Many residents want to buy a home but do not have enough money saved for their down payment and closing costs. Other residents want to provide a large down payment in order to lower monthly mortgage payments. The Down Payment Assistance Program provides qualified homebuyers with a 0% interest, deferred, second lien loan of up to 10% of the sales price or a $10,000 maximum (up to $14,999 for households of 5 or more) toward a down payment or closing costs on single family properties including individually owned townhouse units, homeplexes and condominium units, but excluding mobile homes, duplexes, and quadraplexes.
Enhanced Down Payment Assistance of up to 20% of the sales price or a $14,999 maximum is available on any home for sale developed by the City of College Station Economic and Community Development or certified non-profit partner with the same repayment terms as above. For more information about eligible properties click here or contact the Economic and Community Development office.
Important Documents:
DAP Application Checklist
DAP Pre-Application Form
DAP Application
To qualify for the Loan, a prospective homebuyer must meet all of the following criteria:
- Applicant's household income may not exceed 80% of the Area Median Household income;
- Minimum employment history in the same job, or in the case of professional, salaried employees, in the same field of employment for a minimum of six (6) months;
- May not have more than $20,000 in liquid assets, excluding retirement accounts and personal property;
- Have a credit score of 600 or greater;Provide application fee of $20;
- Must afford mortgage payments between 20% and 35% of monthly income;
- Complete a hombuyer education course;
- Contribute a minimum of 1.5% of the total sales price of the home at closing.
To qualify for the Loan, prospective homes must meet all of the following criteria:
- Must be located within the College Station City limits;
- Maximum home price shall not exceed the FHA 203(b) limit for College Station area ($200,160 maximum price);
- Must have passed a lead-based paint risk assessment by a State of Texas licensed Lead Risk Assessor if home is constructed prior to 1978;
- Only Owner-Occupied or vacant homes may be purchased unless the DAP participant is the tenant;
- Tenant occupied homes may not be purchased.
To qualify for the Loan, your lender must meet all of the following criteria:
- Be licensed in the State of Texas and provide escrow services to buyers for insurance and property taxes;
- Provide a mortgage interest rate that does not exceed the local average rate more than 1.5 points;
- Provide a mortgage term of at least 15 years with a fixed rate for the life of the loan and be fully amortizing.
Applicants are urged to complete the Down Payment Assistance application and approval process prior to making an offer to purchase. The Down Payment Assistance application and approval process normally takes three weeks. Delay in submitting required documentation will delay the closing date. Final approval is not determined until the city reviews the sales contract, lender information, and inspects the home.
Terms
Assistance is in the form of a 0% interest, deferred, second lien. The loan is interest free as long as there are no vilations to the terms of the loan. Borrower must maintain the property as their primary residence and abide by all terms and conditions of the program, and first lien note. If the borrower sells, refinances (including home equity loans), or transfers the property or any other interest therein (including a beneficial interest) from the borrower to any other person or entity, or is in violation of program guidelines, the full amount of assistance shall become due and payable.
