First Key Program (Down Payment Grant)
How much assistance does the First Key grant provide?
Up to $6,500. The grant pays half of the required down payment plus closing costs, after subtracting any seller concessions, credits and prepaid items.
Who qualifies?
You must be a first-time homebuyer, meaning you have not owned a home in the past three years. Your household's gross yearly income must be at or below 80% of the Area Median Income for your household size; income limits are listed on the First Key Program page. The home you buy must be an existing home inside Fredville city limits.
Is there a required length of stay, or a repayment?
No. The grant carries no residency requirement, and none of it has to be paid back to the city.
Can the whole grant go toward my down payment?
No. It can cover only half of the required down payment. Whatever is left of the grant may be applied to closing costs.
How is my income reviewed?
Your application must include income documents for everyone in the household. We add up the gross yearly income of every adult in the home, and that total cannot exceed 80% of Area Median Income for your household size.
Do I need to work with a particular lender or real estate agent?
No. The city does not keep a list of preferred lenders or agents. We strongly suggest choosing professionals who understand the First Key Program rules.
What kind of home can I buy?
Any existing home in the city limits. Newly built or custom-built homes do not qualify unless they were built through an approved affordable housing program.
Are inspections required?
Yes, two. You must pay for an independent home inspection on the Texas Real Estate Commission (TREC) form and give the city a copy. The home must also pass a Housing Quality Standards (HQS) inspection done by city staff.
Can I get cash back at closing?
No. The buyer may not receive any money back at closing.
Can I combine First Key with other down payment programs?
Yes, other down payment assistance can be used together with our grant. If you have questions about a specific program, ask a Neighborhood Services Specialist.
Emergency Repair Program
What counts as an emergency?
A problem that comes up suddenly and threatens the life, health or safety of the people in the home, so it has to be fixed right away.
Who is eligible?
The applicant must own the home, and household income may not be more than 50% of Area Median Income.
What are typical emergency repairs?
Examples include burst pipes, failed water heaters, heating and air conditioning breakdowns and electrical hazards.
Will a lien be placed on my home?
No. Emergency repairs do not involve a lien.
Is there a dollar limit?
Yes. Each emergency repair is capped at $6,000.00, and the Neighborhood Services manager must approve the work before it begins.
Housing Choice Voucher Homeownership
Is there help with mortgage payments and other costs of owning a first home?
Yes. The Homeownership Voucher Program helps with these monthly costs.
I already get rental help through a Housing Choice Voucher. Can I use it to buy a home?
Yes, as long as your local public housing agency (PHA) offers the homeownership option and you meet the income and other eligibility rules.
What if I don't have a voucher?
You will need to apply for a Housing Choice Voucher through your local PHA first.
Does the home have to meet any standards?
Yes. Before the PHA can approve the purchase, the home must pass the PHA's initial housing quality standards inspection and an independent home inspection.
Which families can apply for a homeownership voucher?
- First-time owner: the family is buying its first home or is a cooperative member.
- No recent ownership: no one in the family has owned, or held an ownership interest in, the place they lived during the past three years.
- No other residential property: apart from cooperative members, no one in the family owns any part of a residential property.
- Minimum income: for most families, the adults who will own the home must earn at least the federal minimum hourly wage times 2,000 hours per year. For families with a disability, the floor is the monthly federal Supplemental Security Income (SSI) payment for one person living alone, times 12. A PHA may set a higher minimum for either group. Welfare assistance does not count toward the minimum, except for elderly or disabled families.
- Employment: except for elderly and disabled families, at least one adult who will own the home must work full time now and must have worked full time without a break for at least a year before assistance begins.
- PHA rules: the family meets any other first-time eligibility rules the PHA sets.
- Counseling: the family completes the PHA's homeownership and housing counseling course before assistance starts.
What counts as a monthly homeownership expense?
- Principal and interest on the mortgage
- Mortgage insurance premiums
- Property taxes and homeowner's insurance
- Principal and interest on loans for major repairs or replacements to the home
- Principal and interest on loans for accessibility changes a household member with a disability needs, when the PHA approves them as a reasonable accommodation
How much help does the voucher provide?
The PHA uses the same payment standard schedule it uses for rental vouchers. The housing assistance payment (HAP) is whichever is smaller: the payment standard less the total tenant payment, or the family's monthly homeownership costs less the total tenant payment. The payment can go either to the family or directly to the lender.
What is the total tenant payment?
For calculating assistance, it is usually 30% of the family's adjusted monthly income. Your local PHA can explain exactly how yours is figured.
How much will I pay each month?
At a minimum, you pay the total tenant payment, roughly 30% of adjusted monthly income. If the home's monthly costs are more than the PHA's assistance plus your tenant payment, your family pays the difference. PHAs may set affordability limits so families do not take on payments they cannot keep up with.
Must the home be in the area where the voucher was issued?
No. An eligible family may buy outside the original PHA's area if the PHA serving the new area runs a homeownership voucher program and is accepting new families. The family can only buy where it was income-eligible when it entered the program.
How long does assistance last?
Elderly and disabled households have no time limit. For everyone else, assistance ends after 15 years when the original purchase mortgage has a term of 20 years or more; in all other cases the limit is 10 years.
Housing Rehabilitation Program
Will a lien be placed on my property?
Yes. Any home that receives rehab work carries a lien for seven to ten years.
Must my property taxes be paid up?
Yes, with a few exceptions reviewed one case at a time.
Is there an age requirement?
Applicants must be at least 60 years old, have a disability, or both.
Can I qualify if I refinanced in the past three years?
Possibly. It depends on how much equity the home has.
What if I have a reverse mortgage?
Homes with a reverse mortgage are not eligible.
Can I sell the home after receiving help?
Yes, but the lien must either be paid off at the sale or have already expired.
What is the income limit?
80% of Area Median Income for your household size.
Is everyone's income counted?
Yes. Income from every member of the household is included.
What is the most a rehab project can cost?
As much as $28,000.00 for a full rehabilitation, depending on the home's equity and the scope of work.
Does my name need to be on the deed?
Generally yes, though there are some exceptions. Contact Neighborhood Services to learn more.
Will I need to repay anything?
Possibly. Repayment depends on your household's qualifying income level.
Reconstruction Program
Where do I stay while my home is rebuilt?
We will move you temporarily into a house or an apartment.
Do you cover moving costs?
Yes. The program pays for moving, temporary relocation and storage of your belongings for the entire project.
How long does reconstruction take?
Usually three to five months, depending on the weather.
How long is the lien on a reconstructed home?
Twenty years.
Who decides whether a home should be rebuilt instead of repaired?
A Neighborhood Services rehabilitation coordinator makes that call after a full assessment of the home's condition.
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