Homebuyer Assistance Program

What is Homebuyer Assistance Program?

Homebuyer Assistance Program is a forgivable loan for homebuyers in Davidson, North Carolina.

• The Town of Davidson Homebuyer Assistance Program provides up to $30,000 in forgivable second-lien financing for first-time homebuyers purchasing in Davidson (Mecklenburg County). Funded by Town affordable-housing fund and HUD HOME pass-through. Forgiven over 15 years; tied to deed-restricted affordable inventory.
• Up to $30,000 0% interest deferred forgivable second-lien loan for down payment and closing costs. Forgiven over 15 years.
• Funding comes from Town of Davidson Affordable Housing Trust Fund; HUD HOME (Mecklenburg County subrecipient).

Do you have to pay it back?

Homebuyer Assistance Program is forgiven after 15 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 15-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?

Homebuyer 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?

Homebuyer Assistance 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 Charlotte-Concord-Gastonia MSA (FY2025): 1p $52,750; 2p $60,300; 3p $67,800; 4p $75,300; 5p $81,350; 6p $87,450.
• 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?

Homebuyer Assistance Program caps the purchase price as follows: Sales price capped per Davidson affordable housing program guidelines and HUD HOME limits for Mecklenburg County.

• Eligible property types include Single-family detached, townhouse, condominium (typically deed-restricted affordable units).
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Homebuyer Assistance Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, 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?

Homebuyer Assistance Program serves buyers purchasing in Davidson, North Carolina.

How do you apply?

Applications for Homebuyer 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 Apply via Town of Davidson Affordable Housing 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.