Town of Chapel Hill Employee Housing Program - Homebuyer Assistance

What is Town of Chapel Hill Employee Housing Program - Homebuyer Assistance?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance is a forgivable loan for homebuyers in Chapel Hill, North Carolina, administered by Town of Chapel Hill - Affordable Housing and Community Connections.

• Down payment and/or closing cost assistance for permanent Town of Chapel Hill employees in good standing purchasing a primary residence within 5 miles of the Town's Corporate Limits. A one-time award paid to the closing attorney as a 0% loan forgiven 20% per year over 5 years of continued Town employment.
• Up to $12,500 inside Town Corporate Limits.
• Up to $7,500 within 5-mile radius.
• 0% interest.
• Forgiven 20% per year over 5 years.
• Funding comes from Town of Chapel Hill (municipal funds).

How much assistance does it provide?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance offers between $7,500 and $12,500 in assistance.

• Award tiers: Inside Town Corporate Limits: up to $12,500 and Within 5-mile radius: up to $7,500.
• Amounts are the program's published maximums, not an offer — Town of Chapel Hill - Affordable Housing and Community Connections determines any individual award.

Do you have to pay it back?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Repay unforgiven balance at 20% per year under 5 years if the employee leaves Town employment or moves within 5 years of purchase.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance is open to buyers who will live in the home as their primary residence.

What are the income limits?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance limits household income to 115% of the area median income, which varies by county and household size.

• Household income at/below 115% AMI. Per Oct 2025 overview: 1 $93,150; 2 $106,375; 3 $119,715; 4 $132,940; 5 $143,635.
• 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?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance can be used for Single Family.

Is there eligibility for specific groups?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance is limited to employees of Town of Chapel Hill (permanent employees in good standing only).

• 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?

Town of Chapel Hill Employee Housing Program - Homebuyer Assistance serves buyers purchasing in Chapel Hill, North Carolina.

How do you apply?

Applications for Town of Chapel Hill Employee Housing Program - Homebuyer Assistance go through Town of Chapel Hill - Affordable Housing and Community Connections, 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 Approved homebuyer and/or budget counseling program (not named)..

2. 2

   Contact Town of Chapel Hill - Affordable Housing and Community Connections 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.