A: The Homebuyer Assistance Program takes about six weeks, provided there are no external delays. Please note that the six weeks is measured from the time the applicant submits a complete application. We cannot begin work on an incomplete application.

A: The buyer must contribute a minimum of $350 to the down payment of the home, but no additional fees are paid to the City of Houston. If someone tells you that there are participation fees, please report them for fraud .

A: No, the Homebuyer Assistance Program applies to any home that pays taxes to the City of Houston .

A: No. All household income must be reported, but only the loan applicant’s credit is reviewed during underwriting.

A. Yes, the program requires a 45% back-end ratio. The back-end ratio is calculated by adding together all of a borrower’s monthly debt payments and dividing the sum by the borrower’s monthly gross income. For example, if a borrower has a monthly gross income of $5,000 and monthly debt payments of $2,000, their back-end ratio is 40% ($2000/$5000). The Homebuyer Assistance Program requires that an applicant has a back-end ratio less than 45%.

A: No, the Homebuyer Assistance Program does not consider credit score.

A: No. The buyer can select any home that fits their needs and budget.

A: The assistance CAN be used for:

• Down-payment
• Pre-paid items (homeowner’s insurance, mortgage interest, property taxes, etc.)
• Subsidize mortgage interest rate
• Reduce principal amount of first mortgage payment
• Reasonable closing costs

The assistance CANNOT be used for:

• Realtor’s commissions

A: When the City provides assistance for someone to buy a home, we are making an investment for someone to live in the home for the long-term. We require they live within the home for five years, secured through a forgivable loan. The loan is automatically forgiven at the end of the five-year residency period. At the end of the five years, please submit this Release of Lien Request to HCDDLoanServicing@houstontx.gov.

A: In these cases, the City will collect a portion of the investment made, proportional to the amount of time remaining in the residency period. For example, if the City provided $30,000, and the homebuyer moves after two years, they will only be charged for the three remaining years, or $18,000. To begin this process, please submit this Payoff Statement Request form to HCDDLoanServicing@houstontx.gov.

A: If your mortgage information changes, you will need to share the new information with our department. Please submit this Subordination Agreement Request to HCDDLoanServicing@houstontx.gov.

A: No. The Homebuyer Assistance Program sets and follows its own internal guidelines. Our underwriting includes calculating debt-to-income ratio, ensuring that there are no outstanding collections for government services or utilities, and verifying that there are no defaulted student loans.

A: The inspection is a free service conducted by our department. A sample of the inspection can be downloaded (alternative version . Please note that the City’s inspection does not replace an independent inspection; we strongly recommend that the buyer do their own inspection.

A TREC inspection is required and must be conducted after construction is completed on newly constructed properties.

A: The environmental review primarily looks at where the home is located relative to the floodway and floodplains. Homes located in flood zones are required to have flood insurance to complete the purchase.

A: No. Any lenders and realtors may participate. For realtors and lenders, view our workshop replay video on youtube for additional information.

A: The Homebuyer Assistance Program is serviced internally with our Loan Servicing Division. The loan is not amortized; however, there is a 6% fee applied to the defaulted loan balance.

A: No, the funds are strictly for down payment, closing costs, pre-paids and principal reduction. Should the buyer choose to pay a realtor commission, they will have to do so from their personal funds.