HouseCharlotte - Program 1B

What is HouseCharlotte - Program 1B?

HouseCharlotte - Program 1B is a deferred second loan for homebuyers in Charlotte, North Carolina.

• HouseCharlotte Program 1B is the City of Charlotte's down payment assistance tier for moderate-income first-time homebuyers (above 80% AMI up to approximately 110%-120% AMI) purchasing within Charlotte city limits. Provides up to $10,000 as a 0%-interest deferred forgivable second mortgage with a 10-year affordability period. Administered by DreamKey Partners on behalf of the City of Charlotte and funded primarily by City general funds.
• HouseCharlotte Program 1B is the City of Charlotte's higher-income DPA tier (typically 80%-110%/120% AMI), providing up to $10,000 in down payment and closing-cost assistance for first-time homebuyers purchasing within the Charlotte city limits. The DPA is structured as a 0%-interest deferred second mortgage with a shorter 10-year affordability period (vs. 15 years for Program 1A). No monthly payments. The lien is forgiven at the end of the 10-year period if the borrower has continuously occupied as a primary residence.
• Funding comes from City of Charlotte general funds and Housing Trust Fund; supplemented by City CDBG when eligible.

Do you have to pay it back?

HouseCharlotte - Program 1B is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by If borrower sells, refinances cash-out, transfers title, or stops occupying as primary residence during 10-year affordability period, full balance becomes due. After year 10, lien is forgiven and released.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

HouseCharlotte - Program 1B is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

HouseCharlotte - Program 1B limits household income to 110% of the area median income, which varies by county and household size.

• Targeted to moderate-income buyers above 80% AMI but at or below approximately 110%-120% of Charlotte-Concord-Gastonia MSA AMI. 2025 4-person ~110% AMI approximately $154,000; lower entry threshold approximately $59,400 (60% AMI). Income includes all borrowers and non-borrower spouse on title. Verify current 1B income tier limits with DreamKey Partners at application.
• The limit applies to total household income, not only the borrower’s.
• 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?

HouseCharlotte - Program 1B caps the purchase price at $315,000.

• Eligible property types include Single-family detached, townhomes, condos (must meet agency project approval), 1-unit owner-occupied and new and existing homes within Charlotte city limits.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

HouseCharlotte - Program 1B 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?

HouseCharlotte - Program 1B serves buyers purchasing in Charlotte, North Carolina.

• The program targets specific areas: City of Charlotte may identify priority neighborhoods (Corridors of Opportunity) that receive enhanced HouseCharlotte assistance amounts; verify with DreamKey Partners.

How do you apply?

Applications for HouseCharlotte - Program 1B 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 DreamKey Partners 8-hour HUD-approved homebuyer education plus 1:1 pre-purchase counseling required.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reserves HouseCharlotte funds via DreamKey Partners' lender portal alongside first-mortgage reservation, 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.