Show All Answers

1. Does this program follow FHA guidelines?

• No. The Homebuyer Assistance Program sets and follows its internal guidelines. 
  • Our underwriting includes calculating the debt-to-income ratio, ensuring that there are no outstanding collections for government services or utilities, and verifying that there are no defaulted student loans.
• Housing and Community Development Department

2. Is there a cost for the City’s inspection? What does this inspection include?

• The inspection is a free service conducted by our department. 
  • Please note that the City’s assessment does not replace an independent inspection. The Realtor or Lending Institution will require a TREC home inspection.
• Housing and Community Development Department

3. What is the environmental review, and why is it needed?

• The environmental review primarily looks at where the home is located relative to the floodway and floodplains. 
• The home located in a flood zone is required to have flood insurance to complete the purchase.
• Housing and Community Development Department

4. Is there mandatory training that lenders and realtors must take to participate in the program?

• No. Any lenders and realtors may participate.
• Housing and Community Development Department

5. Who is the loan servicer?

• The loans are serviced by a financial institution.
• Housing and Community Development Department

6. Can the program funds be used to pay realtor commissions?

• No, the funds are strictly for down payment, closing costs, and principal reduction. 
  • Should the buyer choose to pay a realtor commission, they will have to do so from their funds.
• Housing and Community Development Department