Homebuyer Assistance Program

What is Homebuyer Assistance Program?

Homebuyer Assistance Program is a forgivable loan for homebuyers in Martinsburg, West Virginia.

• City of Martinsburg HOME/CDBG-funded forgivable second mortgage with two tiers (80% AMI standard up to $14,999/5yr; 120% AMI workforce up to $30,000/10yr). First-time homebuyers only. Martinsburg city limits.
• City of Martinsburg Homebuyer Assistance Program provides a deferred 0% forgivable second mortgage to first-time homebuyers in the City of Martinsburg, WV. Two tiers: (1) standard 80% AMI tier - up to $14,999, 5-year forgiveness, income $41,650 (1p) - $78,500 (8p).
• and (2) workforce 120% AMI tier - up to $30,000 deferred forgivable second, 10-year forgiveness, income up to $121,650 (8p). HUD HOME / WV CDBG-funded. Forgiven pro-rata per year of continuous owner-occupancy. No monthly payment. Unforgiven balance due if borrower sells/refinances/vacates during affordability period. Purchase price ceiling $170,905 existing / $290,909 new construction (HUD HOME 95% area median for Berkeley County / Hagerstown-Martinsburg MSA). HUD-approved housing counseling required. Property must pass HQS inspection.
• Funding comes from Federal, HOME, and CDBG.

How much assistance does it provide?

Homebuyer Assistance Program offers up to $24,500 in assistance.

• Buyer contribution: Borrower required to contribute at least $1,000 of own funds toward down payment / closing costs.
• 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?

Homebuyer Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 0% deferred forgivable second mortgage. Forgiven pro-rata over 5 years (standard) or 10 years (workforce) of continuous owner-occupancy. Unforgiven balance due in full on sale, refinance, transfer, or non-owner-occupancy during affordability period. No monthly payment.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homebuyer Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Homebuyer Assistance Program limits household income to 120% of the area median income, which varies by county and household size.

• Two income tiers. Standard 80% AMI: $41,650 (1p) - $78,500 (8p). Workforce 120% AMI: up to $121,650 (8p). 2024-25 HUD limits for Hagerstown-Martinsburg MSA / Berkeley County, WV.
• 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?

Homebuyer Assistance Program caps the purchase price at $290,909.

• Eligible property types include Single-family detached, condominium, townhouse, PUD. Per first-mortgage overlays.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Homebuyer Assistance Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• 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?

Homebuyer Assistance Program serves buyers purchasing in Martinsburg, West Virginia.

How do you apply?

Applications for Homebuyer Assistance Program go through the administering agency, 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 HUD-approved housing counseling required. Local providers include Eastern Panhandle Regional Planning & Development Council and Eastern WV Community Action Agency..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to City of Martinsburg Department of Planning. First-come, first-served subject to annual allocation., 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.