Dallas County UPCAP for First Time Home Buyers

The Dallas County Upfront Cost Assistance Program (UPCAP) provides direct loans of up to $7,500 for down payment, closing costs, and pre-paid costs to first-time homebuyers.  Email questions or prequalify today at josh@joshcampbellmortgage.com or call 214-929-1733

1. The home purchased with an UPCAP assistance loan must be located in Dallas County in one of the thirteen participating cities listed below, or in un-incorporated areas of Dallas County:

  • Balch Springs
  • Coppell
  • Farmers Branch
  • Lancaster
  • Wilmer
  • Cedar Hill
  • Desoto
  • Glenn Heights
  • Sachse
  • Cockrell Hill
  • Duncanville
  • Hutchins
  • Seagoville

2. UPCAP loans are available only to first-time home buyers, or to a person who has not owned a home in the past three years. Exceptions include a single parent or displaced homemaker, or a family or individual whose residence is not in compliance with local building codes and cannot be brought into compliance for less than the cost of building a permanent structure.

3. Applications: An UPCAP Application must be submitted to our office in order to receive UPCAP assistance. Clients who are approved for the UPCAP program will be given a 60 Day Commitment period to find a home to purchase and close the home purchase. A 30 day extension may be granted if an accepted sales contract is in place.

4. Income Limits: Family gross annual income cannot exceed HUD median income limits as follows:

 Family size:                      1                 2                  3                  4                   5                  6

Maximum Income: $39,300   $44,900   $50,500    $56,100     $60,600     $65,100

Maximum purchase price is the Dallas MSA FHA mortgage limit. Borrowers housing ratio cannot exceed 35% and debt ratios cannot exceed 45% of gross monthly income.

5. Property Requirements:

  • Properties built prior to 1978 must pass a lead based paint visual assessment. If deteriorating lead based paint is found it must be stabilized.
  • Properties cannot be located in flood zones per FEMA maps.
  • Properties must be vacant or owner occupied. Properties currently tenant occupied or occupied by tenants 60 days prior to an executed sales contract are not eligible.
  • Seller may not retain mineral rights on the property, or place any other restriction on the sale to inhibit the ownership of fee simple title by the buyer.
  • Properties must appraise at 100% of the sales price.
  • New construction properties are eligible for purchase provided that the foundation of the property is completed prior to a real estate contract being executed.
  • HUD properties may only be purchased if buyer is using FHA 203(k) financing.

6. Property Inspections: All properties must be inspected by a home inspector from the “Dallas County Minimum Property Standards (MPS) Inspectors List”. Inspections made by an inspector not on the Dallas County MPS Inspectors list are not be accepted. Properties must pass the Dallas County MPS guidelines. The home must also pass a TREC inspection and receive a “Texas Wood Destroying Insect Report”. We must receive a copy of the inspections before UPCAP funds can be ordered. All inspector or lender required repairs must be made prior to closing, and real estate sales contracts must state that all lender or inspector required repairs will be made prior to closing. If repairs can only be made after closing the borrower must use FHA 203(k) financing to purchase the property. The inspection must be paid for by the buyer at the time of the inspection.

7. Financing:

  • Buyer must have acceptable credit history and be able to qualify for a fixed rate mortgage with a lending institution. Sub-prime loans, ARM loans, and interest only loans are not eligible under this program.
  • The borrower will have the option to obtain FHA 203(k) financing for MPS repairs that cannot be completed prior to closing. These repairs cannot exceed $5,000.00. Repairs greater than $5,000 will require HLCC approval to be completed. All repairs must be completed within three months of closing. No foundation repairs are allowed.
  • Lender fees and charges cannot exceed $2,500.

8. Borrower Qualifications:

  • All persons currently residing in the household on a permanent basis will be included to determine family size. All adults in the household must be co-applicants on the UPCAP application & meet all UPCAP guidelines.
  • All income received by the family members residing in the household will be counted as qualifying income for this program. If applicant has liquid assets in excess of lender required funds and the UPCAP loan, applicant will not be eligible for participation in the program. Borrower cannot have more than $2,500 plus one month’s gross income left in personal funds after closing. Retirement funds in IRS recognized accounts are excluded.
  • Borrower(s) must be a US citizen or a permanent resident or possess a current work authorization Visa. Permanent residents and individuals with a work authorization Visa must provide to HLCC a copy of both sides of the unexpired immigration documents.
  • No member of the applicant(s) household shall own any improved real estate which is or can be used for residential purposes, including mobile homes with a permanent fixed foundation.
  • Borrower must contribute a minimum investment of 1% of the sales price of the home or $985, whichever is greater toward the home purchase from personal funds.
  • Borrower may not receive any cash back at closing.
  • All approved UPCAP clients will be required to attend the 8 hour Homebuyer Seminar Series (3 classes) at the Dallas County Home Loan Counseling Center. Borrowers must attend at least one post-purchase counseling session.

9. Occupancy Requirement: In consideration for the assistance loan, Dallas County will file a second lien on the property for the amount of the UPCAP loan for a five year term. After five years the lien will be released. The buyer must live in the property for the five years as their sole residence. If a buyer sells, leases out, transfers the title to the property to anyone else, or loses the home, the buyer is liable to Dallas County for the amount of the UPCAP assistance loan.

For Questions or To PreQualify Contact josh@joshcampbellmortgage.com –  It’s recommended that you get prequalified as early in the process as possible.

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