New Structure Incentives - City Employee Assisted Loans Program
Employee Loan Over 80%
The City of Waco and City Council have joined together and approved a program for City employees with gross family household income greater than 80% but no more than 200% of area median income as defined by Housing & Urban Development (“HUD”).
It's purpose is designed to encourage more City of Waco employees to live and own homes within the Community Development Block Grant (CDBG) area of Waco. This loan assistance program will also increase homeownership and quality neighborhoods in Waco.
- City of Waco employee considered in good standing for a minimum of 12 consecutive months
- Employee in good standing means an employee who is not on disciplinary probation, administrative leave, leave without pay, a Personal
- Improvement Program (PIP), or suspension
- Property purchased must be in the CDBG area
- $5,000 forgivable loan over a 5 year period of time
- New or existing homes eligible
- Subject to 5 year recapture of the remaining balance if property is sold or transferred
- Subject to all other City of Waco Housing program guidelines which are applicable
Terms
- Deferred/Forgivable – Forgivable over five years @ $ 1,000.00 per year as long as property is occupied by City employee as his/her primary residence (homestead), and the employee is still employed in good standing by the City of Waco.
- If employee leaves City employment (either by choice or termination , the former employee agrees to pay the remaining principal balance back monthly based on a five year amortization @ a 0% interest rate.
- Loan Amount: $5,000.00
- Rate: 0%
- Single family residence
- Condominium units
- Cooperative units
- Town homes
ELIGIBLE PROPERTY
The City of Waco will finance properties located within Community Development Block Grant (CDBG) area of the City of Waco.
Eligible properties are classified as existing properties or newly constructed properties that are publicly or privately held for sale to a potential homebuyer. Properties may be one of the following:
2009 City of Waco Income Limits By Family Size |
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| Family Size | 1 Person | 2 Persons | 3 Persons | 4 Persons | 5 Persons | 6 Persons | 7 Persons | 8 Persons |
| 30% Median | $10,850 | $12,400 | $13,950 | $15,500 | $16,750 | $18,000 | $19,200 | $20,450 |
| 50% Median | $18,100 | $20,700 | $23,250 | $25,850 | $27,900 | $30,000 | $32,050 | $34,100 |
| 80% Median | $28,950 | $33,100 | $37,200 | $41,350 | $44,650 | $47,950 | $51,250 | $54,600 |
| Median Income | $36,150 | $41,350 | $46,500 | $51,700 | $55,800 | $59,900 | $64,050 | $68,250 |
| 120% Median | $43,350 | $49,600 | $55,800 | $62,000 | $66,950 | $71,850 | $76,850 | $81,900 |
| 200% Median | $72,300 | $82,700 | $93,000 | $103,400 | $111,600 | $119,800 | $128,100 | $136,500 |
Employee Loan Under 80%
To encourage more City of Waco employees to live and own homes within the city limits of Waco, the City of Waco and City Council have joined together and approved two New City of Waco Employee Assisted Loan Programs. One loan is for employees 80% and lower of the median income and the other loan for employees over 80% of the median income. The loan assistance programs are incentives to increase homeownership and quality neighborhoods in Waco.
80% or less of Income Median by Family Size for City of Waco
- Full-time City of Waco employee considered in good standing for a minimum of 12 consecutive months
- Employee in good standing means an employee who is not on disciplinary probation, administrative leave, leave without pay, a Personal Improvement Program (PIP), or suspension
- Property purchased must be in the Waco city limits
- $25,000 forgivable loan over a 10 year period of time
- New or existing homes
- Subject to all program and HUD guidelines
Terms
- Forgivable loan over 10 years @ $2,500.00 per year as long as property is occupied by City employee as his/her primary residence (homestead) and is still employed in good standing with the City of Waco
- If employee leaves city employment (either by choice or termination not including retirement from the city), the former employee agrees to pay the remaining principal balance monthly back monthly based on a 10 year amortization @ a 0% interest rate
- Loan Amount: $25,000
- Rate: 0%
ELIGIBLE PROPERTY
Eligible properties are classified as existing properties or newly constructed properties that are publicly or privately held for sale to a potential homebuyer. Properties may be one of the following:
- Single family residence
- Condominium units
- Cooperative units
- Town homes
2009 City of Waco Income Limits By Family Size |
||||||||
| Family Size | 1 Person | 2 Persons | 3 Persons | 4 Persons | 5 Persons | 6 Persons | 7 Persons | 8 Persons |
| 30% Median | $10,850 | $12,400 | $13,950 | $15,500 | $16,750 | $18,000 | $19,200 | $20,450 |
| 50% Median | $18,100 | $20,700 | $23,250 | $25,850 | $27,900 | $30,000 | $32,050 | $34,100 |
| 80% Median | $28,950 | $33,100 | $37,200 | $41,350 | $44,650 | $47,950 | $51,250 | $54,600 |
| Median Income | $36,150 | $41,350 | $46,500 | $51,700 | $55,800 | $59,900 | $64,050 | $68,250 |
| 120% Median | $43,350 | $49,600 | $55,800 | $62,000 | $66,950 | $71,850 | $76,850 | $81,900 |
| 200% Median | $72,300 | $82,700 | $93,000 | $103,400 | $111,600 | $119,800 | $128,100 | $136,500 |
New Structure Incentives - New Acquisition Loan Program
If you'd like to buy a home for your family but may need a little assistance, then the City of Waco's New/Acquisition Loan Program may be able to help you reach that goal.
If you qualify as low to moderate income (80 % or less of the median income for the City of Waco) and want to live in the City Limits of Waco, we may be able to assist you. This program is open to both those interested in building a new home or purchasing an existing home.
Requirements
- Property must be owner occupied.
- Property must be within the City Limits of Waco. Borrower must qualify for the first lien mortgage.
- The Maximum loan amount: Not to exceed $15,000 including closing costs (based on total monthly income)
- Rate: Not to exceed 0%
- Maximum mortgage term: Not to exceed 30 years.
- Homebuyer is required to make a $500 investment in the purchase.
- Comply with all HUD and City codes.
Note: For anyone looking to purchase a home that was built prior to 1978 using the City of Waco New/Acquisition Loan, the home will have to pass a visual inspection for lead based paint. In the visual inspection they will look for cracking, chipping or deteriorated paint. If it passes the visual inspection nothing further will have to be done. If it does not pass the visual inspection, the problem will have to be corrected with someone who is an approved lead worker and will have to pass clearance prior to any federal assistance. For more information on lead based paint, click here: Lead Based Paint Issues
New Structure Incentives - Special New Construction Loan Program
The Special New Construction Loan Program is the new program the City of Waco has implemented to assist potential homeowners with down payment and closing cost assistance.
ELIGIBILITY
- Property must be owner occupied.
- Permanent financing may be FHA, conventional or an in-house loan (take-out letter from lender)
- Income not to exceed 80% of the median income for Waco by family size
- New construction only
- Loan applicants must meet all City of Waco, Housing and Urban Development (HUD) regulations and policy guidelines
- Borrower must invest $500.00 of their own funds-no gift funds allowed for this investment
- 80% or less of median income by family size.
- Properties must meet all city codes – International Property Management Code (IPMC)
- Disclosure package is to be completed
- Rates/Terms for first lender is not to be predatory in nature. (Excessive rates, unusual terms, and excessive fees)
- This program can be used with any other City of Waco program except the Applegrove, Pecan Valley and Forrest Grove Areas, which have Special Financing in place.
ELIGIBLE PROPERTIES
- Property must be within the City limits of Waco
- Single family dwellings, Town Homes, Condominiums, and Cooperative Units
- New Construction only
LOAN TERMS
- Loan Limit: $10,000.00
- Term: the term will comply with HUD’s minimum affordability period based upon the total HOME funds used on the project.
- Rate: 0%
- Loan-to-Value: Not to exceed 120% of the lower of cost or appraisal
*As long as the borrower resides in the home as the principal residence the entire 10-year period of time.
New Structure Incentives - Supplementary Programs
Note: This web page does not contain all the terms of Supplementary Programs: IDA Account Program and HOTHFC Single Family Bond Program
IDA (Individual Development Account) Program
The IDA program allows families to save money for the down payment on a home. An IDA is a matched savings account in which participants deposit money. For every dollar of earned income that families save, two dollars is added to their account. The participant savings goal is $1,000; with the match, they will complete the program with $3,000, towards a down payment on a home.
Financial Literacy Classes are free to anyone enrolled in the IDA program. The classes focus on budgeting, using checking and savings accounts, reading credit information and getting a loan.
To be considered for the program you must...
- Meet the income requirement of 80% of the median income level.
- Be a resident of McLennan County for a minimum of 6 months and agree to buy a home within the Waco city limits.
- Be employed in your current job for a minimum of 6 months.
- Open a special savings account with a goal to deposit $1,000.
Heart of Texas Housing Finance Corporation Single Family Bond Program
The Heart of Texas Housing Finance Corporation bond program is designed to help homebuyers purchase a newly constructed or existing home by providing a below-market mortgage loan interest rate along with a grant for down payment assistance. This program is targeted to low and moderate income households, and loans will be made on a first-come, first served basis. The loans are either FHA-insured VA guaranteed, Rural Housing Service (RHS), Fannie Mae or Freddie Mac eligible conventional 30-year fixed-rate mortgages.
- 5.85% Mortgage Loan w/ 8% non-repayable Grant for Down Payment Assistance
- Can be used in conjunction with any H&CD DPCC programs <80% income median
- Program's household income limits extend beyond 80% income median and includes targeted and non-targeted areas of Central Texas
- http://www.ffiec.gov/Geocode/default.aspx
- Participating Lenders (Please refer to the Heart of Texas HFC Bond Program):
Citizen Mortgage Corporation-800 Washington Ave, Waco, TX 76701 (254) 745-2005
Cornerstone Mortgage-7530 Bosque Boulevard, Suite D, Waco, TX 76712 (254) 714-6800
