Down Payment Assistance Program

What is Down Payment Assistance Program?

Down Payment Assistance Program is a forgivable loan for homebuyers in Rocky Mount, North Carolina.

• Rocky Mount Housing Authority's Down Payment Assistance Program provides up to $25,000 in forgivable second-lien financing for first-time homebuyers purchasing within Rocky Mount city limits (which spans Nash and Edgecombe counties). HUD HOME-funded; 10-year forgiveness. Recorded as forgivable_loan despite DPA One labeling 'Dpa' (verified to be a forgivable second mortgage with recapture).
• Up to $25,000 0% interest deferred forgivable second-lien loan for down payment and closing costs.
• forgiven over 10 years.
• Funding comes from HUD HOME Investment Partnerships; City of Rocky Mount; Rocky Mount Housing Authority.

Do you have to pay it back?

Down Payment Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, refinance with cash-out, or non-owner-occupancy within 10-year 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 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 limits household income to 120% of the area median income, which varies by county and household size.

• Household income up to 120% HUD AMI for Rocky Mount MSA: 1p $44,350 (lower bound shown in DPA One); upper limit 4p $125,400.
• 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 caps the purchase price at $276,000.

• 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 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 serves buyers purchasing in Rocky Mount, North Carolina.

How do you apply?

Applications for Down Payment Assistance Program 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 counseling agency; 8-hour homebuyer education required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via RMHA Homeownership 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.