Direct Homeownership Assistance Program
The Direct Homeownership Assistance Program provides down payment and closing cost assistance to eligible first-time homebuyers who are either buying the house they have rented and lived in for at least six months or who have a household member with a disability.
The program reduces the amount of money the buyer will need up front to buy their home. This program can only be used in conjunction with the First Time Homebuyers Incentive Program (formerly Community Development Block Grant Program).
This is a $5,000 assistance program.
This is a list of things you need to know about this program:
- You must earn a homeownership counseling certificate from a HUD-approved provider before making an offer on your home.
- You have to live in this home as your primary residence
- You must contribute at least $1000 of your own money to your home purchase - this can include the cost of the home inspection and appraisal
- Your mortgage amount cannot exceed the current FHA mortgage limit of $517,500 for a single-family home
- You must apply and be approved prior to closing on your home. Program funds are not retroactive
- Household income cannot exceed 80% of AMI
- First-time homebuyers only
- Requires a "Housing Quality Standard" (HQS) inspection from an approved home inspector
- Fixed-rate mortgages only. Co-signers, cash sales, and owner-financing are not permitted.
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