The Greensboro Affordable Home Loan Initiative is a program that provides homebuyer counseling, education, and financial assistance to low and moderate income first-time Greensboro homebuyers. Funding is provided from Greensboro’s tax rate, which is dedicated annually to housing activities. GAHLI is administered by the Greensboro Housing Counseling Service (GHCS). The goal of GHCS is to serve approximately 40 households annually with home purchase support. Applicants are taken through a three-step home buying process. 

Step 1: Counseling

The first step in working with GAHLI is scheduling a pre-qualification interview with a GHCS housing counselor.

What you should bring to the interview:

• $25 non-refundable processing fee (paid upon acceptance into the program)
• Photo identification (such as a driver’s license)
• Proof of income and employment for the past three years (recent pay stub, federal tax returns along with W-2s for the last three years)
• Proof of monthly expenses (such as car payments, child support, alimony, credit card charges)
• Bank statements showing current checking and saving account balances.

During the one-hour counseling interview, program eligibility will be discussed, including lender income requirements and asset guidelines, proposed housing and debt limits, and credit-worthiness. You will be asked to sign an authorization for GHCS to obtain a credit report (at no additional charge). If you are not ready to purchase a home, the GHCS staff will work to determine what steps might be necessary to qualify you for assistance in the future. GHCS staff will counsel you on how to get help with such problems as delinquent credit, insufficient savings, excessive debt, or unstable employment history.

Step 2: Homebuyer Classes

If you are accepted into the program, you will be instructed to enroll in a homebuyer training session presented by Consumer Credit Counseling Services. To contact Consumer Credit, call 336-373-8882. Completion of this course is mandatory before you sign a purchase contract or receive GAHLI financial assistance.

The session covers the following topics:

Family budget management
Homeowner’s insurance
Fair housing
Working with a realtor
Home inspection
Mortgage financing
Closing on your home
Rights and responsibilities of home ownership
Basic home maintenance.

Once training has been completed, qualifying homebuyers are eligible to apply and receive a GAHLI second mortgage.

Step 3: Financial Assistance

For qualified homebuyers GAHLI provides a no-interest second mortgage. Repayment is deferred until the property is sold (properties must remain owner-occupied) or the first mortgage is paid. Funds may be used for downpayment, closing costs, and/or principal reduction, but GAHLI funds cannot be used to pay discount points, buydowns, or prepaid expenses*. In order to receive a second mortgage, participants in GAHLI must obtain a fixed-rate, 30-year first mortgage from participating FHA, VA, conventional (non-conforming, high interest rate and fee loans will not be accepted) or portfolio lenders. Lender- or seller-paid 2:1 buydowns will be accepted. GAHLI funds will not be approved in conjunction with ARM or balloon first mortgage financing. Participating lenders must receive an orientation session from GHCS and should assist the homebuyer in understanding GAHLI’s eligibility requirements.

The amount of GAHLI's financial assistance is determined by household size and income based upon the HUD figures for the Greensboro area.

The chart below shows the maximum assistance available. 

Household	Below 50%	Maximum	Below 65%	Maximum	Below 80%	Maximum
Size	Median	Assistance	Median	Assistance	Median	Assistance
1	$20,300	$4,000	$26,390	$3,000	$32,500	$2,000
2	$23,200	$5,000	$30,160	$4,000	$37,150	$3,000
3	$26,100	$5,000	$33,930	$4,000	$41,800	$3,000
4	$29,000	$5,000	$37,700	$4,000	$46,400	$3,000
5	$31,350	$5,500	$40,755	$4,500	$50,150	$3,500
6	$33,650	$5,500	$43,745	$4,500	$53,850	$3,500
7	$36,000	$5,500	$46,800	$4,500	$57,550	$3,500
8	$38,300	$5,500	$49,790	$4,500	$61,250	$3,500

In addition to any financial assistance provided by GAHLI, purchasers must provide, from their own funds, the minimum downpayment and prepaid costs described in the following chart. This homebuyer contribution is also based upon household income and family size.

Income Minimum Downpayment Requirement

Below 80% Median $1,250 + prepaids* at closing

Below 65% Median $1,000 + prepaids* at closing

Below 50% Median $ 750 + prepaids* at closing

*The seller or a third party, if allowed by the first mortgage lender and loan underwriting, can pay prepaids.

For purposes of calculating program eligibility and homebuyer subsidies, a maximum housing expense-to-income ratio in the range of 29-33 percent will be acceptable and a maximum debt-to-income ratio in the range of 38-41 percent will be allowed. In addition, homebuyers are required to reserve the amount of one house payment in their savings or checking account. The lender must verify reserves.

Eligible properties include new, existing, or rehabilitated single-family homes and condominiums. First time homebuyers may purchase new homes with a sales price up to $175,000 and existing homes with a sales price up to $160,000 and located within Greensboro’s city limits. Properties must meet housing code standards. A home inspection, ordered and paid for by GHCS, is made on all existing homes. Purchasers may also qualify for an Energy Efficiency Grant in the amount of $3,000 through the GAHLI program when purchasing a newly built or renovated home that is Energy Star qualified.

Eligibility Requirements

• Household income(s) must be at or below 80 percent of the area median income (see chart below)
• Cannot have owned property within the last three years
• Property must be located within the City limits of Greensboro
• Purchase price of property may not exceed $175,000 for new construction and $160,000 for existing
• Must complete homebuyer education
• Maximum housing expense ratio is 33 percent
• Maximum debt-to-income ratio is 41 percent

Household         Income  
    Size              Amount  

1	$32,500
2	$37,150
3	$41,800
4	$46,400
5	$50,150
6	$53,850
7	$57,550
8	$61,250

GAHLI Brochure (English & Spanish)

Greensboro Housing Counseling Service 336-373-4146 or e-mail