Becoming a Homeowner in Puerto Rico: The Direct Buyer Assistance Program
By Ivy Ruiz, Real Estate Manager V-2955
Owning a home is a dream that is out of reach for many low or moderate-income Puerto Ricans. However, there’s a glimmer of hope through the Direct Buyer Assistance Program (HBA, for its acronym in English) offered by the Puerto Rico Housing Department with CDBG-DR funds. This program aims to assist potential homebuyers in achieving their homeownership goals.
The HBA program provides financial assistance of up to a maximum of $55,000 to qualified buyers who do not currently own a home when applying for the program’s assistance. The buyer must reside in the new home for at least five years in return for the financial aid received. If the buyer moves or sells the house before the required five years, they must return a portion of the original mortgage loan amount to the program.
Eligibility Requirements
To qualify for the HBA program, the applicant must meet the following requirements:
- Be a “Qualified Homebuyer” as per the program definition.
- Meet the household income requirements set by U.S. Department for Housing and Urban Development (HUD).
- Obtain approval for a first mortgage from a financial institution.
- Be a U.S. citizen, a U.S. national, or a qualified alien.
- Complete a homebuyer education course.
- Meet income requirements.
The Assistance: The HBA program utilizes CDBG-DR funds to provide direct assistance to individuals who are buying a home. This assistance aims to facilitate and expand property ownership by offering support in the following ways:
- Subsidizing portions of mortgage interest and principal.
- Paying up to 100% of the required mortgage down payment on behalf of homebuyers.
- Covering some or all reasonable closing costs related to the property purchase, specifically for LMI (Low and Moderate-Income) homebuyers.
Maximum Grants: The program offers the following maximum grants based on household situations:
- Home without Essential Recovery Personnel: Up to $45,000 for eligible households.
- Home with Essential Recovery Personnel: Up to $55,000 for eligible households.
Additionally, the program provides an additional incentive of up to $5,000 for redevelopment, as long as it does not exceed the established program limit, for eligible households who choose to buy a home in a designated and certified urban center by the Housing Department. To check if a property of interest qualifies within a designated urban center, click here.
The Direct Buyer Assistance Program (HBA) from the Puerto Rico Housing Department, funded by CDBG-DR, provides a unique opportunity for low and moderate-income individuals to achieve their dream of homeownership. This program empowers potential homebuyers and creates a pathway toward stable and sustainable homeownership by offering financial support and educational resources. To improve this document, I suggest proofreading for any grammatical errors and adding more specific examples or details to support your points. Additionally, consider the overall structure and flow of the content to ensure that it is easy to follow and makes a clear argument. Please let me know if you have any questions or need further assistance.
Ready to explore the world of real estate? Whether you’re buying, selling, or investing, our team at Centro Casas is here to support you. Contact us at 787.287.0100 or hola@centrocasas.com to get started. Let’s make your real estate goals a reality together!
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Disclaimer: The information provided in this blog is for general consumer knowledge and educational purposes only. It does not constitute legal, financial, or real estate advice. Centro Casas is not affiliated with the Puerto Rico Housing Department (PRHD) or the CDBG-DR program, and any reference to PRHD is for informational purposes as a third-party source. Readers are encouraged to seek personalized advice from qualified experts before making any real estate or financial decisions. Thank you for relying on Centro Casas as your real estate resource.
