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.

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. Homebuyer 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.

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.

Mountain Housing Opportunities Down Payment Assistance Program (DAP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: At least 640, or acceptable alternative credit. Below 640 requires credit counseling with OnTrack first. A homebuyer education course is required, through OnTrack Financial Education & Counseling Services (OnTrack WNC); HUD-approved Homebuyer Education Course required before close. Residency requirement: Must live or work in Buncombe, Henderson, Madison, or Haywood counties for at least 12 months before application. 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.

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.

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.

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

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. 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.