What is the Down Payment and Closing Cost Assistance Program?

The NELCDC Homebuyer Assistance Program assists potential homeowners seeking to reside in north or east Lubbock . The program will provide down payment and closing costs assistance, coupled with pre and post purchase counseling. The program provides an incentive for potential homebuyers to purchase homes within the target area.

 

How is the assistance allocated?

The maximum assistance to any one homebuyer is $18,000: up to $3,000 closing cost, and up to $15,000 for principal curtailment. Assistance is available to low or moderate-income homebuyers at or below 80% of the area median income as determined by the US Department of Housing and Urban Development (refer to the HUD requirements page on website for exact figures). The down payment assistance gives buyers instant equity in their new home. The owner, however, must reside in the house for a minimum of five years to avoid repaying the assistance received.

 

How will the Homebuyers be selected?

The North & East Lubbock Community Development Corporation will market and recruit prospective homebuyer for homes to be built. The CDC will provide financial literacy, homebuyer education classes and credit counseling as activities to produce homebuyers. These activities shall prepare the applicant to become fiscally responsible for homeownership. By targeting low and moderate-income, the program will strengthen communities and stabilize neighborhoods. Thus, the program seeks to retain residents in the community and allow them the opportunity to become vested stakeholders.