Fort Worth to offer down payment assistance on foreclosed homes

by PegNews wire

The City of Fort Worth is offering mortgage assistance to qualified homebuyers who purchase lender-foreclosed homes in seven targeted ZIP codes.

The U.S. Department of Housing and Urban Development (HUD) recently awarded $6.3 million to the Fort Worth Housing and Economic Development Department, which will help residents purchase foreclosed homes. The funds come from HUD’s Neighborhood Stabilization Program (NSP) as part of the Housing and Economic Recovery Act of 2008.

The program, known as the Fort Worth Down Payment Assistance Program (DPAP), will be administered by the city’s Housing and Economic Development Department.

The use of NSP funds returns foreclosed homes to homeownership and to the tax rolls. It also maximizes the expertise and resources of the private sector and will help stabilize neighborhoods in communities that have been hardest hit by the rise in foreclosures.

Income-eligible homebuyers can receive a 10-year forgivable loan of $25,000 to assist with closing costs, down payment and minor repairs when purchasing a lender-foreclosed home. If the buyer remains in the home for 10 years, the loan is forgiven. The amount of the deferred-payment loan begins to reduce after five years.

The eligible ZIP codes are 76248, 76112, 76123, 76179, 76133, 76137 and 76131.

To learn more, visit www.FortWorthGov.org.

FAQ about DPAP

How much assistance is available? $25,000 per qualified homebuyer.

How do I apply? Access to the program is through a mortgage lender. Apply for a mortgage loan with one of the lenders working with the city. Your lender should have completed NSP certification. A list of the 100-plus lenders is on the city’s Web site at www.FortWorthGov.org. Your lender will apply for DPAP assistance on your behalf when you qualify for a loan. Successful applicants are required to complete an eight-hour homebuyer training course taught by a HUD-certified housing counseling agency.

What properties are available? Properties in the seven identified ZIP codes are available. Only one- and two-unit properties qualify. Investment properties don’t qualify.

When does the program begin? The program is now open and will expire when funds have been expended or on Sept. 30, 2010, whichever comes first.

Source: Fort Worth