City of Raleigh Homebuyer Assistance Program

City of Raleigh Homebuyer Assistance Program is a deferred second loan for homebuyers in Raleigh, North Carolina, administered by City of Raleigh Housing and Neighborhoods Department. City of Raleigh citywide homebuyer assistance program offering 0% interest deferred second mortgage loans up to $45,000 to help first-time homebuyers with down payment, closing costs, or financing gaps. Loans are deferred for 20 years (no payments unless sold or no longer primary residence); if owner stays for an additional 10 years (30 years total), the loan is fully forgiven. Up to $45,000 in down payment, closing cost, and financing gap assistance as a 0% interest deferred second mortgage. Loan deferred 20 years; fully forgiven if owner stays in home 30 years total. No monthly payment required. Funding comes from Local Government and Federal HOME.

City of Raleigh Homebuyer Assistance Program offers up to $45,000 in assistance. The program can be combined with NC Home Advantage Mortgage; NC 1st Home Advantage Down Payment; other DPA programs per lender guidance. Amounts are the program's published maximums, not an offer — City of Raleigh Housing and Neighborhoods Department determines any individual award.

City of Raleigh Homebuyer Assistance Program is forgiven after 30 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Loan is deferred for 20 years. Due on sale or when property is no longer primary residence within 20 years. If owner remains for additional 10 years after deferral (30 years total), loan is fully forgiven. 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.

City of Raleigh Homebuyer Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Standard FTHB (no primary residence ownership in past 3 years); displaced homemaker/single-parent exceptions may apply. A homebuyer education course is required, through DHIC, Inc. (HUD-approved housing counseling agency); contact 919-832-4345. Homeownership class certificate required. Residency requirement: Property must be within City of Raleigh city limits. First-time homebuyer (no primary residence ownership in past 3 years). Household income at or below 80% AMI. Must attend approved Homeownership Education class and obtain certificate before participating. Must use a City-approved lender. Eligible properties: single-family homes, townhomes, condos within Raleigh city limits. Max purchase price $371,000 (citywide program). Note: The separate Enhanced Homebuyer Assistance Program (already in catalog) offers up to $60,000 but only in targeted geographic areas. This program is the non-targeted citywide option.

City of Raleigh Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% AMI for Raleigh MSA (Raleigh-Cary, NC HUD area). FY2025: 1-person $63,500; 2-person $72,550; 3-person $81,600; 4-person $90,650; 5-person $97,950; 6-person $105,200; 7-person $112,450; 8-person $119,700. 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.

City of Raleigh Homebuyer Assistance Program caps the purchase price at $371,000. Eligible property types include Single-family detached, Townhome, and Condominium. New construction is eligible. Manufactured homes are not eligible.

City of Raleigh Homebuyer Assistance Program names veterans, active-duty service members, and reservists and National Guard members 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.

City of Raleigh Homebuyer Assistance Program serves homebuyers purchasing in Raleigh, North Carolina.

Applications for City of Raleigh Homebuyer Assistance Program go through City of Raleigh Housing and Neighborhoods Department, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.