City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance)

What is City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance)?

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) is a deferred second loan for homebuyers in Winston-Salem, North Carolina, administered by Forsyth County Community & Economic Development (administering City of Winston-Salem CDBG/HOME funds under Interlocal Agreement).

• Down payment and closing cost assistance for first-time homebuyers purchasing within the city limits of Winston-Salem, funded by the City of Winston-Salem HUD CDBG and HOME funds. Under an Interlocal Agreement (Sept 21, 2023 - June 30, 2026), the City contracted Forsyth County Community & Economic Development to administer these funds for properties inside Winston-Salem city limits, through the County unified Homebuyer Assistance Program. Assistance is a 0% deferred silent second loan secured by a Deed of Trust with deed restrictions. Buyers must be first-time homebuyers at or below 80% AMI, complete HUD-approved homebuyer education, and occupy the home as their primary residence.
• Down payment and closing cost assistance.
• 0% deferred silent second mortgage.
• Repayment deferred 30 years while occupied as primary residence.
• Origination fees eligible up to 1.5%.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from City of Winston-Salem HUD CDBG and HOME funds (administered by Forsyth County CED via Interlocal Agreement).

How much assistance does it provide?

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) provides assistance worth 25% of the purchase price, as set by the program.

• Buyer contribution: Minimum assistance amount is $1,000.
• The program can be combined with AHOP-HOME, NCHFA Community Partners Loan Pool (CPLP), USDA 502, IDA matching funds, ASPIRE HCV homeownership.
• Amounts are the program's published maximums, not an offer — Forsyth County Community & Economic Development (administering City of Winston-Salem CDBG/HOME funds under Interlocal Agreement) determines any individual award.

Do you have to pay it back?

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due when first mortgage is paid in full, upon sale/transfer of title, cash-out refinance, change in owner-occupancy, foreclosure, default, or death; affordability/deferral period is 30 years per 24 CFR 92.254.
• The assistance is recorded in Subordinate (second/third) - Deed of Trust with deed restrictions; priority based on amount of assistance 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 Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) 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 Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) limits household income to 80% of the area median income, which varies by county and household size.

• Total household compliance income must not exceed 80% AMI for the Winston-Salem HUD area, adjusted for size. 2025 80% AMI (eff. June 1, 2025): 1p $48,550; 2p $55,500; 3p $62,450; 4p $69,350; 5p $74,900; 6p $80,450; 7p $86,000; 8p $91,550.
• 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 Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) caps the purchase price as follows: May not exceed HUD-published Maximum Sales Price limits for Forsyth County, NC (updated annually); appraised value must be >= sales price.

• Eligible property types include Single Family, Townhouse, Condo, Modular, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) is a federal program, so it is not limited to North Carolina.

• Targeted neighborhoods: City of Winston-Salem city limits.

How do you apply?

Applications for City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) go through Forsyth County Community & Economic Development (administering City of Winston-Salem CDBG/HOME funds under Interlocal Agreement), 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 Center for Homeownership (Financial Pathways of the Piedmont), Winston-Salem; Housing Foundation of America, Greensboro. 8-hour HUD-approved class plus County Home Maintenance course..

2. 2

   Contact Forsyth County Community & Economic Development (administering City of Winston-Salem CDBG/HOME funds under Interlocal Agreement) to reserve funds

   Funds are reserved through First-come, first-served until program funding is depleted, 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.