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Mountain Housing Opportunities

Downpayment Assistance

WLOS

As seen on WLOS
MHO's Downpayment
Assistance Program

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

Download Application


Mountain Housing Opportunities | 64 Clingman Avenue, Suite 101 | Asheville, NC 28801
Email: info@mtnhousing.org | Phone: 828-254-4030 | Fax: 828-254-0120
 
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