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Down Payment Assistance (DPA) Program

Durham, North Carolina

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Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 30 years

What is Down Payment Assistance (DPA) Program?

Down Payment Assistance (DPA) Program is a deferred second loan for homebuyers in Durham, North Carolina.

  • City of Durham deferred 0% second mortgage up to $80,000 for first-time homebuyers within Durham city limits. 80% AMI cap. 30-year affordability period; due on sale/transfer/refinance with shared-appreciation recapture. HOME/CDBG/local-bond funded.
  • City of Durham Down Payment Assistance: up to $80,000 (in 2024/26 the program was significantly expanded from previous $20,000-$40,000 ceilings as part of the City's affordable-housing bond initiatives) for income-qualified first-time homebuyers purchasing a primary residence within Durham city limits. Structured as a 0% deferred second mortgage, due on sale/transfer/refinance with proportional shared-appreciation recapture, with a 30-year affordability term. Pairs with NCHFA, FHA, VA, USDA, and Conventional first mortgages. Required: HUD-approved homebuyer education (8 hours) and one-on-one counseling.
  • Funding comes from Federal HOME, Federal CDBG, Local Government, and Local Bond.

Do you have to pay it back?

Down Payment Assistance (DPA) Program is forgiven after 30 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Deferred 0% loan, principal due on sale, transfer, refinance (cash-out), or non-owner-occupancy. Some tiers carry shared-appreciation recapture, and some are forgiven over 30 years.
  • 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?

Down Payment Assistance (DPA) 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: Standard FTHB requirement (no primary residence ownership past 3 years); displaced homemaker / single-parent exceptions per HUD.
  • The home is occupied as a primary residence
  • On credit: Generally 640 minimum (per first-mortgage product); City does not impose its own credit-score floor beyond underwriter requirements.
  • A completed homebuyer education course, through HUD-approved housing counseling agencies including Reinvestment Partners (Durham), HEPCDC, and OnTrack WNC.
  • Residency: Property must be located within City of Durham corporate limits and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen (per HUD CDBG/HOME rules).
  • First-time homebuyer (no ownership of primary residence in past 3 years). Owner-occupied primary residence within Durham city limits. Household income at or below 80% AMI for Durham-Chapel Hill HMFA (FY2025: 1-person $56,650 to 8-person $106,800). Property must pass HQS inspection. Pre-1978 properties require lead-based-paint risk assessment. 8-hour HUD-approved education plus 1-on-1 counseling. Minimum $1,000 buyer contribution. Reserve assets capped (typically 2-6 months PITI). Subject to City Community Development environmental review (HOME/CDBG).

The program excludes

  • Manufactured homes
  • Households above 80% 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?

Down Payment Assistance (DPA) 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 Durham-Chapel Hill HMFA per HUD Section 8. FY2025: 1-person $56,650 to 8-person $106,800.
  • 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?

Down Payment Assistance (DPA) Program caps the purchase price as follows: Subject to HUD HOME 95% area median sales price limits for Durham-Chapel Hill HMFA (refer to current HUD published values).

  • Eligible property types include Single-family detached, Townhome, and Condominium.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance (DPA) Program serves buyers purchasing in Durham, North Carolina.

How do you apply?

Applications for Down Payment Assistance (DPA) Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved housing counseling agencies including Reinvestment Partners (Durham), HEPCDC, and OnTrack WNC..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Apply directly to City of Durham Community Development. Income certification, credit review, and property eligibility determination performed by City staff. Pre-purchase counseling certificate required., 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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