Down Payment Assistance Program (Lyn-CAG)

Down Payment Assistance Program (Lyn-CAG) is a deferred second loan for homebuyers in Lynchburg, Virginia, administered by Lynchburg Community Action Group, Inc. (Lyn-CAG). The Lyn-CAG Down Payment Assistance Program offers first-time homebuyers gap financing to purchase a home in the City of Lynchburg. The assistance is a deferred loan secured by a lien against the property, intended to bridge the gap between a buyer's available funds and the cost to close. Applicants must be pre-approved by a lender and have household income at or below 80% of area median income. Assistance is funded through the City of Lynchburg's federal HOME Program and provided on a first-come, first-served basis. Flexible gap financing for first-time homebuyers. Deferred loan (no immediate repayment). Helps cover down payment and closing gap. Paired with HUD-certified homebuyer counseling. Funding comes from City of Lynchburg HOME Investment Partnerships Program (HUD) funds.

Down Payment Assistance Program (Lyn-CAG) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. The assistance is recorded in Second mortgage (secured by lien on the property) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Down Payment Assistance Program (Lyn-CAG) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Eligible if the applicant has not held primary ownership of a residence in the past three years. A homebuyer education course is required, through Lyn-CAG First Time Homebuyers Club (four-month course; two classes offered annually). Residency requirement: Home purchased must be located within the City of Lynchburg. Applicant must submit lender pre-approval; must purchase within the City of Lynchburg; household income at/below 80% AMI; completion of Lyn-CAG First Time Homebuyers counseling; property secured by lien as collateral. NOTE (gap-finder): max assistance amount, interest rate, forgiveness terms, credit score, DTI, and purchase-price cap not published; verify before publishing.

Down Payment Assistance Program (Lyn-CAG) limits household income to 80% of the area median income, which varies by county and household size. Family/household total income must not exceed 80% of the area median income (AMI) for the Lynchburg, VA area. 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.

Down Payment Assistance Program (Lyn-CAG) can be used for Single Family.

Down Payment Assistance Program (Lyn-CAG) serves homebuyers purchasing in Lynchburg, Virginia.

Applications for Down Payment Assistance Program (Lyn-CAG) go through Lynchburg Community Action Group, Inc. (Lyn-CAG), 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.