Purchasing a home is an exciting but intimidating investment. While this is the start of a magical chapter of your life, navigating mortgages is complicated, and steep down payment prices can make buying a home feel like a pipedream. Fortunately, down payment assistance programs in Greensboro, NC, can turn your homeownership dream into a reality.
What is down payment assistance?
Down payment assistance programs help first-time homebuyers by reducing the money needed for a down payment. Most programs are run at the city or county levels.
While these programs are intended for first-time home buyers, repeat home buyers who haven’t owned a home in the last three years are also eligible. These programs are often meant for low-to-moderate-income (LMI) buyers and neighborhoods, though this varies from state to state.
What are some down payment assistance programs in Greensboro, NC?
NCHA Home Advantage Mortgage
Intended for first-time and move-up homebuyers, this program provides qualified borrowers with fixed-rate mortgages and assistance of up to 3% of the loan amount.
This program only requires repayment if you sell, refinance, or transfer your home before year 15 of your mortgage, and they forgive this assistance at 20% per year between years 11 to 15, with total forgiveness at year 15. To be eligible, you must:
- Purchase a home in North Carolina.
- Occupy the home as your principal residence within 60 days of closing.
- Earn no more than $126,000 annually.
- Have a credit score of 640+.
- Be applying for an FHA, USDA, VA, or conventional loan.
- Be a legal US resident.
The Community Partners Loan Pool (CPLP)
This program covers up to 20% of the home’s sales price as long as it does not exceed $30,000 when matched with an NCHFA Home Advantage Mortgage.
You can also use this program to cover up to 10% of the purchase price in conjunction with a USDA Section 502 loan. The CPLP assistance program is a zero percent interest, deferred second mortgage whose term matches the first mortgage’s term.
This loan does not require a monthly payment, and homeowners typically repay it when their home is sold, refinanced, at the end of its term, or when the borrower no longer lives in the home.
You can also use this program in conjunction with the North Carolina Home Advantage Tax Credit and other down payment assistance loans or grants.
Greensboro Homebuyer Down Payment and Closing Cost Assistance
This program is intended for people purchasing homes inside Greensboro city limits. It provides up to $10,000 in assistance and closing costs as a five-year, forgivable loan at zero interest.
You do not have to repay the loan if you reside in the home for five years. It is forgiven at 20% per year for each full year you live in it. Those purchasing a home in redevelopment areas can receive an additional $5,000. To be eligible, you must:
- Secure a fixed-rate, 15- or 30-year mortgage.
- Be a first-time homebuyer.
- Make a cash investment of a $500 minimum.
- Earn up to 120% of the area’s median income for households with two or fewer people.
- Earn up to 140% of the area median income for households with three or more people.
Reach out for a free consultation today!
Understanding what down payment assistance programs in Greensboro, NC, are right for your situation requires considerable expertise and extensive experience. With so many available, we advise speaking with a loan officer to find which programs you qualify for and are ideal for your situation. At Mortgages By Jill, we boast 30 years of experience and have personally funded over 2 billion dollars in mortgage loans. Time and time again, our clients refer to us as professional, personal, and passionate, which is why they keep coming back. Schedule a free consultation today!