Dallas Upfront Cost Assistance Program (UPCAP)

Down Payment Assistance


Dallas Upfront Cost Assistance Program (UPCAP)

Location Served: Dallas County

Provider: Dallas County

To inquire if New American Funding is currently an approved lender for this DPA program, please call (512) 524-8077. This webpage is for information purposes only.


The Dallas County Upfront Cost Assistance Program (UPCAP) is designed to help qualified low to moderate income households purchase a home. The County will provide direct loans of up to $7,500 for down payments, closing costs, and pre-paid costs. Homebuyers must contact The Home Loan Counseling Center to request an application for the UPCAP Program.
Properties eligible for the UPCAP Program must be located in one for the thirteen participating cities listed below or in unincorporated Dallas County.

Balch Springs Hutchins
Cedar Hill Lancaster
Cockrell Hill Duncanville
Coppell Sachse
Desoto Seagoville
Farmers Branch Wilmer
Glenn Heights  

Properties must be inspected by a home inspector from our Dallas County Approved Inspectors list. Properties must pass the Dallas County Minimum Property Standards (MPS) Guidelines. No other inspections will be accepted. We must receive a copy of these inspections before UPCAP funds can be ordered. All MPS required repairs must be made prior to closing and a passed inspection report must be received by our office. The inspection must be paid by the buyer at the time of the inspection. Lender foreclosed properties must also meet these guidelines. On lender foreclosed properties, a letter from the lender will be required stating that all repairs will be made prior to closing.
Clients who are approved for UPCAP will have sixty (60) days to find a home to purchase and execute a real estate sales contract and close on the home purchase. Those who cannot close within this time limit will receive a letter of termination from the program and must reapply and be placed at the bottom of any waiting list.
Buyers receiving an UPCAP loan must occupy the home as their primary residence for 5 years. A second lien for the amount of the UPCAP loan will be placed on the home by Dallas County for the 5 year term. The lien is released and forgiven after the 5 year term is fulfilled.
UPCAP Guidelines include, but are not limited to:

  1. Family gross annual income cannot exceed 80% of HUD median income limits as follows:

    Family Size 1 2 3 4 5 6
    Max. Income $39,450 $45,050 $$50,700 $56,300 $60,850 $65,350

  3. Applicant does not have to be a resident of Dallas County, however priority will be given to Dallas County residents. 
  4. All income received by the family members residing in the household will be counted as qualifying income for this program. Although this may not always count in actual mortgage qualifying.

  6. If applicant has liquid assets in excess of lender required funds and the UPCAP loan, applicant will not be eligible for participation in the program.

  8. Borrower cannot have more than $2,500 plus one month’s gross income left in personal funds after closing. Retirement funds in IRS recognized accounts are excluded.

  10. Must have proof of savings available for your part of the home purchase.

  12. Clients who have signed a real estate contract must submit a copy of the contract with their UPCAP application.

  14. Maximum purchase price of a home is $152,000.

  16. Property to be purchased must be vacant or owner occupied. Contracts on properties currently tenant occupied or occupied by tenants 60 days prior to an executed sales contract will not be accepted.

  18. Home and lot cannot be located in flood zones per FEMA maps.

  20. The home purchase price cannot be more than the lenders appraised value.

  22. HUD or VA foreclosures are not eligible properties.

  24. 203K Mortgage plus Improvements loans are not eligible for the UPCAP program.

  26. Must have acceptable credit history and be able to qualify for a fixed market rate mortgage with a lending institution. Sub-prime loans, ARM loans, owner financing, contracts for deed, and interest only loans.

  28. Lender fees and charges cannot exceed $2,500.00 for mortgage loans using Dallas County UPCAP funds.

  30. Must be a first-time home buyer, or not have owned a home in the past three (3) years. Exceptions include a single parent or displaced homemaker, or a family or individual whose residence is not in compliance with local building codes and cannot be brought into compliance for less than the cost of building a permanent structure. Applicants must sign a Notarized Affidavit of Home Ownership.

  32. No member of the applicant(s) household shall own any improved real estate which is or can be used for residential purposes, including mobile homes.

  34. All approved UPCAP clients will be required to attend the 8.0 hour Homebuyer Seminar Series (3 classes) at the Dallas County Home Loan Counseling Center.

  36. Borrower(s) must be a US citizen or a permanent resident or possess a current work authorization Visa. Permanent residents and individuals with a work authorization Visa must provide to County a copy of both sides if his/her unexpired immigration documents from the US Immigration & Naturalization Service (INS).

  38. A minimum investment of at least $1,000 or 1% of the purchasing price, whichever is greater, from the applicants own resources, must be contributed at closing. Any paid-outside closing expenses by the applicant will be credited to the applicant’s investment requirement.

  40. Borrower may not receive any cash back at closing.

This website marketing is not intended to offer loan services for properties in New York.