HOUSTON—There is a program through the City of Houston that builds brand new homes for those who qualify and knocks tens of thousands off the mortgage. It is called Houston Hope Homes.
Gwendolyn Scott used the program to purchase a newly constructed 1,900-square-foot home for $110,000 after almost 20 years of apartment living.
She put $500 down, and her monthly mortgage note is $745.59. Through the home ownership program she received $37,000 in subsidy money, which came right off the price of her new home. That left the amount she had to finance at $73,000. She also qualifies for the federal government’s $8,000 new homebuyers’ tax credit.
The Houston Hope program is for first-time homeowners, said Catherine Flowers, an executive director. But under the program’s definition, a person qualifies as long as they have not owned a home in the past three years. The program does have income guidelines for qualifying buyers.
"For a family of four, you can make up to $81,000 and still qualify for up to $50,000," said Flowers. That’s $50,000 in subsidy money.
"So you come into your home with automatic equity," Flowers said.
A family of one can make as much as $51,000 and still qualify for the program and for subsidy money. There are also special provisions for teachers and first responders like police officers and firefighters.
Buyers should know that the program only covers newly constructed homes and they must be built in one of several urban, historic designated areas in Houston. The areas include Third Ward, Fifth Ward, Acres Homes, Sunnyside, Denver Harbor, Trinity Gardens, Settegast and Independence Heights.
"We have an opportunity to re-start a neighborhood that’s already desirable. U of H, TSU is right there," Flowers said.
"All these years I’ve worked, I’ve accomplished my own home," said Scott.
For more information, visit http://www.houstontx.gov/houstonhope/index.html.
