The Homebuyers Assistance Program helps low- and moderate-income families with the down payment assistance and closing costs to buy a first home. Assistance is in the form of a forgivable loan at zero percent interest for five years.
Your gross household income total must be at or below the maximum yearly income limits to apply for the Homebuyers Assistance Program.
- Be a U.S. citizen or a legal resident
- Be a first-time home buyer or have not owned a home in the past three years.
- Have no more than $10,000 in liquid assets (not including retirement accounts). Minimum buyer contribution is 1.75% of sales price.
- Cash reserves of one month mortgage payment after homebuyer minimum contribution
- Household income cannot exceed the maximum yearly income limits for family size (see limits below).
Maximum Yearly Income Limits (effective Oct. 1, 2019):
- Family size 1: $46,550
- Family size 2: $53,200
- Family size 3: $59,850
- Family size 4: $66,500
- Family size 5: $71,850
- Family size 6: $77,150
- Family size 7: $82,500
- Family size 8: $87,800
- House must be in the city limits of Denton, includes condos and town homes.
- Sales price of the house cannot exceed $225,000.
- House must pass inspection by city.
- House must be occupied by the seller, buyer, or vacant at the time of contract signing.
- Rental property is eligible if the tenants have been notified that the home will be sold.
- Independent home inspection by a state licensed inspector is required.
- Homes built prior to 1970 are not eligible. A waiver may be granted.
- Pre-1978 house must be free of any deteriorated paint.
- Funds for program-required repairs are available.
- Program will assist with the buyer's down payment, closing costs and prepaids
- Gap funds may also be available for households to help with the difference between the sales price and the maximum loan amount
How to Get Started
- Attend a homebuyer education workshop.
- Contact a lender from the List of Participating Lenders.
- Contact a realtor from the List of Participating Realtors. The realtor can assist you in finding a home.
- HAP lender will submit your application for assistance to the Community Development Division.
- When the buyers application is received, the Staff will begin processing the request for assistance. Staff will contact the homebuyer to review application and request any additional information needed to complete the application.
Homebuyer Education Workshops
Lenders & Realtors
HAP partners with participating Lenders and Realtors to assist first-time home buyers.
If you are interested in becoming a participating Lender or Realtor, two-hour certification classes are available throughout the year. Review the calendar of upcoming classes. Register by emailing Alma.Espino@cityofdenton.com. Please include name, name of company, phone number, e-mail and date of class you wish to register.