Each year the cities of Temple and Belton work closely with the area housing authority to help make down payments of $12,500 available to future homeowners. There are income requirements but generally people who earn modest wages and haven’t owned a home within the past three years may qualify.
The down payment is a forgivable loan, which means that when the homeowner has been in the house for 10 years, it is forgiven.
Over the past two years, the program has helped 39 people become homeowners. Barbara Bozon, executive director of Central Texas Housing Consortium, said this year the program would probably help at least 20 people with down payment assistance.
“I encourage people to contact us if they are interested,” she said.
The program is administered by the housing consortium, which applies for state grants and combines state money with funds provided by the participating cities. Temple and Belton contribute $2,500 each toward loans in their respective cities, with the state chipping in up to $10,000 per loan.
This year, the grant application process with the state has been pushed back. While the housing consortium will still apply for state funds, it will not know whether the state signs off on the application for several months.
This week the consortium and Belton agreed to move forward with the program without a guarantee of funding from the state. The move does not change much for Belton, which will continue to pledge $2,500 for successful applicants.
The housing consortium, however, will use up to $200,000 it has in reserves to assist hopeful homeowners, Ms. Bozon said.
“We own quite a few properties that generate income annually that can be set aside for this program,” she said.
The Belton City Council made the funds available to more people in the city when it agreed this week to allow people making more than 80 percent of the average income in the area to be eligible for assistance. That means a family of four in Belton with an income of more than $39,700 may still be eligible for assistance.
“I think it’s a great thing to do,” Mayor pro tem Marion Grayson said about the city’s participation in the program.
People who are interested in obtaining down payment assistance may call the cities of Temple or Belton or the Central Texas Housing Consortium. Applicants must be eligible for standard home loans. Ms. Bozon said the program never helps with a down payment for a home financed with a subprime loan.
“We’re always surprised when people still don’t know about this program,” Ms. Bozon said. “We make information available through a lot of agencies in the area and the cities help get the word out, too.”
