Hey there! Navigating the home-buying process can feel overwhelming, especially when you’re trying to figure out how to afford that initial down payment. But don’t worry—San Antonio has a fantastic program designed to help first-time homebuyers like you make that leap into homeownership a bit more manageable.

Introducing the Homeownership Incentive Program (HIP)

The City of San Antonio offers the Homeownership Incentive Program (HIP), which provides financial assistance to eligible first-time homebuyers to help cover down payments and some additional costs associated with purchasing a home. There are two versions of this program: HIP 80 and HIP 120, each tailored to different income levels and offering varying benefits.

HIP 80

• Funding Source: This program is funded by the City of San Antonio’s Neighborhood and Housing Services Department.
• Eligibility Criteria:
  • Income Limits: Your combined household income must be at or below 80% of the Area Median Income (AMI). For example, in 2024, the limit for a one-person household is $49,600, and for a two-person household, it’s $56,650.
  • Home Purchase Price Limits: The maximum purchase price is $263,000 for an existing home and $278,000 for new construction.
  • Other Requirements: You must complete a HUD-approved 8-hour homebuyer education class, make a minimum $500 earnest money deposit, and the home must be within San Antonio city limits.
• Benefits:
  • Receive a 0% interest, no-payment second loan ranging from $1,000 to $30,000.
  • Loans up to $15,000 are forgiven over a 5-year period; loans between $15,001 and $30,000 are forgiven over 10 years.

HIP 120

• Funding Source: Funding was also funded by the City of San Antonio’s Neighborhood and Housing Services Department.
• Eligibility Criteria:
  • Income Limits: Your combined household income must be at or below 120% of the AMI. For instance, in 2024, the limit for a one-person household is $74,350, and for a two-person household, it’s $84,950.
  • Home Purchase Price Limits: The maximum purchase price is $305,200 for an existing home and $325,800 for new construction.
  • Other Requirements: Similar to HIP 80, you must complete a HUD-approved 8-hour homebuyer education class, make a minimum $500 earnest money deposit, and the home must be within San Antonio city limits.
• Benefits:
  • Receive a 0% interest, no-payment second loan ranging from $1,000 to $15,000.
  • 75% of the loan is forgiven over a 10-year period; the remaining 25% is perpetual.

Potential Drawbacks

• If you sell, transfer, lease, rent, abandon, or cease to occupy the property as your principal residence during the forgiveness period, you may be required to repay the assistance provided.

Application Process

1. Qualify for a Mortgage: Get pre-approved for a first-lien mortgage through a qualified lender.
2. Homebuyer Education: Register for and complete a HUD-approved 8-hour homebuyer education class.
3. Check Property Eligibility: Ensure the home you’re purchasing is within San Antonio city limits.
4. Earnest Money Deposit: Make a minimum $500 earnest money deposit on the purchase contract.
5. Lender Coordination: Your mortgage lender will work with the Neighborhood and Housing Services Department to process the HIP loan.

For more detailed information, including current income limits and home purchase price caps, visit the City of San Antonio’s official website: sa.gov.

Remember, programs like HIP are designed to make the dream of homeownership more accessible. If you think you might qualify, it’s worth exploring this opportunity further. Happy house hunting!

Program Availability

The Homeownership Incentive Program (HIP) is available exclusively within the city limits of San Antonio, Texas.

Pros and Cons

Pros:

• Provides substantial financial assistance for down payments and closing costs.
• Offers forgivable loans with 0% interest and no monthly payments.
• Includes homebuyer education to prepare applicants for successful homeownership.

Cons:

• Strict income and purchase price limits may exclude some potential buyers.
• The requirement to repay a portion of the loan if the property is sold or ceases to be the primary residence within the forgiveness period.

Application Process

1. Mortgage Pre-Approval: Secure a first-lien mortgage through a qualified lender.
2. Homebuyer Education: Complete a HUD-approved 8-hour homebuyer education class.
3. Property Eligibility: Confirm the home is within San Antonio city limits.
4. Earnest Money Deposit: Make a minimum $500 earnest money deposit on the purchase contract.
5. Lender Coordination: Your lender will collaborate with the Neighborhood and Housing Services Department to finalize the HIP loan.

Program Type

The HIP offers forgivable loans that can be used for down payment assistance and closing costs.

Program Timeline

The HIP has been active since at least 2018. There is no indication that the program has become inactive; however, program details such as income limits and purchase price caps are updated annually. It’s advisable to consult the official program website for the most current information.

Category:

Texas First Time Homebuyer Program

Subcategory:

Bexar County