Housing Connect GSO’s homebuyer down payment and closing cost assistance program (DPA) is a source of financial assistance for first-time homebuyers purchasing homes within Greensboro city limits.
DPA provides up to $10,000 in down payment assistance and closing costs as a five-year, forgivable loan at zero percent interest. If you remain in the home for five years, you do not have to repay the loan; the loan is forgiven at 20 percent per year for each full year you live in the home.
If you purchase a home in one of the City’s redevelopment areas, an additional $5,000 is available for down payment assistance and the first-time homebuyer requirement is waived. Loan repayment rules are the same as above. The maximum DPA cannot exceed 20 percent of the purchase price.
For full details and to apply to qualify for DPA, call Housing Consultants Group at 336-850-4043.
To qualify for DPA, you must:
- Be a first-time homebuyer or have not owned a home within the last three years. If the home you want to buy is located in one of the City’s redevelopment areas, there are no past home ownership requirements.
- Buy a new or existing house as a primary residence.
- Meet specific income limits.
- Make a minimum cash investment of $500.
- Receive no more than 20 percent of the purchase price in DPA.
- Complete a HUD-approved eight-hour, in-person homebuyer education course.
- Secure a fixed-rate, 15- or 30-year mortgage. (Note: ARM or balloon first mortgage loans cannot be used with this assistance. Non-conforming, high-interest rate and fee loans are not be accepted.)
If you become an eligible homebuyer and have selected a home, the following must be completed:
- A sales contract, which has to be signed by all parties
- The contract must be submitted to the City for review and approval
- The property must be inspected by a qualified inspector and all deficiencies identified in the inspector’s report must be repaired and/or corrected prior to closing.
The maximum income limits are:
- Up to 120 percent of the area’s median income for households with two or fewer people
- Up to 140 percent of the area’s median income for households with three or more people.
Eligible homebuyers may receive up to $10,000 for down payment and closing costs assistance in any area within Greensboro city limits.
Eligible homebuyers purchasing homes in one of the City’s approved redevelopment areas are eligible for a $5,000 bonus for down payment assistance and the first-time homebuyer requirement is waived. Properties must be within the boundaries of the following approved Redevelopment Areas:
- Eastside Park
- Gorrell Street
- Ole Asheboro
- Phillips Lombardy
- South Elm Street
- Willow Oaks