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Mountain Housing Opportunities Down Payment Assistance Program (DAP)

Mountain Housing Opportunities, Inc. · Asheville, North Carolina

Last verified
See what you qualify forOfficial program site →
Assistance

$40,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by Mountain Housing Opportunities, Inc.

What is Mountain Housing Opportunities Down Payment Assistance Program (DAP)?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) is a shared-appreciation loan for homebuyers in Asheville, North Carolina, administered by Mountain Housing Opportunities, Inc.

  • Mountain Housing Opportunities (MHO), a nonprofit serving Asheville and Western North Carolina, offers a Down Payment Assistance Program (DAP) that fills the cash gap between a homebuyer first mortgage and the total cost to purchase a home. Funds can be used for down payment, closing costs, or to increase purchasing power. Assistance is a deferred, no-monthly-payment shared-appreciation second mortgage. The City of Asheville does not operate a standalone DPA program; it administers federal HOME consortium funds sub-granted to nonprofit providers such as MHO. Serves Buncombe (including Asheville), Henderson, Madison, and Haywood counties.
  • Up to $40,000 in the City of Asheville; up to $30,000 in Buncombe, Henderson, Madison and Haywood counties.
  • Deferred loan with no monthly payments.
  • Funds for down payment, closing costs, or increased purchasing power.

How much assistance does it provide?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) offers up to $40,000 in assistance.

  • Award tiers: City of Asheville: up to $40,000. Buncombe (outside Asheville), Henderson, Madison, Haywood: up to $30,000.
  • Buyer contribution: Must have $1,000 of own funds to place toward the purchase.
  • The program can be combined with A compatible first mortgage (USDA Guaranteed, NCHFA Home Advantage, USDA 502 Direct, conventional, or qualifying portfolio loan).
  • Amounts are the program's published maximums, not an offer — Mountain Housing Opportunities, Inc. determines any individual award.

Do you have to pay it back?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) is a shared-appreciation loan and is repaid under the terms set by Mountain Housing Opportunities, Inc..

  • Repayment is triggered by Due on earliest of: sale or transfer, default on the first mortgage, or property ceasing to be principal residence.
  • The assistance is recorded in Subordinate (second mortgage); MHO Deed of Trust subordinated to the first loan position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: At least 640, or acceptable alternative credit. Below 640 requires credit counseling with OnTrack first.
  • A completed homebuyer education course, through OnTrack Financial Education & Counseling Services (OnTrack WNC); HUD-approved Homebuyer Education Course required before close.
  • Residency: Must live or work in Buncombe, Henderson, Madison, or Haywood counties for at least 12 months before application.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Deferred, no-monthly-payment shared-appreciation (equity-sharing) second mortgage subordinate to the first. Due on earliest of: property sold/transferred, default on the senior first loan, or property ceasing to be principal residence. Repayment = greater of (original amount x Rate of Appreciation = Current Value / Purchase Value) or the original amount. MHO does not offer grants or forgivable loans. Minimum processing 21 days from receipt of all documents. Must not currently be a homeowner. Property inspection required; repairs may be required prior to closing. No construction loans. No manufactured housing.

The program excludes

  • Manufactured homes
  • 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?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) limits household income to 80% of the area median income, which varies by county and household size.

  • Households must earn less than 80% AMI. Max income (Buncombe/Henderson/Madison): 1p $57,350; 2p $65,550; 3p $73,750; 4p $81,900; 5p $88,500. Haywood lower: 1p $48,550; 4p $69,350.
  • 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?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) can be used for Single Family, Townhouse, Condo, and Modular.

  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Mountain Housing Opportunities Down Payment Assistance Program (DAP) serves buyers purchasing in Asheville, North Carolina.

How do you apply?

Applications for Mountain Housing Opportunities Down Payment Assistance Program (DAP) go through Mountain Housing Opportunities, Inc., which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through OnTrack Financial Education & Counseling Services (OnTrack WNC); HUD-approved Homebuyer Education Course required before close..

  2. Contact Mountain Housing Opportunities, Inc. to reserve funds

    Funds are reserved with the provider 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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