Downpayment Assistance
 |
As seen on WLOS |
Mountain Housing Opportunities, Inc. administers
a Downpayment Assistance Program (DAP),
funded through federal, state and local sources, designed to assist low to moderate income households achieve homeownership. Loans
are available to cover closing costs and reduce housing payments for first time homebuyers.
Loan Terms
- No monthly principal or interest payments are required. The loan shall only be due and payable on the earlier of the following dates:
- The date the property is sold or transferred by the borrower,
- The date a default occurs under the terms of any loan secured by a lien to which the Deed of Trust is subordinated (“First Loan”);
- The date the property ceases to be the principal residence of the Borrower;
- 30 years from the date of purchase.
Loan Interest
In lieu of simple or amortized interest, MHO’s Downpayment Assistance Program (DAP) offers a 30 year deferred (no monthly payment) loan that contains an Equity Sharing mechanism. Upon the due date of the loan, the interest rate on the DAP loan is equal to the rate of appreciation that the property has seen since purchased.
Eligibility Requirements - Borrower must be:
2009 Income Limits |
|
80% of AMI |
|
Household Size |
Maximum Income |
1 person |
$31,200 |
2 person |
$35,650 |
3 person |
$40,100 |
4 person |
$44,550 |
5 person |
$48,100 |
6 person |
$51,700 |
- Households earning 80% or below Area Median Income (AMI)
- Have acceptable credit
- One year of stable employment
- Not currently a homeowner
- Must be eligible for first mortgage
product
that meets MHO guidelines
Education Requirements
In addition, the borrower must complete a homebuyer education course offered by On Track Financial Services (828-255-5166).
Property Requirements
- Property must be in Buncombe County
- Purchase price cannot exceed $200,160
- No construction loans or buy downs
- Property must be either a stick-built OR
- Off-frame modular home. On-frame modulars and manufactured homes are ineligible property types
- Some programs require that the property has not been tenant-occupied
- Must pass a lead-based paint inspection if built before 1978
- Borrower must be primary resident
Program Limits
Household Size |
Maximum Income (80% of AMI) |
Maximum Purchase Price of Home |
Maximum DAP Loan Amount |
1 |
31,200 |
130,000 |
15,000 |
2 |
35,650 |
145,000 |
20,000 |
3 |
40,100 |
160,000 |
25,000 |
4 |
44,550 |
175,000 |
25,000 |
5 |
48,100 |
175,000 |
25,000 |
6 |
51,700 |
175,000 |
25,000 |
Financing Example
| Purchase Price | $150,000 |
| Closing Costs | + 3,000 |
| Buyer Down Payment | - 5,000 |
| MHO DAP Loan | - 20,000 |
| Mortgage needed from private lender | $128,000 |
