The Waco City Council is considering whether to increase the loan limit for a program that helps first time home buyers.
Currently, the Down Payment Assistance Program helps low income and moderate-income families who qualify for assistance with a nearly $15,000 loan.
“Even with the assistance up to $14,999, there is still a gap that prevents them to qualify from purchasing the home," City of Waco Housing and Economic Development Assistant Director Galen Price said.
The City of Housing and Economic Development is proposing to increase the loan amount to $25,000. The additional $116,000 will come from funding the city receives from the U.S. Department of Housing.
"Housing prices have increased in the last 10 years by about 50 percent and the cost for affordable homes that we build has increased by 30 percent. However, the average area median income has increased only 15 percent," Price said.
Thaleal Crane bought, one of the 12 homes at the Legacy Square subdivision in East Waco who received a $25,000 loan from the city, said it allowed her to achieve the goal of becoming a homeowner.
“That is the main thing that catapulted me into this process when I realized that I was out there," Crane said.
Crane received that amount because she moved to the affordable housing area built by the nonprofit NeighborWorks Waco.
The mother of five moved out of the apartment she has been renting for the past five years.
"We’ve outgrown this space. They’re excited knowing they will have their own space," Crane said.
The Waco City Council will decide whether to approve the change, which could allow the city to help six more families, on Tuesday.
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