Homeownership

Education

Purchasing a home is a big investment. Before you buy a home, there are several things you need to learn. The first step in making a sound investment is to learn about the home buying process. The City is here to help.

The City requires that you attend a Homeownership Class where you will earn a certificate that allows you to participate in the Homebuyer Assistance Program. The City of Raleigh contracts with DHIC, Inc. to provide homeownership and credit counseling. For more information, contact DHIC at 919-832-4345.

 

 

Homebuyer

The Homebuyer Program is designed to assist first time homebuyers, or persons who have NOT owned a home within the last three years, with purchasing new or existing single-family homes, townhomes, and condominiums in Raleigh.  Eligible applicants must complete a homebuyer counseling course, provide one year of satisfactory credit prior to submitting an application for assistance. Applicants must be unable to qualify for the full amount to purchase a home due to lack of down payment, closing cost, or excessive debt to income ratio, which cannot exceed 43%. All applicants must occupy the property as their primary residence.

 

Homebuyer Program offers low-interest loans up to $20,000 to help with down payment and closing costs or a gap in financing. The principal balance is reduced on a set schedule and is forgiven if the owner continues to live in the residence for 20 years. Please note that conditions may apply.

Maximum Qualifying Income:

Family Size HUD Gross Income Limit
1 $47,250
2 $54,000
3 $60,750
4 $67,450
5 $72,850
6 $78,250
7 $83,650
8 $89,050

 

 

Resources for the Homebuying Process

HUD - Buying A Home 
Know Your Options - Buying Process 


Developer/Investor Programs

If your organization is interested in producing and maintaining quality affordable rental housing for low-income households, the City may be a partner to consider.

Please email Community Development or call 919-996-4330 to be added to the “Community Development News” email list that advertises Requests for Proposals or for more information about these programs.


Qualified Lenders

Are you a lender interested in participating in the Homebuyer Program as an approved lender? Contact Community Development or call 919-996-4330 for more information.


After Talking With A Lender

If, after talking with a mortgage lender, you learn that you do not qualify for the full mortgage then subsidy layering might help. Subsidy layering allows homebuyers to combine funding from the City of Raleigh and its partners to boost a buyer's available budget to qualify for the mortgage. If you are a lender interested in participating in the Homebuyer Program as an approved lender contact Community Development.

Need more help navigating the process of buying a home? We are here to help! Contact Community Development, 919-996-4330.

 

subsidy layering funds subject to change

 

Homeowner Repairs

The Community Development Division has two programs designed to help homeowners maintain their homes. These programs cover problems such as leaking roofs, faulty plumbing, electrical or heating systems, broken windows, flooring, and lead paint removal.

Homeowner Rehabilitation Program is for major repairs to three or more faulty systems such as roof, heating and cooling systems, electrical, plumbing or structural problems. These systems, left untended are a threat to the life, safety or health of the occupants. The property must be located in the city limits of Raleigh and must be the owner’s principal residence five years prior to application and upon completion of the repairs. Loan amounts cannot exceed $90,000.  

Income limits apply. Check the chart below to see if you qualify 80% or below of Area Median Income.

 

Family Size HUD Income Limit
1 $47,250
2 $54,000
3 $60,750
4 $67,450
5 $72,850
6 $78,250
7 $83,650
8 $89,050

 

For additional information on the Homeowner Rehabilitation Program, call 919-996-4330.

Limited Repair Program is for repairs to at least one or two faulty systems such as roof, heating and cooling systems, electrical, plumbing or structural problems. These systems, left untended are a threat to the life, safety or health of the occupants. The property must be located in the city limits of Raleigh and must be the owner’s principal residence upon completion of the repairs.

Loan amounts cannot exceed $7,500. Loans are discounted 20% every year and forgiven after five (5) years of owner occupancy.

Income limits apply. Check the chart below to see if you qualify 50% or below of Area Median Income.

 

Family Size HUD Income Limit
1 $29,550
2 $33,750
3 $37,950
4 $42,150
5 $45,550
6 $48,900
7 $52,300
8 $55,650

 

Other Conditions and Exceptions:

  • Credit - Existing mortgage on the home, if applicable, must be current and in good standing, as evidenced by a current mortgage statement.
  • Taxes and Insurance - Property taxes and insurance must be current prior to or at closing and must be maintained throughout the term of the loan.
  • Ownership - Applicant must own the property for a minimum of five years prior to application.
  • First Time Assistance - Preference is given to applicants who have not received a loan from the City of Raleigh in the past.
  • Applicants who have an outstanding loan do not qualify.

For additional information on the Limited Repair Program, call 919-996-4330.

 

North Carolina offers three property tax relief programs for the permanent residence of qualified homeowners. Visit the Wake County website for details.