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FIRST TIME HOMEBUYER
PROGRAM HIGHLIGHTS &
APPLICATION
City of Durham
Department of Community Development
Revised February 2012
Mailing Address:
P.O. Box 25494
Durham, NC 27701
919-560-4570
Homeownership Hotline
919-560-4000
Web Address:
http://durhamnc.gov/ich/cb/cdd/Pages/Homeownership.aspx
Notice Under the Americans with Disabilities Act – A person with a disability may
receive an auxiliary aid or service to effectively participate in city government
activities by contacting the ADA Coordinator, voice 919-560-4197, fax 919-560-4196,
TTY 919-560-1200, or ADA@durhamnc.gov, as soon as possible but no later than 48
hours before the event or deadline date.
City of Durham
Highlights of Homeownership
Purchase Programs
CDBG/HOME/Bond Funds
The homeownership purchase assistance programs are designed by the City of Durham,
Department of Community Development to assist prospective homebuyers in purchasing their
primary residence and becoming first time homebuyers. The following information depicts
highlights of the City of Durham Reference Guide:
Applicants must “read”, “sign” and “date” the Highlights of the Homeownership Purchase
Programs before submission to the City of Durham.
Applicant must submit the original Pre-Application for homeownership. Copies are not
acceptable.
Total household income cannot exceed 80% of the median family income for the
Durham MSA as published by HUD.
Must be a first time homebuyer (have not owned a home in the past 3 years).
Maximum City Second Mortgage assistance is up to $20,000 or 20%, whichever is less.
Interest rate on all first time homebuyer second mortgage loans is 2%.
Must contribute at least $500.
Must attend a Homeownership Education Workshop that is approved by the City of
Durham, Department of Community Development and obtain a certificate of completion.
Sworn Police Officers/Sheriffs must complete all phases of training prior to loan
closing.
Property must meet minimum housing code and HUD Housing Quality Standards.
The borrower is responsible for securing first mortgage financing and any purchase
expense not provided by the City.
Sales price cannot exceed 95% of area median purchase price. Limits can be found at:
http://www.hud.gov/offices/cpd/affordablehousing/library/homefires/index.cfm#2009
or in the Department of Community Development
Applicants must be a U.S. Citizen or a Legal Alien of the United States.
Applicants must receive one-on-one housing counseling with a City selected housing
counseling agency prior to loan closing and obtain a certificate of completion.
Subordination Agreements for residential mortgage loans will only be executed by the
City Manager for the purpose of lowering the first mortgage interest rates.
During the affordability period, in the event that the property is sold or title is transferred
by conveyance, will, operation of law or otherwise, voluntarily or involuntarily, when the
first mortgage is refinanced, or no longer the principal residence of the homebuyer, the
City of Durham shall recapture all or portion of the subsidy to the homebuyer to include
interest.
The period of affordability for First Time Homebuyer 2nd mortgages up to $20,000, is ten
(10) years and the term of the loan is 30 years.
The use of HOME funds requires that a period of affordability be determined as it relates to the
resale of the property. The affordability period is based on the amount of HOME funds
provided.
HOME Funds Provided Affordability Period
<$15,000 5 years
$15,000 - $40,000 10 years
>$40,000 15 years
Household income will not be re-verified at the time of closing unless more than six
months has elapsed since income eligibility was determined.
Most recent check stubs for applicant and co-applicant must be attached to the
completed application when submitted for processing.
If applicant is 18 years old and unemployed, please request an Income Affidavit verifying
no income for that person.
Must submit with the application the source of income documentation such as:
Paycheck stub, social security, pension, supplemental security income (SSI), and child
support. If you receive multiple sources of income, please submit all sources. If you are
self employed, you must submit two (2) years of tax returns.
If there is anyone in the applicant’s household 18 years old or older and employed,
verification of income must be provided. Please attach to the application the most recent
check stubs. If the person is a student, verification of this information must be provided.
Individuals receiving social security, disability, retirement or other sources of income are
required to provide proof of this income at the time of application.
Applicants must meet all the requirements stated in the City of Durham’s Reference
Guide as amended and updated from time to time.
Eligible Property:
1. Applicants cannot purchase manufactured housing (a mobile home or trailer);
2. Applicants can purchase a duplex, triplex or quadraplex in a dwelling where part of the
property will be owner occupied and rental;
3. The property must be in the City or County of Durham;
4. The City will not finance a construction loan. The property must be an existing home;
and;
5. The City will not fund properties built prior to 1978 under the First-Time Home Buyer’s
program unless lead hazards have been abated.
City of Durham
Homeownership Purchase Programs
Program Mortgage Subsidy Amount Interest Required Residency
Type Up to Rate Contribution Requirement
First Time
Homebuyer 2nd $20,000 2% $500 No
Individual
Development Grant $7,500 N/A N/A No
Account (IDA)
Section 8 2nd $20,000 2% $500 No
Homeownership
Eastway
Village 2nd $25,000 2% $500 no
I have read and understand the criteria of the City of Durham’s Homeownership
Purchase Programs. Please submit this signed document with your application
to City of Durham, Department of Community Development at 807 East Main
Street, Building 2, 2nd Floor in Durham, or mail to P.O. Box 25494, Durham, NC
27701
________________________ _______________
Borrower Signature Date
________________________ _______________
C0-Borrower Signature Date
CITY OF DURHAM
First-Time Home Buyer Program
(CDBG, HOME OR BOND FUNDED)
PRE-APPLICATION
Revised February 2012
Date:______________ Lender:______________________________________ Phone#: __________________________
BORROWER INFORMATION
Borrower: _____________________________
Last First Middle
Co-Borrower: ____________________________
Last First Middle
Current Address: , ____________________________________, NC_______________
Phone Number: Home Work______________________________ Cell ____________________________________
Number of years/months at Current Address: Yrs. Mo. Current Monthly Rent $_______________________
Are you an U.S. Citizen? or a legal alien? Race: Sex: _________________________
Marital Status: Single Married Legally Separated
Who is the Head of Household?: Family Size:________________________________
HOUSEHOLD INFORMATION: List all persons in the household
NAME DOB (MM/DD/YY) RELATIONSHIP SOCIAL SECURITY #
Applicant
EMPLOYMENT INFORMATION
LIST A MINIMUM OF TWO (2) YEARS OF FULL TIME EMPLOYMENT HISTORY
Borrower’s Current Employer:_________________________________________________________________________________________
Address: ____________________________________________________ Phone: ____________________________________________
Gross Monthly Wages/Salary: Length of Employment: _______Yrs _______Mo. Full Time Part Time
Co-Borrower’s Current Employer:______________________________________________________________________________________
Address: ____________________________________________________ Phone: ___________________________________________
Gross Monthly Wages/Salary: Length of Employment: _______Yrs _______Mo. Full Time Part Time
Borrower’s Previous Employer:_________________________________________________________________________________________
Address: ____________________________________________________ Phone: ______________________________________________
Gross Monthly Wages/Salary: Length of Employment: _______Yrs _______Mo. Full Time Part Time
Co-Borrower’s Previous Employer: ____________________________________________________________________________________
Address: ____________________________________________________ Phone: ______________________________________________
Gross Monthly Wages/Salary: Length of Employment: _______Yrs _______Mo. Full Time Part Time
ATTACH A COPY OF APPLICANT’S AND/OR CO-APPLICANT’S LAST THIRTY (30) DAYS OF PAY STUB(S)
AND DOCUMENTATION OF ALL OTHER INCOME TO THE APPLICATION
INCOME and FIXED EXPENSES INFORMATION
Other Monthly Income: Monthly Fixed Expenses:
Social Security $ _ Car Payment $ __________
Public Assistance $ Installment Loans $ __________
Child Support/Alimony $ Child Support $ __________
Interest/Dividends $ Alimony $ __________
Other: $ Any Other Debts $ __________
Gross monthly wages/salary
from above: $
Total Monthly Income: $ Total Monthly Expenses: $ __________
LIQUID ASSET INFORMATION: Checking & Savings accounts, stocks, bonds, etc.
CHECKING/SAVINGS AMOUNT BANK ACCOUNT #
TOTAL LIQUID ASSET(S):$ _________________________________________________________________________________ ______
INCOME LIMITS
Family
Size 1 2 3 4 5 6 7 8
80% 38,500 44,000 49,500 54,950 59,350 63,750 68,150 72,550
FIRST-TIME HOME BUYER PROGRAM
20% SECOND MORTGAGE PROGRAM
Maximum Sales Price cannot exceed 95% of FHA area median purchase price
nd
Maximum City 2 Mortgage: $20,000 or 20% of the sales price of the house
Maximum Income: 80% of the median income
Interest Rate: 2% fixed
Term 30 years, Non-deferred
Underwriting Ratios: 20-35 and 43
PROGRAM HIGHLIGHTS
You may not qualify for this program if you have substantial late payments, past due accounts, or judgments/collections on any credit in the last twelve (12)
months. Must have a good rental history, and/or good utility credit history. Liquid assets cannot exceed $20,000. Outstanding medical collections totaling up
to $1,500 are forgiven, any medical judgments, and any other outstanding past due accounts, collections, or judgments will disqualify you from the Program.
Outstanding medical collections greater than $1,500 must be paid prior to loan closing. Applicant(s) must be a first time home buyer (have not owned home
within the past 3 years). Participants must complete an eight hour homeownership education workshop and a one hour individual counseling session.
The home to be purchased can be within Durham City and County limits. The house to be purchased must meet the Department of Community Development
Housing Quality Standards and the City of Durham Minimum Housing Code and have a certificate of compliance at the time of closing. Applicant(s) do not
have to be a resident of Durham at the time of application. Applicant(s) must be a citizen or legal alien of the United States, and meet all requirements stated
in the City’s Reference Guide.
The City of Durham’s First-Time Home Buyer Program is a subsidy program designed to assist very low to moderate income individuals/families in purchasing
their primary residence and becoming homeowners. This program is funded with federal HOME, CDBG, or Bond funds. Under this program the borrower will
be responsible for securing a first mortgage to finance any purchase expense not provided by the City. The borrower is required to contribute a minimum of
$500 to the purchase of the property and to pay all closing costs that are not financed. The First Time Homebuyer Program loans have a 2% interest rate.
These loans must be repaid over a 30-year term.
Subordination Agreements for the City of Durham’s residential mortgage loans will only be executed by the City Manager for the purpose of
lowering interest rates.
CREDIT REPORT AND COUNSELING INFORMATION
Participants in these Programs must meet minimum credit requirements. A credit report is necessary in order for the City of Durham to assist you. The three
nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order
your free annual report. To order, visit www.annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form which can be
found at ftc.gov/credit and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
I/We, the undersigned, do hereby certify that all information given in this application is true and accurate to the best of my/our knowledge. I/We understand
that the City of Durham and/or its agent may rely on the accuracy thereof in acting on this application and that any fraudulent information may result in
disqualification from the program. I/We give my/our permission for the City of Durham and/or its agent to review my/our credit report(s) and make inquiries as
to my/our credit, income, assets, and employment. I/We also give my/our permission for the City of Durham and/or its agent to share my application
information with City selected counseling agencies in order for me/us to receive housing counseling.
_________________________________
Signature of Borrower Signature of Co-Borrower
_________
Date Date
THE CITY OF DURHAM DEPARTMENT OF COMMUNITY DEVELOPMENT IS AN EQUAL OPPORTUNITY LENDER
Please submit your application and the signed Highlights of Homeownership to the City of Durham, Department of Community Development
located at 807 East Main Street, Building 2, 2nd Floor in Durham, or mail to P.O. Box 25494, Durham, NC 27701
