Harvey Homebuyer Assistance Program

Homeownership is a dream for many Houstonians but may be out of reach for low-income residents. The City offers up to $30,000 to income-qualified Houstonians who are first-time homebuyers or are replacing a home that was damaged by Hurricane Harvey.

Our assistance is a no-interest, forgivable loan secured by a lien. The loan is fulfilled if the buyer lives in the home for five years. If the buyer sells or moves out of the home before the end of five years, they will pay back the City for a portion of the original loan amount.

Program Guidelines

FAQ

By Answering Yes, you may qualify for the Harvey Homebuyer Assistance Program

Lived in Houston during Hurricane Harvey (August 2017)? - Check Eligibility

First-Time Homebuyer OR Lost a Home in Hurricane Harvey?

Willing to attend a homebuyer education course?

Able to obtain a fixed-rate mortgage from a lender?

Household income at or below 120% Area Median Income ?

First Steps

1. Find a Realtor

See a list of realtors who have worked with us before

2. Take an 8-hour homebuyer education course

See a list of accepted locations

3. Get a pre-approval letter from a lender for a fixed-rate mortgage

The Harvey Homebuyer Assistance Program has three distinct phases, as detailed below.

Phase 1: Intake

To start, the applicant must submit all documents on the Applicant Document Checklist , including:

Program Application/Intake Form
Proof of residency
Proof of income for all household members
Pre-approval letter
Homebuyer education course certificate
Statement and Explanation of Facts (Form 1010)
Affidavit of No Child Support Owed
First-Time Homebuyer Status
and Certification of Property Ownership
Conflict of Interest Form
Certificate of Zero Income
See the full list
Before submitting an application, the applicant must call 832.393.0550 to receive their applicant ID number

The City then reviews all materials. If accepted, the City will issue a Conditional Reservation Letter.

Incomplete applications cannot be processed. Please be sure that you have collected all the documents on the Document Checklist before submitting your application.

Phase 2 (Property Inspection/Underwriting)

Once you receive a Conditional Reservation Letter, it is time to put a property under contract.

Your lender will need to submit all the documents on the Property & Lenders Checklist , including:

The City then reviews these materials and places our loan assistance into underwriting. Meanwhile, the property will be inspected and given an environmental review.

If approved, the City will then issue a Commitment Letter.

Phase 3 (Funding and Post-Closing)

Once you receive a Commitment Letter, you will complete a pre-closing meeting.

Instructions and loan closing documents are sent to title and lender, who submit pre-closing documents, including:

Wiring Instructions for funds
Preliminary Closing Disclosure
See the full list

Funds from the Harvey Homebuyer Assistance Program are wired on the day of closing.

The title and lender will then submit post-closing documents, including:

Original Executed City Deferred Payment Loan Note
Final Certified Closing Disclosure

How to submit documents

You may submit your application in one of four ways:

Via Email

(APPLICANTS ONLY)
homebuyersapplication@houstontx.gov

(LENDERS ONLY)
homebuyerslender@houstontx.gov

(TITLE COMPANIES ONLY)
homebuyerclosings@houstontx.gov

Via Online Portal

Open Portal

View instructions

Via Mail or In person

Send or take to:

Housing & Community Development Department
2100 Travis Street, 9th Floor
Houston, TX, 77002

FOR GENERAL INQUIRIES, NOT RELATED TO AN ACTIVE APPLICATION

homebuyersquestions@houstontx.gov

Frequently Asked Questions - Applicants

Q. How long does the process take?

Q. Are there any fees associated with the program?

Q. Are credit reports required for all household adults?

Q. Is there a debt-to-income requirement?

A. Yes, the program requires a 45% back-end ratio. The back-end ratio is calculated by adding together all of a borrower’s monthly debt payments and dividing the sum by the borrower’s monthly gross income. For example, if a borrower has a monthly gross income of $5,000 and monthly debt payments of $2,000, their back-end ratio is 40% ($2000/$5000). The Harvey Homebuyer Assistance Program requires that an applicant has a back-end ratio less than 45%.

Q. Is there a credit score requirement?

Q. Is there a maximum home price?

Q. Can the buyer(s) receive cash back if they don’t use the $30,000 on down payment?

Q. What is the five-year second lien?

A. When the City provides assistance for someone to buy a home, we are making an investment for someone to live in the home for the long-term. We require they live within the home for five years, secured through a forgivable loan. The loan is automatically forgiven at the end of the five year residency period. At the end of the five years, please submit this Release of Lien Request to HCDDLoanServicing@houstontx.gov.

Q. What if I have to sell my home or move out before the five years are over?

A. In these cases, the City will collect a portion of the investment made, proportional to the amount of time remaining in the residency period. For example, if the City provided $30,000, and the homebuyer moves after two years, they will only be charged for the three remaining years, or $18,000. To begin this process, please submit this Payoff Statement Request form to HCDDLoanServicing@houstontx.gov.

Q. What if I need to refinance my home?