|
|
The Homeownership Incentive Program
The Homeownership Incentive Program (HIP) assists eligible persons who are buying a new
or existing home within the city limits of San Antonio. Click on
Table 1 (to see if you
are eligible). Buyers must have stable employment, good credit and able to afford a
mortgage payment. If you do not have good credit, you may qualify for a mortgage by working
with HNSD's Housing Loan Officer. Please contact HNSD's Housing Loan Officer
for information or download
procedural guide.
HIP funds may cover the required down payment, closing costs and prepaid interest.
- HIP Funds may not exceed $12,000 per eligible household.
The HIP loan will be amortized over 5 years @ 3%. Combined monthly Principal, Interest,
Taxes and Insurance (PITI) cannot exceed 30% of gross monthly income (front ratio). Depending
on front ratio, payback amount can be reduced to 50% or 25% of the HIP loan.
- Percentages of the amount to be repaid are established based on the borrower's affordability.
ELIGIBILITY
- Must be a first-time homebuyer, someone who has not owned any residential property
within the last three (3) years. Exceptions do apply, please contact the
Housing & Neighborhood Services Department offices for additional information.
- The maximum sales price cannot exceed $110,000, “Affordable Home Price” established
by San Antonio City Council.
- The home you purchase must be located within the San Antonio city limits. See
Bexar Appraisal District’s “Property Search” for Taxing Authorities to verify location.
Homes located in municipalities such as Alamo Heights, Balcones Heights, Castle Hills, Converse,
Elmendorf, Windcrest, etc. are not eligible under this program.
- You must be able to qualify for an FHA 203B, FHA 203K, VA, or conventional loan from
a legitimate institutional lender. Lenders require that you have satisfactory credit history
and stable employment history.
- Your family's total gross income cannot exceed 80% of the area median income. Please
see Table 1.
OTHER PROGRAM PROVISIONS
In accordance with HUD, all homes must have a Housing Quality Standards (HQS) Inspection
conducted. These inspections are conducted in-house. As part of the HQS, any home built
before 1978 are suspect to contain lead-based paint and must have a visual assessment done.
If paint is found to be chipping and peeling, as a result of the visual assessment, the
seller will be asked to remedy this deficiency according to information provided by the
HQS inspector.
Any deficiencies noted in the TREC Property Inspection report must be verified as
corrected by the same licensed Property Inspector upon reinspection (if applicable).
First-time homebuyer counseling by the City of San Antonio’s (COSA) Homebuyers’ Club is
required for participation in the HIP Program. All prospective homebuyers must attend
our counseling sessions and present a certificate of completion. The
Housing & Neighborhood Services
Department (HNSD) currently operates a Homebuyers' Club Program, which offers tangible
education and counseling benefits to potential first-time homeowners. For further
information on HNSD’s Homebuyers’ Club, see the back page of this brochure.
STEPS TO HOME OWNERSHIP
1. Attend HNSD’s Homebuyer(s) Club classes to obtain a better understanding of the
purchasing process, requirements, credit, home maintenance, etc.
2. Shop for your loan and choose a mortgage company or bank to finance the purchase.
3. Locate the home you want to purchase. A Realtor may be able to help you, but the
program does not require that a Realtor represent you.
4. You must enter into an Earnest Money Contract with the seller and deposit a minimum of
$500 with the title company as evidence of your intent to purchase the home.
5. When your loan application is approved and you have a contract, the lender will submit the
required information to HNSD. Your lender will determine if you are eligible for
assistance under the HIP Program or you can call HNSD.
6. Once your lender submits a complete file to COSA, a HNSD representative will contact you to
schedule an appointment after once your approval has been established for HIP funds.
For further information contact Esther M. Hernandez.
|