In the wake of the devastating Hurricane Harvey, Harris County found itself confronting a stark shortage of affordable and resilient homes. Responding to this crisis, Harris County initiated the Single Family New Construction Program (SFNCP), a pioneering venture that collaborates with local developers to offer affordable homeownership opportunities. Tailored to households with incomes not exceeding 80% of the Area Median Income (AMI), this program is a beacon of hope for residents looking to bridge the gap between their home-buying aspirations and financial realities.
Single Family New Construction Program
At the heart of Harris County's Project Recovery, the SFNC Program is strategically designed to address the disparity between homebuyer budgets and the cost of their dream homes. Through strategic partnerships with developers, the program has already secured 36 newly constructed homes, with plans to introduce up to 171 more by the end of 2023. With a robust commitment, the county aims to have approximately 200 resilient, affordable new homes available for purchase by the late summer of 2024.
Program Highlights
The SFNC Program extends a lifeline to eligible applicants, providing a suite of benefits aimed at making homeownership more accessible:
Sales price reduction of up to 45%
Full closing cost assistance
Mortgage rate points buydown
Up to $35,000 in down payment assistance (as-need basis)
Eligibility and Application
To participate in the SFNC Program, applicants must meet specific criteria:
Households with incomes at or below 80% of the AMI
U.S. citizenship or eligible immigrant status
Completion of an 8-hour, HUD-certified Homebuyer Class
Adherence to credit score requirements (minimum 580 for FHA loans)
Income Levels
Understanding the income limits is crucial for potential applicants. As of May 1, 2024, the Median Family Income (MFI) Limits for Harris County are as follows:
Household Number | Low Income (80%) |
1 | $53,000 |
2 | $60,600 |
3 | $68,150 |
4 | $75,700 |
5 | $81,800 |
6 | $87,850 |
7 | $93,900 |
8 | $99,950 |
Affordability and Award Determination
Ensuring affordability is a core tenet of the SFNC Program. Homebuyers will pay no more than 39% of their incomes toward housing costs, and an additional 42% towards housing costs and other debts. This comprehensive approach includes mortgages, insurance, taxes, HOA fees, and other financial obligations.
Commitment Beyond Purchase
Homeownership through the SFNC Program comes with responsibilities. Buyers must live in and maintain the home for an affordability period of 10 years. Deviating from this commitment incurs a prorated repayment of the assistance provided. Moreover, certain financial prerequisites, such as current child support payments and property taxes, must be met.
Harris County's SFNC Program is more than a homebuying initiative; it's a testament to the community's resilience and commitment to uplifting its residents. By providing affordable housing solutions and a pathway to homeownership, this program embodies the spirit of recovery, rebuilding, and community empowerment. For those dreaming of a place to call home, Harris County's SFNC Program is a beacon of opportunity, lighting the way toward a brighter, more secure future.
Update: As of April 19, 2024, they're currently not accepting application for the new construction program. As an alternative, please check their Community Land Trust Program via this link: https://www.tanjablandiniyourrealestateangel.com/post/helping-families-achieve-affordable-homeownership-harris-county-community-land-trust
(Source: https://www.harrisrecovery.org/)
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