City of Raleigh Homebuyer Assistance Program

What is 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.

How much assistance does it provide?

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.

Do you have to pay it back?

City of Raleigh Homebuyer Assistance Program is forgiven after 30 years, so a buyer 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.

Who qualifies?

City of Raleigh Homebuyer Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through DHIC, Inc. (HUD-approved housing counseling agency); contact 919-832-4345. Homeownership class certificate required..

2. 2

   Contact City of Raleigh Housing and Neighborhoods 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.