Are you a prospective homebuyer looking to purchase a property in College Station, Texas? If so, you may be interested in the College Station Downpayment Assistance Program.
This program provides shared equity and gap financing up to 30% of the sales price, capped at $50,000. The amount of assistance is based on the borrower’s demonstrated need, and the loan is deferred and non-interest bearing. The percentage of equity repayable is based on the assistance amount divided by the cost of acquiring the property, multiplied by the equity realized at the time of sale. The original loan plus shared equity amount must be paid back upon the sale of the property or when the buyer ceases to owner-occupy.
To be eligible for this program, prospective homebuyers must meet income, employment, liquid asset, credit score, mortgage payment, and contribution criteria. They must also complete a homebuyer education course and receive housing counseling prior to closing. The prospective home must be located within College Station city limits and meet price and lead-based paint risk assessment criteria. Only owner-occupied or vacant homes may be purchased unless the DAP participant is a tenant; tenant-occupied homes may not be purchased.
The DPA application and approval process normally takes three weeks. Applicants are urged to complete the process prior to making an offer to purchase, and a delay in submitting required documentation can delay the closing date. Final approval is not determined until the city reviews the sales contract, lender information, and inspects the home.