The City of Denton’s Community Development Corporation operates the Homebuyer Assistance Program (HAP) to promote homeownership to low- to moderate-income families looking to buy a home in Denton. The Denton first-time homebuyer program is funded through federal grants and is available on a first-come, first-served basis.
How To Qualify for Down Payment Assistance
- Be a first-time homebuyer within the Denton city limits.
- Have reserves of one month of mortgage payments.
- Use the home as a primary residence during the five-year forgivable term period.
Income Eligibility
- Household income must not exceed 80% of the area median income (AMI).
- Liquid asset limit restrictions apply.
Property Eligibility
- The Denton first-time homebuyer HAP program excludes mobile homes and manufactured homes.
- Homes built prior to 1970 must have major systems upgrades; homes built prior to 1978 must not have deteriorated paint.
- The home must pass inspection.
Funds up to $10,000 above the HAP down payment assistance are available to assist the first-time homebuyer with repairs.
Denton Down Payment Assistance Options
The Denton HAP for first-time homebuyers is available on a first-come, first-served basis for certified eligible buyers with an executed purchase agreement. First-time buyers can choose between two down payment assistance options:
- Option 1: Up to $14,900 at 0% APR that is forgivable on a 5-year affordability period.
- Option 2: Up to $50,000 at 0% APR that is forgivable on a 15-year affordability period.
How to Use the Down Payment Assistance
The HAP down payment assistance can be used for normal and customary closing costs including escrow deposit and prepaids. The first-time homebuyer assistance can be used for the minimum required down payment.On occasion, the HAP down payment assistance can be used for principal reduction to bridge the gap between the home’s sales price and the first-time homebuyer’s maximum loan amount.
Closing Cost Calculator
Denton Down Payment Assistance Disclaimers
Guidelines are subject to change without notice, programs are subject to the availability of funds, information on the Denton HAP down payment assistance is intended as an overview of the program. An 8-hour homebuyer education workshop is required.
