GAP Loan Program

GAP Loan Program is a forgivable loan for homebuyers in Cumberland County, North Carolina. Cumberland County's GAP Loan Program provides up to $30,000 in forgivable second-mortgage gap financing to bridge the difference between an affordable mortgage and the home's sales price for first-time homebuyers in unincorporated Cumberland County. Funded by HUD HOME. Up to $30,000 zero-interest deferred forgivable gap-financing second mortgage to bridge the gap between sales price and the buyer's affordability. Forgiven over 10 years if owner-occupancy is maintained. Funding comes from HUD HOME Investment Partnerships; Cumberland County.

GAP Loan Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or non-owner-occupancy within 10-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.

GAP Loan Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer required; 3-year look-back. Displaced homemakers and single parents exempt. On credit, the program states: No published minimum; lender underwriting governs. A homebuyer education course is required, through HUD-approved housing counseling agency; 8-hour course required. Residency requirement: Property must be in unincorporated Cumberland County. Citizenship or immigration status: U.S. citizen or qualified alien required. Property must be in unincorporated Cumberland County. First-time homebuyer (3-year look-back). Buyer must contribute minimum $500 own funds. Loan structured as gap financing tied to documented affordability gap; subsidy layering review required.

GAP Loan Program 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. 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.

GAP Loan Program 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.

GAP Loan Program names active-duty service members, reservists and National Guard members, surviving spouses, law enforcement officers, firefighters, healthcare workers, and homebuyers 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.

GAP Loan Program serves homebuyers purchasing in Cumberland County, North Carolina.

Applications for GAP Loan Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served via Community Development office. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.