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Community Home Trust - Affordable Homeownership Program

Community Home Trust · Chapel Hill, North Carolina

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See what you qualify forOfficial program site →
Income limit

115% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by Community Home Trust

What is Community Home Trust - Affordable Homeownership Program?

Community Home Trust - Affordable Homeownership Program is a shared-appreciation loan for homebuyers in Chapel Hill, North Carolina, administered by Community Home Trust.

  • Community Home Trust is a community land trust serving Chapel Hill, Carrboro, and Orange County, NC. Buyers purchase a CHT home (typically 30-50% below market value) and sign a ground lease that limits resale: when an owner sells, the home is sold back to CHT at a price set by a resale/appreciation formula using HUD affordability guidelines, keeping it affordable for the next income-qualified buyer. Down payment assistance is often provided as a no-interest, no-payment loan, and CHT applies subsidy to reduce the first-mortgage amount so housing costs target ~28% of gross monthly income.
  • Homes sold 30-50% below market value.
  • No-interest, no-payment down payment assistance loan.
  • Subsidy reduces first mortgage so housing costs target ~28% of income.
  • In-house licensed agents assist buyers at no cost.
  • Funding comes from Community Home Trust subsidy in partnership with the Town of Chapel Hill, Town of Carrboro, Orange County, Town of Hillsborough, and private/foundation partners.

Do you have to pay it back?

Community Home Trust - Affordable Homeownership Program is a shared-appreciation loan and is repaid under the terms set by Community Home Trust.

  • Repayment is triggered by Resale of the home back to Community Home Trust; subsidy retained through the resale formula.
  • The assistance is recorded in CHT resale restriction via ground lease; DPA structured as subordinate no-interest no-payment loan position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Community Home Trust - Affordable Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Must not currently own a home; CHT defines first-time as not owning in the last 3 years or meeting HUD special rules.
  • The home is occupied as a primary residence
  • On credit: No CHT credit score requirement, but buyers must qualify for a traditional mortgage and meet the approved lender credit requirements.
  • A completed homebuyer education course, through Community Home Trust homebuyer education plus financial counseling with a community partner.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Buyer signs a ground lease; the home must be sold back to Community Home Trust when the owner moves and cannot be resold on the private market. Resale price set by CHT formula based on tenure and appreciation model using HUD affordability guidelines (limited/shared-appreciation). Buyer pays two ongoing monthly fees (ground lease/use fee and Stewardship Fee) for the life of ownership, included in the 30% housing-cost cap. DPA/subsidy is a no-interest, no-payment loan. Assets under $20,000 (excluding retirement) fully eligible; $20,000-$100,000 may buy but cannot receive new subsidies; over $100,000 not eligible unless age 65+ or permanently disabled. Resale typically 4-6 months; $400 refundable resale request fee. Gifts allowed up to $10,000; no co-signers. Must use a CHT-approved lender. Applicants 80-115% AMI limited to unsubsidized inventory only.

The program excludes

  • Households above 115% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Community Home Trust - Affordable Homeownership Program limits household income to 115% of the area median income, which varies by county and household size.

  • Most homes reserved for households <=80% AMI; some available up to 115% AMI (80-115% limited to unsubsidized homes). Minimum household income $45,000. 2026 (Durham-Chapel Hill NC HUD Metro, MFI $129,900, eff. May 1, 2026) 80% AMI: 1=$71,200; 2=$81,400; 3=$91,550; 4=$101,700; 5=$109,850; 6=$118,000; 7=$126,150. 115% AMI: 1=$102,350; 4=$146,194.
  • The limit applies to total household income, not only the borrower&rsquo;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?

Community Home Trust - Affordable Homeownership Program caps the purchase price as follows: No fixed maximum; homes sold at below-market, income-tiered prices (typically 30-50% below market), matched to household size and income.

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

Where does it apply?

Community Home Trust - Affordable Homeownership Program serves buyers purchasing in Chapel Hill, North Carolina.

  • Targeted neighborhoods: CHT-developed neighborhoods in Chapel Hill and Carrboro.

How do you apply?

Applications for Community Home Trust - Affordable Homeownership Program go through Community Home Trust, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Community Home Trust homebuyer education plus financial counseling with a community partner..

  2. Contact Community Home Trust to reserve funds

    Funds are reserved with the provider and are subject to availability.

  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.

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