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City of Ft. Worth Neighborhood Stabilization Program

City of Ft. Worth Website
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Program Objective

The objective of the NSP is to assist communities that have been or likely to be affected by foreclosed and abandoned properties, while providing affordable homeownership opportunities to households at or below 120 percent of Area Median Income (AMI) in areas of greatest need. Further, twenty-five percent (25%) of the total NSP funds must be targeted to provide homeownership to households whose incomes do not exceed fifty percent (50%) of AMI.

Program Term

The NSP DPAP program expires at the earlier event of expenditure of all NSP funds or eighteen months from the date of Contract execution between the CFW and HUD. The Contract execution date is March 31, 2009.I.

Assistance Available

The Neighborhood Stabilization Program’s (NSP) Down Payment Assistance Program (DPAP) provides assistance in the amount of $25,000 to buyers of lender-foreclosed single family properties when that property will be the primary and occupied residence of the buyer and when the property is located in an eligible target area. The assistance is a ten-year deferred payment (soft second) loan at zero percent (0%) interest which can be used for closing cost assistance, minor home rehabilitation, and principal reduction.
The CFW has been awarded $6,307,433 through the NSP. The funds will be allocated as follows in conformance with NSP guidelines.


Budget Information

Eligible Uses Allocation Per Unit Estimate Estimated Housing Units Allocation As %
Financing Mechanisms          
– Down Payment Assistance $4,091,680 $4,000,000 $25,000 160 65%
Unit Appraisals & Lead Testing
Program Delivery
$91,680 $573 160
– Down Payment Assistance
25% of Total Allocation to 50% of area median
$1,584,953 $1,550,000 $25,000 62 25%
Unit Appraisals & Lead Testing
Program Delivery
$34,953 $573 61
NSP Administration  
– Admin $630,743 $630,743   222 10%
Totals:   $6,307,376   222 100%

Affordability Period

Loans made through DPAP carry a ten-year affordability period, secured by a Promissory Note and Deed of Trust restricting the sale, transfer, assignment or rental of the property during that period.

Elgible Target Areas

DPAP-eligible ZIP codes have been established by the CFW and approved by HUD as follows:


* ZIP code includes areas not located in City of Fort Worth 
** Effective July 1, 2009, the USPS modified ZIP code 75248 to ZIP code, 76244, which contains properties located in the City of Fort Worth.

Elgible Properties

Eligible properties must be located within the City of Fort Worth as defined by the Tarrant County Appraisers office. Property locations may be verified at
Detached single family structures and duplexes are eligible. Townhouses and condominium units situated in structures under eight (units) are also eligible. 

Eligible properties under this program must be lender-owned foreclosed properties. Under NSP definition, a property "has been foreclosed upon" at the point that, under state or local law, the mortgage foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former owner under some type of foreclosure proceeding or transfer in lieu for foreclosure, in accordance with state or local law." 
For eligibility under the CFW DPAP program, a Substitute Deed of Trust naming the lender as beneficiary must be file with Tarrant County Clerk Records, a copy of which is to be provided with the DPAP application. Further, preliminary title submitted with the DPAP application must reflect the transfer of ownership from the former owner to the lender as beneficiary named in the Substitute Deed of Trust. 
Properties must be vacant at time of purchase offer and remain vacant through closing of the mortgage loans. 
Eligible properties must meet the following criteria: 

  • Property must be located in a targeted ZIP code and within the city limits of Fort Worth only.

  • Property located in an area identified by the Federal Emergency Management Agency (FEMA) as a special flood hazard area, must carry flood insurance for the life of the loan. Proof of insurance is required prior to funding.

  • Property cannot be located in an airport clear zone or on a toxic waste site.

  • Property may be an existing housing unit or new construction.

  • Property must be a single-family unit. (i.e. house, duplex, condominium, townhouse)

  • Government–owned property is not eligible for assistance.

  • Sales price not to exceed $225,000.

Depending on the property, the property must meet CFW Minimum Acceptable Building Standards inspection and/or the local building codes applicable to the property. An inspector from the CFW Housing and Economic Development (HED) department will be provided at no cost to the buyer. The inspection is ordered after the applicant has been pre-qualified by the CFW.

Purchase Contract Language

Contract must contain this language: "This contract is conditional and contingent on the buyer obtaining down payment assistance, closing cost and/or minor property rehabilitation assistance in the amount of $25,000 from City of Fort Worth NSP DPAP. The City’s approval is subject to conformance with local program guidelines and HUD federal requirements which include an acceptable Environmental Review and a City-initiated appraisal to establish a mandatory discounted purchase price of at least one percent (1%)."


The real estate agent must inform the seller that the property to be sold must pass the quality inspection and environmental review in order for the buyer to receive financial assistance. The seller should be provided a copy of the inspection to help determine if the requirements of the inspection can be met. CFW MABS-required repairs must be within forty-five (45) days after closing. 
The seller will be required to sign a "Notice to Seller" statement acknowledging the sale is voluntary and the purchaser does not have the power of eminent domain. 


The maximum purchase price for a DPAP-assisted property is $225,000. Under NSP guidelines, the subject property must be acquired at a discounted purchase price. The NSP-established target discounted purchase price is fifteen percent (15%) of the appraised value. The minimum allowable purchase price discount, per NSP guidelines and as established by the CFW appraisal is one percent (1%). 


To apply for DPAP, the applicants must certify that they will occupy the subject property as their primary residence. Current homeowners are eligible if a purchase offer is in place for their current home and if the potential buyer for that property has a firm mortgage loan commitment. Documentation must be provided at time of application for DPAP. The loan closings on the current home and the new home must be held simultaneously.
A CFW Loan Service Representative will determine eligibility of an applicant for closing cost/down payment assistance based on the above guidelines, including income eligibility. The income of all DPAP applicants will be calculated according to HUD guidelines for housing assistance. HUD guidelines require that verification of dependents be included in the determination of eligibility. Such determination must be reviewed and signed by a Housing Supervisor, Program Manager, Deputy Director or Director of the CFW HED.
Applicant(s) must be either a citizen of the United States or a legal resident alien. Participation in the program by City employees requires disclosure by the applicant and written acknowledgment of the disclosure by CFW HED department.

Each applicant receiving DPAP subsidy is required to sign a Buyer’s Notification before closing.


Closing Cost Assistance: Maximum amount is $5,000.00 including any upfront mortgage insurance premium (UFMIP).
Eligible Closing Cost Assistance Fees and Expenses:

  • Origination Fee (Not to exceed 1% origination and 1% discount)
    *No more than 2% total*

  • Processing Fee (Not to exceed $500)

  • Upfront MIP/PMI

  • Appraisal (Not to exceed $400)

  • Mortgage Title Policy

  • Attorney Fees (Not to exceed $250)

  • Recording Fees

  • Termite Inspection (Not to exceed $80

  • Survey

  • Credit Report

  • Pre-paid Interest (Not to exceed 30 days)

  • Pre-paid Insurance (Not to exceed first-year premium

Borrower-paid closing costs associated with the NSP DPAP program are also eligible for DPAP assistance. These costs are the Tarrant County Clerk recording fees for DPAP documents. Insurance and tax (escrow) impounds are not eligible.
Items not mentioned above or in excess of the allotted City subsidy may be paid from seller proceeds or the buyer’s own funds. The above-mentioned items are the only items in which the City may contribute.

Minor Home Rehabiliation

The cost of property rehabilitation up to $5,000 to bring the property to the City’s Minimum Acceptable Building Standards (CFW MABS) may be included in the DPAP assistance request. Any funds designated for repairs will be held in escrow by the title agency. Should the title agency be unwilling to establish an repair holdback, the CFW will retain the funds until the repairs have been completed.
Contractor proposal to the homeowner for CFW MABS repairs will be reviewed for cost reasonableness by the CFW. Contracts between the homebuyer and contractor will be only for work items and charges previously approved by the CFW. No changes may be made to the work items without the prior consent of the CFW. The funds will be released to the contractor upon satisfactory completion as certified by the City’s inspector. Repairs that exceed the $5,000 maximum must be paid by the buyer prior to release of the City’s escrow. Repairs that enhance energy conservation are encouraged.
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