Upfront Cost Assistance Program (UPCAP)

Upfront Cost Assistance Program (UPCAP) is a forgivable loan for homebuyers in Dallas County, Texas. Dallas County (excluding City of Dallas) UPCAP: up to $7,500 forgivable second mortgage at 0% interest for first-time homebuyers. HOME-funded. 5-year affordability period. 80% AMI ceiling. Max purchase $318,000. 620 FICO. Dallas County's Upfront Cost Assistance Program (UPCAP) provides up to $7,500 in down payment and closing cost assistance to first-time homebuyers purchasing primary residences within Dallas County (excluding the City of Dallas). HOME-funded. Structured as a 0% interest deferred forgivable second mortgage with 5-year affordability period per HUD HOME 24 CFR 92.254. Pairs with FHA, VA, USDA, or conventional 30-year fixed first mortgage. 80% AMI ceiling. Maximum purchase price $318,000. Funding comes from Federal.

Upfront Cost Assistance Program (UPCAP) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Deferred 0% second mortgage forgiven prorata over 5 years (20% per year). If property is sold, refinanced (cash-out), transferred, or vacated as primary residence before 5-year anniversary, unforgiven balance becomes due in full. 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.

Upfront Cost Assistance Program (UPCAP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer required (no ownership in past 3 years). Veteran exception per HUD rule. On credit, the program states: 620 minimum FICO across all products. A homebuyer education course is required, through HUD-approved 8-hour homebuyer education required. Local providers include Frameworks CDC, Texas State Affordable Housing Corporation (TSAHC) network, and other HUD-approved counseling agencies in Dallas County. Residency requirement: Property must be located in Dallas County (excluding City of Dallas) and occupied as primary residence throughout 5-year affordability period. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. Property must be located in Dallas County, TX, EXCLUDING the City of Dallas (which has its own DHAP). First-time homebuyer required (no ownership in past 3 years; veteran exception). Household income at or below 80% AMI for Dallas-Fort Worth-Arlington MSA. Mandatory 8-hour HUD-approved homebuyer education class. Minimum $500 borrower contribution. 620 FICO minimum. Property must be a single-family detached, condominium, or townhouse used as primary residence. 30-year fixed-rate first mortgage required.

Upfront Cost Assistance Program (UPCAP) limits household income to 80% of the area median income, which varies by county and household size. 80% AMI for Dallas-Fort Worth-Arlington MSA per HUD; 1-person $57,750 / 4-person $82,500 / 8-person $108,900 (2025 limits). The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Upfront Cost Assistance Program (UPCAP) caps the purchase price at $318,000. Eligible property types include Single-family detached, condominium, townhouse, PUD. Must be primary residence. New construction is eligible. Manufactured homes are not eligible.

Upfront Cost Assistance Program (UPCAP) 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.

Upfront Cost Assistance Program (UPCAP) serves homebuyers purchasing in Dallas County, Texas. The program targets specific areas: Dallas County excluding the City of Dallas. The City of Dallas operates its own Dallas Homebuyer Assistance Program (DHAP) for residents within Dallas city limits.

Applications for Upfront Cost Assistance Program (UPCAP) go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved by participating lender through Dallas County HHS Community Development. Funds available on first-come, first-served basis subject to annual HUD HOME allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.