HOUSING AND NEIGHBORHOOD SERVICES

The Foreclosed Home Purchase Assistance Grant Program (FHPAG) assists qualified low, moderate and middle-income families purchase foreclosed homes in Grand Prairie. The program is administered through the city of Grand Prairie Housing and Neighborhood Services Department.

• Provide signed Statement of Notification and Certification of Compliance with bank regulators guidance.

City Will• Provide Letter of Qualification for NSP funds.• Have appraisal completed within 60 days

of offer. House must be discounted 1% below appraised value (unless otherwise ap-proved by the city).

• Calculate 25% of gross family income limit to house payment and approve.

• Calculate income to debt ratio and approve.• Complete the mandatory environmental

review on the house.• Complete home, termite and lead based

paint inspections.• Provide check for approved costs at closing.• Assess approved rehab work for the house

after closing.• Write-up, bid-out and select approved

contractor to complete rehab work.

Order of Priority for Rehab1. Structural and system repairs2. Component/system remaining useful life replacement3. Energy efficient item replacement4. Cosmetic/flooring

Amount of rehab funds available is determined by amount of money remaining after closing cost and down payment assistance.

Example:

Total Grant $20,000Subtract 50% of down payment Subtract closing cost asst. =$10,000

$10,000 available for approved rehabilitation work based on above priority scale. The city will determine and approve all rehabilitation work completed on NSP funded houses under the FHPAG Program.

Applicant Will• Pre-qualify with lender, provide pre-

qualification letters to the city and complete application process.

• Locate foreclosed house in approved census tract that meets foreclosure requirements.• Provide city with foreclosure documents

relating to potential house. • Provide proposed sales price of house.• Provide a Good Faith Estimate and

HUD 1 Form so city can calculate and approve covered closing/down payment costs.

• Provide eight (8) hour Certificate of Completion from homebuyer counseling.

FORECLOSED HOME PURCHASE

ASSISTANCE GRANT PROGRAM

Housing and Neighborhood Services 205 W. Church St.

Grand Prairie, TX 75050Telephone: 972-237-8166

Fax: 972-237-8459Email Darwin Wade at: dwade@gptx.org

www.gptx.org

Other Services OfferedForeclosed Home Acquisition and

Resale Program for governmentemployees working in Grand Prairie

Fair Housing Enforcement

Rev 4/14

- 5,000- 5,000

Program Design The FHPAG program provides up to a $20,000 grant to assist qualified buyers with approved closing costs, down payment assis-tance up to 50% and approved rehabilitation work after the closing process is complete.

Qualifications and Eligibility• Applicants must complete all required

application documentation. • Mortgage payments should not exceed 25%

of gross family income.• Applicants must have an income to debt

ratio* of no more than 40% (* no more than this amount can be contributed to principle, interest, taxes and insurance unless otherwise approved).

• Applicants must pre-qualify with a lender at time of application. All household members’ income will be calculated to de-termine total family gross income. Quali-fied applicants’ income must be either (see chart below): – At or below 50% of median income.

This group will receive 25% of the total grant. Applicants in this group will be given priority as applications are received until minimum requirement is met.

– At or below 120% of median income.

Financing/Down Payment/Closing Cost Assistance• Interest buy down is eligible under FHPAG. • Up to 50% of down payment is eligible.• City-approved closing costs are eligible.

Lender RequirementsParticipating lenders must:• Cap interest rates at 1% above current FHA

rate unless otherwise approved. • Ensure origination fees do not exceed 1% of

sales price.• Sign Certification of Compliance with Bank

Regulator Compliance.• Sign Statement of Notification for sales,

foreclosures and any change of ownership to ensure affordability requirements are met.

• Provide a Good Faith Estimate and HUD 1 Form for city to assess and approve covered closing costs.

Homebuyer Training/CounselingApplicants must complete eight (8) hours of homebuyer training/counseling with a HUD approved counselor and provide a Certificate of Completion.

Affordability RequirementsLiens will be placed on FHPAG homes to en-sure affordability requirements are met based on the following dollar amounts and years.

Neighborhood Stabilization Program (NSP) Investment/Grant

Length of Affordability Period/Lien

Less than $15,000 5 yrs/60 months$15,000-$20,000 10 yrs/120 months

Liens will be forgiven based on monthly amount deducted from the total grant amount until the affordability period has expired at which time the lien will be released.

Foreclosed Home Requirements• Foreclosed home must be in census tract

approved by city. Houses in higher risk tracts given priority.

• No mortgage or tax payments can have been made on house in previous 90 days.

• Legal completion of mortgage/tax foreclo-sure under state/local laws must have occurred.

• Supporting documentation must be providedfor proof of foreclosure.

• House must be purchased at 1% discountfrom independently appraised value unless otherwise approved by the city.

• Pre-1978 constructed homes must be in-spected for lead and all lead based paint regu-lations will apply.

Appraisals• City must inform owner in writing of its

estimated market value for the house. • Appraisal must have been completed

within 60 days of offer.• Initial offer can be made subject to

completion of appraisal within 60 days of final offer.

• Lender’s appraisal can be used if it meets requirements of 49CFR24.101(b) and 49CFR24.103 and provides signed statement stating same.

Approved Rehabilitation WorkThe rehabilitation process begins once closing is complete and the house is purchased. City staff will assess house for approved rehab work and perform a work write-up based on priority and remaining Neighborhood Stabilization Program (NSP) funds. Work will meet minimum acceptable standards of the Housing Rehabilitation Program and any applicable codes or laws. Structural and system items, such as roofs, walls, mechanical, plumbing and electrical, will be given priority. The approved work write-up will be posted for bid and an approved contractor selected to complete work. The approved rehab activities are the following:

1. Component/system remaining useful life: HVAC, water heater, etc.

2. Energy efficient items: windows, doors, insulation, attic vents, etc.

3. Cosmetic/flooring: paint, carpet, tile, etc.

Dallas County 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

50% of median $23,800 $27,200 $30,600 $33,950 $36,700 $39,400 $42,100 $44,850120% of median $57,050 $65,200 $73,350 $81,500 $88,000 $94,500 $101,050 $107,550

Tarrant County 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

50% of median $23,050 $26,350 $29,650 $32,900 $35,550 $38,200 $40,800 $43,450120% of median $55,250 $63,150 $71,050 $78,950 $85,300 $91,600 $97,900 $104,250