We'll Make It Home Together

Mountain Housing Opportunities

Downpayment Assistance

Merritt Park

The Downpayment Assistance Program (DAP) offered through Mountain Housing Opportunities, Inc. (MHO) is a loan fund that is designed to fill the cash gap between the amount of your first mortgage and the total cost to purchase a home. While these loan funds can be used to cover a  downpayment, they can also be used to cover closing costs and/or be used to simply increase the purchase price of the house. The maximum loan amount is $10,000.

When MHO receives a loan application, three main components are reviewed for approval:

1. Are you eligible for the program?

2. Are you using a first mortgage loan product compatible with this program?

3. Does the property meet MHO DAP requirements?

Who is eligible?

  • Households earning 80% or below the Area Median Income (AMI)
  • Borrowers have one year of stable employment
  • Not currently a homeowner
  • Borrower must have $1,000 of their own funds to use towards the purchase
    80% of AMI
    Household Size
    Maximum Gross Annual Income
    1 person $31,400
    2 people $35,850
    3 people $40,350
    4 people $44,800
    5 people $48,400
    6 people $52,000

What first mortgage products are compatible with the program?

MHO routinely works with USDA Guaranteed, FHA, NCHFA HomeAdvantage, USDA 502 Direct, and conventional first mortgage loan products. Additionally, MHO will work with portfolio loans offered through a lender as long as it meets MHO guidelines.  It is important to let your first mortgage lender know that you intend to apply for MHO DAP funds so that they may determine loan compatibility.  Upon request, MHO can provide referrals to local lenders that routinely work with our Downpayment Assistance Program.

Does the property meet MHO program guidelines?

  • Property must be located in Buncombe, Henderson, Madison or Haywood Counties
  • Property must be either a stick-built home, modular home, townhouse or condominium. No manufactured housing
  • Borrower must submit a home inspection for MHO review. Any repairs that MHO requires must be completed prior to closing
  • No construction loans
  • Borrower must be primary resident in the home

*Depending on the funding source MHO uses to fund the loan, there may be extra property requirements.

Education Requirement

  • Program participants must complete a homebuyer education course offered by: OnTrack Financial Education & Counseling Services at 828-255-5166

Loan Terms

No monthly payments are required. The loan shall only be due on the earlier of the following dates:

  • The date the property is sold or transferred by the Borrower
  • The date a default occurs on the first mortgage
  • The date the property ceases to be the Borrower’s primary residence
  • At the end of Promissory Note term

Amount of repayment

The DAP loan offered through MHO contains an Equity Sharing mechanism whereby the MHO loan appreciates at the same rate as the property. For further information, and a detailed outline of the DAP repayment structure, please contact Kelly Nossiter, 828-254-4030, ext. 127, or kelly@mtnhousing.org.

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