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. For questions, call 713.864.9099 or email .
*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).
When assessing mortgage readiness, the factors taken into consideration are a client’s Debts, Income, Savings and Credit (DISC). Overwhelmingly, the clients that we see lack sufficient savings to put money down on a house. Luckily, Down Payment Assistance programs are available to meet that need.
Most Down Payment Assistance programs work in the form of a forgivable second loan on a property. Meaning, the money is yours to keep if you stay in the property a designated number of years. The requirement is usually five (5) years but varies between programs. If the property is sold before the five years is up, a prorated portion is given back to the DPA program at closing. Keep in mind that the property also needs to be your primary residence. You can’t receive DPA for rental or commercial properties or if you are an existing homeowner.
Eligibility for these programs is usually based on household income limits, neighborhood where the property is located, client occupation or some combination of these three. So don’t feel like you can’t qualify for Down Payment Assistance if you are not low- income. One out every three homebuyers that completed the class and counseling with Avenue in 2018 received Down Payment Assistance, averaging over $12,000 per household.
Register today for our First Time Homebuyers Class to learn how you can get connected to Down Payment Assistance in the purchase of your new home.
Avenue administers the Down Payment Assistance (DPA) Program for East West Bank as a nonprofit subordinate lender. The program is made available on a first-come-first-served basis to qualified buyers buying a home in the greater Houston area, utilizing a HomeReady loan product through East West Bank.
About the Program
The 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.
A borrower seeking East West Bank Down Payment Assistance must:
- 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.
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.
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 will issue a Grant Commitment letter if income restrictions are met
To apply, submit a complete Income Qualification Packet to which includes Income Qualification Checklist and Program Eligibility Questionnaire available below.
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
NeighborhoodLIFT is returning to Houston!
NeighborhoodLIFT is a national down payment assistance program sponsored by Wells Fargo and NeighborWorks® America. It provides eligible homebuyers with $15,000 to use toward down payment and closing costs on qualified homes. For veterans and service members, teachers, paraprofessionals, law enforcement officers, firefighters and emergency medical technicians, the program provides $17,500.
REGISTRATION IS FULL. Walk-in appointments at the March 22 event may be available on a first come first serve basis. Click HERE for more information.