For many, the dream of owning a home can seem out of reach, but in Fort Worth, a vital program is turning that dream into a tangible reality. The city's Homebuyer Assistance Program (HAP) is empowering current and future residents by providing crucial down payment assistance, a cornerstone for stability, generational wealth, and community development.
As National Homeownership Month draws attention to the significance of owning a home, Lilia Escobedo, Senior Loan Representative with the City of Fort Worth Neighborhood Services Department, shed light on how HAP works and its profound impact.
"The Fort Worth Homebuyer Assistance Program offers up to $25,000 in down payment and closing cost assistance to eligible first-time buyers purchasing a home within the Fort Worth city limits," Escobedo explained.
She further detailed the unique structure of the assistance: "These funds are provided as a forgivable loan, meaning that if you remain in the home for 10 years, the loan is fully forgiven. (That’s always our goal, to help people get into a home they love and want to stay in for a long time!) If you do sell the home before the loan is completely forgiven, you can repay the remaining balance from the proceeds of your sale. The payback amount is amortized (reduced) as you progress toward that 10-year mark."
Who qualifies for assistance?
The program is specifically designed to aid moderate-income buyers. "To qualify for HAP, the buyer’s household income must not exceed 80% of the median income for our area, as determined by HUD and adjusted for household size," Escobedo stated. She provided an example for clarity: "For 2024-2025, HUD income limits for households of four are at $81,500, just to give you an idea. These limits are updated by HUD in June or July of each year." Additionally, buyers must qualify for a first-tier mortgage and meet other eligibility criteria detailed on the city's website.
Escobedo acknowledged that the requirements might seem extensive at first, but urged persistence. "At first glance, it may seem like there are a lot of requirements, but remember — completing paperwork and meeting eligibility criteria are part of any homebuying process. Don’t get discouraged. Take it one step at a time and keep your eye on the ultimate goal: making your dream of homeownership a reality. The Neighborhood Services team and our community partners are here to provide support and guidance to help make the process easier.”
Bridging the financial gap
In an era of rising home prices and stagnant incomes, HAP provides a critical bridge. "Home prices are rising, but incomes aren’t keeping pace. It can be tough to save enough cash for a down payment," Escobedo noted. "The Homebuyer Assistance Program can make a real difference for buyers who have good credit but not a lot of savings. It can help you get into a home much faster than you might be able to on your own."
While HAP offers significant support, some out-of-pocket expenses remain. "That said, you do need to have some cash on hand to make a home purchase — even with down payment assistance from HAP — for things like appraisals and inspections," she advised. Her recommendation for aspiring homeowners is clear: "If homeownership is something you see in your future, even if it’s still a few years away, start saving now.”
Advice for first-time homebuyers
Beyond financial savings, Escobedo emphasized the importance of education and preparation. "The best way to get started is by attending a free HUD-certified homebuyer education course offered by Housing Channel, Housing Opportunities of Fort Worth, the Hispanic Real Estate Brokers Association or one of our other community partners. I’ve been working with HAP for 30 years, and time and again I see how helpful these programs are for first-time buyers."
These courses, she noted, cover not only down payment assistance but also the entire homebuying process, including improving credit scores. "They’ll also help you learn how to improve your credit score, which can qualify you for a better mortgage rate. Good credit means more affordability for homebuyers, and I can’t stress enough the importance of working on your credit early."
She also stressed the need for organization: "It’s also never too early to get organized. Gather your key documents — tax returns, proof of income, and other records — and keep them in a secure container you can easily access."
For current homeowners, Escobedo offered prudent advice: "Once you become a homeowner, continue saving for home repairs, and keep updating your homebuying file with important records. And if you ever run into trouble and can’t make your house payment, seek free foreclosure prevention counseling from a HUD-certified agency like Housing Channel. Don’t put the letters under the bed — take action right away before the problem becomes too big to solve.”
Hope for all aspiring homeowners
Even for those who may not initially qualify for HAP, Escobedo offered words of encouragement. "If your income is too high for the Homebuyer Assistance Program, contact the lenders on our list — they may have funding set aside for closing cost assistance that could help you."
For those needing to improve their credit or savings, she shared an inspiring success story: "If you’re not eligible because you still need to work on your credit or savings, don’t lose hope. It may take time to overcome those hurdles, but you can absolutely do it. One of my favorite success stories in our files is a man and his family who faced credit challenges. It took them four years to improve their credit score, but they finally made it happen through their hard work and with help from the Fort Worth Homebuyer Assistance Program."
Escobedo concluded, reflecting on the rewarding aspect of her role: "That’s one of the best parts of my job — being able to encourage HAP clients to pursue their homeownership dreams. With hard work and dedication, your homeownership dreams can become a reality.”
To learn more about the Fort Worth Homebuyer Assistance Program, visit Fort Worth Neighborhood Services or call 817-392-7395. To learn more about the Housing Channel and services and homeownership resources, visit the website or call 817-924-5091.