Ellen Stephens, REALTOR
(210) 696-9996 ext 408
(210) 764-9403
Toll Free:
(877) 835-5355
(210) 696-9981


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The City of San Antonio has just announced a new First Time Home Buyer's Incentive Program.  Under this program,qualified Buyers can receive as much as $20,000 FREE Money to be applied to their Down Payment and Closing Costs. 

HOME Investment Partnerships Program (HOME) are funds allocated by HUD to eligible State and Local governments to expand the supply of decent, safe, sanitary and affordable housing (24CFR Part 92). 

The City of San Antonio's (COSA) Housing & Neighborhood Services Department (HNSD) administers a down payment and closing cost assistance program out of HOME funds.  The Homeownership Incentive Program (HIP) is federal funds made available to eligible first-time homebuyers.  The HIP program provides homeownership opportunities for low to moderate-income families.

Families from various backgrounds with income below 80% AMFI, may qualify for an FHA 203B, FHA 203K, VA or a Conventional loan to finance the purchase of an existing or newly constructed home.  However, some of these families are unable to save the money needed for the down payment and closing costs that are required from the lender.  HIP provides the necessary financing in the form of a second lien mortgage.  Assistance may be provided in the form of a three percent (3%) loan with a perpetual amount.


To be eligible for participation in the HIP, clients must meet all the following criteria:

1. The household's gross annual income cannot exceed eighty percent (80%) of the Area Median Family Income (AMFI).    Household income consists of all money received or earned by any person 18 years of age or older who currently resides or who will reside in the structure to be purchased.  This includes all income earned, i.e., part-time employment, overtime, child support, bonuses, SSI, etc.  HNSD reserves the right to re-verify the household's gross income if more than 6 months has lapsed from when borrower was initially qualified.


Income eligibility is based on 2008 Median Family Income for the San Antonio, Texas MSA.  Income limits are updated automatically in compliance with the most recent transmittals received from HUD.

# in Household        80% AMFI

  1.                        $30,650
  2.                        $35,000
  3.                        $39,400
  4.                        $43,750
  5.                        $47,250
  6.                        $50,750
  7.                        $54,250
  8.                        $57,750

2.2 During income determination, household assets over $5,000 will be calculated into the annual income at a rate of 2% (passbook rate). For example, 401k, or a retirement plan.

3. The borrower must be a first time homebuyer which is defined as follows:

  • " Have never had ownership interest in any residential property for at least three (3) years prior to applying for HIP down payment assistance
  • " Displaced person or family individual that involuntarily moves from real property permanently as a direct result of acquisition, rehabilitation, or demolition.
  • " Single parent or single person.
  • 4. The City prohibits providing assistance to persons not lawfully present in the United States.  All contributing members of a household receiving HIP funds must be either a:
  • U.S. Citizen
  • " Permanent Resident Alien
  • " Temporary Resident Alien with permission to work in U.S.
  • " Documentation of status will be required.

5. The borrower must occupy the home and declare it as their homestead for tax purposes during the term of the program assistance. 

6. The borrower must qualify for an FHA, VA or a Conventional mortgage loan from a legitimate mortgage lender. 

7. Owner financed loans does not qualify for HIP funds.

8. Purchaser must attend COSA's homebuyers' training session and submit a certificate of completion form as soon as possible, prior to closing.

9. Purchaser should deposit a minimum of $500 in earnest money receipted by the title company prior to closing the loan at the title company.


1. The house to be purchased must be located within the San Antonio City Limits.  Check Bexar Appraisal District www.bcad.org website records using the physical address of the property in question to determine if it's within COSA's city limits.

2. The maximum sales price of the home shall not exceed $110,000.00  "Affordable Home Price", established by San Antonio City council.  This amount is subject to change.

3. Assistance will not be provided to a buyer where said assistance would result in dislocating a residing tenant.  However, the dwelling would be eligible if the tenant is the buyer of the property.  A signed COSA certification form (Uniform Relocation Assistance and Real Property Acquisition Policies Act Notice and Certificate of Owner/Seller) from the seller stating that the home has been tenant free for 90 days prior to signing the Earnest Money Contract will be required on all loans. See pgs. 16-17

4. The home can be an existing or a newly constructed property.  A newly constructed unit is a property, which received a Certificate of Occupancy within a one-year period prior to the commitment of HIP funds.  Newly constructed properties must meet the Model Energy Code and certification must be submitted to HNSD by the builder or the lender before closing. 

5. Unit to be purchased as the borrower's principal residence can be single-family unit, condo or two-four unit property.  For two-four unit property, assistance will be provided only for the unit to be occupied as the purchaser's principal residence.  Example: A total of $6,000 is needed to close the purchase on a duplex, $6,000 / 2 = $3,000 adjusted, maximum HIP assistance available.

6. Condition of unit must be safe, decent and sanitary.  Must meet all City Building Codes and federal standards including Environmental Lead Based Paint and HUD's Housing Quality Standards (HQS 24CRF, Section 882.109) to be completed by COSA staff.  HQS is not a substitute for the TREC final inspection report requirement.

7. Unit must contain adequate living space. HIP funds are governed by certain Federal Regulations to ensure that funds are not used to contribute to overcrowded housing conditions.  Refer to Page 10 for Occupancy Standards.

8. For units built prior to 1978, a visual assessment on all painted surfaces shall be performed for detection of lead based paint in accordance with 24CFR part 35.1015.  At COSA's discretion, a lead "clearance" report may be required even though there may not be children in the household.

9. If the property to be purchased is located in flood prone area, the homeowner must maintain flood insurance for the term of the loan.

Terms and Conditions may change.  Contact us for up to date terms and to find a qualifying home.  Call us today at (210) 639-9403 and get the process started.  FUNDS ARE LIMITED, and FIRST COME, FIRST SERVED.

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