New Mercedes subdivision brings 500 homes, offers up to $15K in down payment assistance

More than 500 new homes are coming to North Mercedes — and some buyers may qualify for up to $15,000 in assistance.

The Los Prados subdivision, just outside Mercedes city limits, is a master-planned community designed to offer homes with monthly payments comparable to or lower than rent.

The project has been in planning for three years and is being developed in partnership with Rhodes Enterprises, Esperanza Homes, Hidalgo County, and the city of Mercedes, Mayor Pro-Tem Ruben J. Saldaña said in a commission report.

“This is a progressive, well planned community that serves as a model for affordable housing throughout the Rio Grande Valley,” Saldaña said.

A phased housing development

The subdivision will offer 527 single-family lots across 92 acres near Baseline Road and Mile 9 North.

Phase 1, which consists of 55 lots, has already been completed, and phase 2, which includes 84 lots, has received city approval to move forward, Saldaña said. 

Homes in the subdivision are expected to feature three-bedroom layouts with between 1,300 and 1,500 square feet of living space. 

Pricing is projected to start at about $159,000.

City officials said qualified buyers may also access up to $15,000 in down payment assistance, aimed at helping first-time homebuyers overcome financing barriers.

Infrastructure and services included

The development is designed with full infrastructure, including streets, curbs, sidewalks, drainage systems, and access to city water and wastewater services. Garbage pickup, fire, and police services will also be provided.

Plans also include 3.2 acres of park space, with amenities such as basketball courts and hike-and-bike trails. High-speed internet service is expected to be available to residents for an estimated $30 per month.

According to Saldaña, the project will be funded in part through a Public Infrastructure District, which allows developers to finance infrastructure improvements upfront. Fees tied to that district will be discontinued once infrastructure is completed and fully funded.

At that stage, the development is expected to be annexed into the city, with all infrastructure in place and ongoing municipal services maintained.

Positioned as an affordability play

City officials described the project as an effort to expand access to homeownership in a region where rising housing costs have made purchasing a home more difficult.

Saldaña said the development is intended to offer monthly payments that are comparable to or lower than rental costs, while providing access to amenities typically not found in similar housing projects.

The subdivision will also offer multiple exterior design options, including Contemporary, Farmhouse, Tuscan, and Traditional styles, along with energy-efficient features and open-concept layouts.

Developers are currently directing interested buyers to visit the site or contact Esperanza Homes for more information.