The City of Pharr

Home Buyer Assistance Program Overview

The Home Buyer Assistance Program (HBA) covers the down payment through a deferred 0% interest loan for eligible “first-time homebuyers” to assist with purchasing a new or existing home located within the City of Pharr.

HBA Overview:

  • Down payment and closing costs, and pre-paid expenses associated with purchasing a home
  • Homebuyers may qualify for up to $5,760 in assistance
  • Dollar amount is based on financial need
  • HBA is subject to funding availability

General Program Qualifications:

  • Applicant’s household income must be at 80% or below the area median family income as established by the U.S. Department of Housing and Urban Development for the McAllen-Mission-Edinburg Area:

Home Income Limits Effective June 6, 2016

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  • Applicant must be a resident of the City of Pharr
  • Applicant must be a first-time homebuyer of a new or existing home
  • All family members living in the household must be U.S. citizens or be permanent resident aliens
  • Applicant must initially apply for assistance through the HBA program at the City of Pharr by certifying their household income based on the income limits listed above
  • Applicant must be approved by a mortgage lender prior to applying for assistance
  • Applicant must have completed eight hours of homebuyer education, evidenced by a certificate from a qualified instructor
  • Applicant’s total debt ratio must be less than or equal to 45%
  • Mortgage loan must be fully amortizing and be for a term of no more than 30 years with interest rates of less than 8% (rate subject to change)
  • Total lender fees must be less than 3.5% of the total loan amount
  • HBA Grant will be secured by a second lien deed of trust for a period of five (5) years
  • Applicant must occupy the property as their principal residence
  • Annual Proof of Residency Certification will be conducted by the City of Pharr

How to Access Funds:

  • The Program is open to all lenders who attend HBA training conducted by the City of Pharr
  • The lender shall submit a HBA application on behalf of the homebuyer
  • The City of Pharr shall review all documents submitted and review for compliance with established guidelines listed in the general program qualifications
  • If approved, a commitment letter shall be issued for a period not to exceed 6 months (re-verification of income may be required, if length of time exceeds 6 months).
  • Upon closing, Lender shall submit a Funds Request form and Settlement Statement to the City of Pharr in order to disburse funds (fund disbursement will be coordinated with the closing agent)

Information for Lenders: To be approved to submit HBA applications on behalf of borrowers, individual loan officers must attend HBA training. The HBA Program currently has the following Lender Trainings scheduled: By Appointment

Download the Home Buyer Assistance Application:

Download Application

Frequently Asked Questions Sheet:

Download Sheet

For more information, contact Mario A. Palomo at (956) 402-4190 or send an email to [email protected]

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