median income in harris county is $57,300
80% of median is $45,840
Most down payment assistance programs (free money programs) require you to earn below median. This is household income.... not primary wage-earner income.
Seller funded DPA would be best described as a 'work around'. All 100% legit/legal and approved by FHA.
Basically, the seller agrees to make a donation to a charity and that charity gifts it to you less a $350 transaction fee.
I call them faux charities.
My company uses ameridream.com to facilitate this type of deal. There are others, but this one is one of the cheapest transaction fees and we like to stay with one company to ensure smooth transactions.
So, you know that FHA allows seller to pay your closing costs up to 6% of the purchase price.
$100,000 contracted sales price..... they can pay $6,000 of your costs. In addition to that, we can get them to participate in the DPA(ameridream) another 3% and that will satisfy your entire down payment.
Obviously, the home has to apraise for the full amount($100K). So you are basically buying it for 9% below market value and rolling that 9% back in.... <= did that make sense.
For my Houston area clients, I send my people to a realtor down there that has access to a lot of bank owned properties so you will definately get something below market price.
Retired Lender