City of San Antonio Homeownership Incentive Program (HIP 120)
If you’re a first-time homebuyer in San Antonio facing steep down payment costs, the City’s Homeownership Incentive Program (HIP 120) can help.
Run by the Neighborhood and Housing Services Department, it offers $1,000–$15,000 as a 0% interest, no-payment second loan for down payments and closing costs.
For 2025, income limits range from $81,150 for one-person households to $153,000 for eight, with purchase caps of $305,200 for existing homes and $325,800 for new builds.
Seventy-five percent forgives over 10 years, while 25% remains, letting you build equity without monthly strain.
Buyers must complete an 8-hour education course, put $500 down, apply through a lender, and choose a home within city limits.
Key Takeaways
- HIP 120 provides $1,000–$15,000 in down payment aid with 0% interest and partial forgiveness.
- 75% of the loan is forgiven over 10 years if residency requirements are met.
- Eligibility includes first-time buyers within San Antonio city limits earning ≤120% AMI.
- Requires 8-hour HUD-approved homebuyer education course before application approval.
- Funds can cover both down payments and closing costs, easing upfront expenses.
- Can be combined with state programs like TSAHC or TDHCA for greater financial support.
Comparison of Local Down Payment Assistance Programs
Explore differences among San Antonio’s top down payment assistance options. Use this side-by-side to compare loan amounts, forgiveness timelines, and eligibility so you can match the right program to your budget, timeline, and location needs.
| Program | Assistance Amount | Interest Rate | Forgiveness Period | Eligibility |
|---|---|---|---|---|
| HIP 120 | $1,000–$15,000 | 0% | 75% over 10 years | First-time buyer, ≤120% AMI |
| HIP 80 | $1,000–$30,000 | 0% | 5 years | First-time buyer, ≤80% AMI |
| FRHAP | $20,000–$40,000 | 0% | Not specified | SAPD/SAFD employees |
| TSAHC DPA | Up to 5% of loan | Varies | Varies | Credit 620+, some profession-based |
Sources: City of San Antonio Housing Department, TSAHC, 2025.
What is the City of San Antonio Homeownership Incentive Program (HIP 120)?
HIP 120 is a city-funded, zero-interest second loan that helps first-time buyers cover down payments and closing costs. Administered by the City’s Neighborhood & Housing Services Department, it targets affordability, stability, and homeownership within San Antonio city limits.
- Provides $1,000–$15,000 as a 0% second lien with no monthly payment.
- Seventy-five percent forgives across ten years; remaining 25% is perpetual.
- Eligible properties must be inside San Antonio city boundaries.
- Veterans may pair HIP 120 with VA home loan benefits.
- See forms and requirements on the City’s Down Payment Assistance page.
Benefits of HIP 120 for San Antonio Homebuyers
HIP 120 can reduce upfront cash needs, preserve monthly cash flow, and expand your neighborhood choices. Its forgiveness component functions like grant support over time, strengthening long-term affordability and financial stability.
- No monthly payment on the assistance keeps your budget steady.
- Forgiveness lowers total cost and accelerates equity growth.
- Pairs smoothly with FHA, VA, or conventional mortgages.
- Useful for relocations; coordinate employer or Military benefits.
- Compare statewide pairings at TSAHC Homebuyer Programs.
Eligibility Requirements for HIP 120 in San Antonio
Applicants must be first-time buyers within income limits based on HUD data, complete homebuyer education, contribute earnest money, and purchase within city limits. These filters focus assistance on households most impacted by rising costs.
- First-time buyer: no ownership in the last three years; limited exceptions.
- Income ≤120% AMI; verify with the HUD Income Limits Database.
- Qualify for FHA/VA/conventional financing; minimum $500 earnest money.
- Complete an 8-hour HUD-approved education course before closing.
- Purchase must meet City price caps for existing or new homes.
2025 Income and Purchase Price Limits for HIP 120 in San Antonio
Use the table to check your household against 2025 thresholds. Limits change periodically—confirm the latest figures before submitting your application to a participating lender.
| Household Size | Income Limit | Purchase Price (Existing) | Purchase Price (New Construction) |
|---|---|---|---|
| 1 Person | $81,150 | $305,200 | $325,800 |
| 2 Persons | $92,750 | $305,200 | $325,800 |
| 3 Persons | $104,350 | $305,200 | $325,800 |
| 4 Persons | $115,900 | $305,200 | $325,800 |
| 5 Persons | $125,200 | $305,200 | $325,800 |
| 6 Persons | $134,450 | $305,200 | $325,800 |
| 7 Persons | $143,750 | $305,200 | $325,800 |
| 8 Persons | $153,000 | $305,200 | $325,800 |
Confirm updates on the City’s Down Payment Assistance page.
How to Apply for HIP 120 in San Antonio
Coordinate with a participating lender, finish the education requirement, and submit documents for City review. Starting early—especially the course—helps you act quickly in competitive neighborhoods.
- Get mortgage pre-approval; tell the lender you plan to use HIP 120.
- Complete an 8-hour HUD-approved class; BCL of Texas offers online options.
- Provide contract, income proofs, and inspection reports for review.
- NHSD typically reviews packets within 5–7 business days.
- See steps, forms, and videos on the NHSD DPA portal.
HIP 120 vs. Other Homebuyer Assistance Programs in Texas
City and statewide programs can work together. HIP 120 offers local rules and partial forgiveness; statewide options may allow repeat buyers, provide larger grants, or add profession-specific benefits.
- HIP 120: up to $15,000; 0% interest; 75% forgivable over 10 years.
- Home Sweet Texas (TSAHC): up to 5% DPA; repeat buyers allowed.
- My First Texas Home (TDHCA): low rates; 3–5% DPA; first-time status.
- Homes for Texas Heroes (TSAHC): grants and MCCs for eligible professions.
- Explore statewide options: TSAHC Homebuyer Programs | TDHCA First-Time Buyer
Impact of HIP 120 on Your Home Purchase and Finances
HIP 120 can shorten your savings timeline, reduce monthly strain, and help you build equity sooner. Preserving cash for reserves and improvements improves long-term financial resiliency.
- Lower down payment can reduce loan size or upgrade location.
- No monthly payment preserves cash flow for essentials and reserves.
- Forgiveness works like grant support over time.
- Military buyers can layer HIP with VA benefits.
Common Misconceptions About HIP 120
HIP 120 is approachable and broader than many assume. With lender guidance and City resources, the process mirrors a standard closing plus education and compliance steps.
- Not just very low income—eligibility extends to 120% AMI.
- Not fully repayable—75% forgives with 10-year occupancy.
- New construction can qualify under higher price caps.
- Process is manageable with City checklists and lender support.
- Verify limits through HUD Income Limits.
Frequently Asked Questions (FAQs)
What is HIP 120 in San Antonio?
The Homeownership Incentive Program (HIP 120) offers $1,000-$15,000 in down payment assistance as a 0% interest, no-payment second loan for first-time buyers, with 75% forgivable over 10 years.
Who qualifies as a first-time buyer for HIP 120?
Anyone without home ownership in the last three years qualifies, with exceptions for displaced or divorced individuals. It ensures aid for those new to buying in San Antonio.
What are the 2025 income limits for HIP 120?
Limits range from $81,150 for one person to $153,000 for eight, based on 120% AMI. Verify your household against HUD updates for accurate eligibility.
Can I use HIP 120 for new construction homes?
Yes, with a purchase price cap of $325,800 for new builds versus $305,200 for existing. It supports growth in San Antonio's developing areas.
How is the HIP 120 loan forgiven?
Seventy-five percent forgives evenly over 10 years if you remain in the home; the rest is perpetual but interest-free, reducing long-term burden.
Is HIP 120 available for Veterans and Military?
Yes, it's open to all eligible, and Veterans can combine with VA loans or Heroes programs for added benefits in San Antonio's military-friendly community.
What if I sell before 10 years?
You'll repay the unforgiven portion plus any perpetual amount; plan stays to maximize forgiveness in this appreciating market.
How do I find lenders for HIP 120?
Contact NHSD for participating lenders; many local banks like Jefferson Bank handle applications, guiding you through seamlessly.
Does HIP 120 require homebuyer education?
Yes, an 8-hour HUD-approved course is mandatory, plus the HIP video, equipping you with tools for successful ownership.
What's the purchase price limit for 2025?
$305,200 for existing homes, $325,800 for new. These adjust annually to match market conditions in San Antonio.
Interested in HIP 120? Reach out to NHSD or a lender today to check eligibility. This program can transform your homebuying journey—explore more at San Antonio NHSD.
