The Harlingen Community Development Corporation (HCDC) is the recipient of funds under the City of Harlingen’s HOME Investment Partnership Program (HOME) that is administered through the U.S. Department of Housing and Urban Development (HUD). The Homebuyer Program (HP) will address three key issues in Harlingen, (a) a means of stabilizing property values and enhancing the overall quality of life in one or more neighborhoods; (b) eliminating housing overcrowding, given the limited availability of three & more bedroom rental units; and (c) will serve as a means of increasing the number of affordable single-family housing units in the community.
The HP is designed to assist families and individuals realize the “American Dream” of Homeownership by providing cooperative financing assistance between HCDC and Lending Institutions (banks). The following types of assistance are available: |
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The amount of financial assistance is based on the borrower’s demonstrated re-payment capacity or the amount the Lending Institution approves as a loan plus the owner’s required down payment. The amount of Homebuyer Program assistance will be determined based on the following formula:
[SP + CC] - [RC or LAL + OI] = HOME HP Assistance,
Sales Price (SP) + Closing Costs (CC) minus [Repayment Capacity (RC) or Amount of Loan Approved by Lending Institution (LAL)] Plus Owners Investment (OI) equals HOME HP assistance {which includes down payment and gap financing}. HB Assistance will be the minimum amount necessary to make the purchase feasible. Program assistance will be in the form of a zero percent-deferred interest loan, which is secured through a second lien (Second Deed of Trust). If the homebuyer owns, occupies and maintains the property for the first ten (10) years of the term, the entire amount of the loan is forgiven and the second lien released. The loan is deferred at 10% per year on the anniversary date (date of final settlement). If the property is sold at any time during the first ten (10) years, the entire deferred second mortgage loan shall be due and payable to the Harlingen Development Community Development Corporation at the time of sale/closing (to the extent funds are available).
Am I Eligible?
To qualify for down payment assistance, you must meet the following criteria:
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Be 18 years of age or older
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Be an individual who has not owned a home in the last three years. A displaced single parent who deeded their share of homestead to an ex-spouse in a divorce settlement is considered a first-time homebuyer.
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Applicants must be residing or employed by a company located within the city limits of Harlingen. Special considerations will be provided to migrant family/individual or others.
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Be willing to purchase a single-family home located within the city-limits of Harlingen
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Be able to obtain a conditional approval letter for a mortgage (and ultimately obtain a mortgage if you are offered a home to purchase)
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Have a gross annual income equal to or less than 80% of the Area Median Income
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Must have attended an 8-hour Homebuyer Education Course administered by a HUD-Approved Housing Counselor.
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Have a combined Monthly Housing Expense (MHE) and Long-Term Debt (LTD) ratio of not more than 45%.
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Be willing to invest a minimum of 3.5% of the Sales Price towards your home.
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Property Conditions:
In order to be considered for HP assistance, the subject property must meet all of the following criteria prior to closing:
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Subject property must be located within the corporate city limits of Harlingen. Properties located in the City’s Extra Territorial Jurisdictions (ETJ) and Limited Purpose Annexed (LPA) areas are not considered part of the corporate city limits for this program and are ineligible.
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Subject property must be a single-family residence (detached house, townhouse, or condominium). Duplexes, triplexes, and four-plexes are not eligible properties under the Program. New manufactured homes are eligible only if permanently affixed to real property. Recreational vehicles, campers and other such vehicles are ineligible.
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The value of subject property must not exceed ninety-five percent (95%) of the median value for the area. HUD regulations governing the HOME program, use the FHA 203 (b) mortgage limits as the substitute for the 95% median value for one (1) to four (4) family homes.
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Subject property must be located within a Zone C, B, or X (for newer maps) flood zone. Properties located in Zones A or V are ineligible.
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Subject property must be located in an area where Federal Assistance is permitted. Housing units located in areas where the use of Federal funds is strictly prohibited by the Coastal Barriers Resources Act or located within a runway clear zone of a civil or military airport are ineligible.
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Subject property cannot be used for rental, commercial or other nonprinciple place of residence purposes
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How Do I Apply?
To receive down payment assistance, you must complete the four step process:
1. Call the Harlingen Community Development Corporation to see if you are income eligible for the program.
2. Attend a homebuyer’s education course which is held the 3rd Saturday of each month at the Harlingen Community Development
Corporation office.
3. Gather required documents.
4. Meet with HCDC's Loan Underwriter review terms of assistance and complete a program/loan application.
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Income Limits:
Effective May 31, 2011
Income Level |
Household size |
1 person |
2 persons |
3 persons |
4 persons |
5persons |
6 persons |
7 persons |
8 persons |
80% AMI |
$27,250 |
$31,150 |
$35,050 |
$38,900 |
$42,050 |
$45,150 |
$48,250 |
$51,350 |
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For additional information about the Homebuyer Program, please call (956) 421-2351 during the hours of 8 a.m. - 5 p.m.,
Monday through Friday, or visit the office located at 518 E. Harrison, Harlingen, Texas.
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Harlingen Community Development Corporation
518 E. Harrison - Harlingen, Texas 78550
Phone: (956) 421-2351
Fax: (956) 421-1084
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