The First Key Program helps low- and moderate-income individuals and families buy their first home. The City of Fredville's Housing and Neighborhood Services Department runs the program.
How the Program Works
- Eligible buyers can receive as much as $6,500, depending on available grant funds. The money may cover up to half of the down payment a low- or moderate-income buyer is required to make, or reasonable closing costs that normally come with buying a home.
- Buyers must put in at least $400 of their own money, and that contribution must appear on the HUD-1 settlement form.
- Assistance is a grant, so households that receive it make no monthly payments.
- Any costs above the $6,500 cap are the buyer's responsibility. The city does not pay fees or costs to the client or reimburse the client for charges. The city alone decides how the funds may be applied, up to a maximum of $4,000.00.
- The home must sit inside Fredville city limits and must be the buyer's main residence.
- The purchase price cannot be more than $310,000.00.
- The home must come from Fredville's existing housing stock. Custom or newly built homes do not qualify unless they were built through an approved affordable housing program.
- Homes built before 1978 need a visual lead-based paint assessment. Any deteriorating lead-based paint must be stabilized so the home is lead safe before the buyer moves in.
- The grant may not be combined with any other federally funded source.
- The City of Fredville will inspect the home to Housing Quality Standards (HQS), and it must pass with every utility turned on.
Who Can Apply
- You must be buying your first home.
- Your household must have a low to moderate income (see the limits below).
- Income from every member of the household counts toward gross household income. Your lender may use different standards.
- You do not need to live in Fredville to apply, but Fredville residents receive priority.
- No one in the household may own improved real estate that is used, or could be used, as a residence. Mobile homes count.
- Your credit history must be acceptable.
- You must show savings to cover any remaining costs, such as the rest of the down payment, prepaid items, closing costs, the appraisal, the credit report, points or a rate buy-down, as needed.
- Your debt-to-income ratio must be acceptable: no more than 42% of income may go toward principal, interest, taxes and insurance (PITI) plus other debts, unless a Neighborhood Services Specialist approves an exception.
- To be considered, complete the client application and meet all of the guidelines above.
- If you need a co-signer to qualify, list that person on the application and provide all of their documents. Their income will count toward eligibility.
Income Limits
Household income may not be more than 80% of the area median for your household size.
2026 CDBG and HOME income limits for the Fredville area, effective June 1, 2026 (calendar year 2026)
| Household size | Extremely low, 30% (deferred payment loan) | Very low, 50% (DPL $28,000/0% combo) | Very low, 60% (DPL $14,000/1% combo) | Low, 80% (3% loan) |
|---|---|---|---|---|
| 1 person | $22,900 | $38,200 | $45,850 | $61,100 |
| 2 people | $26,200 | $43,600 | $52,350 | $69,800 |
| 3 people | $29,500 | $49,050 | $58,850 | $78,500 |
| 4 people | $32,700 | $54,550 | $65,450 | $87,200 |
| 5 people | $35,350 | $58,900 | $70,650 | $94,250 |
| 6 people | $38,000 | $63,200 | $75,850 | $101,200 |
| 7 people | $40,600 | $67,600 | $81,100 | $108,200 |
| 8 people | $43,200 | $71,950 | $86,350 | $115,150 |
Larger households: For each person beyond eight, add 8% of the four-person limit. For example, the limit for nine people is 140% of the four-person figure, and for ten people it is 148%. Limits for households of 9 to 12 people are rounded to the nearest $50, so amounts ending in 1 through 24 round down to 0 and amounts ending in 25 through 49 round up to 50.
Costs the Grant Will Not Cover
- Prepaid items of any kind
- Fees charged to the buyer that are unreasonable or inflated
- Loan origination fees above 1%
- The part of the down payment the grant does not cover
Other Buyer Responsibilities
- Complete homebuyer education and counseling through a HUD-approved provider before closing.
- If a buyer comes up short, the lender or seller may pay any cost, or waive any fee, related to the sale.
- The buyer may not get cash back at closing.
Processing takes at least 10 working days after the office has received these documents:
- Lender prequalification letter
- Sales contract with all signatures
- Good faith estimate
- Appraisal
- Notice to Seller form (supplied by our office), filled out and returned with the application
- Certificate showing completion of homebuyer education and counseling
- Copy of the home inspection report
- Settlement statement (needed before the check can be issued)
Frequently Asked Questions
How much assistance does the First Key Program provide?
Up to $6,500, which can pay for half of the required down payment plus closing costs, after any seller concessions, credits and prepaid items are taken into account.
How do I qualify?
You must be a first-time buyer, meaning you have not owned a home in the past three years. Your gross yearly household income must be at or below 80% of the area median income for your household size; see the income limits above. The home you buy must be an existing home inside Fredville city limits.
Must I live in the home for a set period, or repay any of the grant?
No. The grant carries no occupancy requirement, and none of it has to be paid back to the city.
Can the whole grant go toward my down payment?
No. The grant pays for at most half of the required down payment. Whatever remains can be applied to closing costs.
How is my income reviewed?
Along with your application, you will turn in income records for everyone in the household. We add up the gross yearly income of all adult members, and that total must not be more than 80% of the area median for a household of your size.
Do I need to work with a particular lender or real estate agent?
No. The city does not have preferred lenders or agents, but we strongly suggest choosing professionals who understand the First Key Program's rules.
What kind of home can I buy?
Any existing home within Fredville city limits. Custom or newly built homes are not eligible unless they were built through an approved affordable housing program.
Are inspections required?
Yes, two. You must buy an independent home inspection report on the Texas Real Estate Commission (TREC) form and give the city a copy. The home must also pass the city's Housing Quality Standards (HQS) inspection.
Can I get money back at closing?
No. Buyers may not receive any funds at closing.
Can I combine this grant with other down payment assistance?
Yes, other down payment assistance programs can be used together with the First Key Program. If you are not sure whether a program qualifies, ask a Neighborhood Services Specialist.
How to Apply
- You must meet the eligibility rules on the date you apply.
- Apply online, or apply in person at the Neighborhood Services Division of the Housing and Neighborhood Services Department, Monday through Thursday from 8 a.m. to 6 p.m. or Friday from 8 a.m. to noon, except holidays. Applications are not taken by phone.
- After you apply, you have 10 days to turn in the eligibility documents listed above. If everything is not received within 90 days, the application is disqualified, and you would need to apply again and go to the end of the waiting list. Waiting times can change without notice.
- Applications are handled in order of their approval date, and Fredville residents receive priority where it applies. Where no other policy applies, the Section 8 Administrative Plan may be used for verification.
- Housing and Neighborhood Services may change its procedures and income limits without notice.
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