What is the Loan Star Program?

City Bank Mortgage is excited to announce the partnership with an organization called Homeownership Across Texas (HAT). Partnered with the Homeownership Across Texas (HAT), City Bank is able to provide grants to help qualified homebuyers reduce the amount of money they pay out-of-pocket to purchase a home. The grants range from 1% to 5% of the amount of the homebuyer’s mortgage loan, and can be applied toward the required down payment and/or closing costs. The Loan Star Program is not a loan, it is a grant, so it never has to be repaid. In addition, there are no additional closing costs associated with the program. 

Loan Star Program Requirements   

• The credit score your lender uses to qualify you for the mortgage loan must be 620 or higher.            
• Your annual income must be below certain limits depending on the county in which the home is located. 
• You must complete an eligible homebuyer education course online or in person. Contact a Participating Lender for information about eligible courses.
• You must be approved for a 30-year FHA, VA, USDA or Conventional mortgage loan.
• You do not have to be a first-time homebuyer.

Loan Star Program - Eligible Homes

• A new or existing single-family home that you will occupy as your primary residence.
• The purchase price may not exceed certain limits depending on the county in which the home is located, and the type of loan for which you qualify.
• Conventional, VA, and USDA Purchase Price Limit: $453,100.
• The home must be located in Texas; however, the following communities are not participating in the grant program: Travis County (Austin), and the cities of El Paso, Grand Prairie and McKinney.

FAQs

Do I have to be a first-time homebuyer to participate in this program?
No, this grant program is not limited to just first-time homebuyers. 

Where is this program available in Texas?
This program is available to the majority of Texas (excluding Austin, El Paso, Grand Prairie and McKinney). Contact a City Bank Mortgage loan officer today to see if your county is included.

Can I use this for an investment property?
No, this grant program is only for the purchase of a single-family home that you will occupy as your primary residence.

Can I use this grant for a refinance?
No, this grant program is only for purchase transactions.

Why do I have to attend a homebuyer education course?
A homebuyer education course is a requirement of the grant and must be completed before closing. The course is designed to ensure all participants are familiar with the processes and requirements of homeownership. The course can be taken in person or online. Visit with your City Bank Mortgage loan officer for more information.

Is the max county income limit for the borrower or the entire household?
The income limit is based on the county you are buying in. For example, the income limit for Lubbock county is $90,720 for qualified applicants. The qualified income may be less than the total actual household income.
Please visit with your City Bank Mortgage loan officer if you have questions in regards to the income requirements in your household.

 

* This is not a commitment to lend. All loans are subject to credit approval, terms and conditions may apply. Must meet all qualifications and complete the Homebuyer Education course before closing. Subject to change without notice. 

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