City of Frisco DPA Programs
Down Payment Assistance
Frisco TX Down Payment & Closing Cost Assistance Program
Location Served: Frisco, TX
Provider: City of Frisco
Approved Lender: New American Funding – (512) 524-8077
The City of Frisco Down Payment Assistance Program provides assistance to individuals who have worked full-time in Frisco, Texas for at least six (6) months. If there is more than one (1) adult in the household, at least one must be working within the city limits of Frisco. The City of Frisco DPA Program offers qualified homebuyers forgivable loans up to $10,000. The funding may be applied towards the home’s down payment and closing costs. However, the homebuyer is required to pay at least 50% of the closing costs.
There is a maximum income limit and maximum home price on the purchase:
|Household Size||Income Limit||Maximum Purchase Price|
The Down Payment Loan Assistance is a 10-year non-amortizing loan at zero (0%) interest rate at 10% per year.
The loan will remain forgiven unless the homeowner sells the house, refinances it for a cash-out mortgage or the house is no longer deemed as the homeowner’s primary residence. The remaining unforgiving portion must be re-paid in 5 years.
The City of Frisco Down Payment Assistance Program is offered on a first-come, first- serve basis to all homebuyers who meet the eligibility requirements. Priorities will be placed on a point-system for home buyers that:
- Each year of full-time employment in Frisco, TX is equivalent to 1 point. Applicants may receive a maximum 10 points for full-time employment.
- Every additional $500 contributed towards the sale of the home (above 1% of purchase price) is equivalent to 1 point, up to maximum of 10 points.
- Homebuyers who purchase a pre-existing home will be awarded 5 points.
- City of Frisco or Frisco Independent School District employees with more than 1-year employment history will be awarded 5 points.
The Down Payment Assistance Loan is a non-amortizing with zero percent interest rate. The unforgiven portion of the loan must be repaid immediately if the property is:
- Sold prior to re-payment.
- Refinanced (cash out).
- No longer the borrower’s primary residence.
Homebuyers may use the funding provided by the Frisco Down Payment Assistance Program ($5,000) for their down payment, closing costs, pre-paid and discount points.
- The income limit for 1 or 2-person household may not exceed $66,500.
- The income limit for 3 person(s) or more may not exceed $76,475.
- The purchase price for the home may not exceed $170,000.
- At least one adult in the household must be a full-time City of Frisco or Frisco Independent School District for at least 6 months.
- The applicant must be a Frisco TX first time home buyer or not have owned a home in past 3 years.
- The homebuyer must provide at least 1% of the purchase price from personal funds, not borrowed or gifted by other assistance programs.
- The purchased home must be located within city limits of Frisco TX.
- The homeowner must occupy the property as their principal / primary residence.
The loan program is offered on a first-come, first-serve basis to the eligible applicants. Upon approval, the $5,000 is reserved for your use, up to 4 months.
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.