City of Beaumont DPA Programs
Down Payment Assistance
City of Beaumont DPA Programs
Location Served: Beaumont, TX
Provider: City of Beaumont
Approved Lender: New American Funding – (512) 524-8077
The City of Beaumont’s Down Payment Assistance Program is available to first-time homebuyers who are purchasing a newly constructed or existing home that is located within Beaumont city limits.
To qualify for the City of Beaumont DPA Program, homebuyers must meet the following requirements:
- Applicants must be a first-time homebuyer or not have owned property in the past three years. Please note that this requirement is waived for those homebuyers whose previous home was awarded to the other party in a divorce proceeding or where such judge ordered the home to be sold.
- The property to be purchased must be located within the city limits of Beaumont.
- Direct assistance to the homebuyer is limited to $14,999.
- The maximum purchase price of the home may not exceed $120,000.
- After being approved for the City of Beaumont SPA Program, the homebuyer must be able to acquire an acceptable mortgage within 30 days.
- The applicant’s gross household income is not allowed to exceed the current year HOME Program limits by family size.
The purchase price of the property may not exceed $120,000. Properties that qualify for the program include single-family properties that are for sale in the City of Beaumont, meet the City’s Housing Quality Standards (HQS) and meet all other federal, state and local building codes, zoning ordinances and other requirements. A certificate of occupancy is required where applicable and any deficiencies noted by the City of Beaumont’s Building Codes Division and Housing Inspector must be fixed before the final closing date.
If the HOME assisted property is sold after the end of the recapture period, no recapture provisions apply. If the net proceeds are not sufficient to recapture the prorated HOME Investment, no recapture provisions apply, however, the homeowner will not be allowed to recover more that the amount of the homeowner’s down payment, principal payments and any capital improvement investment. No refinancing is allowed during the second lien period and full payment is expected. The note will be secured by a recorded Deed of Trust.
- All loans must be conventional (conforming or nonconforming), FHA, Portfolio, VA or Rural Development.
- The cost of housing may not exceed 33% of the homebuyer’s gross income, and must be based on the City of Beaumont’s Income calculation not the lender’s.
- The originator in not permitted to charge more than 2% in upfront fees, regardless of who pays.
- Prepayment Penalties are not allowed.
- Mortgages must be 10 to 30-year terms.
- Assets listed on the Loan Application are allowed to be counted as Assets of the homebuyer; therefore, the City of Beaumont can count the assets in the income calculations.
- Buyers with Liquidated Assets in excess of two times the amount of assistance applied for are not eligible. Gifts listed as assets will be counted as assets in income calculations.
- A home improvement loan with the primary purpose of reducing the monthly mortgage payment is the only subordination of a first lien during the affordability period that the City of Beaumont will support. The city must be in the second lien position in the event of subordination.
- The City of Beaumont will not support the subordination of the second lien during the affordability period. The City must remain in second lien position.
- Gift funds in conjunction with the City of Beaumont’s funds are allowed, but proof of a 501©3 status will be required.
- Written approval from the City of Beaumont is required if the homebuyer is receiving assistance from more than one program.
- Seller contribution can a maximum amount of 6%; however, the buyer in not allowed to receive any money back at closing.
- The City of Beaumont does not permit the same person to act as both the Lender and the Real Estate Agent in the same transaction.
- “Homebuyer Assistance Fees” cannot be charged.
- All All homebuyers must invest at least $2,000 into the purchase of their home.
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.