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Free Money from the City!!

Before we really learned about it, we thought that the City’s The Down Payment Assistance Program (DPA) would only help home buyers with very low incomes.  But the City’s program is far more generous than Moxie ever thought possible.  A single person can make up to $41,050/year; for two people, the income goes up to $46,900.  For full income limits, see the DPA brochure (PDF). 

The DPA provides qualified, first-time homebuyers with a zero interest loan to assist with purchasing a home located within the Austin City Limits.  DPA funds cover the down payment and eligible closing costs and pre-paid expenses associated with buying a home. The DPA offers two options:

    * Standard DPA: Get up to $10,000 in a deferred, forgivable, 0% interest loan for 10 years. Up to $1,000 additional for borrowers in a Mortgage Credit Certificate Program, and up to $4,999 for people with disabilities. The loan is entirely forgiven if the borrower remains in the home ten (10) years without transferring title. Otherwise the (full balance) loan is due and payable if the borrower sells, leases, transfers title, refinances, gets a home equity loan, or pays off the first lien within ten (10) years.

    * Shared Equity DPA: Get up to $40,000 in a deferred, 0% interest loan for 30 years. Borrowers must pay back the DPA loan plus a percentage of their equity (the same percentage that Austin contributed) when the borrower sells, leases, refinances, gets a home equity loan, pays off the first lien, or otherwise transfers title within 30 years. When selling the home, the borrower agrees to give the City the chance to purchase the house at market rate ("right of first refusal").

The money doesn’t come without strings, but Moxie is experienced in helping its clients get through the prequalification requirements, which include completing the Housing Smarts homebuyer education classes.

The State of Texas also offers a similar down payment assistance program – it is out of funds for 2009, but will start up again in January.

For more information on  down payment assistance programs, feel free to contact us.