City of Kannapolis Homeownership Down Payment Assistance Program

What is City of Kannapolis Homeownership Down Payment Assistance Program?

City of Kannapolis Homeownership Down Payment Assistance Program is a forgivable loan for homebuyers in Kannapolis, North Carolina, administered by City of Kannapolis Community Development Department.

• The City of Kannapolis works with partner agencies to make energy-efficient homes affordable through a combination of down payment assistance, grants, and other financial resources for income-eligible homebuyers earning less than 80% AMI (separate 2025 income charts for Cabarrus and Rowan County residents). Housing counseling and homebuyer education are provided through HUD-approved partners Prosperity Unlimited and Community Link.
• Down payment assistance combined with grants and other resources.
• Free HUD-approved homebuyer education and counseling.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from City of Kannapolis CDBG/HOME funds (HUD), per the 2025-2029 Consolidated Plan / FY2026-27 Annual Action Plan.

Do you have to pay it back?

City of Kannapolis Homeownership Down Payment Assistance Program is a forgivable loan, so the balance is forgiven once the program's conditions are met.

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Kannapolis Homeownership Down Payment Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

City of Kannapolis Homeownership Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Households must earn less than 80% AMI. 2025 chart by size - Cabarrus residents: 1 $62,850; 2 $71,800; 3 $80,800; 4 $89,750; 5 $96,950; 6 $104,150; 7 $111,300; 8 $118,500. Rowan residents: 1 $49,150; 2 $56,150; 3 $63,150; 4 $70,150; 5 $75,800; 6 $81,400; 7 $87,000; 8 $92,600.
• The limit applies to total household income, not only the borrower’s.
• 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?

City of Kannapolis Homeownership Down Payment Assistance Program can be used for Single Family.

Where does it apply?

City of Kannapolis Homeownership Down Payment Assistance Program is a federal program, so it is not limited to North Carolina.

How do you apply?

Applications for City of Kannapolis Homeownership Down Payment Assistance Program go through City of Kannapolis Community Development Department, 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 Prosperity Unlimited, Inc. (704-933-7405, prosperitycdc.org); Community Link (1-800-977-1969)..

2. 2

   Contact City of Kannapolis Community Development Department to reserve funds

   Funds are reserved with the provider 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.