City Lender I - with Down Payment Assistance (City of Columbia)

City Lender I - with Down Payment Assistance (City of Columbia) is a forgivable loan for homebuyers in Columbia, South Carolina, administered by City of Columbia Community Development Department. The City of Columbia City Lender I program helps income-eligible buyers purchase a single-family home within the City of Columbia city limits. Financing is structured 80/20: a partner bank holds an 80% first mortgage while the City holds a 20% second mortgage at 4% for 30 years (blended 4% rate, no PMI). The buyer puts only $500 down regardless of sales price. Eligible borrowers may also receive up to $18,500 in down payment/closing cost assistance as a forgivable third mortgage forgiven over 5 years of continuous residence. Maximum purchase price is $225,000. $500 down payment regardless of sales price. Up to $18,500 DPA as a forgivable third mortgage (forgiven over 5 years). City 20% second mortgage at 4% for 30 years. No private mortgage insurance. Funding comes from HOME / CDBG federal funds administered by the City of Columbia Community Development Department.

City Lender I - with Down Payment Assistance (City of Columbia) offers up to $18,500 in assistance. The program asks homebuyers to contribute $500 down payment regardless of sales price. The program can be combined with City Lender I 80/20 first/second mortgage structure. Amounts are the program's published maximums, not an offer — City of Columbia Community Development Department determines any individual award.

City Lender I - with Down Payment Assistance (City of Columbia) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or loss of owner-occupancy before completing 5 years (forgivable third mortgage); City second mortgage repaid per its 30-year amortization or upon sale/transfer. The assistance is recorded in City assistance in second (20% City mortgage) and third (forgivable DPA) lien positions behind the partner bank first mortgage. position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City Lender I - with Down Payment Assistance (City of Columbia) is open to homebuyers who will live in the home as their primary residence. On credit, the program states: Credit-worthy buyers; HUD-certified credit counseling required before closing. No numeric minimum stated. A homebuyer education course is required, through Homeownership training by an approved organization/agency/community college or bank-supervised self-study; HUD-certified credit counseling. City of Columbia and Columbia Housing Authority also provide counseling. Forgivable third-mortgage DPA up to $18,500 forgiven over 5 years of continuous residence (subject to fund availability). City second mortgage is 20% of the loan at 4% for 30 years. No cash back. Contracts must require all loose/flaking/peeling paint repaired before closing and allow at least 45 days to closing. HUD-certified credit counseling and homeownership training required before closing. Applicant cannot own any other improved property at closing. Property must remain owner-occupied while the City holds a mortgage. Companion City Lender II program is temporarily on hold (Dec 2025).

City Lender I - with Down Payment Assistance (City of Columbia) limits household income to 80% of the area median income, which varies by county and household size. Owner-occupied loans only. Max income by household size (City Lender I, rev. 5/11/2026, Columbia SC HMFA): 1 $51,750; 2 $59,150; 3 $66,550; 4 $73,900; 5 $79,850; 6 $85,750. 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.

City Lender I - with Down Payment Assistance (City of Columbia) caps the purchase price at $225,000. Eligible property types include Single Family.

City Lender I - with Down Payment Assistance (City of Columbia) serves homebuyers purchasing in Columbia, South Carolina. Targeted neighborhoods: Single-family homes within the City of Columbia city limits.

Applications for City Lender I - with Down Payment Assistance (City of Columbia) go through City of Columbia Community Development Department, 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.