City of Grand Prairie 4-Home Program
Down Payment Assistance
FHPAG (4-Home) Program
Location Served: Grand Prairie, TX
Provider: City of Grand Prairie
Approved Lender: New American Funding – (512) 524-8077
Grand Prairie’s Foreclosed Home Purchase Assistance Grant Program, commonly referred to as the FHPAG Program, was designed to help eligible low, moderate and middle income families purchase foreclosed homes in the city of Grand Prairie, Texas. The Grand Prairie Housing and Neighborhood Services Department administers the FHPAG Program.
- The applicant must pre-qualify with an approved lender, provide prequalification letters to the city and complete the FHPAG application process.
- The applicant must locate a foreclosed home in an approved census tract that meets the foreclosure requirements.
- The applicant must provide the city of Grand Prairie with the necessary foreclosure documents relating to the potential home.
- The applicant must provide the proposed sales price of the property.
- The applicant must provide a Good Faith Estimate and HUD 1 Form so city can calculate and approve covered closing / down payment costs.
- The applicant must complete the eight (8) hour homebuyer counseling course and provide his or her Certificate of Completion from the course.
- The applicant must provide a signed Statement of Notification and Certification of Compliance with bank regulators guidance.
- Provide a Letter of Qualification for NSP funds.
- Have the applicant’s appraisal completed within 60 days of the offer. The house must be discounted 1% below the appraised value (unless otherwise approved by Grand Prairie).
- Calculate 25% of the applicant’s gross family income limit to use for the house payment and approve.
- Compute the applicant’s income to debt ratio and approve.
- Complete the mandatory environmental review on the house.
- Carry out the home, termite and lead based paint inspections.
- Supply a check for the approved costs at closing.
- Evaluate the approved rehab work for the house after closing.
- Write-up, bid-out and select an FHPAG-approved contractor to complete rehab work.
The FHPAG program offers qualified borrowers grants up to $20,000 to assist with their down payment (up to 50%), closing costs and approved rehabilitation work after the closing process is complete.
Qualifications and Eligibility:
To qualify for Grand Prairie’s FHPAG Program, applicants must:
- Complete all required application documentation.
- Ensure that their mortgage payments do not exceed 25% of their gross family income.
- Have an income to debt ratio* 40% or less (* no more than 40% can be contributed to principle, interest, taxes and insurance unless otherwise approved).
- Pre-qualify with an FHPAG-approved lender at the time of the FHPAG application. All household members’ income will be calculated to determine the applicant’s total family gross income. To qualify, the applicant’s income must be either (see chart below):
- At or below 50% of median income. This group will receive 25% of the total grant. Applicants in this category will be given priority as applications are received until minimum requirement is met.
- At or below 120% of median income.
|Dallas County||1 Person||2 Person||3 Person||4 Person||5 Person||6 Person||7 Person||8 Person|
|50% of median||$23,650||$27,050||$30,400||$33,800||$36,500||$39,200||$41,900||$44,600|
|120% of median||$56,800||$64,900||$73,000||$81,100||$87,600||$94,100||$100,600||$107,100|
|Tarrant County||1 Person||2 Person||3 Person||4 Person||5 Person||6 Person||7 Person||8 Person|
|50% of median||$23,100||$26,400||$29,700||$33,000||$35,650||$38,300||$40,900||$43,550|
|120% of median||$55,450||$63,350||$71,300||$79,200||$85,550||$91,850||$98,200||$104,550|
- Interest buy down is eligible for funding under the FHPAG.
- Up to 50% of down payment is eligible for funding under the FHPAG.
- City-approved closing costs are eligible for funding under the FHPAG.
- Participating lenders must cap interest rates at 1% above the current FHA rate unless otherwise approved.
- Participating lenders must ensure that origination fees do not exceed 1% of the home’s sales price.
- Participating lenders must sign a Certification of Compliance with Bank Regulator Compliance.
- Participating lenders must sign a Statement of Notification for sales, foreclosures and any change of ownership to ensure affordability requirements are met.
- Participating lenders must provide a Good Faith Estimate and HUD 1 Form for Grand Prairie to evaluate and approve covered closing costs.
|Neighborhood Stabilization Program (NSP) Investment/Grant||Length of Affordability Period/Lien|
|Less than $15,000||5 yrs/60 months|
|$15,000-$20,000||10 yrs/120 months|
Liens will be forgiven based on monthly amount deducted from the total grant amount until the affordability period has expired at which time the lien will be released.
- The foreclosed home must be in a census tract approved by Grand Prairie. Houses in higher risk tracts are given priority.
- No mortgage or tax payments are allowed to be made on house in the past 90 days.
- Legal completion of mortgage/tax foreclosure under state/local laws must have occurred.
- Supporting documentation must be provided for proof of foreclosure.
- The foreclosed home must be purchased at a 1% discount from the independently appraised value unless otherwise approved by the Grand Prairie.
- Homes built prior to 1978 must be inspected for lead and all lead based paint regulations will apply.
- Grand Prairie must inform the homeowner in writing of their estimated market value for the home.
- The appraisal must be completed within 60 days of offer.
- Initial offer can be made subject to completion of appraisal within 60 days of final offer.
- Lender’s appraisal can be used if it meets requirements of 49CFR24.101(b) and 49CFR24.103 and provides signed statement stating same.
- Component/system remaining useful life: HVAC, water heater, etc.
- Energy efficient items: windows, doors, insulation, attic vents, etc.
- Cosmetic/flooring: paint, carpet, tile, etc.
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.