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%. Funding comes from City of Winston-Salem HUD CDBG and HOME funds (administered by Forsyth County CED via Interlocal Agreement).

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.

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time = no ownership interest in a principal residence during the 3-year period ending on purchase date (HUD/FHA), with standard displaced-homemaker/single-parent exceptions. On credit, the program states: Minimum 600 for AHOP-HOME (City CDBG/HOME track); 640 for NCHFA CPLP (660 for new manufactured homes). Lower of two scores used. A homebuyer education course is required, 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. Residency requirement: Property must be within the city limits of Winston-Salem (City CDBG/HOME funds). 0% deferred silent second loan; repayment deferred 30 years (HOME/AHOP affordability period) while occupied as primary residence; due when first mortgage is paid in full, on sale/transfer, cash-out refinance, foreclosure, default, or death. Occupy within 60 days. First mortgage rate must not exceed 1% above NCHFA published rates. 8-hour HUD-approved homebuyer education plus a Home Maintenance course required. Max cash back to buyer at closing $2,500. This is the Winston-Salem-only CDBG/HOME component of Forsyth County CED unified Homebuyer Assistance Program; cataloged Forsyth County AHOP serves the county excluding Winston-Salem and Walkertown. City-specific maximum dollar amount not separately published (left blank, not guessed); overall unified program max combined assistance is $90,000 (AHOP-HOME $40,000 + CPLP $50,000).

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.

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.

City of Winston-Salem Homebuyer Assistance Program (CDBG/HOME Down Payment Assistance) serves homebuyers purchasing in Winston-Salem, North Carolina. Targeted neighborhoods: City of Winston-Salem city limits.

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