The Shared Equity Scheme Explained Step by Step

The El Paso Housing Finance Corporation opened applications for its shared equity scheme on July 1, allowing approved first-time buyers to receive up to 20 percent of a home's purchase price in exchange for a share of future appreciation.

Global market swings tied to recent U.S. strikes in the Middle East have pushed mortgage rates above 6.8 percent this month, making it harder for local households earning under $75,000 to cover both down payments and closing costs on starter homes. The scheme directly addresses that gap by letting the city hold a silent second mortgage rather than requiring buyers to borrow the full amount from a bank.

Residents along Piedras Street in the Five Points neighborhood and in the Kern Place district near the University of Texas at El Paso have already submitted applications through the city’s housing office on Montana Avenue. The program partners with the El Paso County Appraisal District to verify property values before closing.

Median sale prices in El Paso reached $268,000 in May, up 4 percent from the same month in 2025, according to the El Paso Association of Realtors monthly report. Homes under the program’s $325,000 cap must pass inspection and meet basic energy-efficiency standards set by the Texas Department of Housing and Community Affairs.

Step-by-step application process

Buyers first complete an online prequalification form on the housing corporation website and submit two years of tax returns plus proof of steady employment. Once income and credit checks clear, applicants attend a free homebuyer education class offered at the El Paso Public Library main branch on Oregon Street. Approved participants then work with a participating lender to select a qualifying property and sign a shared equity agreement that outlines the city’s ownership stake and the repayment terms upon sale or refinance.

After closing, the city records its lien and monitors the property for five years to ensure it remains the buyer’s primary residence. Any capital gains realized when the home sells are split according to the original equity percentages, with the city’s portion returned to the program fund for the next round of buyers.

Next steps for interested buyers

Call the housing finance corporation at 915-212-0100 before July 31 to schedule an intake appointment, or visit the office at 300 N. Campbell Street with pay stubs and bank statements in hand. Staff can run sample numbers on specific listings in the $220,000 to $300,000 range that have appeared on the multiple listing service in the past two weeks.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.