hey prescott.
See what you qualify for

CDBG Target Area Down-payment Assistance

Florence, South Carolina

Last verified
See what you qualify forOfficial program site →
Assistance

20%

Of the purchase price, as the program sets it

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 10 years

What is CDBG Target Area Down-payment Assistance?

CDBG Target Area Down-payment Assistance is a forgivable loan for homebuyers in Florence, South Carolina.

  • City of Florence Community Services CDBG-funded down-payment and closing-cost assistance for low- to moderate-income first-time homebuyers purchasing existing homes within the CDBG-designated target areas (North, Northwest, and East Florence). Assistance equals 20% of purchase price up to $20,000, structured as a 10-year deferred, forgivable second mortgage that requires the borrower to maintain the home as their primary residence for 10 years. Pro-rated repayment is owed if the home is sold or no longer owner-occupied within the 10-year affordability period.
  • The City of Florence will provide 20% of the home purchase price (up to $20,000 maximum) toward down-payment and closing-cost assistance for eligible buyers purchasing within the CDBG-designated target areas of North, Northwest, and East Florence. Assistance is structured as a 10-year deferred, forgivable second mortgage on the property. No monthly payments. Fully forgiven at the 10-year anniversary if owner-occupancy is maintained. CDBG-funded.
  • Funding comes from Community Development Block Grant (CDBG); HUD Federal entitlement allocation to City of Florence.

How much assistance does it provide?

CDBG Target Area Down-payment Assistance provides assistance worth 20% of the purchase price, as set by the program.

  • Buyer contribution: Buyer must provide at least $500 of their own funds toward the home purchase.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

CDBG Target Area Down-payment Assistance is forgiven after 10 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale of home, transfer of title, or failure to maintain the property as primary residence within the 10-year term triggers pro-rated repayment of the unforgiven balance to the City. After 10 years the lien is released.
  • The assistance is recorded in 2 position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CDBG Target Area Down-payment Assistance 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: No published minimum FICO; lender underwriting standards apply.
  • A completed homebuyer education course, through Buyer must complete a homebuyer education class. Greater Florence Habitat for Humanity also offers homebuyer education.
  • Residency: Property must be located in the CDBG target areas of North, Northwest, or East Florence.
  • Funds available on a first-come, first-served basis. $25 nonrefundable application fee. Buyer must complete homebuyer education class. Buyer must meet income eligibility (all income sources counted). Home must pass inspection by City and/or state prior to closing. Buyer must be approved by a bank or mortgage lender. Property must be located in the CDBG target areas of North, Northwest, or East Florence. Buyer must contribute at least $500 of own funds toward the home purchase. The City reserves the right to amend, alter, or change the program.

The program excludes

  • Manufactured homes
  • New construction
  • 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?

CDBG Target Area Down-payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

  • Household income must be within the City of Florence eligible range, approximately 80% AMI for Florence, SC: 1p $39,350; 2p $44,950; 3p $50,550; 4p $56,150; 5p $60,650; 6p $65,150; 7p $69,650; 8p $74,200. All income sources are identified and counted.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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?

CDBG Target Area Down-payment Assistance caps the purchase price as follows: Not separately published; assistance is capped at 20% of purchase price up to $20,000.

  • Eligible property types include Single-family residential dwelling intended for owner-occupancy in target area.
  • New construction is not eligible.
  • Manufactured homes are not eligible.

Where does it apply?

CDBG Target Area Down-payment Assistance serves buyers purchasing in Florence, South Carolina.

  • The program targets specific areas: CDBG-designated target areas of North Florence, Northwest Florence, and East Florence within the City of Florence corporate limits.

How do you apply?

Applications for CDBG Target Area Down-payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Buyer must complete a homebuyer education class. Greater Florence Habitat for Humanity also offers homebuyer education..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Applications submitted to City of Florence Community Services on a first-come, first-served basis; $25 nonrefundable application fee., 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.

Other programs in Florence, South Carolina

See every program in Florence, South Carolina →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs