5 Ways to Get Down Payment Assistance You May Not Know

When you’re ready to buy your own home, saving up a down payment can be a daunting task. Conventional wisdom says you should put down at least 20% of a home’s cost for manageable monthly payments, better interest rates, and to improve your LTV Ratio. For many families, putting away a significant amount of cash, including enough to cover closing costs and the first few months of mortgage payments, can be a genuine struggle.

There are down payment assistance programs (DPAP) available to help you get initial cash to make an offer on your dream home, just like these five.

#1. Community Partners Loan Pool North Carolina

The CPLP program is a second, 0 percent interest, and deferred second mortgage approved alongside a North Carolina Home Advantage mortgage. It doesn’t require a monthly payment–you repay it either when you sell your home or at the end of your mortgage.

• Get up to 20% of the purchase price, up to $30,000.
• Combines with other DPAP grants and loans.

There are some guidelines and requirements for applicants:

• Credit score over 640.
• Less than 43% debt load.
• Income at 80% or less of NC median income.

I can help you establish if you qualify for the CPLP and sign you up for the required eight-hour class.

#2. NC Home Advantage Mortgage

The Home Advantage Mortgage is like the CPLP. It’s a second, concurrent mortgage with 0 percent interest and deferred until the end of the first mortgage’s terms. The Home Advantage differs in that it’s forgiven after year 15 if you don’t sell your home.

• Provides payment help up to 5% of the loan amount.
• First-time buyers and military veterans can get up to $8,000.

Veterans and first-time buyers can combine their DPA with the Home Advantage Tax Credit, saving them up to $2,000 in taxes each year.

#3. Greensboro Housing Connect

This $10,000 down payment assistance is for first-time homebuyers. It’s restricted to those buying a home in Greensboro. It provides an additional $5,000 for those buying a home in a city’s designated redevelopment area.

• Five-year, 0 percent, forgivable loan as long as you remain in the home.
• Only approved for fixed-rate 15- or 30- mortgages.

Applicants must complete an eight-hour course and meet specific income requirements to qualify.

#4. High Point City Wide Home Buyer Assistance Program

This program is specifically for low- to middle-income families purchasing homes within High Point city limits. The house can’t exceed 95% of the median purchase price, and the buyer must meet specific income requirements.

• Buyers must put $500 towards the home purchase and have less than $10,000 in liquid assets.
• The High Point program assists with both the down payment and closing costs.

The maximum amount awarded to applicants is $5,000 with a three-year deferment and 3% interest for five years.

#5. Good Neighbor Next Door Program

There are enormous opportunities for down payment assistance and significant money off the list price of a home for individuals in certain professions. If you’re a firefighter, EMT, K-12 teacher, or law enforcement officer, you qualify for the HUD Good Neighbor Next Door Program.

• 50% off the list price for FHA loans on foreclosed homes owned by the HUD.
• Buyers must live in the house for 36 months to qualify.

Participants in the program get early access to The HUD Store with current listings of available properties.

Apply for a mortgage with Jill Burgess to learn more about down payment assistance opportunities.

I work with down payment assistance programs at the state and local level to help first-time homebuyers get into their dream homes. As a preferred loan officer for North Carolina Finance Authority, I’m uniquely qualified to help home buyers navigate the complicated path to homeownership.

Buying your first home is possible, even if you don’t have perfect credit or tens of thousands in savings. Get in touch to get connected to down payment assistance resources or apply for a mortgage today.