It’s Income Tax Time, and you’re prepping for homeownership! Here are 4 tips to consider when preparing your 2024 Income Tax Return including why shouldn’t you claim a business loss when applying for a mortgage loan.
Claiming a business loss on your income tax return can negatively impact your ability to qualify for a mortgage loan. Here are a few reasons why:
It’s always a good idea to consult with a mortgage advisor or tax professional to understand how your specific situation might be impacted.
While many people have a specific dream home in mind, it’s important to purchase a home that is safe, well-built, and within a mortgage you can afford.
Housing is where the majority of Americans spend their income, and prices are on the rise. Affordable housing has trended toward smaller homes due to the many associated cost savings. As of September 2024, the median listing price per square foot in Texas is $187, reflecting a 35.8% increase over seven years.
So, what size house is best for you? First, determine how many people will live in the house full-time. Next, consider the monthly expenses for your home, including mortgage, insurance, and utilities. Balancing these factors will help you determine the ideal size for your new house.
What exactly is a “small house”? The average house in the United States is 2,500 square feet. Anything below that is considered “smaller.” (This differs from tiny homes, which are generally 500 square feet or less.)</p?
A small house can be an excellent option for those interested in minimalism, energy conservation, downsizing and specifically, first-time homebuyers. Small homes allow young individuals to experience all the responsibilities involved with homeownership without breaking the bank.
Heather Higgins, a New York based designer who frequently handles projects in the 1,000-square-foot range, says, “Requiring less time, energy, and money, smaller living spaces provide greater lifestyle flexibility.”
In addition to freeing up time, smaller homes offer numerous benefits:
Some people believe “bigger is better,” while others have reservations about smaller houses. Below are common hesitations and solutions:
In 2024, newly built homes got smaller for the first time in decades. Home sizes peaked in 2021 when the pandemic forced many people to work from home and additional space was needed. According to the U.S. Census Bureau, the average square footage of new housing units dropped from 2,500 square feet in 2021 to 2,300 square feet in 2024.
Stagnant wages, coupled with rising building and labor costs, are driving homeowners toward smaller homes. In Texas, where the minimum wage has remained $7.25 per hour since 2009, economic pressures are significant. For instance, in Houston, a standard no-frills bathroom sink cost $44.24 in 2022 but increased to $48 by 2024.
Less square footage translates into big savings. To calculate potential savings, add up your current monthly housing expenses (mortgage, utilities, insurance, and maintenance). Compare this total to what you’d spend on a larger house by doubling or tripling the amount. The difference shows how much a smaller home can benefit your finances.
A home’s size doesn’t limit its potential for comfort or style. Many no-cost and low-cost strategies can make a small home feel spacious and luxurious:
Interior designer Dustin Gerken of Dustin Gerken Design says, “One of the most valuable commodities in a residence is floor space. Use the illusion of spatial depth to your advantage by pulling furniture off the wall to add shadow and gradient to the wall behind it.”
Visit both Houston Habitat for Humanity ReStore locations to find great deals on beautiful new items for your home. Stock is always revolving to check often!
In short, yes. Increasing costs and a stubborn housing market have made smaller houses more appealing. While it might not be your forever home, buying a smaller house is a crucial step toward greater financial stability and future housing options.
Everything possible in a large house is an option in a smaller home! First-time homebuyers benefit from lower prices that require smaller down payments and monthly mortgage payments. A smaller home leaves more room in your budget for higher-quality furniture and home improvements. You can invest in durable, long-lasting items rather than cheaper alternatives, saving you more money in the long run. Using creativity and a little bit of the ever-increasing savings made from this decision, the design and feel are completely up to you. Reduced utility costs are also a major benefit – air conditioning a smaller home during Houston’s summer heat can add up to big savings!
Plus when you get ready to sell your home, you are in a positive financial position. Home prices typically depend on the square footage and size of the house. Smaller homes often attract a broader range of buyers due to their affordability, making them more likely to sell.
Virtually tour some of our Habitat Homes, explore the possibilities, and start your journey toward homeownership today.
In a blog post from earlier in 2024, we busted 11 myths commonly associated with Habitat for Humanity. One belief, however, deserves its own post. Of those who have considered working towards a home with Habitat for Humanity, some have decided otherwise with the assumption that they make too much income to qualify. This self-sabotage is a mistake! Before supposing you make too much money for a habitat home, keep reading to learn about the income guidelines. Habitat homes are designed for workers with a dependable job living in an unaffordable area.
Much of HFH information is available in both English and Spanish! Don’t let language get in the way of homeownership. ¡Nuestra información estádisponible tanto en inglés como en español! No permita que el idioma se interponga en el proceso de ser propietario de una vivienda.
Homeownership Program Criteria is grouped into several categories. First, answer these questions. Do you live in overcrowded or substandard housing? Do you pay more than 30% of gross income on rent and do you live in an unsafe and/or unsanitary neighborhood? If yes, then are you a US Citizen or do you have permanent residency status? If yes, are you willing to partner with Houston Habitat for Humanity to put in up to 250 hours of “sweat equity” (more on this later), and complete pre-purchase and post-purchase programs which include financial counseling?
If ‘yes’ was your answer to the above questions, then Houston Habitat for Humanity income requirements are up next for review. For a family of one, the minimum income requirement is $33,150 and the maximum income is $53,000. (No, you don’t have to be married or have children to be eligible). For a family of four, the minimum income requirement is $47,300 and the maximum income is $75,700. For a family of seven, the minimum income requirement is $58,700 and the maximum income is $93,900. Information about Houston Habitat for Humanity income limits are listed on our website for family size, ranging from one person to eight people. These numbers are based on the Area Median Income (AMI) for Houston, The Woodlands and Sugar Land as reported by HUD.
The final aspects of a Habitat homeowner are a satisfactory credit score, and having the ability to afford monthly mortgage payments, including escrow and insurance. The next section in this post contains information about credit and raising your credit score.
A credit score is a three-digit number based on the information in your credit report, a detailed history of credit cards used and loans received. Credit scores may account for the number of years you’ve had credit, how much of your available credit you’re using, if late payments have been made, and any recent negative actions or credit applications. A lower credit score can cause higher interest rates.
Federal law allows you to get a free copy of your credit report every 12 months from each credit reporting company. Check your credit here or here for free. Usted puede solicitar una copia de su informe crediticio (gratis y enespañol) de cada una de las tres principales agencias de crédito: TransUnion: Llame al 800-916-8800, Equifax: Visite el enlace o llame al 888-378-4329, Experian: Haga clic en el enlace o llame al 888-397-3742.
Looking to improve your credit? Dispute inaccurate information on your credit reports, keep debts low, make on-time bill payments, retain your oldest account, and avoid applying for new credit accounts.
Sweat equity is “contribution to a project or enterprise in the form of effort and toil”. Partnering with Habitat for Humanity requires sweat equity, which can take multiple forms for future homeowners. “Sweat equity is a transformational experience for families and a cornerstone of our homeownership program,” says Sonia Lee, director of homeowner and mortgage services at Habitat for Humanity International. “The skills and knowledge gained through activities like volunteering on a build site…help set new homeowners up for success long-term.”
For those physically unable to do construction, Habitat allows on a case-by-case basis, clearing debris from build sites, working as a greeter or helper at a Houston Habitat ReStore, or other lower-impact tasks.
Not sure if you are eligible per Homeownership Program Income Guidelines?Just apply to see if you qualify. For those who didn’t make it through a few years ago, the monthly income numbers are different now. And keep applying if you don’t make it today; qualifying thresholds can shift in another year or two.
Prepare, then apply in English or Spanish and submit your documents. Upon application completion and receipt of required documents, Houston Habitat will begin the review process. Applicants are generally notified of their acceptance into the program 60 days after review. For those who do not meet Houston Habitat for Humanity’s criteria for affordable mortgages and are not selected for the program, an informational letter will be sent.
Habitat wants you and your family to have safe, affordable housing. We diligently follow a nondiscriminatory policy aligned with the Fair Housing Act and Equal Credit Opportunity Act, which dictates that race, sex, color, national origin, religion, familial status, age, marital status, disability and/or income from public assistance are not factors in choosing homeowners. Join our Virtual Homeownership Information Sessions to learn more about our program individually, or gather a group of 10 people or more to schedule a free 60-minute virtual information session with us. We are happy to answer any questions via email familyservices@houstonhabitat.org or phone 713-671-9993 x287, and look forward to walking beside you on this journey to meet all the qualifications for a Habitat homeowner!
There are lots of questions about buying a home for the first time. Here are four of the most commonly asked questions about home buying, as they apply to Houstonians in 2024:
Information about interest rates is not something most schools teach. Therefore, many adults looking to buy a house have thoughts such as “How do interest rates actually work?”, “How are interest rates calculated?”, and “What is a good interest rate?”.
First, what is interest and what is an interest rate? Interest is the price you pay to borrow money. When borrowing money, the original amount borrowed must be paid back, plus a certain percentage of the total loan amount. This certain percentage is the interest. The exact percentage applied to the borrowed money is the interest rate.
An interest rate is determined by several factors, and each lender uses different factors. Some considerations when deciding an interest rate are credit scores, income, length of the loan (longer will have a higher rate), as well as economic trends which no one person has control over. Understanding interest rates is important because higher interest rates mean paying more money over time. For example, a $200,000 loan with an interest rate of 4% simple interest means the total amount paid back to the lender is$208,000. This is the original amount of $200,000 plus $8,000 (which is 4% of $200,000).
What is considered a good interest rate can change almost daily, so be sure to do your research and keep tabs on which direction rates are heading. In mid-2024, a good home loan rate was 6.17% for a 15-year fixed loan, while 6.89% was a good rate for a 30-year mortgage, according to Freddie Mac’s weekly survey. Referencing the example above, a $200,000 loan would have to be paid back as $212,340 over 15 years and $213,780 over 30 years.
One of the benefits of working with Habitat for Humanity is that they are able to negotiate with lenders to secure a mortgage that fits your budget, often below current fixed mortgage interest rates, and making certain you can afford your mortgage.
In the world of home buying, being a first-timer can have many benefits, such as lower interest rates. That is why it is important to know if you can be considered a first time home buyer. There are more variations of this title than one might think. Did you know you can be a first-time home buyer more than once?
As a few examples of accessible assistance, there is a Texas first home buyer program, while certain occupational groups can receive special bonuses for being first-time home buyers. For those identifying as the following, research what additional benefits are available to you: veterans, service members, educators, firefighters, EMTs, law enforcement, doctors, and nurses. Spending time reviewing all possible avenues of support can save major money in the end.
Houston Habitat for Humanity offers equal opportunities to all. Applicants receive consideration for home ownership without regard to race, color, religion, national origin, sex, disability, and familial status. This means a single person can get a Habitat for Humanity home as likely as a married couple, a single parent, or a multiple person household.
Many U.S. households spend a large portion of their income on housing, meaning they have less money for other essentials like food, clothing, transportation, and healthcare. For those without the benefit of a second income from a partner, many single people carry the full weight of expenses alone, including emergencies. For a 1-person household, the income requirements are $33,150 minimum and $53,000 maximum. The single home buyer must also demonstrate a need for shelter, a good credit score, ability to pay, have a willingness to partner, and be a legal resident 18 years of age or older.
When looking to establish a permanent home in Houston, many consider location to be a top priority. Houston is a very large city with many diverse neighborhoods and communities and location can often be the biggest factor in determining the price of a house.
So what are the top neighborhoods for settling down in Houston?
Robins Landing is one of Houston’s newest perfect neighborhoods featuring 460 single-family homes on 127-acre property full of amenities in North Houston. It is also Houston’s first affordable master-planned community, featuring stormwater infrastructure, a childcare center, healthcare, banking, a library, and onsite green spaces and trails. Single-family houses in Robin’s Landing feature 3 or 4 bedrooms, 2 bathrooms and range in size from 1,100 to 1,400 square feet. Robins Landing is ideal for those looking for a walkable and family-friendly neighborhood.
The historic Settegast neighborhood is another affordable place for those looking to own. Houston Habitat has been working to revitalize this neighborhood by building new homes and repairing numerous homes damaged by Hurricane Harvey. Long-time and new residents are highly committed to maintaining and improving their neighborhood. This includes multiple beautification projects and a community garden! If you are looking for a strong community vibe, check out Settegast.
Want more? Below is an alphabetical listing of additional affordable areas in Houston to consider.
The home-buying process can feel overwhelming, but you don’t have to navigate it alone. Houston Habitat for Humanity is here to support you on your journey to homeownership. Join countless Houstonians who have built and purchased homes of their own. Begin by taking our Homeowner Eligibility Quiz—it’s the simplest way to see if you qualify to become a Houston Habitat homeowner. The screener, available in both English and Spanish, takes just 15-20 minutes to complete. Be sure to have your financial, debt, and living information ready. There’s no limit on how many times you can apply, so take the first step today for a brighter tomorrow!
Owning a home means responsibility. Homeowners must pay bills and taxes keep up with maintenance and common repairs to the structure, HVAC, electrical, plumbing and more. Being timely with repairs to the home is beneficial in many ways, such as maintaining the highest levels of security and functionality, maintaining the property’s value, and preventing minor issues from becoming major problems, like a small leak becoming a whole wall teardown.
Sometimes, homeowners cannot afford repairs, and repair assistance is needed. Below is information about grant programs, tips for upkeep, senior home repair programs and veterans home repair grants. Bookmark the page and share this blog with anyone you think could benefit!
According to Consumer Affairs, plumbing and air conditioning systems are the top two most common fixes a Texas home needs. After those are refrigerators and smoke detectors, and lastly, general electrical and water heater issues. A 2021 survey found that 77% of new homeowners will experience an “unexpected issue” that needs repair during the first year of homeownership.
Deferred maintenance, or holding off on needed repairs, often becomes more expensive in the long run once the work becomes critical and needs to be done. Research shows that delaying maintenance can potentially increase costs by as much as 600%. Increasing costs aren’t the only issue; a lack of energy efficiency and possible safety hazards can arise when waiting on repairs. If you need time to figure out how to pay for home repairs, here are tips to decrease the impact of deferred maintenance.
A good way to save money overall is by doing minor fixes yourself. The internet has free, helpful step-by-step videos and instructions by the barrelful for easier and smaller tasks such as patching wall holes and cracks, fixing leaky faucets, and changing an electrical socket. These resources are available in a wide variety of languages and skill levels.
Once you feel more confident, visit a Houston ReStore to pick up affordable tools and materials for your project at a fraction of retail prices!
Another way Houston Habitat for Humanity provides assistance is through its active home repair program which preserves existing affordable homes for low-income individuals and families in Houston, TX. This home repair program is a big part of Houston Habitat’s mission and benefits the Houston community by slowing neighborhood character change or gentrification within the city.
The Housing Construction and Inspection services, within the Housing and Community Development of Harris County, provide financial and technical assistance to make emergency repairs to the homes of very low- to moderate-income homeowners at their primary residential property. Further, the Harris County Home Repair Program provides financial assistance via a grant or deferred payment loan to qualified homeowners needing major rehabilitation and repair or replacement of water wells and septic systems. Remember to review these government home repair grants and loans carefully before applying.
In Texas, seniors (those aged 65 years and older) benefit from property tax deferral, Medicare and Social Security options, senior community services such as AAA, and the Silver Alert program. Houston Habitat for Humanity also has a Senior Repair program. This provides effective and sustainable solutions for elderly homeowners to be able to age in their own comfortable homes. Houston Habitat uses the Housing Plus model and Aging in Place strategies when working with older adult homeowners. Housing Plus includes two assessments to ensure a complete understanding of the low-income senior population in Houston and Harris County.
Houston Housing Authority also offers assistance through the Old Adult Home Modification Program (OAHMP). OAHMP focuses on low-cost, high-impact house modifications such as the installation of adaptive equipment such as a temporary ramp, risers for chairs and sofas, non-slip strips for tub/shower or stairs, raised toilet seats and tub/shower transfer benches to enable older adults to remain safely in their homes. This program primarily relies on the expertise of a licensed occupational therapist to confirm the home modifications to address the individual’s specific needs and goals, while promoting full involvement in daily activities.
Houston Habitat is a proud member of the Habitat for Humanity Repair Corps. This means we offer repairs to the homes of low-income veterans as part of our dedication to supporting and honoring the veteran community. Our organization is generously funded by The Home Depot Foundation, which enables Houston Habitat for Humanity to help veterans build strength, stability, and independence through disabled veteran home repair help with owner-occupied homes. Another veteran perk: all U.S. veterans receive 10% off at both Houston Habitat for Humanity ReStore locations with a valid ID!
The Veterans Land Board also has a Home Improvement Program, which provides loans of up to $25K for repairs on Texas primary residences: single-family dwellings, condominiums, duplexes, triplexes, or four-plexes. These loans are available for veterans and military members who are over 17 years of age and a legal state resident, plus an active duty military member, a member of the Texas National Guard, a reserve component military member having completed 20 qualifying years for retirement, a veteran having served at least 90 active duty days unless discharged sooner due to a service-connected disability and not discharged dishonorably, or a surviving spouse of a Veteran listed as missing in action or whose death was service connected. Learn more on the Texas Veterans Land Board website, under ‘Loans’.
Check out our dedicated blog post about Home Repair Steps after Storm Damage. It lists information on how to assess damage, what permits are needed for reconstruction, and how to choose the best contractor for work outside of the do-it-yourself scope.
Planning and preparing for routine home repair is an important project that pays off in the long term. Before doing the repairs, check your eligibility for government-assisted programs and bookmark websites with free information on DIY home repairs. Easiest of all, follow our success stories and read more about Houston Habitat for Humanity Home Repairs to see what is best for your home and your family!
Current Habitat for Humanity homeowners, those who have applied to Houston Habitat, and those who are interested in becoming a homeowner are a diverse community. Families, veterans, seniors and refugees who all come from different backgrounds and experiences yet are alike in their passion for homeownership. After working closely with Houston Habitat for Humanity staff and putting in their sweat equity, owning a home becomes a reality. And each homeowner’s relationship with Habitat extends past home purchase. Houston Habitat for Humanity stays connected to homeowners with follow-up engagement, commonly known as Post Purchase Support.
Maintaining a home requires responsibility, knowledge, and resources. Houston Habitat understands the challenges of being a homeowner, so we work to help before, during, and after the purchase process. Post-Purchase Support begins when someone officially becomes a homeowner and is focused on financial education, homeowner resources, and community support. Use of post purchase resources makes for successful long-term homeownership and is a key part of the Habitat homebuyer process.
Once qualifying, applying, building, and house closing is complete, a colorful ribbon is cut and a homeowner is officially made! After this point, all Habitat homeowners must pay their mortgage and bills each month. This is also the time when post-purchase support begins. Houston Habitat staff provide homeowner assistance with understanding property taxes and how to purchase homeowners insurance, as well as ongoing mortgage questions, access to resources for financial services, repair, and community education.
Everyone needs help understanding the best ways to utilize their money. With this in mind, Houston Habitat for Humanity integrated financial education and referral resources into its post-purchase support. Houston Habitat offers information about ways to prevent mortgage default, such as foreclosure prevention and avoiding predatory lending, identity theft and credit card fraud. Assistance with refinancing, delinquency, and crisis situations is also offered.
A home of your own is a wonderful thing and keeping it as new as when it was built takes effort. Houston Habitat for Humanity provides checklists plus guidance on maintenance and basic repairs, as well as information about energy conservation, regional landscaping and seasonal upkeep. Home warranty coverage is very accessible and comes in increments of 1 year, 5 years, and 10 years. A listing of recommended contractors is also offered to homeowners as well as personal assistance with homeowner associations (HOAs). Some Habitat homeowners even qualify for minor repair programs funded by grants.
For the DIYers, Houston has two ReStore locations with cost-effective materials and supplies for maintaining a home. These home improvement stores sell new and like-new furniture, lighting, glass, paint, plumbing, roofing, tools, doors, fans, windows and more at lower-than-average retail prices. We post regular promotional codes for extra savings – follow us on Instagram!
The third tier of post purchase support is the connection between community engagement and homeowners. Houston Habitat for Humanity aids with clean-up days and revitalization projects, such as neighborhood fencing and building neighborhood gardens like the Settegast Community Garden.
Habitat events are popular too: for example, year-round home dedication ceremonies and autumn Truck or Treat gatherings are open to all to attend! What’s more, many homeowners choose to volunteer with Habitat on future builds, while continuing to spread the word to others about Habitat services. Some seasoned homeowners have even offered to assist new families with the process!
Houston Habitat for Humanity truly backs homeowners, beginning from the very first inquiry. Ready to start? Take the eligibility quiz. Have a Habitat home and need financial education, homeowner resources, or community support? Reach out to us directly to request support or plan to attend a Post Purchase Workshop. Your homeownership success is our priority!
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Despite a devasting storm blowing through Houston two days prior, Saturday, May 18th, Houston Habitat for Humanity hosted the grand opening of Robins Landing, our new, mixed-income community and development featuring affordable home prices and highly coveted amenities. If you were unable to make it to the party, here’s a recap of the exciting day, along with information on how to tour a model home and apply to become a homeowner in this beautifully designed neighborhood.
Located in Northeast Houston and developed by Houston Habitat for Humanity, Robins Landing is the city’s first affordable master-planned community which is also walkable and transit-friendly. Created for mixed-incomes and all generations, homeownership of these beautiful high-quality, energy efficient homes include access to essential services as well as onsite green spaces and trails. The 127-acre community of Robins Landing is planned to include over 460 single-family homes and up to 500 apartments and senior housing units.
The family-friendly grand opening had model homes open for touring, plantis for the taking, live music playing, local food trucks with delicious treats, and a resource fair for all attendees. Kids happily enjoyed the onsite playground and got their faces painted in all sorts of creative ways! This event celebrated the opening of the first section of the Robins Landing community, which is designed specifically to be affordable to people of all incomes. “This used to be nada, nothing,” said Houston Habitat’s chief executive, Allison Hay, as she led a tour of the subdivision which, until recently, was unused land filled with weeds, grasses and forest.
Work began on this Houston Habitat land in February 2022. Today, there are sidewalks, picnic tables, a pond and pavilion, and freshly laid streets which are being enjoyed by the families who have already moved into their new homes here. Currently, Habitat homes that are available at Robins Landing are single floor homes that consist of three and four bedrooms with an attached car garage and a nice fenced yard. 3 and 4-bedroom single family homes with attached two-car garages are available. Robins Landing is a project which goes beyond city of Houston requirements; designed with extensive community input and knowledge from past experiences, residents can expect capable stormwater infrastructure, a childcare center, healthcare, banking, a library and further community-supporting services. Also a resilience hub, which will be a space for residents to obtain necessary services like food assistance and community education, and to connect with resources during emergencies like extreme heat, flooding, and/or power outages.
Planning for Robins Landing features include trail connections to nearby parks, a fruit and nut orchard, a commercial-grade community kitchen for residential rental, and a branch of the Houston Public Library. These endeavors are tied to Houston Habitat’s commitment to sensibly priced commercial real estate as well as reasonably priced homes where families can flourish. Plans are underway for a bank, a health clinic, and a makerspace.
Out of the 468 single-family homes, 100 will serve those who make as little as 50% of the area median income(AMI) up to 80% AMI. Three hundred homes will be affordable to families making up to 120% AMI or up to $90,800 for a family of two. The median household income in the census tract is roughly $37,000, according to census estimates. Additionally, 68 single-family homes will be sold at market rates, which are currently around $225,000 to $330,000 for homes in area newly developed subdivisions, according to Community Builders Advisory Services, which collects data on new construction.
By carefully choosing materials and energy efficient building methods, Houston Habitat builds homes that are safe, healthy, environmentally friendly and have low costs to own and maintain. Habitat homes have nine-foot ceilings, energy-efficient appliances and a wheelchair-friendly design, such as ramps inside the garage, three-foot-wide doors and reinforced walls where homeowners could install grab bars. Further, the homes are Energy-Star certified and utilize Fortified roof standards.
Robins Landing is located on Tidwell Road, east of Mesa Drive and inside Beltway 8, nestled between the lush Harris County Greens Thicket and Houston’s newly renovated Brock Park. Associated Houston ISD Schools are North Forest High School, Forest Brook Middle School, Hilliard Elementary School, and Fonwood Early Childhood Center. Associated KIPP Schools are KIPP Legacy Preparatory School, KIPP Northeast College Preparatory, KIPP Polaris Academy for Boys, and KIPP Voyage Academy for Girls.
Houston Habitat for Humanity purchased raw land and added infrastructure for the entire project, including clearing and grading, installing sewers and utilities, and creating streets, curbs, residential building lots, and commercial pad sites. Robins Landing is designed to meet standards derived from Atlas 14, the post-Harvey rainfall study which interprets historical data to predict future rainfalls. These standards, which are implemented throughout the project’s development, exceed the City of Houston’s building code requirements, will not contribute to more flooding, and aim to help mitigate future potential flooding.
Everyone deserves a decent, affordable place to call home plus reasonable access to the resources needed to successfully live, work, and play throughout their life. Through Houston Habitat’s homeownership program, families obtain affordable homeownership, which creates an environment of strength, stability and independence. See if you are eligible to purchase a Houston Habitat home, learn about the steps and begin your application to become a Houston Habitat Homeowner. Your place in Robins Landing awaits!
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After dreaming of homeownership, the next step is making it a reality, which can be confusing. Many questions pop up for those beginning the process, like how much do you have to put down on a house? What to know about buying a house in Texas? What is a “First-Time Home Buyer”? Where to find home buying help in Texas?
Houston Habitat for Humanity is here to support you! Below is a guide to available homeowner down payment assistance programs in Texas.
If you are, or would like to be, a good place to start is to see if you qualify for a first-time homebuyer program, loan or assistance. Two major benefits of being a first-time homebuyer is that requirements are typically more flexible than traditional programs, and many options are available.
The average listing price for homes in Houston was $334,000 in February 2024. That number dropped 3.2% year-over-year, according to realtor.com. At today’s home prices, making a down payment in Houston, Texas might cost $10,020 for 3% down payment, or $66,800 for 20% down payment.
Texas has its own homeownership assistance programs and grants designed especially for those who call the Lone Star state home.
● Houston Habitat for Humanity – through volunteer labor, builds and rehabilitates houses for families in need. Start here to see who is eligible to apply!
● NACA – provides comprehensive counseling and access to its Best in America mortgages for affordable homeownership for low-to-moderate income people.
● Texas Department of Housing and Community Affairs programs help moderate- and low-income families achieve homeownership in Texas via two programs: My First Texas Home program and the My Choice Texas Home loan.
The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization created by the Texas Legislature to help Texans achieve homeownership. The “Home Sweet Texas” Home Loan Program starts with an eligibility quiz, then information about qualifying TSAHC programs. The next step is contacting an area participating lender and links for applying for a mortgage interest tax credit. These DPA programs are down payment assistance Texas grown!
A down payment is the money paid upfront to complete a real estate sale. Down payments are typically a percentage of a home’s purchase price and can range from 3% – 20% for a primary residence. For example, if a home costs $100,000 and a down payment of 5% is required, then $5,000 must be paid at the time of purchase.
Down payment assistance (DPA) is a general name for financial help for homebuyers. These programs reduce the amount needed to be saved for a home’s down payment. Available options for DPAs include loans for repayment with low or no interest, forgivable loans, and monetary gifts which never have to be repaid.
The City of Houston Housing and Community Development provides a no-interest, forgivable loan (secured by a lien) of up to $50,000 to income-qualified residents for first-time homebuyers inside the city limits through their Homebuyer Assistance Program.
Qualifications to be met are household income at or below 80% of the Area Median Income, first-time homebuyer (or have not owned a home in the last 3 years), U.S. citizen or permanent resident, and the home for purchase be eligible to pay taxes to the City of Houston. The loan is fulfilled if the buyer lives in the home for five years.
Another option is through the Harris County Community Services Department’s down payment assistance, which assists with home buyers looking in the unincorporated areas of Harris County; this support excludes homes within the official cities of Houston, Baytown, or Pasadena. Qualifying criteria includes a credit score of 580 and successful completion of an 8-hour homeownership education course.
Houston Habitat for Humanity homes “will be in these areas in the near future”, according to Cassandra Robinson-Bacon, Homeowner Services Director. Learn more at a Virtual Home Ownership Fair and get ahead of the curve with this option!
Special programs are set up for service professionals such as teachers (Pre-K through 12th grade), law enforcement officers, firefighters, and emergency medical technicians. The Good Neighbor Next Door program, overseen by the U.S. Department of Housing and Urban Development (HUD), works with these groups to buy a home in a “revitalization area” for 50 percent off and live in it for at least three years.
TSAHC has a similar program for school teachers, teacher aides, school librarians, school counselors, and school nurses, plus police officers and public security officers, firefighters and EMS personnel, veterans or active military, county jailers, peace officers, correction officers and juvenile corrections officers, public security officers, and nursing faculty and allied health faculty. The “Homes for Texas Heroes” Program is a gift with no repayment needed and no requirement to live in the home for a minimum time.
For veterans and service members, the Veterans Land Board Housing Assistance Program (VHAP) could provide low-interest loans to buy a home or land. VLB loans frequently do not require a down payment. If the loan term is between 15 and 30 years, up to $726,200 can be borrowed, and veterans with a VA disability score of 30% or higher are eligible for lower interest rates. Property criteria applies, such as a construction finish date of at least five years for a multi-family property.
Native American veterans and their spouses may be eligible for the Native American Direct Loan (NADL). The NADL program has no down payment requirement, limited closing costs, and a low-interest, 30-year fixed mortgage. This loan type is also a reusable benefit, meaning you can get more than one NADL to buy, build, or improve another residence in the future.
Everyone can benefit from more knowledge! Online resources are offered to anyone looking for more information.
Examples can be found at the Texas Department of Housing and Community Affairs; this course walks through three important phases of the home buying process: preparing for homeownership, financing and purchasing. The Texas Mortgage Credit Certificate is also offered. This may allow for a valuable tax credit when applying for a mortgage.
Houston Habitat for Humanity has a very helpful Virtual Homeownership Fair, which answers many questions and provides valuable resources. Further, Houston Habitat for Humanity can assist with many tasks connected to homeownership, even improving credit scores!
If you’ve cooked a meal, fixed a car, or hosted a party, you know planning makes for a better outcome. The same is true for building houses. Habitat for Humanity has made it a priority to make homes sustainable and resilient for families.
Two strategies are especially applicable to Houston: creating energy efficient homes and resilient construction. Houston Habitat for Humanity builds with these goals in mind to ensure homes keep heating and cooling bills low, while also withstanding Houston’s extreme weather eventss. Planning with efficiency and resiliency in mind is beneficial to communities, as it maximizes affordability and allows for easier repair and rebuilding.
Through careful consideration of materials and calculated building methods, Houston Habitat builds energy efficient homes which are also environmentally friendly, safe, and low cost-to-own and maintain for Houston homeowners.
Houston Habitat for Humanity is proud to offer homes with the ENERGY STAR® certification. The ENERGY STAR certification shows your new home has been designed and built to standards well above other homes in the market today. Houston Habitat homes feature better quality, comfort, durability. The ENERGY STAR certification also means your new home is of higher value, and is an increased investment for tomorrow, as this label indicates an improved process of inspections, testing, and verification to meet the strict requirements set by the U.S. Environmental Protection Agency, or EPA. In fact, Houston Habitat for Humanity is so committed to sustainability, we have earned numerous awards for sustainable building practices, including Energy Star Partner of the Year/ Sustained Excellence awards, since 1996.
According to ENERGY STAR, the typical US household spends over $2,000 annually on utility bills. In Houston, the average annual electricity bill is $2,705.04. Homes with ENERGY STAR certification often see 30% energy efficiency savings compared to a standard home – in Houston, Habitat homeowners could save up to $800 a year!
ENERGY STAR certification is better for the environment too. Most electricity comes from nearby power plants, which burn natural gas and coal. A byproduct of this process is the release of greenhouse gases, such as carbon dioxide, which contribute to climate change. The emissions from these power plants also contribute harmful pollutants to the air such as sulfur dioxide, particulate matter, and nitrogen oxides. Reducing the necessary electricity in your home decreases power plant production which lessens damaging emissions.
Wondering how our builders make a home energy efficient? It is a multi-step process. Because Houston experiences heavy rains and persistent humidity, which can damage foundations and structures, gutters are important to redirecting water away. DuPont Tyvek Home Wrap is also used to protect against mold and condensation. Radiant barrier roof decking reflects radiant heat away from the attic, reducing the hours of run time for the air conditioning system. Insulation is rated by an “R” rating; Houston Habitat installs high “R” factor insulation, which also lowers energy consumption and energy bills. Double pane windows are mounted to prevent heat loss, and use of low VOC (volatile organic compounds) paint is a very important aspects of energy efficient Habitat construction.
Habitat for Humanity’s home resiliency connects closely with energy efficient building practices, as its aim is to keep homes affordable. Hurricanes, floods, and other natural disasters are unavoidable, but we can utilize materials to protect our homes.
Houston Habitat utilizes Fortified standards as one of the ways to keep home maintenance affordable long term. The Fortified program is a listing of construction recommendations from the Insurance Institute for Business and Home Safety which can dramatically reduce the damage a home suffers in a storm. Some examples are anchor bolts and oriented strand boards to protect against strong straight-line winds, which arrive during thunderstorms. Also used are hurricane straps, which secure the frame of the roof to the rest of the house and reduce the chances of the roof being removed by high winds. In an interview with Allison Hay, Chief Executive Officer at Houston Habitat for Humanity, she specifically noted that Robins Landing “homes will be elevated, our homes will have hurricane straps that will keep them from hurricane winds. We want to ensure that Robins Landing is resilient.” Habitat also offers homeowner resources, technical assistance and training to improve the resilience and durability of their homes.
As an international organization, Habitat for Humanity is committed to prioritizing climate resilient housing throughout the world. As a local organization, Houston Habitat for Humanity works to build a Houston where everyone has a place to call home; we also strive for sustainability and resilience for our homebuyers and our planet through build and repair methods to our work recycling, upcycling and reusing with the community through Habitat ReStores. We carefully consider FEMA Flood mapping (seen here) and the ever-evolving Houston Flood map (seen here) when selecting where to build in Houston.
Resilient and energy efficient communities boast many features outside of residential buildings which work towards the mission. One very important aspect, especially for Houston, is the use of retention ponds. These ponds are not for swimming or fishing, rather they serve as a holding place for stormwater when it falls quickly and heavily. These detention basins store this water instead of allowing it to flow as it falls, turning into damaging floodwaters. This temporary pond holds water until the channels can safely carry it away. Because Harris County is quite flat, most stormwater storage has to be created. New developments, such as Robins Landing, often use retention ponds to keep residents and their homes safe from harm.
Here are five ways you can reduce energy consumption at home right now.
The mission of Habitat for Humanity is to build and improve the places people call home.
By committing to careful planning, Houston Habitat creates energy efficient and resilient houses which are affordable through reasonable mortgages and lowered maintenance costs in Houston, Texas. Learn more about Houston Habitat’s homeownership program today!
Have you heard something about Habitat for Humanity and wonder if it’s true or not? When organizations have been around as long as us, some misconceptions are bound to arise! Here are eleven examples of typical myths associated with us; learn the truth behind common myths about Habitat for Humanity.
Truth: Our mission is sustainable wealth building instead of gifting free homes. Qualified homeowners partner with Habitat for access to some of the best mortgages available, which families pay monthly. In order to qualify to become a Habitat homeowner, applicants must have a need for housing, be a U.S. citizen or have permanent residency status, meet income requirements, and be willing to put hours toward financial education and construction of homes. What makes Houston Habitat for Humanity homeownership affordable is access to down payment assistance funds and mortgages designed to ensure families do not pay more than 30% of their household income.
Truth: Numerous studies continuously show that affordable housing does not negatively affect neighborhood property values. In fact, Habitat houses provide local government tax income and increased property values because Habitat homes are on the tax rolls and our projects often encourage nearby homeowners to improve their own properties as well!
Truth: Anyone aged 16 years or older who is interested in lending a hand can register to volunteer. No previous experience is required; we will teach you what you need to know. In addition to website training resources, the first day onsite has a safety orientation and introduction to the projects of the day. Next, volunteers are gathered in small teams and paired with an experienced staff member who walks through each task, teaching skills and safety along the way. Houston Habitat volunteers are recognized with awards based on total hours accumulated.
Truth: All homes built by Houston Habitat meet or surpass every city building code , and are not sold to the new homeowner until each home passes stringent inspections by official inspectors. In addition, each home passes Energy Star inspection, meaning the home is energy efficient. General work is completed by volunteers who are trained and supervised by Habitat staff, while trade work such as electrical, roofing, and plumbing are done by licensed professionals. Regarding materials, Houston Habitat resources quality materials with local and national vendors, many of which provide Habitat with cost savings or donations in agreement with our commitment to quality of construction. “Our families are hardworking families, they deserve a safe, healthy place,” said Allison Hay, Chief Executive Officer of Houston Habitat for Humanity, recently.
Truth: Since Houston Habitat mortgages are capped at 30% of a homeowner’s income, many potential homeowners come into the program paying much more of their income on rent than they end up paying for a mortgage. Although additional costs are often associated with homeownership, Houston Habitat homes are Energy Star certified and use WaterSense fixtures reducing water usage keeping with the goal of affordability.
Truth: While Habitat does accept some government funds and property, it is not a government organization or an arm of the city, state or federal government. Rather, Houston Habitat is an independent nonprofit organization and an affiliate of Habitat for Humanity International, with a specific service area that includes the city of Houston and the majority of Harris County.
Truth: Study after study has proven the positive effects of homeownership on individuals and families. Benefits include physical and mental health improvements, reduced stress, and academic success. One example, according to a survey of more than 400 Habitat families in metro Denver, showed children raised in a Habitat home were twice as likely to go to college. Read here about one person whose life turned around from poverty after settling in a Habitat Home: James’ Story.
Truth: Houston Habitat follows a nondiscriminatory policy of home ownership and abides by the regulations of the Fair Housing Act. No race, ethnicity or religion is given preference when becoming a Habitat family partner. Habitat for Humanity was founded as a Christian housing ministry, however, anyone can partner with Habitat. We do not discriminate based on race, religion, nation of origin, gender, sexual orientation, family status, marital status or any other protected classes. Equal Housing Opportunity: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation.
Truth: On the rare occasion that a Habitat homeowner is struggling to make mortgage payments, our mortgage services staff reaches out to assess the situation. Our team can help those behind on payments through various mortgage assistance programs to put them back on track. Should a homeowner need to sell their Habitat home, Houston Habitat has the right of first refusal which means they must offer the home to Habitat for purchase first. If our organization chooses not to buy the house, they can sell to other interested parties but they must meet the same income requirements as Habitat family partners, 50-80% AMI (Area Median Income). This ensures the Habitat home continues to remain affordable and keeps the homes out of the hands of investors.
Truth: Habitat for Humanity never goes door to door. Anyone who arrives at the house without an established appointment is not affiliated with Houston Habitat for Humanity and should not be given access. There have been instances of people pretending to be Habitat staff, and even wearing Habitat shirts. Houston Habitat staff will not come to your home without prior established appointment. You may call our office at 713-671-9993 to double check the identity of the individual at your door.
Truth: Although building single-family homes is a big part of our mission, Houston Habitat also provides homebuyer and financial education classes for prospective homeowners on a range of topics. Our organization also provides repair programs for Seniors and Veterans. In times of disaster, Houston Habitat has performed extensive Disaster Repair helping those impacted get back into safe healthy homes. Recently, Houston Habitat began to rehab homes to make them suitable for purchase with the same great quality of our new construction homes. We also build playhouses for children of Habitat homeowners and Veteran families! Further, Houston Habitat also has two stores you can purchase items for your home or repairs. Learn more and visit our Houston Habitat ReStores.
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