Affordable Homeownership Program

What is Affordable Homeownership Program?

Affordable Homeownership Program is a forgivable loan for homebuyers in Wake County, North Carolina.

• Wake County's Affordable Homeownership Program provides up to $20,000 in forgivable second-lien down payment and closing-cost assistance to first-time homebuyers purchasing in Wake County (outside Raleigh's program area). HUD HOME and County-funded; forgiven over 10 years.
• Up to $20,000 0% interest deferred forgivable second-lien loan for down payment and closing costs. Forgiven over 10 years. Recipient contributes at least $1,000 of own funds.
• Funding comes from HUD HOME Investment Partnerships; Wake County General Fund.

Do you have to pay it back?

Affordable Homeownership Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, refinance with cash-out, or non-owner-occupancy within 10-year affordability period triggers repayment of unforgiven balance.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Affordable Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Affordable Homeownership Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% HUD AMI for Raleigh-Cary MSA (FY2025): 1p $63,500; 2p $72,600; 3p $81,650; 4p $90,650; 5p $97,950; 6p $105,200; 7p $112,450; 8p $119,700. Note: Some published tier shows 1p $63,500 / 4p $90,650.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Affordable Homeownership Program caps the purchase price as follows: Sales price capped at HUD HOME Homeownership Value Limits for Wake County.

• Eligible property types include Single-family detached, townhouse, condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Affordable Homeownership Program names active-duty service members, reservists and National Guard members, surviving spouses, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Affordable Homeownership Program serves buyers purchasing in Wake County, North Carolina.

How do you apply?

Applications for Affordable Homeownership Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved counseling agency; 8-hour pre-purchase homebuyer education course required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.