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The City of College Station's Down Payment Assistance Program is out of funds for the current year. New funds will be available no later than October 1, 2018. New applications will be accepted; however, closings will not be able to occur prior to October 1, 2018. 

Many residents want to buy a home but do not have enough money saved for their down payment and closing costs. The Down Payment Assistance Program provides qualified homebuyers with shared equity gap financing of up to 30% of the sales price on any home for sale in College Station, capped at $49,999. The loan is a 0% interest, deferred, second lien loan and can be applied toward a down payment or closing costs on single-family properties including individually owned townhouse units, homeplexes and condominium units, but excluding mobile homes, duplexes, and quadraplexes.

When the home is sold, or the buyer no longer owner-occupies the property, the amount borrowed plus the percentage of the equity realized equaling the percentage of the down payment assistance loan comprising the original sales price are paid back to the City.

Important Documents:
DAP Application Checklist 
DAP Pre-Application Form
DAP Application
DAP Program Summary

To qualify for the Loan, a prospective homebuyer must meet all of the following criteria:

Household #






Max Income






To view the income limits for larger households, please click the link above.

  • Minimum employment history in the same job, or in the case of professional, salaried employees, in the same field of employment for a minimum of six (6) months;
  • May not have more than $20,000 in liquid assets, excluding retirement accounts and personal property;
  • Have a credit score of 600 or greater;
  • Provide application fee of $25;
  • Must afford mortgage payments between 20% and 35% of monthly income;
  • Complete homebuyer education counseling session;
  • Contribute a minimum of 1.5% of the total sales price of the home at closing.

To qualify for the Loan, prospective homes must meet all of the following criteria:

  • Must be located within the College Station City limits;
  • Maximum home price shall not exceed the current HOME Homeownership Value Limits for the College Station-Bryan MSA;
  • Must have passed a lead-based paint risk assessment by a State of Texas licensed Lead Risk Assessor if home is constructed prior to 1978;
  • Only owner-occupied or vacant homes may be purchased unless the DAP participant is the tenant;
  • Tenant occupied homes may not be purchased.

To qualify for the Loan, your lender must meet all of the following criteria:

  • Be licensed in the State of Texas and provide escrow services to buyers for insurance and property taxes;
  • Provide a mortgage interest rate that does not exceed the local average rate more than 1.5 points;
  • Provide a mortgage term of at least 15 years with a fixed rate for the life of the loan and be fully amortizing.

Applicants are urged to complete the Down Payment Assistance application and approval process prior to making an offer to purchase. The Down Payment Assistance application and approval process normally takes three weeks. Delay in submitting required documentation will delay the closing date. Final approval is not determined until the city reviews the sales contract, lender information, and inspects the home.


Assistance is in the form of a 0% interest, deferred, second lien, shared equity, gap financing loan. Assistance amount is determined by the borrower’s demonstrated need or “financial gap.” The loan is interest free as long as there are no violations to the terms of the loan. The borrower must maintain the property as their primary residence and abide by all terms and conditions of the program, and first lien note. If the borrower sells, refinances (including home equity loans), or transfers the property or any other interest therein (including a beneficial interest) from the borrower to any other person or entity, or is in violation of program guidelines, the full amount of assistance plus a percentage of equity realized shall become due and payable. The percentage of equity repayable is determined by the assistance amount divided by the sales price at the time of purchase multiplied by the equity realized at time of sale.

Shared Equity Example:

If a client borrowed $25,000 to purchase a $100,000 home (25% of the sales price) and sold the home ten years later for $130,000, 25% of the equity accrued would be due back to the City along with the original $25,000 borrowed. In this case, $30,000 in equity was realized, so 25% and the original loan amount would be due back ($7,500 + $25,000 = $32,000).

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Last updated: 6/28/2018 8:49:44 AM