Avenue administers several Down Payment Assistance Programs to help you attain your goal of homeownership.The following is an outline of the programs available through Avenue.
Avenue can also connect you with other down payment assistance programs like, City of Houston Down Payment Assistance, Harris County Down Payment Assistance Program, Harris County H.O.M.E. Program, Texas State Affordable Housing Corporation (TSAHC) Down Payment Assistance, TSAHC Mortgage Credit Certificate (MCC).
About the ProgramThe REACH Program is sponsored by East West Bank, with Avenue serving as the administrator for the Down Payment Assistance. Eligible customers can receive Down Payment Assistance of 3% of the purchase price of the home, up to $12,500. The assistance comes in the form of a forgivable subordinate loan and will be forgiven after 12 months. It can be layered with other assistance.
Who QualifiesA borrower seeking East West Bank Down Payment Assistance must:
East West Bank has allocated $100,000 total for this program. The funds are limited. Interested borrowers completing the loan application and completing the income qualification process (if applicable) will be added to the list of qualified recipients for these funds on a first-come-first-served basis.
- Qualify for the Fannie Mae HomeReady Conventional Loan Product through East West Bank
- Provide 3% down payment
- Have a credit score of 620 or higher
- Cannot currently own a home, but does not have to be a first time home buyer
Meet the income restrictions for the area where the home is located
- If the home IS in an income restricted area (address based), the borrower must then meet the specified income requirement. Borrower will need to complete the Income Qualification Process with Avenue.
- If the home IS NOT in an income restricted area, the only income criteria that applies is that of the loan product.
How To Apply
- Get a Purchase Contract on a house
- Get a Loan Estimate from East West Bank – Linda Martinez, 832-919-4290,; NMLSR ID#: 1521034 with the estimated REACH funding included
- Determine if Income Qualification Process is required for that house
- If required, you must complete the Income Qualification Process below.
- If not required, you can skip the Income Qualification Process.
- Complete the Pre-Purchase Homebuyer’s class online http://avenue.frameworkhomeownership.org/ (if you haven’t already completed the in-person class with Avenue!)
- Complete the REACH Program Eligibility Questionnaire and submit the required income documents to
Avenue offers down payment assistance (DPA) on homes at Avenue Place for buyers who are at or below 120% Area Median Income (see AMI chart below).
About the Program
The vision for Avenue Place is to create a mixed-income community of opportunity. To that end, Avenue provides Down Payment Assistance, in the form of subordinate loans, to make the homes at Avenue Place affordable to income-eligible families earning 120% or less of the Area Median Income. Buyers who income qualify at <120% AMI are eligible to receive a $26,000 forgivable loan over 10 years (10% per year) and an additional $20,000 deferred loan which would be due upon sale or in 30 years (with a portion of the appreciation also to be paid to Avenue).
Avenue Subordinate Loans will supplement first loans provided by conventional and FHA lenders. All requirements for the first loan must be met. For FHA borrowers, the minimum 3.5% buyer down payment and upper-income limit of <115% of AMI still apply. Avenue Subordinate Loans may be used in combination with subsidies provided by other funders if the other funders allow. The intention of these loans is to make the eligible homebuyer’s monthly payments more affordable. **Buyers are required to occupy the home as their primary residence as long as the subordinate loans remain on the property.**
Download the Avenue Down Payment Assistance Flyer to learn more about the way the down payment program works.
Prospective homeowners who:
- meet the income restrictions of being at or below 120% AMI (see AMI chart below)
- attend Avenue’s Homebuyer Education class and subsequent one-on-one counseling, and
- are pre-approved through an approved lender for the Avenue Place Down Payment Assistance Program. See Flyer.
There are a limited number of homes available with our Down Payment Assistance Program. Prospective homebuyers are added to a list of qualified buyers for these resources based on the date/time they submit a complete Income Qualification Packet.
How To Apply
- Income Qualification Checklist
- Program Eligibility Questionnaire
- Required Supporting Documents outlined in the Income Qualification Checklist
The Department of Housing and Urban Development (HUD) sets the area median income limits that determine eligibility for certain programs. The income limit is the maximum amount of income a household can earn to qualify to receive assistance for various programs. A household's income is calculated by its gross income, which is the total income received before making subtractions for taxes and other deductions. The Houston area limits are listed in the table below.
NeighborhoodLIFT is back in Houston for 2019!Neighborhood LIFT is back in Houston for 2019! LIFT is a down payment program that provides either $15,000 or $17,500 down payment assistance to eligible buyers to buy a property in the City of Houston. On March 22 and March 23rd we helped almost 300 homebuyers reserve a total of $5 million of down payment funds. Avenue might have some funds become available for homebuyers who did not reserve funds in March. We recommend that you monitor the loan counter on our portal to know when funds become available. How to monitor availability of LIFT Funds
- Go to: https://www.avenuecdc.org/lift
- Click on the green button LIFT Customer Portal
- Look at the top header – "Neighborhood LIFT Loans Remaining"
- When you see a positive number there – that is when buyers can apply for any available LIFT Funds.
- Go to: https://www.avenuecdc.org/lift/
- Click on the green button – LIFT Customer Portal
- Create an account via " Sign Up Now "
- Indicate " Interested in LIFT " and preferably, " Consent to Electronic Communication " through the account creation questions
- UPLOAD the Purchase Contract and Pre-Approval in the " My Documents" section.
- Purchase contract must be signed by both the seller and the buyer, and must be on an eligible property (search the property address through the Tax Assessor's office, the tax bill must show " City of Houston " as one of the Taxing Jurisdictions.
- Pre-Approval must have been issued in the last 90 days and be from an approved lender (see list "Approved Lender List")
- Complete the " LIFT Quiz "
- Complete the " LIFT Form "
- Avenue will then reach out to them about next steps.
- Only after they complete all of these steps and we have verified their valid purchase contract and pre-approval, can we temporarily hold " LIFT funds for them. If they complete the steps prior to having a valid contract pre-approval we will reset their account and they can try again once they do have a valid contract. ** At this point, this is not a funding commitment. They will have to schedule and complete an Eligibility Determination Session (EDS) first. If they are deemed eligible after EDS, then Avenue will issue a funding commitment.