Buying Power Program

• Provides a total up to $7,500.00 contingent upon available grant funding and eligibility for “up to 50 percent of required down payment for low or moderate income homebuyer; or pay reasonable closing costs (normally associated with the purchase of a home) incurred by a low or moderate income homebuyer.”
• Buyer must have a minimum investment of $500.00. This must be reflected on the HUD-1 form.
• Households who receive assistance will not be required to make monthly payments on the grant.
• If the total exceeds the $7,500.00 limit, the buyer will be responsible for the additional funds. The City will not pay any fees, cost, or reimburse charges directly to the client. The City has sole discretion as to where the funds can be used, up to but not to exceed $5,000.00.
• Property must be located within the city limits of Grand Prairie.
• Property must be the primary residence of the buyer.
• Property sales price may not exceed $300,000.00.
• Custom-built, new construction property is ineligible unless constructed under an approved affordable housing program. The property must be from existing housing stock located in Grand Prairie.
• Properties built before 1978 must have a lead based paint visual assessment. If deteriorating lead based paint is found, it must be stabilized. The property must be “lead safe” before occupied by the buyer.
• No other federally funded sources may be used in conjunction with the program.
• Property must pass HQS inspection performed by the City of Grand Prairie and all utilities must be on.

• Applicant must be a first-time home buyer.
• Applicant must be low-to-moderate income (see chart below).
• All applicant family members’ income will be calculated to determine gross family income. Lender qualifying criteria may be different.
• Applicant does not have to be a resident of the City of Grand Prairie to apply; however, priority will be given to Grand Prairie residents.
• No member of the applicant’s (2) household shall own any improved real estate which is or can be used for residential purposes, including mobile homes.
• Acceptable credit history required.
• Applicant must provide proof of savings available for all other i.e. down payment, prepaid, closing cost, appraisal, credit report, points, mortgage interest buy-down, etc. as applicable and as may be required.
• Applicant must have acceptable income to debt ratios i.e. no more than 42% can be contributed to Principle, Interest, Taxes and Insurance (PITI) and other debts unless otherwise approved by the Neighborhood Services Specialist.
• To be considered for participation in this program, a person must complete the Client Application and meet the aforementioned eligibility guidelines.
• Applicants using a co-signer to qualify must list them on the application, provide all their documentation and their income will be used to determine eligibility.

Income must not exceed 80% of the median by family size

• All pre-paids
• Unreasonable or inflated fees charged to the buyer
• Origination fee exceeding 1%
• The remaining portion of the down payment

• Before closing, potential buyers must attend a HUD approved homebuyer training and counseling class(es).
• Where buyer(s) may have funding shortfalls, a lender and/or seller may contribute funds to any cost or waive any fee associated with the sell of the property.
• Borrower may not receive any funds at closing.

A minimum of 10 working days is required for processing, once the following documents are obtained from the appropriate sources:

• Prequalification Letter
• Signed Sales Contract
• Good Faith Estimate
• Appraisal
• Notice to Seller (provided by this office) completed and returned with application
• Homebuyer Training & Counseling Certificate
• Copy of Homeowner Inspection
• Settlement Statement required before check will be processed

How much is the Buying Power grant?
The Buying Power grant provides up to $5,000 in assistance to cover ½ of required down payment and closing costs less any seller concessions, credits and pre-paids.

How do I qualify for the Buying Power grant program?
You must be a first-time homebuyer, not have owned a home within three years. Your gross annual income must not exceed 80% of the Area Median Income per household size. Please see "income limits" section on this page. You must purchase an existing home within in the city limits of Grand Prairie.

Do I have to live in the home for a certain amount of time or pay any money back in order to receive the grant assistance?
No. There are no residency restrictions to the grant and you do not have to repay any of the grant back to the city.

Can I use the full grant amount towards my down payment?
No. The grant only covers ½ of your required down payment. The remaining portion of the grant can be used for closing costs.

How do I qualify based on my income?
You will submit an application with supporting income documentation of all household members. We will count the gross annual income for all adult household members. The total household income must not exceed 80% of area median income per household size.

Do I have to use a preferred lender or realtor?
No, we do not have preferred lenders or realtors. However, it is highly recommended that your lender and realtor be knowledgeable about the Buying Power grant program guidelines.

What types of home can I purchase?
You may purchase any existing home within the city limits of Grand Prairie. A custom-built or new construction property is not eligible unless it was constructed under an approved affordable housing program.

Are there any inspections required?
Yes. There are two inspections required by the City of Grand Prairie. You must purchase a Texas Real Estate Commission Independent (TREC) Home Inspection report and provide a copy to the City of Grand Prairie. Also, the property must pass a Housing Quality Standards (HQS) inspection performed by the city.

Can I receive money back at closing?
No. The borrower must not receive any funds back at closing.

Can I stack other down payment assistance programs with the Buying Power grant program?
Yes. You may use other down payment assistance programs in conjunction with our grant program. If you are unsure please contact a Neighborhood Service Specialist for clarification.