Arlington Homebuyers Assistance Program
ARLINGTON HOMEBUYERS’ ASSISTANCE PROGRAM
The Arlington Homebuyers’ Assistance Program (AHAP) provides down payment and closing cost assistance to low income, first-time homebuyers. Assistance is provided in the form of a forgivable loan of up to $7,500 for down payment and closing cost assistance. For properties located in a revitalization area (NRSA map) and households with a disabled member, a forgivable loan of up to $10,000 in assistance is available. The loan is 0% interest and is payable only if you sell, refinance with cash-out, or lease your home during the first five years after buying your home.
Criteria for Eligibility
- The buyer must be a first-time homebuyer, or be from a federally declared disaster area
- The total projected gross household income for the next 12 months must not be higher than the “Low Income” level of HUD Income Limits
- The homeowner must have less than $15,000 in liquid assets
- The homebuyer must contribute a minimum of $1,000 towards the purchase
- The homebuyer must qualify for a conventional, FHA, or VA mortgage loan with a private lender or mortgage broker
- The home being purchased must meet minimum housing standards (AHAP Inspection guide)
- The home being purchased must be the buyer’s principal place of residence and must be located in Arlington
- The homebuyer must attend a HUD approved homeownership training class
- Participate in a HUD-approved homeownership education class
- Contact a participating lender for mortgage pre-approval
- Locate a home to purchase
- With lender, submit application to TCHP
- TCHP processes the application and coordinates the required home inspection
- If approved, TCHP reserves funding for applicant
- Funds are provided by City at closing
Frequently Asked Questions
1. How do homebuyers apply for the first time homebuyer program?
Contact Tarrant County Housing Partnership, Inc. (TCHP) at 817-924-5091 or www.tchp.net – click on the Down Payment Assistance link
2. Will a poor credit rating affect the homebuyer’s application for homebuyer assistance?
The City of Arlington does not perform a credit check; however, to participate, you will need to be able to qualify for a conventional, FHA or VA mortgage. If you have credit problems, TCHP’s trained staff can help you improve your credit score in preparation for homeownership
3. Is it necessary to participate in pre-purchase homeownership training?
Yes, to qualify for homebuyer assistance, applicants must complete a HUD-approved homeownership education course. Homebuyers may select from any HUD-approved housing counseling agencies to complete the education course
4. Will homebuyers be required to repay the homebuyer assistance?
If you continue to reside in the home you purchased for the required time period (typically five years), no repayment will be required. If you sell your home or move out before the end of the required time period, you may be required to repay a pro-rated portion of the funds provided at the time you sell your home or move out
5. Will the homebuyer be charged interest for homebuyer assistance?
No, this loan is provided as a 0% loan. No payments are required as long as you continue to live in the home for the required time period
6. Is a home inspection required?
Yes, the City of Arlington has staff to complete the required program inspection. An inspection will be performed to ensure the home meets the applicable minimum property standards for this program. The program inspection does not replace or serve as a mechanical inspection. At your option, and it is strongly recommended, you can also obtain a Texas Real Estate Commission (TREC) inspection
7. Is there a fee to apply for homebuyer assistance?
No, there is no application fee; however, you must personally contribute at least $1,000 towards the purchase price of your home
8. If the homebuyer is now divorced but previously owned a home with a former spouse, do they qualify as a first time homebuyer?
If the homebuyer was not awarded possession of their previous residence through their divorce, they may qualify for the first time homebuyer assistance program as a displaced homemaker
To contact a loan expert, use the contact form to the right or call (800) 308-8503.