Reconstruction Loans

Loan Application


To improve living conditions for lower income homeowners through either the rehabilitation of their existing home or building a new home if repair is infeasible.


  • A partially forgivable loan (up to $80.00 per square foot plus closing costs for pre-approved house plans) for the construction of a new owner-occupied home in place of an existing structure deemed infeasible for repair
  • Zero-percent interest on the repayment portion of the loan

Eligibility Criteria:

  • Borrowers must meet income criteria (80% or below median income)
  • Property insurance and taxes must be current
  • Borrower cannot own any other income-producing real estate
  • Borrower must qualify for the mortgage, taxes and insurance
  • A structure is determined feasible for rehabilitation if the rehab costs do not represent more than the after-rehab value of the home or exceed $24,999.
  • Structures not feasible for rehab will be considered for reconstruction

More terms may apply to this program.  For more information, please contact us at 750-5656. Contractors interested in building single, one family home’s for the City’s reconstruct program should contact Marcus Davilla at 254.750.5629 or email him at marcusd@ci.waco.tx.us.

City of Waco
80 percent of the Median
2014 Income Criteria
Family of 1 $28,950
Family of 2 $33,100
Family of 3 $37,250
Family of 4 $41,350
Family of 5 $44,700
Family of 6 $48,000
Family of 7 $51,300
Family of 8 $54,600
Equal Housing Opportunity

Waco Housing & Community Development >>