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Enhanced Homebuyer Assistance Program

Raleigh, North Carolina

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See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$450,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 30 years

What is Enhanced Homebuyer Assistance Program?

Enhanced Homebuyer Assistance Program is a deferred second loan for homebuyers in Raleigh, North Carolina.

  • City of Raleigh ENHANCED HBAP: up to $80,000 deferred 0% second-mortgage affordability-gap assistance for FTHBs purchasing in designated neighborhood-revitalization areas. Sales price $450,000. 80%-120% AMI. 30-year affordability period; shared-appreciation recapture. Higher-amount, stricter-targeting variant of the standard Raleigh HBAP.
  • City of Raleigh ENHANCED Homebuyer Assistance Program: up to $80,000 in down payment / closing-cost / affordability gap assistance (significantly higher than the standard program) for income-qualified buyers purchasing in DESIGNATED RALEIGH NEIGHBORHOOD REVITALIZATION AREAS (East Raleigh, Southeast Raleigh, and other identified equity-priority neighborhoods). Sales price up to $450,000 (higher cap than standard program to support higher-cost designated areas). Income $68,500-$129,100 (80%-120% AMI Raleigh-Cary HMFA). 0% deferred second mortgage with 30-year affordability period.
  • due on sale/transfer/refinance with shared-appreciation recapture. Pairs with NCHFA, FHA, VA, USDA, Conventional.
  • Funding comes from Federal HOME, Federal CDBG, Local Government, and Local Bond.

Do you have to pay it back?

Enhanced Homebuyer Assistance Program is forgiven after 30 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Deferred 0% and due on sale/transfer/refinance/non-owner-occupancy with shared-appreciation recapture (proportional to subsidy share). Some tiers 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?

Enhanced Homebuyer Assistance 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; displaced homemaker / single-parent exceptions per HUD.
  • The home is occupied as a primary residence
  • On credit: Generally 640 minimum (per first-mortgage product).
  • A completed homebuyer education course, through HUD-approved housing counseling agencies including Telamon CDC, Reinvestment Partners, and CASA (Community Alternatives for Supportive Abodes). 8-hour pre-purchase education plus 1-on-1 counseling required.
  • Residency: Property must be within designated Raleigh neighborhood-revitalization area and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen.
  • PROPERTY MUST BE LOCATED IN A DESIGNATED RALEIGH NEIGHBORHOOD REVITALIZATION / EQUITY-PRIORITY AREA per the City's targeted-area map (East Raleigh, Southeast Raleigh, and other identified census tracts). First-time homebuyer (no primary-residence ownership past 3 years). Owner-occupied primary residence. Household income $68,500-$129,100 (80%-120% AMI Raleigh-Cary HMFA). Sales price at or below $450,000. 8-hour HUD-approved homebuyer education plus 1-on-1 counseling. Minimum $1,000 buyer contribution. Property must pass HQS inspection. Pre-1978 properties require lead-based-paint risk assessment. CDBG/HOME environmental review.

The program excludes

  • Manufactured homes
  • Purchases above the $450,000 price cap
  • 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?

Enhanced Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income 80%-120% AMI Raleigh-Cary HMFA. FY2025: 4p $68,500 (80%) to 8p $129,100 (120%).
  • 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?

Enhanced Homebuyer Assistance Program caps the purchase price at $450,000.

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

Where does it apply?

Enhanced Homebuyer Assistance Program serves buyers purchasing in Raleigh, North Carolina.

  • The program targets specific areas: Designated RALEIGH NEIGHBORHOOD REVITALIZATION / EQUITY-PRIORITY AREAS - includes East Raleigh, Southeast Raleigh, and other census tracts identified on the City's published targeted-area map. Enhanced program represents the higher-amount, stricter-geographic-targeting variant of Raleigh HBAP.

How do you apply?

Applications for Enhanced Homebuyer Assistance 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 Telamon CDC, Reinvestment Partners, and CASA (Community Alternatives for Supportive Abodes). 8-hour pre-purchase education plus 1-on-1 counseling required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Apply directly to City of Raleigh Housing & Neighborhoods Department. Property eligibility confirmed against the targeted-area map. Income certification, credit review, and property HQS inspection performed by City staff., 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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