Downpayment Assistance

A. Purpose
To provide assistance for qualified very low-to-moderate income citizens interested in purchasing a home. This policy is also designed to protect potential homebuyers from predatory lending that may strip equity through illegal and unethical practices. Predatory lending practices may include, but not be limited to, excessively high fees and commissions, the misrepresentation of the mortgage terms and conditions, high interest rates, repeated financing of loans and balloon payments. Frequently Asked Questions...

B. Homebuyer Assistance Program

The Homebuyer Assistance Program provides affordable homeownership opportunities for first-time, very low-to-moderate income buyers, providing deferred, low-interest loans to reduce out-of-pocket cash costs for down payment, closing costs, and pre-paid expenses. The program does not include providing assistance with earnest pay/good faith deposits that may be required by a Realtor or former homeowner to hold property. The program requires the homebuyer to receive an approved loan from a participating lender; be income eligible for the program (80% or below the area income median); purchase a home within the City limits; provide $500 of their own funds toward the purchase. The program cannot be used to purchase a home that exceeds the current FHA mortgage limit for a single family home.

City-Wide Down Payment and Closing Costs Assistance shall apply to all down payment and closing cost assistance programs.  This replaces all former tiered programs. The amount shall not exceed a maximum level of $5,000 for a home located within the High Point city limits. Terms include a three-year deferment at 3% interest for 5 years.  Additional incentives are offered in revitilazation areas.

 

Homebuyer Qualifications

• "Home"–single family residence, condo or townhome affixed to a permanent foundation in City limits under the FHA mortgage limit.
• Pre-purchase homebuyer education (min. of eight hours)
• Asset limit less than $10K
• Qualify for loan through a Participating Lender.
• Acceptable credit
• Steady employment
• Invest a minimum of $500 towards the purchase
• Affordable debt to income ratios
• Environmental Review Request approval
• Homeowner's Insurance

                                                       2010-2011 INCOME LIMITS

Persons in Household	Very Low Income 30% Median	Low Income 50% Median	Moderate Income 80% Median	Area Median Income
1	11,650	19,400	31,000	38,750
2	13,300	22,150	35,400	44,250
3	14,950	24,900	39,850	49,800
4	16,600	27,650	44,250	55,300
5	17,950	29,900	47,800	59,750
6	19,300	32,100	51,350	64,150
7	20,600	34,300	54,900	68,600
8	21,950	36,500	58,450	72,300

Participation Criteria for Participating Lenders

 

• Offer conforming loans with 1% or less origination fee.
• No associated charges, i.e. brokers fees, costs, etc. for providing the loan.
• CLTV not to exceed 100%.
• Max loan cannot exceed FHA Mortgage limit.
• Offer Market interest rate
• Inform, educate, and facilitate the application process
• Ensure applicant's eligibility

Homebuyers Education Classes; contact Consumer Credit Counseling Service for further information regarding upcoming homebuyer education classes for 2010/2011 or call (336) 889-6108.

 Complete Package Forms (PDF)  (forms may also be used for: 

NSP- Neighborhood Stabilization Program down payment assistance or repair)

 www.keystomyhome.org

 

PARTICIPATING LENDERS