City of Denison Down Payment Assistance Program
Goal of the Program
The goal of this program is to increase home-ownership among low/moderate income households in the City of Denison.
The objective of the First Time Home Buyers Program is to assist low/moderate income first time home buyers with a $2,500 grant to pay all or a portion of the closing cost expenses. If funds remain after closing costs are paid, the balance can be applied to the down payment.
The purpose of this program is three-fold:
- To decrease cost burdening rental situations
- To increase the quality of housing stock
- To increase the buying power of first time home buyers
Section II: Eligible Area
Homes eligible for closing cost assistance must be within the corporate city limits of Denison. Any census tract and block group within the city limits is eligible.
Section III: Eligible Properties
- Homes must be located in the City of Denison
- Maximum closing cost and down payment assistance is $2,500
- The house to be purchased must pass a basic exterior and interior inspection by an inspector provided by the City of Denison. There must not be visible chipping, pealing, flaking or cracking paint on the interior or exterior of the house if the structure was built before 1978. The City of Denison will inspect the property one time and determine eligibility. The inspection report must be included in the file before approval is determined.
- If the house is located in a FEMA 100-year flood plain flood insurance must be provided for the life of the loan.
- The house must be appraised by an independent appraiser certified by the State of Texas.
- The house must be a single detached unit, condominium, townhouse, or manufactured home that meets City building codes.
- Ownership should be Fee Simple title.
Buyer must occupy the house as the principle place of residence.
Section IV: Eligible Home Buyer
- First-Time Home Buyer
- First time home buyer is a person or household who has not owned a home.
- Has not owned a home in the past Three (3) years
- Owns a mobile home that is not permanently attached to the pad
- Lost his/her home during a natural disaster
- Is a displaced homemaker, someone who is the sole caretaker of the children before a divorce
- Is a single parent
Section V: Income Eligibility Guidelines
The most recent HUD Median Family Income Limits will determine income limits for the Denison-Sherman MSA. The income limits are usually updated annually, and lenders should contact the Office of Community Development at the City of Denison to be sure they are using the most current income limits.
Income is any source of funds that is available to the applicant. Income can include, but is not limited to, wages, unemployment, alimony, child support, government assistance, retirement benefits, stocks, bonds, savings, any source from any person that contributes to the household, etc. All sources of income from each member of the household must be reported and verified. To qualify as a low/moderate income household, the applicant must have an annual gross income that does not exceed 80% of the median income for the area, adjusted for family size, as determined by the U. S. Department of Housing and Urban Development. As with other Community Development Block Grant programs, the City of Denison will verify the household income by obtaining copies of the applicant’s most current three years Federal Income Tax returns, W-2’s, 1099’s, three most recent months bank statements, current employment check stubs showing name, date, wages, hours
Median Family Income (MFI) Statistics
The MFI is determined by Census Data and then adjusted for family size; this includes each person living in the household. Median Family Income Statistics are adjusted each year and it is the responsibility of the lending institution to check with the City of Denison to be sure they are using the most current income guidelines available. The current MFI is $57,900* (*as of 03-10-09). The median incomes adjusted for household size are a follows:
|Household Size||Median Income*|
|*As of 3-10-09|
Low and Moderate Income Definitions
The maximum allowable income in each category is based on the following definitions:
- Extremely Low-Income – household at or below thirty percent (30%) of MFI.
- Low-Income – household at or below fifty percent and above 30% (31%- 50%) of MFI
- Moderate Income – household at or below eighty percent and above 50% (51%-80%) of MFI
Low and Moderate Income Definitions
The grant funds will be first used for closing costs. If there is a balance after closing costs are paid, the funds may be applied to the down payment.
To contact a loan expert, use the contact form to the right or call (800) 308-8503.