The Homeownership Across Texas (HAT) Program provides Grants to help qualified homebuyers reduce the amount of money they pay out-of-pocket to purchase a home. HAT Grants range from 1% to 5% of the amount of the homebuyer’s mortgage loan, and can be applied toward the required down payment and/or closing costs. HAT Grants are not loans, so they never have to be repaid. In addition, there are no additional closing costs associated with the HAT Grant Program.
1. The credit score your lender uses to qualify you for the mortgage loan must be 620 or higher.
2. Your annual income must be below certain limits depending on the county in which the home is located.
3. You must complete an eligible homebuyer education course online or in person. Contact a Participating Lender for information about eligible courses.
4. You must be approved for a 30-year FHA, VA, USDA or Conventional mortgage loan by a Participating HAT Lender.
5. You do not have to be a first-time homebuyer.
A new or existing single-family home that you will occupy as your primary residence is eligible under the HAT Grant program.
The purchase price may not exceed certain limits depending on the county in which the home is located, and the type of loan for which you qualify.
HAT - Conventional, VA, and USDA Purchase Price Limit:
The home must be located in Texas; however, the following communities are not participating in the HAT Program: Travis County (Austin), and the cities of El Paso, Grant Prairie and McKinney.
Only a Participating Lender can pre-qualify you for a HAT Grant and a mortgage loan at the same time. They will explain all of your financing and HAT Grant options, so you can decide which is best for you.
Participating Lenders can make loans anywhere in Texas. So, if there are no Participating Lenders in your area, just contact any Lender on the list by email or phone. In addition, you can apply online with most Participating Lenders.
What if there are no Participating Lenders in my area?
Participating Lenders can make loans anywhere in Texas, so contact any Lender on the list by email or phone. In addition, you can apply online with most Participating Lenders.
Is Down Payment Assistance right for me?
If you’re thinking about using a down payment assistance (DPA) program, discuss the following with your Participating Lender:
Will the interest rate on my home loan be lower if I use the money I’ve saved to cover my down payment and closing costs?
Is the DPA in the form of a grant or a loan?
Does the DPA have to be repaid?
How will the DPA affect me if I decide to sell my home or refinance my loan?
When purchasing a home, it’s always best to save and use your own money to cover your down payment and closing costs. (Doing so, and having good credit, will allow you to get the best financing terms available.) But if you haven't saved enough to cover all of the costs related to buying a home, the Homeownership Across Texas Grant Program can help!