Homebuyer Down Payment Assistance

What is Homebuyer Down Payment Assistance?

Homebuyer Down Payment Assistance is a forgivable loan for homebuyers in Waco, Texas.

• Waco FTHB DPA up to $7,500 forgivable second; 0%, 5-yr forgiveness; 80% AMI McLennan County.
• City of Waco's Homebuyer Down Payment Assistance program provides up to $7,500 in down payment and closing cost assistance for FTHBs within Waco city limits. Structured as a deferred 0% forgivable second mortgage with 5-year forgiveness.
• Funding comes from Local, HOME, and CDBG.

Do you have to pay it back?

Homebuyer Down Payment Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 20% per year forgiveness over 5 years and pro-rata recapture on sale/refi/non-occupancy.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homebuyer Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Homebuyer Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• <=80% AMI Waco MSA: $45,550 (1-person) to $85,950 (8-person) HH size.
• The limit applies to total household income, not only the borrower&rsquo;s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Homebuyer Down Payment Assistance caps the purchase price as follows: Per HUD HOME 95% area median Waco MSA.

• Eligible property types include Single-family detached, townhouse, condominium, PUD.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Homebuyer Down Payment Assistance names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Homebuyer Down Payment Assistance serves buyers purchasing in Waco, Texas.

How do you apply?

Applications for Homebuyer Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved 8-hour homebuyer education required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply through City of Waco Housing and Community Development., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.