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From Houston Rentals to Homeownership: Grants to Help with the Mortgage

 

financing options for home loans

If you want to get out of Houston rentals, are in the market for a home and are a first-time buyer, you need to know about several grant programs the City of Houston has established just for people like you.

 

The city is offering several housing grants for first-time homebuyers to help with down payments on their homes.

 

Homebuyer Assistance Program (HAP)

One such grant program is called the Homebuyer Assistance Program, or HAP. This grant provides $19,500 in down payment assistance money for those who qualify.

 

In order to be eligible for the HAP grant, you must meet the following requirements:

 

  • You must be able to qualify for a mortgage loan from an approved lender.
  • Your total family income cannot be more than 80 percent of the median income for the city's residents. For a family of three, that amounts to $47,550 a year; for a family of four, the amount is $52,800 a year.
  • You have to complete an eight-hour homebuyer education program that is given by a counseling agency approved by the U.S. Department of Housing and Urban Development. The class is designed to help people learn more about the home buying process and what is involved.
  • The price of the home that you buy cannot be more than $200,160.
  • The home must be in the City of Houston.
  • You have to buy a new or existing home. You can purchase a single-family property, which includes detached and attached units, a condominium or townhouse, a modular home or a cooperative unit.
  • You must invest at least $500 of your own money toward the home buying transaction.
  • You have to live in the home for 10 years in order for the grant amount to be forgiven.

 

Along with the City of Houston, the Homebuyer Assistance Program is operated by the city's Housing and Community Development Department, with the overall goal of providing help to low and moderate income homebuyers in the city.

 

Funding for HAP comes from the HOME Investment Partnerships Program, the Community Development Block Grant Program, the American Dream Down Payment Initiative and the Tax Increment Reinvestment Zone.

 

Houston Hope

Another grant program is called Houston HOPE. This grant provides $30,000 to residents who qualify. The HOPE program is an effort by the city to reinvest in Houston’s historic neighborhoods by using housing stabilization programs such as HOPE and other activities to build these communities.

 

The program enables residents to live in the city’s more established neighborhoods, many of which are close to major thoroughfares and activity centers. These areas include Acres Homes, Denver Harbor, Fifth Ward, Independence Heights, Near Northside, Settegast, Sunnyside and Trinity Gardens. These are among the areas that have been chosen for revitalization.

 

This program qualifies you for houses built specifically for HOPE. These homes are built by experienced, local builders using energy-efficient products and cost effective floor plans.

 

These homes are designed to provide affordable monthly payments, a variety of different floor plans, energy efficiency, locations near parks and recreation facilities.

 

This program also has requirements that are similar to the HAP program:

 

  • To qualify, you cannot own any property at the time you make the application.
  • Here too, your total family income cannot exceed 80 percent of the median income for the city.
  • You must complete a homebuyer education program.
  • The price of the home you buy cannot be more than $200,000.
  • You must put at least $500 of your own money into the home buying transaction.
  • You have to live in the home for at least 10 years in order for the full amount to be forgiven.
  • The additional requirement, as mentioned, is that the property you buy must be in one of the Houston HOPE areas or an area designated by the mayor as a revitalization area.

 

Workforce Housing Down Payment Assistance Program

A third grant program offered by the city is called the Workforce Housing Down Payment Assistance Program. This program also offers qualified homebuyers a grant of $30,000. Like the HOPE program, the properties you purchase must be located in areas designated as Houston HOPE areas or any other areas chosen by the mayor for revitalization.

 

But this program allows families with higher incomes than the HOPE initiative to qualify for grant money. Whereas the HOPE program limits income to 80 percent of the median, the Workforce initiative requires a combined family income between 80 and 110 percent of the median Houston income. This means that a family of three can qualify even if their combined income is as high as $65,340. For a family of four, the income increases to $72,600.

 

This program, however, also has one requirement not part of the other programs – the homebuyer has to buy a home that has been newly constructed. This means that the home under consideration is in the planning stages, is under construction, or is at most one year old.

 

Also, in this program, the sale price of the home cannot exceed $150,000.

 

The additional requirements for the Workforce program are similar to the other programs:

 

  • Enrolling in the homebuyer education program
  • Investing at least $500 toward the home buying transaction
  • Being financially sound enough to obtain a mortgage

 

Harris County Grants

Finally, Harris County also offers a home ownership grant program for those qualify. First-time homebuyers can get $14,200 for a new home and $9,500 for a pre-owned home. The maximum sale price for the home cannot exceed $170,500 for a family of four. As with some of the other grants, total family income cannot exceed 80 percent of the median income for the county. Also, the homebuyer must enroll in the homebuyer education program, must be able to obtain a mortgage, and must be able to contribute at least $350 toward the transaction.

 

Other grant programs are available in Montgomery County and the City of Pasadena, and tax credits are also available for first-time homebuyers.

 

Mortgage Grant Help from In the Loop Properties

If these programs interest you, In The Loop Properties has an experienced mortgage professional who specializes in grant programs for the City of Houston.  We can help you navigate your way through the application process to get qualified for these grants.

 

Just give us a call at 713-521-7368 or e-mail us at info@intheloopproperties.com. We look forward to helping you fulfill your dream of homeownership!