Are you ready to buy a home but lack money for the down payment and closing costs?
The Homebuyers’ Assistance Program, administered by the Neighborhood Services Department of the City of Tyler, may offer the help you need. The First-Time homebuyers’ Program, created with grants from the U.S. Department of Housing and Urban Development, helps low to moderate-income families and individuals with the substantial amount of cash required at the time of closing.
The Homebuyers Assistance Program is designed to:
- Expand the supply of decent housing available to first-time homebuyers.
- Provide support training and counseling activities to first-time homebuyers.
- Improve the opportunities for successful homeownership by assisting with the purchase of properties that are in sound structural condition and capable of providing decent and safe housing lasting, at a minimum, through the term of the mortgage and lien requirements.
City of Tyler Homebuyers Assistance Program will assist eligible homebuyers on a need basis in an amount not to exceed $7,500 for an existing home (a five (5) year lien will apply) or $14,999 for a newly constructed home (a five (5) year lien will apply), and $25,000 for HUD Initiatives Homes (a ten (10) year lien will apply) in down payment and closing costs assistance.
- Buyer’s closing costs; and/or,
- Down payment requirements; and/or,
- Reducing the mortgage loan principal.
Who is eligible?
If you have not owned a home within the past three years [see exception below] and your gross household income from all sources is equal to or less than the following amounts below you may qualify:
Exception: If you have owned a home within the past three years, you may still qualify if you are: A single parent who has custody of, and is caring for, minor children and who is legally separated from their spouse.
What Other Requirements Apply?
The home must be a single-family dwelling located within the city limits of Tyler. Applicants must be U.S. citizens or permanent legal residents. The home must pass a City inspection to conform with federal and local property standards and comply with lead-based paint standards. If the house needs additional repairs the seller will be given time to complete the repairs and the house will then be re-inspected. At closing, the first-time homebuyer signs legal documents creating a second lien on the property for the funds that are provided. This assistance is considered a “deferred payment loan.” No monthly loan re-payments are made to the City. However, if the first-time homebuyer sells, leases or rents the property within the lien period following purchase, all or part of the loan must be repaid to the City. At the end of the lien period, then the lien is released. Program assistance is subject to available funding.
How Do I Apply For The Homebuyers’ Assistance Program?
You must first apply for a standard mortgage from one of the Participating Lenders or from a recognized mortgage lender who agrees to meet program requirements.
After your lender pre-qualifies you for a mortgage loan, contact the Homebuyers Specialist at (903) 531-1303 for an appointment. Bring with you a copy of your pre-approval letter that the lender may have provided you and copies of recent earnings, income and benefits statements for all members of the household.