Hey there! Navigating the journey to homeownership can feel overwhelming, but don’t worry—I’m here to help. Let’s explore a fantastic opportunity that might make your path to owning a home in Odessa, Texas, a bit smoother: the City of Odessa’s Homebuyer Assistance Program.

Program Name

Homebuyer Assistance Program

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 HOME Investment Partnership Program (HOME) funds, administered by the City of Odessa’s Community Development Department.

Eligibility Criteria

• Income Requirements: Your household’s annual income must be below the limits set by HUD, which are based on the area’s median income and adjusted for family size. For example, as of 2023, the limit for a single-person household is $43,900, while a four-person household can earn up to $62,700.
• Credit Score: A minimum credit score of 580 is required. If your score is below this, organizations like Odessa Affordable Housing, Inc. offer credit counseling to help you improve it.
• Primary Residence: The home you purchase must be within Odessa city limits and serve as your primary residence.

Benefits

• Financial Assistance: For existing homes, the program offers down payment assistance of 5% or 10% of the purchase price, plus up to $3,500 for closing costs, with a maximum total assistance of $10,000. For newly constructed homes, assistance ranges from $2,500 to $20,000 for the down payment, based on income and family size, plus up to $4,000 for closing costs, with a maximum total assistance of $24,000. This aid comes as a zero-interest, deferred payment loan.
• Homebuyer Education: The program requires attendance at a Homebuyer Education Course, providing valuable insights into the purchasing process and homeownership responsibilities.

Potential Drawbacks

• Property Restrictions: Owner-financed properties, manufactured homes, and mobile homes are not eligible.
• Personal Investment: Homebuyers must contribute at least 1% of the purchase price from their own funds and have savings equivalent to two months of principal and interest payments before closing.

Application Process

1. Credit Counseling: If needed, improve your credit score through counseling services.
2. Pre-Approval: Obtain a mortgage pre-approval from an approved lender.
3. Application Submission: Complete and submit the Homebuyer Assistance Program application along with required documents.
4. Approval Notification: Receive an approval letter detailing the assistance amount and next steps.