Affordable Homeownership

Buy a Home

Ownership Within Neighborhoods to Encourage Revitalization (OWNER)

Purchase Price: New Construction and Resale: Maximum of $170,000 (subject to change to reflect maximums as established by the NC Housing Finance Agency for its downpayment assistance program).

Goal: To stabilize selected inner city neighborhoods experiencing transition (property disinvestment, increasing single family rentals, aging populations) through homeownership activities.

 Source of Funds: First Mortgage: Participating Private Sector Financial Institutions (see list).

                              Second Mortgage: City of Raleigh Housing Bond Funds.

Eligible Properties: Eligibility is area specific for single-family homes (including townhouses and condominiums) located within designated areas of Raleigh (see attached map ).

Maximum Loan: Second Mortgage: Eligible borrowers whose combined household income is less than or equal to 65% of area median income can receive up to $30,000. For borrowers whose combined household income is between 65% and 80% of area median income, maximum loan amount is $15,000. Note: First mortgage plus second mortgage cannot exceed 100% of appraised value.

Term/Rate: Thirty-year mortgage at 0% interest. For borrowers making at or below 65% of area median income, payments of $25/month for years 1-5, payments of $95/month or less for the remaining 25 years. For borrowers making between 65% and 80% of area median income, payments of $25/month for years 1-5, payments of $45/month for the remaining 25 years.

Maximum Sales Price: New construction and Resale: $170,000 (subject to change to reflect maximums as established by the North Carolina Finance Agency for its downpaypment assistance program).

Maximum Income: For a loan up to $30,000      <65 AMI

                                 1 in household  $34,950         4 in household  $50,000

                                 2 in household  $40,000         5 in household  $54,000

                                 3 in household  $45,000         6 in household  $58,000

                                 For a loan up to $15,000      Between 65% and 80% AMI

                                 1 in household  $43,050         4 in household  $61,500

                                 2 in household  $49,200         5 in household  $66,400

                                 3 in household  $55,350         6 in household  $73,350

Please call for more details.                            

City-Wide Homeownership Loan Program

Goal: To assist first-time homebuyers in purchasing a home within the City limits of Raleigh.
Source of Funds: First Mortgages: Participating, private sector lenders (see list)
Second Mortgages: City of Raleigh housing bond funds

Eligible Properties: New or existing single family homes, town homes, and condominiums
Term & Rate: First Mortgage: Monthly payment based 30 year term at market rate
Second Mortgage: Years 1-5 : $25.00 per month (principal only payments); years 6-30: principal and interest at 4% amortized over remaining 25 years
Maximum House Price: New Construction and Resale: $170,000
Maximum Loan: First Mortgage: Maximum for which borrower qualifies through participating private sector lending institution
Second Mortgage: Up to $20,000, based on need

Note: Total loans cannot exceed 100% of appraised value
Maximum Qualifying Income:

                      1 in household  $43,050         4 in household  $61,500

                     2 in household  $49,200         5 in household  $66,400

                     3 in household  $55,350         6 in household  $71,350

Administration

An application can be obtained by contacting a participating lender. For more information, please call 919-996-4330.
Eligibility:

• One year of satisfactory credit prior to application is required.
• Must be unable to qualify for the full amount to purchase a home due to lack of down payment/closing costs or excessive debt to income ratio, which cannot exceed 41%
• Must not have had an ownership interest in a principal residence within the past three years.
• Borrowers must occupy property financed as their primary residence.
• Preference will be given to applicants who reside or work within the City limits of Raleigh for a minimum of two years
• Must complete a homebuyer counseling course. The City of Raleigh contracts with DHIC, Inc. to provide homeownership and credit counseling. For more information, CLICK HERE or contact DHIC at 832-4345.

Homeownership Purchase And Rehabilitation And/Or Rehabilitation Only

Goal: To assist low- and moderate-income persons citywide with the purchase and rehabilitation or rehabilitation (only) of their homes.
Source of Funds: Community Development Block Grant (CDBG) or HOME funds.
Eligible Areas: Citywide
Eligible Candidates: Homeowners with incomes at or below 80% of the median income.
Loan Description: Very low-income homeowners may qualify for a non-interest bearing deferred loan. Otherwise, the interest rate is 0% - 3%, depending on the ability to pay.
Minimum/Maximum Loan: Minimum limit is $1,000. Maximum loan will depend on available funds and borrower's ability to pay.

• Maximum Loan to Value: 100%.

• Term: Up to 30 years if home is purchased; otherwise, up to 20 years if home is rehabilitated.

Other Conditions & Exceptions:

• Monies to be expended on rehabilitation must equal at least 35% of the purchase price

• Underwriting ratios; first ratio at a maximum of 30% and the second at 41%.

Administration: Apply for the loan at the City of Raleigh Community Development Department. If you are acquiring a property, a contract to purchase should accompany the application. The application process uses FNMA forms where applicable.
Fee: $25 nonrefundable application fee

Contact:
Kim Hubbard, City of Raleigh, (919) 996-4330
kim.hubbard@ci.raleigh.nc.us

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