Salisbury Community Development Corporation Homeownership Down Payment Assistance Program

What is Salisbury Community Development Corporation Homeownership Down Payment Assistance Program?

Salisbury Community Development Corporation Homeownership Down Payment Assistance Program is a deferred second loan for homebuyers in Salisbury, North Carolina, administered by Salisbury Community Development Corporation (Salisbury CDC).

• Salisbury CDC, partnering with the City of Salisbury (CDBG/HOME funds), provides deferred forgivable-loan down payment assistance to first-time homebuyers purchasing within Salisbury city limits. The 0% interest deferred loan is forgiven incrementally over its term while the home remains the buyer's primary residence; a homebuyer education course via the R.E.A.C.H. program is required.
• 0% interest deferred loan.
• Incremental forgiveness over term.
• Homebuyer education and counseling.
• Federally funded (HOME/CDBG).
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from City of Salisbury CDBG and HOME (HUD); North Carolina Housing Finance Agency.

Do you have to pay it back?

Salisbury Community Development Corporation Homeownership Down Payment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale or transfer before end of forgiveness term; property ceasing to be primary residence.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Salisbury Community Development Corporation Homeownership Down Payment 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?

Salisbury Community Development Corporation Homeownership Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Total household income at or below 80% AMI (LMI threshold); current HUD limits for Rowan County apply (specific dollar table not published online).
• 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?

Salisbury Community Development Corporation Homeownership Down Payment Assistance Program can be used for Single Family.

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

Where does it apply?

Salisbury Community Development Corporation Homeownership Down Payment Assistance Program is a federal program, so it is not limited to North Carolina.

• The program targets specific areas: Salisbury city limits.

How do you apply?

Applications for Salisbury Community Development Corporation Homeownership Down Payment Assistance Program go through Salisbury Community Development Corporation (Salisbury CDC), 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 Prosperity Unlimited (R.E.A.C.H. Program); Salisbury CDC.

2. 2

   Contact Salisbury Community Development Corporation (Salisbury CDC) to reserve funds

   Funds are reserved with the provider 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.