GAP Loan Program

What is 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.

Do you have to pay it back?

GAP Loan Program 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 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.

Who qualifies?

GAP Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

GAP Loan 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?

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

How do you apply?

Applications for GAP Loan 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 housing counseling agency; 8-hour 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.