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Down Payment Assistance Program (Lyn-CAG)

Lynchburg Community Action Group, Inc. (Lyn-CAG) · Lynchburg, Virginia

Last verified
See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is 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.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from City of Lynchburg HOME Investment Partnerships Program (HUD) funds.

Do you have to pay it back?

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.

Who qualifies?

Down Payment Assistance Program (Lyn-CAG) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Eligible if the applicant has not held primary ownership of a residence in the past three years.
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Lyn-CAG First Time Homebuyers Club (four-month course; two classes offered annually)
  • Residency: 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.

The program excludes

  • 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?

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.

What kind of home can it be used for?

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

Where does it apply?

Down Payment Assistance Program (Lyn-CAG) is a federal program, so it is not limited to Virginia.

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program, through Lyn-CAG First Time Homebuyers Club (four-month course; two classes offered annually).

  2. Contact Lynchburg Community Action Group, Inc. (Lyn-CAG) to reserve funds

    Funds are reserved with the provider 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.

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