San Antonio Housing Incentive Program (HIP)
The Homeownership Incentive Program (HIP) assists eligible persons who are buying a new or existing home within the city limits of San Antonio with up to $12,000 for dawn payment and closing costs. Buyers must have stable employment, good credit and able to afford a mortgage payment.
HIP funds assist with the required down payment, some closing costs and prepaids. Sales price of the property may not exceed $110,000. Assistance 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.
HUD INCOME GUIDELINES
| Table 1 | |
| Household Size | Maximum Gross Annual Income |
| 1 | $ 32,050 |
| 2 | $ 36,600 |
| 3 | $ 41,200 |
| 4 | $ 45,750 |
| 5 | $ 49,400 |
| 6 | $ 53,050 |
| 7 | $ 56,750 |
| 8 | $ 60,400 |
ELIGIBILITY
Must be a first-time homebuyer, someone who has not owned any residential property within the last three (3) years from date of sale.
The maximum sales price cannot exceed $110,000, the “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, VA, or CONVENTIONAL loan from a legitimate institutional lender. Lenders require that you have satisfactory credit history and stable employment history.
The household's gross income cannot exceed 80% of the area median income for eligibility to the program.
In accordance with HUD, all units are required to pass Housing Quality Standards (HQS). The HIP program performs a property review to comply with this HUD requirement.
All prospective homebuyers must attend our Home Buyer Club classes 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.
STEPS TO HOME OWNERSHIP
1. First 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.
Contact Daylon at 210-601-2866 to find out more!!
