Terms & Qualifications
| Eligible Uses |
- Closing Costs - Down Payment Assistance
- Minor Repairs |
| Eligible Borrowers |
Borrower must have a firm loan commitment from a DPAP-eligible primary lender.
- Property must be Borrowers primary residence.
- Simultaneous closings require copy of purchase contract and firm loan
commitment contingent on sale of current owners’ subject property at
time of DPAP application. |
| Eligible Household Income |
NTE 120% AMI adjusted for family size |
| Eligible Properties |
- Located in City of Fort Worth
- Located in program-eligible zip codes
- Regulated mortgage lender REO foreclosed properties with Substitute
Deed of Trust dated more than 90 days from application and less than
2 years prior to estimated final closing.
- 1-2 unit properties, including condominiums and townhouses |
| Eligible Lenders |
Approved lenders participating in the City’s Housing Assistance Program
(HAP) |
| Maximum Purchase Price |
$225,000 |
| Loan Proceeds |
No cash to borrower at closing |
| Loan Closings |
Closings must take place at title agency location. |
| Maximum Housing & Debt Ratio |
Maximum housing ratio: 30%
Maximum combined ratio: 41% |
| Title |
Primary lender must provide copy of preliminary title and evidence of
Substitute Deed of Trust |
| Escrows |
Primary lender must establish and maintain real estate, hazard insurance,
and flood insurance impound accounts for primary-position loan |
| Appraisal |
Primary lender must provide copy of current appraisal dated less than 3 |
Borrower Minimum
Contribution |
50% of the loan required minimum downpayment
|
| Max Combined Loan-to Value(CLTV) |
105% appraised value |
| Acceptable (DPAP) Lien Position |
2nd position |
| Maximum (DPAP) Loan |
- Fees paid to primary lender fees NTE 2.5% of purchase price |
| Deferred DPAP Loan Term |
- DPAP Closing costs NTE $5,000
- Property repair costs NTE $5,000
Balance of DPAP may be used to reduce principal of primary loan. 10 years, fixed
.
If property is sold, transferred, rented or not occupied by borrower as
primary residence at any point during the first five year term, the entire DPAP loan
amount is due and payable. Begining the 61st month the loan is discounted 1/60th of the original amount each month until the loan is completely forgiven. |
| Deferred DPAP Loan Interest Rate |
0%; $0/month payment . |
| DPAP Affordability Period |
Deed restriction in Deed of Trust to provide for five-year affordability
period |
| Combined Housing & Debt Ratio |
NTE 41% Adjusted Gross Income |
| Housing Counseling |
Home ownership training workshop provided by a HUD-approved housing
counseling agency is required. |
| Property Standards |
City of Fort Worth Minimum Property Standards |
| Repairs |
All repairs must be completed prior to funding of loan; primary lender to
provide copies of lien waivers for contracted work under the DPAP
program |
| Housing Standards Inspection |
Inspection by City’s Housing & Economic Development Department
required |
