City of Denton Housing Assistance Program
Down Payment Assistance
Denton HAP Program
Location Served: Denton, TX
Provider: City of Denton
Approved Lender: New American Funding – (512) 524-8077
The City of Denton Housing Assistance Program (HAP) offers homeownership opportunities to first time, low and moderate income homebuyers. HAP provides funding in the form of a forgivable loan, but must be repaid if the homebuyer chooses to sell, home equity loan, lease or transfer the title. The program guidelines determine the maximum amount of assistance each household is to receive. Funding from the City of Denton Housing Assistance Program may also be used to lower the homebuyer’s monthly payments. Below is an overview of the program’s guidelines, for a more comprehensive document, please call the Community Development Division.
In order to qualify for the program, homebuyers must:
- Reside in the city limits of Denton, TX for the past 12 months.
- Be a U.S. citizen or a legal resident.
- Be a first-time homebuyer or have not owned a home in the past three years.
- Not have more than $10,000 in liquid assets. An amount above $5,000 must be invested in the home .
- Not have a household income that exceeds the income limits for their family size (see chart below).
|Family Size||Maximum Yearly Income|
- Single-family homes located in the city limits of Denton (condos and town homes are acceptable).
- Sales price of the property may not exceed $135,000.
- House must be safe, decent and sanitary.
- Sufficient living / sleeping space is recommended.
- Property must be occupied by the seller, buyer or vacant for at least 60 days.
- Home must be inspected by a state licensed home inspector.
- If the house was built prior to 1978, it must be free of any deteriorated paint.
- The City of Denton HAP offers three forgivable loans at zero interest to qualified homebuyers (See chart below for the three loans available).
- NEW: Up to $5,000 is available to assist with program required repairs. Funds are available in the form of a grant.
- The City of Denton’s HAP will provide the homebuyer with down payment, closing costs and prepaid assistance.
- The homebuyer must contribute 1.75% of the sales price, a portion of their own money to buy the home.
- Some Gap funds may be available for low-income households that need assistance with the difference between the sales price of the home and their maximum loan amount.
Buyer’s Contribution and Maximum HAP Assistance
Listed below are the three levels of assistance through the City of Denton’s Housing Assistance Program and the minimum amount that a homebuyer must contribute to the purchase of their home.
|Family Size||Moderate Income||Low Income||Very-Low Income|
|1||$39,300 – $31,901||$31,900 – $24,551||$24,550 or Below|
|2||$44,900 – $36,451||$36,450 – $28,051||$28,050 or Below|
|3||$50,500 – $41,001||$41,000 – $31,551||$31,550 or Below|
|4||$56,100 – $45,551||$45,550 – $35,051||$35,050 or Below|
|5||$60,600 – $49,201||$49,200 – $37,901||$37,900 or Below|
|6||$65,100 -$52,851||$52,850 – $40,701||$40,700 or Below|
|7||$69,600 – $56,501||$56,500 – $43,501||$43,500 or Below|
|8||$74,100 – $60,151||$60,150 – $46,301||$46,300 or Below|
|Buyer’s Minimum Contribution||1.75 % of Sales Price|
|Maximum HAP Assistance||Up to $5,000||Up to $10,000||Up to $14,900|
|Term of Loan||5 Years||7 Years||10 Years|
- Attend a homebuyer education workshop. See attached list of available workshops.
- Contact a certified realtor that has been through HAP training. The realtor can assist you in finding a home. Please note that the buyer and seller must have independent real estate representation prior to negotiating terms.
- The HAP lender will submit your application for assistance
- When the buyers application is received by the Community Development Division, it will be processed. A member of the Community Development staff will contact the homebuyer to review the application and request any additional information needed for completion.
- Several steps of eligibility must be met before applicant qualifies. Applicant is subject to all guideline changes.
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.