Homebuyer Assistance
Depending on fund availability, NWPCOG administers a downpayment assistance program in Davie, Stokes, Surry and Yadkin Counties. The program is funded by the Dept of Housing and Urban Development through the HOME Investment Partnership Program and American Dream Downpayment Incentive Program. Funding for this program is not always available due to demand and availability.
The program provides a 0% interest, deferred payment second mortgage for 20% of the purchase price of an eligible single family home – up to $20,000. Payments are deferred for the term of the first mortgage unless the unit is old or household income doubles.
Client Eligibility
The family’s total household income at purchase must be low 80% median family income. Click here for current income limits. (insert file from cogserver/housing/il80only.doc)
The family must:
- qualify for a conventional 30 year, fixed rate mortgage from a lender for at least 80% of the purchase price
- complete Homeownership Counseling through the Center for Homeownership prior to closing.
- contribute 1% of the purchase price toward the downpayment – which can include prepaid items such as taxes, insurance and earnest money.
- occupy the unit as its principal residence.
Unit Eligibility
The house must be a conventional stick-built single-family house located in Davie, Stokes, Surry or Yadkin County. Mobile and modular homes are not eligible.
The sale price of the house can not exceed $125,000. The house must further qualify as "affordable housing" by HUD’s definition. This means no pool, hot tub, acreage beyond minimum lot size, gated community, etc.
The unit must be inspected and must meet minimum housing code at the time of purchase. A portion of the subsidy may be used to make repairs.
Since Federal funds are involved with this program, certain environmental regulations must be adhered to. If the house was built prior to 1978, any peeling, cracked or disturbed paint surfaces must be tested for lead. This test must be performed by a licensed tester on site – chips and scrapings sent to a lab or home-test kits are not eligible. The house cannot be within x distance of a railroad or airport. Unused underground oil tanks are also prohibited.
Qualifying for a Mortgage
All prospective home buyers are encouraged to research and shop around for a mortgage as rates can very. The Homeownership Counseling class offered by the Center for Homeownership provides guidance in the entire process and is a recommended starting place.
Once you have qualified for a 30 year fixed rate mortgage, you or your lender can contact us to begin the process. The first step is to complete the HAP lender form and submit to Rebecca Kassner (fax 336-761-2112.)
HUD regulations and our policies do not allow us to assist in the purchase of a house when:
- Interest rate offered is more than 2 points above price
- Loan is structured with "negative interest" or a balloon payment
Homeownership Counseling
HUD requires that each family receiving assistance with the purchase of a house complete a Homeownership Counseling class.
The Center for Homeownership offers certified counseling in the region for participants in this program. It is the client’s responsibility to schedule, attend and complete this training.
Updated: 07/12/2007 |
