$15,000 Down Payment Assistance (DPA) – Wow! Close to FREE Money! Beginning 10/17/16!
First time buyers in Cabarrus, Cumberland, Guilford, Johnston, or Mecklenburg Counties have a great opportunity. These buyers may be eligible for the $15,000 down payment assistance program ($15,000 DPA funds). In addition, this program offers 0% interest and has no required payments. But guess what??? It is FULLY FORGIVEN AFTER 5 ONLY YEARS!
Most of the time something like this is too good to be true. In this case, it is True! Last year this program was available to the first 1,000 loans. But, this time the $15,000 DPA will be available to the first 3,000 loans. So see the details below and take advantage. This program starts on 10/17/2016 so that is the first day we can accept lock requests.
Why is the $15,000 DPA only in 5 counties?
The special $15,000 down payment assistance is funded through the U.S. Department of the Treasury’s Hardest Hit Fund. The five counties were chosen to support homeownership in areas that experienced especially high rates of foreclosures during the recent recession.
How can I use the $15,000 down payment assistance funds?
First of all, we offer this program through the NC Housing Finance Agency. The down payment assistance product can be used towards several areas. Therefore, DPA funds are available for down payment, closing costs, and/or PMI. Additionally, down payment assistance is coupled with a USDA, VA, FHA, or conventional mortgage loan. So, one can see this is a great way for a first time buyer to get quick equity in their new home.
$2000 MCC Tax Credit in Addition to the $15,000 Down Payment Assistance
In addition to this great down payment option, first time buyers can take advantage of an MCC Tax Credit up to $2000 per year! So, learn more about how an MCC Tax Credit can work for you. Also, see the Household Income Limitsthe MCC Tax Credit
Details for the $15,000 DPA -Down Payment Assistance
- 640 minimum credit score
- 60 day locks
- Buyers can combine with MCC tax credits
- Existing homes only (new homes not eligible)
- Maximum sales price is $245,000
- 1st time buyers only which means not owned a home in last 3 years
- Household income limits:
- 1 – 2 person households $62,000
- 3+ person households $71,000
Down Payment Assistance Terms:
- 5 year term, 0% interest rate, no required payments
- Forgiven 20% per year in years 1 – 5. Totally forgiven after 5 years!
- DPA may be used towards down payment, closing costs, & PMI
- Remember, DPA is repayable if the following happens within 5 years:
- No longer occupies the property
- Refinances the first mortgage
- Sells the property