Housing Programs Funding Currently Unavailable

We apologize, but funding for the Housing Program is not currently available. Please check back soon for updates or explore alternative programs on our website.

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