If you’ve ever dreamed of owning a home in Dallas but felt overwhelmed by the upfront costs, That’s exactly why the Dallas Homebuyer Assistance Program (DHAP) exists. With up to $60,000 in forgivable loans available, this city-sponsored program could be your golden ticket to homeownership.
But let’s be honest: navigating government websites can be confusing. So we’ve broken everything down for you, step-by-step, with real answers to real questions.
What Is DHAP? (In Plain English)
Dallas Homebuyer Assistance Program (DHAP) helps qualified buyers pay for down payments and closing costs when buying a home in Dallas. The assistance comes in the form of a 0% interest, forgivable loan —meaning you don’t have to pay it back as long as you meet the conditions.
Think of it like a gifted boost to get you started, not just another debt.
The assistance is a second lien as a forgivable deferred loan.
How Much Can You Get?
| Area Type | Maximum Assistance |
|---|---|
| High Opportunity Areas | Up to $60,000 |
| Other Areas in Dallas | Up to $50,000 |
✅ “High Opportunity Areas” are neighborhoods with lower poverty rates (≤10%)—making them great long-term investments too.
Step-by-Step: How to Apply for DHAP
🪜 STEP 1: Complete a DHAP and HUD-Approved Homebuyer Education Course
- Must be at least 8 hours long
- Must be completed within 12 months of your DHAP application
- Find a local Dallas HUD-approved provider
🪜 STEP 2: Get Pre-Approved by a DHAP-Approved Lender
- You’ll need a mortgage pre-approval letter before applying
- The lender must be on the City’s approved lender list
🪜 STEP 3: Submit Your Application via Neighborly Portal
- Go to: Neighborly Software Application
- Upload all required documents: tax returns, pay stubs, credit reports, etc.
🪜 STEP 4: Find a Home Within Dallas
- Must be within Dallas city limits
- Must meet Dallas Housing Standards
- Must not exceed price limits:
- $342,000 for existing or new construction
🪜 STEP 5: Final Approval & Closing
- Once under contract, your lender and city housing staff will coordinate to finalize the grant.
- Must close within 6 months of income certification or by September 30, whichever is sooner.
DHAP Approved Title Companies: What You Need to Know
To ensure a smooth and compliant closing process for homebuyers receiving DHAP assistance, the City of Dallas requires the use of DHAP-approved title companies. These companies are trained in DHAP guidelines and play a critical role in finalizing your home purchase.
✔️ For Buyers
- Your title company must be on the City’s approved list to process DHAP closings.
- Using a non-approved title company may result in delays or disqualification from the program.
- Always confirm with your real estate agent or lender that your selected title company is DHAP-approved.
📝 For Title Companies: How to Get Approved
If you’re a title company looking to participate in DHAP, follow these steps:
- Complete the DHAP Title Company Application Package
- Includes required documentation and compliance agreement.
- Register as a Vendor with the City of Dallas
- Download and complete the City of Dallas Vendor Registration Application.
- City of Dallas Vendor Registration Application PDF
- Attend Mandatory DHAP Training
- Initial and periodic training sessions provided by the City are required for participation.
- Maintain Good Standing
- Ongoing participation depends on compliance with DHAP and industry standards.
- Non-compliance may lead to termination from the approved list.
📬 Submission Address for Executed Documents
All original DHAP-related closing documents must be sent to:
City of Dallas, Housing & Neighborhood Revitalization
ATTN: DHAP
1500 Marilla Street, 6CN
Dallas, Texas 75201
For additional questions or resources regarding the approval process, contact the City’s Housing Department directly.
Who’s Eligible for DHAP?
| Requirement | Details |
|---|---|
| Residency Status | U.S. Citizen, Permanent Resident, or qualified immigrant |
| Income Limit | ≤ 80% of Area Median Income (AMI) |
| Employment History | Minimum 6 months steady employment |
| Credit Requirements | No sub-prime or adjustable-rate mortgages allowed |
| Minimum Investment | You must contribute at least $1,000 of your own funds |
| Homeownership Status | Not owned a home (first-time equivalent) |
Borrowers with annual household income at or below 80% of the Area Median Income (AMI) for household size may be eligible for a DHAP Loan.
Income limits effective June 1, 2024
| House-holdSize | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
|---|---|---|---|---|---|---|---|---|
| 80% AMI | $ 61,800 | $ 70,600 | $ 79,450 | $ 88, 250 | $ 95,350 | $ 102,400 | $ 109,450 | $ 116,500 |
DHAP FAQs
Q: Do I have to be a first-time homebuyer?
No, you do not have to be a first-time homebuyer to qualify for the DHAP
Q: Where can I take the required education course?
Through HUD-certified providers in Dallas—click here for the list.
Q: How long does approval take after applying?
On average 30 days, but it can vary depending on application volume.
Q: Can I use this for a condo or townhouse?
Yes – As long as the home meets Dallas standards and price limits.
Q: What happens if I move before the loan is forgiven?
You’ll owe a pro-rated amount of the assistance received.
Where Can You Buy With DHAP?
Here’s a visual of eligible Dallas ZIP codes and High Opportunity Areas:
➡️ View DHAP Eligibility Map PDF
✅ Covers areas near DART stations, new developments, and mixed-income zones.
🔗 Useful Resources
- 🔑 DHAP Program Overview
- 💬 Apply Online via Neighborly Portal
- 🏦 Approved Lenders List
- 📞 DHAP Office: (214) 670-3644 | ✉️ DHAPloans@dallascityhall.com
If you’re looking to buy a home in Dallas and feel discouraged by upfront costs, DHAP could change everything. With up to $60,000 in forgivable assistance, you could finally take that first big step into homeownership.
