The City of San Antonio (COSA) has two wonderful programs to help first time home buyers. Because I like to be in the know to better serve my clients, I sat through the class that you would have to sit through to qualify. I blogged the HIP program earlier, & now its' time for the HAP blog.
Don't Worry, Be HAPpy!
- Terms = 0% Interest / Perpetual Lien
- Assistance:
- Half of required down payment
- Plus eligible closing cost
- Qualifying Ratios are 30/41
The Homeowners Assistance Program is a down payment assistance (DAP) program that provides up to $12,000 of approved closing cost contribution by COSA for "affordable homes" limited to the foreclosed properties COSA bought to offer in this program. The inventory changes so to learn more, call Cathy Bureau.
What is a perpetual lien? It is money owed, will show up on a title search as a lien, and will transfer to the heirs if the home when or if the home is bequeathed to heirs. If the home is ever sold, the title company will pay the money back to COSA, interest free.
Who qualifies? Any resident of COSA, buys within the limits of COSA, is a first time home buyer*, and qualifies on the income schedule (below).
* First time home buyers are not necessarily those who have never bought a home. It includes divorces with no home or title, and a couple other circumstances that caused a housing displacement.
Is this a zero down, no money deal? Not exactly. There are some expenses that COSA will not provide as they feel they shouldn't be charged, and/or won't pay until closing and funding. Examples of that are Tax service fees, Property taxes, & Appraisals (paid out of closing, not at closing). Be prepared to pay up to $2,000 but keep in mind the seller may be willing to cover these expenses depending on how the offer is structured.
What about the home loan (mortgage)? First you have to qualify for a FHA, Conventional, or VA loan. Then the lender sends the file to the COSA Loan Manager for file review and approval. It is recommended that you add 10 business days to the lender's recommended time frame to cover the time it takes for the COSA Loan Manager to verify and qualify the borrower then return the file to the lender to clear to close.
Is the HAP money rolled into my mortgage? No. COSA will provide a coupon book to make payments. Because this is a perpetual lien and it is a separate payment, even if you are in good terms with your first loan aka "mortgage" COSA can force you to pay back the money owed via foreclosure. This has and will continue to happen to prevent people from abusing the grant money.
You can search for San Antonio Homes For Sale (up $110,000) for the HIP program, or call Cathy Bureau to find out what homes are available for the HAP program.
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