Down-payment Assistance Program (DAP)

What is Down-payment Assistance Program (DAP)?

Down-payment Assistance Program (DAP) is a forgivable loan for homebuyers in Cumberland County, North Carolina.

• Cumberland County's Down-payment Assistance Program (DAP) provides up to $7,500 in forgivable second-mortgage assistance for first-time homebuyers purchasing in unincorporated Cumberland County. Funded by HUD HOME and County funds. Forgiven over 5 years if buyer maintains owner-occupancy.
• Up to $7,500 zero-interest deferred forgivable second mortgage for down payment and closing costs. Forgiven on a pro-rata monthly basis over 5 years if owner-occupancy is maintained.
• Funding comes from HUD HOME Investment Partnerships; Cumberland County.

Do you have to pay it back?

Down-payment Assistance Program (DAP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, or non-owner-occupancy within 5-year affordability period triggers repayment of unforgiven balance.
• 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 Program (DAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down-payment Assistance Program (DAP) limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% HUD AMI for Fayetteville, NC MSA, by household size (HUD-published).
• 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 Program (DAP) caps the purchase price as follows: Sales price capped at the HUD HOME Homeownership Value Limits for Cumberland County.

• Eligible property types include Single-family detached, townhouse, condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Down-payment Assistance Program (DAP) names active-duty service members, reservists and National Guard members, surviving spouses, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities 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?

Down-payment Assistance Program (DAP) serves buyers purchasing in Cumberland County, North Carolina.

How do you apply?

Applications for Down-payment Assistance Program (DAP) go through the administering agency, 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 HUD-approved housing counseling agency; 8-hour homebuyer education course required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via Community Development office., 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.