The American dream of homeownership may soon become a reality for some Austin residents. The Neighborhood Housing Services of Austin is looking for a few first time homeowners.

Velma Santoyo moved into her home earlier this year after qualifying for the first-time homebuyer program offered by Neighborhood Housing Services of Austin. Since 2000, the non-profit organization has helped place 18 families in new homes.

"The program that we offer gives people up to $40,000 dollars to use as a down payment which effectively brings the cost of the house down considerably," said Katherine Saar, Neighborhood Housing Services of Austin.

The $40,000 down payments come from Federal Housing and Urban Development funds and serve as a second note on the homes.

No interest and no payments are due until the home is sold, it no longer serves as the primary residence or the first note is paid off.

Three three-bedroom, two-bath houses are almost ready for move-in. Now the search is on for qualified applicants who earn 80 percent or less of the medium family income.

"For the city of Austin, for a family of four, I believe that's $69,000," Saar said.

Soon other families will be able to stop paying rent and start building home equity, just like Santoyo.

"An apartment compared to a house? I mean you can't go wrong with this. She has her own privacy. She has her yard. She has everything that she wanted," said Carlos Santoyo, son.

Applicants are also required to attend the free homebuyer classes held by the City of Austin.