City of Garland First Time Homebuyer Program Client Information FTHP Down Payment Assistance

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1 City of Garland First Time Homebuyer Program Client Information FTHP Down Payment Assistance

2 Program Overview The City of Garland Housing and Community Services is implementing the new First Time Homebuyer down payment assistance program for 2014 fiscal year. First Time Homebuyer Applicants will have the opportunity to apply for $10,000 in down payment assistance funds. The Homebuyer is required to live in the home for a 5 year period. There will be a second lien placed on the home with a five year maturity date. If the home is sold before the maturity date, the full $10,000 will be due and payable to the City of Garland.

3 Applicant Requirements Must be a First Time Homebuyer - no real estate owned within the previous 3 years NO EXCEPTIONS! Must be below 80% of HUD s median income guidelines per HOUSEHOLD. See Chart in back. Must be purchasing a home in Garland. Liquid assets may not exceed $ 20,000. Must schedule an intake meeting and complete the application package for City of Garland and provide all information requested. Must be legal resident or have a legal work permit to apply for assistance and provide proper documentation. Must be able to qualify for a mortgage from a bank or lending company based on own credit worthiness no cosigners or owner financing. Applicants are required to live in the property for 5 years to avoid full repayment of assistance.

4 Property Requirements Must be within the City Limits of Garland Must have a TREC inspection completed prior to application with the City. All items listed on the City of Garland Minimum Housing Standards Report must be repaired and verified before closing. All utilities must be turned on prior to scheduling the inspection. Property must meet the City of Garland minimum housing standards at closing. Properties constructed prior to 1978 are required to receive a visual inspection by a state certified lead based risk assessor. Townhomes and condominiums are not eligible properties under this program unless the unit is a stand alone unit with no other units attached. New Homes must provide a copy of all building permits and schedule a City of Garland inspection. The City of Garland will only do 2 recheck inspections per property.

5 Steps to Home Ownership Take the HUD approved Homebuyer class Choose a Realtor and Lender Contact your Bank or Mortgage Company to obtain approval for a mortgage loan Select a Property and make offer with Realtor s help Have a TREC inspection done on your property Schedule an intake meeting with Housing and Community Services once you possess required items (see next page) Follow up with process with Realtor, Loan Officer and Housing and Community Services until closing.

6 Items needed at Intake Meeting with Housing and Community Services Texas DL or ID card for all buyers/adults living in house Social Security Card for all family members Divorce Decree/Child Support Court Order (if applicable) TREC inspection report on the property URAR report on the property (Appraisal) Residential Sale Contract on the property with Earnest Money receipt HUD approved Homeowner Training Certificate Last two years Income Tax Returns Last two months bank statements One month of check stubs Social Security letter/retirement benefits (if applicable) Lender File (includes 1003, in-file credit report, GFE, Truth in Lending, VOE and Loan Commitment (prior to closing conditions) )

7 City of Garland First Time Homebuyer Process Phase I Sales Contract Home Inspection Loan Approval Homebuyer Class Phase II City of Garland Intake Meeting Loan Processing Property Inspection Loan Approvals Phase III Case closing scheduled at Title Company Legal Documents prepared All parties sign at Title Company Copies of signed documents faxed to City Funds wired by the City for down payment

8 First Time Home Buyer Homebuyer Education Classes Every adult that is purchasing the home must attend a Homebuyer Education Class. You may attend any class as long as it is HUD certified. This list has been provided to you as a courtesy to help you get started. Schedule the class at your convenience, but we will need a copy of your Certificate of Completion before closing. Consumer Credit Counseling Service of Greater Dallas (Spanish available) Dallas County Home Loan Counseling Center Urban League of Greater Dallas North Texas Housing Coalition

9 Contact Information: Carol Jones Housing & Community Services Phone: Fax:

10 Income Limits for Total family income must not exceed the 80% median income for your household size. Income Limits