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1. How long does the process take?

• The Homebuyer Assistance Program takes about six weeks, provided there are no external delays. 
• Please note that the six weeks are measured when the applicant submits a complete application. 
• We cannot begin work on an incomplete application.

2. Are there any fees associated with the program?

• The buyer must contribute a minimum of $1,000 to the down payment of a new construction home and a minimum of $500 for an existing home. 
• No additional fees are paid to the City of Port Arthur. 
• If someone tells you that there are participation fees, please report them for fraud.
• Housing and Community Development Department

3. Is this program only available in certain areas?

• No, the Homebuyer Assistance Program is available Citywide.
• Housing and Community Development Department

4. Are credit reports required for all household adults?

• No. 
  • All household income must be reported, but only the loan applicant’s credit is reviewed during underwriting.
• Housing and Community Development Department

5. Is there a debt-to-income requirement?

• Yes, the program requires a 45% back-end ratio. 
  • The back-end ratio is calculated by adding together all of a borrower’s monthly debt payments and dividing the sum by the borrower’s monthly gross income. For example, if a borrower has a monthly gross income of $5,000 and monthly debt payments of $2,000, their back-end ratio is 40% ($2000/$5000). The Homebuyer Assistance Program requires that an applicant has a back-end ratio of less than 45%.
• Housing and Community Development Department

6. Is there a credit score requirement?

• No, the Homebuyer Assistance Program for the down payment and closing costs assistance does not consider credit score. 
  • However, the lending institution does consider credit score.
• Housing and Community Development Department

7. Is there a maximum home price?

• No. The buyer can select any home that fits their needs and budget.
• Housing and Community Development Department

8. What can the assistance be used for?

The assistance CAN be used for:

• Down-payment
• Pre-paid items (homeowner’s insurance, mortgage interest, property taxes, etc.)
• Subsidize mortgage interest rate
• Reduce the principal amount of the first mortgage payment
• Reasonable closing costs

The assistance CAN NOT be used for:

• Realtor’s commissions
• Cash refunds to the buyer

Housing and Community Development Department

9. What is the five or ten-year second lien?

• When the City assists someone in buying a home, we are investing in someone to live in the house for the long term. 
• We require they live within the home for five years, secured through a forgivable loan for the purchase of an existing home and ten years for a new construction home. 
• The loan is automatically forgiven at the end of the five or ten-year residency period. 
• At the end of the five or ten years, please submit this Release of Lien Request to Housing@portarthurtx.gov.
• Housing and Community Development Department

10. What if I have to sell my home or move out before the five or ten years are over?

• In these cases, the City will collect a portion of the investment made, proportional to the amount of time remaining in the residency period. 
  • For example, if the City provided $40,000, and the homebuyer moves after two years, they will only be charged for the three remaining years, or $28,000. 
• To begin this process, please submit this Payoff Statement Request form to Housing@portarthurtx.gov.
• Housing and Community Development Department

11. What if I need to refinance my home?

• If your mortgage information changes, you will need to share the new information with our department.
• Please submit this Subordination Agreement Request to Housing@portarthurtx.gov.
• Housing and Community Development Department