHAP offers significant benefits, there are some considerations to keep in mind:

• Residency Requirement: Applicants must currently live in the City of Dallas and have done so for at least 10 years.
• Property Requirements: The home must be within the city limits of Dallas and must appraise for at least 100% of the sales price.
• Funding Availability: Assistance is provided on a first-come, first-served basis, and funding is subject to availability.

Application Process

If you’re interested in applying for DHAP, follow these steps:

1. Attend a Homebuyer Education Course: Complete a pre-purchase course through an approved provider to receive a certificate.
2. Find a Home: The home must be within the city limits of Dallas and meet program requirements.
3. Secure Financing: Obtain a mortgage loan from an approved lender.
4. Submit an Application: Work with an approved lender and submit a DHAP application.
5. Underwriting and Approval: The city will review the application, and if approved, funds will be allocated at closing.

If you’re looking to buy a home in Dallas, DHAP can be a game-changer. Be sure to check your eligibility and apply early since funds are limited!

Additional Resources

For more information, visit the official Dallas Homebuyer Assistance Program website.