Why use a Grant Program and which one is best

Did you know there is a search link on each property listed on HAR with all the loan programs available?

Harris County offers several affordable housing grant programs to assist residents in purchasing homes. Below are some notable programs and their financial offerings:

1. Harris County Down Payment Assistance Program (DAP):

• Assistance Amount: Up to $23,800 for new and pre-existing homes.
• Eligibility Criteria:
  • First-time homebuyers who haven't owned a home in the last three years.
  • Minimum credit score of 580.
  • The front-end debt-to-income ratio does not exceed 39%, and the back-end ratio does not exceed 42%.
  • Completion of a HUD-approved homeownership education course.
  • Contribution of at least $1,000 toward the home purchase.
  • Liquid assets not exceeding $15,000.
  • U.S. Citizen or Permanent Resident Alien.
• PropertIt has located events:
  • It is located in unincorporated areas of Harris County.
  • Maximum purchase price: $261,000 for pre-existing homes; $268,000 for new constructions.
• More Information: 

2. Harris County Housing Finance Corporation (HCHFC) Down Payment Assistance Program:

• Assistance Amount: $1,000 grant per household.
• Eligibility Criteria:
  • Must be used in conjunction with the Texas Department of Housing and Community Affairs (TDHCA) single-family mortgage program.
  • Designed for low-to-moderate and middle-income homebuyers.
• More Information: 

3. City of Houston Homebuyer Assistance Program:

• Assistance Amount: Up to $50,000 for income-qualified residents.
• Eligibility Criteria:
  • First-time homebuyers within Houston city limits.
  • Household income below 80% of the Area Median Income (AMI).
• Property Requirements:
  • Property must be within Houston's jurisdiction and subject to city taxes.
• More Information: 

These programs aim to make homeownership more attainable for residents by providing financial assistance for down payments and closing costs. Reviewing each program's specific requirements and consulting with the respective agencies or approved lenders is essential to determine eligibility and application procedures.

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The Texas Department of Housing and Community Affairs (TDHCA) offers several programs to assist homebuyers in Texas, including those in Harris County. Below are some notable programs and their financial offerings:

1. My First Texas Home (MFTH):

• Assistance Amount: Up to 5% of the loan amount for down payment and closing cost assistance.
• Program Features:
  • 30-year fixed-rate mortgage with low interest rates.
  • Designed for first-time homebuyers and veterans.
• Eligibility Criteria:
  • Must meet income and purchase price limits.
  • Minimum credit score of 620.
  • Completion of a homebuyer education course.
• More Information: 

2. My Choice Texas Home (MCTH):

• Assistance Amount: Up to 5% of the loan amount for down payment and closing cost assistance.
• Program Features:
  • 30-year fixed-rate mortgage.
  • Available to both first-time and repeat homebuyers.
• Eligibility Criteria:
  • Must meet income and purchase price limits.
  • A minimum credit score of 620.
  • Completion of a homebuyer education course.
• More Information: 

3. Homebuyer Assistance with New Construction (HANC) Program:

• Assistance Amount: Varies based on the project and borrower qualifications.
• Program Features:
  • Provides mortgage financing for acquiring and constructing site-built homes or placement of new manufactured housing units.
  • Funds are offered as fixed-rate loans with terms ranging from 15 to 30 years, with interest rates potentially as low as 0%.
• Eligibility Criteria:
  • Household income not exceeding 80% of the Area Median Family Income (AMFI).
  • The property must serve as the principal residence.
• More Information: 

Additionally, the Harris County Housing Finance Corporation (HCHFC) collaborates with TDHCA to offer an extra $1,000 grant for down payment and closing cost assistance. This grant is available to eligible low-to-moderate and middle-income homebuyers utilizing TDHCA's single-family mortgage programs. 

These programs aim to make homeownership more attainable by providing financial assistance for down payments and closing costs. It's essential to review each program's specific requirements and consult with approved lenders to determine eligibility and obtain current information.