Down Payment Assistance Program
DOWN PAYMENT ASSISTANCE PROGRAM
The City of Mesquite Down Payment Assistance Program’s (DPAP) mission is to provide low to moderate income families with homeownership opportunities. The program offers assistance for down payment and closing costs to first time home buyers in the form of a 0% interest forgivable loan. The DPAP is funded through the Community Development Block Grant (CDBG) by the Federal Department of Housing and Urban Development (HUD). If you are interested in being a future homeowner, please check the eligibility requirements below before applying.
APPLICANT ELIGIBILITY
Applicants must meet the following criteria to qualify for the DPAP:
- Must be a first time homebuyer or not owned a home in last 3 years
- Must be a U.S. Citizen, Citizen National, or Qualified Alien
- Applicant’s debt-to-income ratio must be at or below 43%
- Annual Income must be at or below 80% Area Median Income (AMI). See chart below.
| # of People in Household | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| 80% AMI Low Income |
$46,550 and below |
$53,200 and below | $59,850 and below | $66,500 and below | $71,850 and below | $77,150 and below | $82,500 and below | $87,800 and below |
| 50% AMI Very Low Income |
$29,100 and below |
$33,250 and below | $37,400 and below | $41,550 and below | $44,900 and below | $48,200 and below | $51,550 and below | $54,850 and below |
| 30% AMI Extremely Low Income |
$17,500 and below | $20,000 and below | $22,500 and below | $25,750 and below | $30,170 and below |
$34,590 and below |
$39,010 and below | $43,430 and below |
HOME BUYER EDUCATION
Applicants interested in the program are required to complete an 8-hour home buyer education course before submission of application. The following link provides a search engine that list all eligible HUD-approved Housing Counseling Agencies. Please have counselor sign and date Certification for Completion of Homebuyer Counseling Form.
HUD Approved Housing Counseling Agencies in Texas
The City of Mesquite has established partnerships with the following approved Agencies. Please contact them directly for upcoming dates, times, and prices of classes:
LEVELS OF ASSISTANCE
Buyers are required to contribute 50% toward the down payment cost. Maximum grant assistance is $5,000. If 50% match is less than $5,000, remaining funds will be used to cover a portion of the closing costs. The buyer is responsible for covering excess closing costs beyond grant maximum. See chart below.
| Maximum Grant Assistance=$5,000 | Down Payment Assistance | Closing Cost Assistance |
|---|---|---|
| 80% AMI Low Income |
50% of minimum | Up to $0 |
| 50% AMI Very Low Income |
50% of minimum | Up to $1,000 |
| 30% AMI Extremely Low Income |
50% of minimum | Up to $1,500 |