Charlotte offers $30,000 in forgivable loans for home buyers

The city of Charlotte is expanding an aid program to help first-time buyers find homes in an increasingly difficult market.

House Charlotte, a city program tailored to help low-to-middle-income families through the process of buying a home, announced this week it will offer up to $30,000 in loan options to buyers making 80% or below the area median income. In Charlotte, 80% of the area median income is $75,350 for a four-person family, according to the House Charlotte website. Different amounts of assistance are available for families making up to 110% of the area median income.

The new maximum of $30,000 in loans is an increase from the previous cap of $17,000. To further help prospective buyers succeed in their search, the program’s maximum purchase price on existing properties will increase from $285,000 to $300,000.

Warren Wooten, city of Charlotte assistant director of affordable housing, said the program changes are an acknowledgment from the city of how difficult it is for first-time buyers to find a home in the Charlotte area.

“What you’re seeing is the city responding to the economy. Housing prices have gone up dramatically over the last several years, and so home buyers, especially lower-income home buyers, need more assistance to get into homeownership,” Wooten said. “The sales maxes allow buyers to go after more homes with our assistance. The more homeownership assistance we offer, the more flexibility that they have, and the better off they’re going to be when they get into that home.”

The loans available through House Charlotte have 0% interest and are fully deferred if buyers still own the home after 15 years for those making 110% of the area median income or after 30 years for buyers making 80%.

Wooten said borrowers have flexibility about how they choose to use the program’s money. They can use the loans to directly pay their home’s mortgage, pay the interest of the mortgage or pay for closing costs once a home is found, which can include fees such as inspections and homeowner’s insurance.

Julie Porter, president of DreamKey Partners said the change to the program is the most significant she’s seen during the partnership. DreamKey is a nonprofit that administers House Charlotte.

“(The city does) adjust the program from time to time, but they’ve never had this kind of dramatic adjustment to the amount of down payment assistance that a family might qualify for,” Porter said. “I do encourage people, even if their credit isn’t great, to take advantage. We will work through that, sometimes we’ve worked with families for two or three years to make sure that at the end of their path, they’re able to purchase a home.”

Porter said buyers looking to use the program must complete a homebuyer education program and housing counseling, which DreamKey offers. Dreamkey will provide buyers with a staff member to help guide them through the process to the end, she said.

“I just want to make sure people give it a shot … when rent is sitting at $1,500 or $1,600 for a two-bedroom apartment, we can start getting them into a home for less than that,” Porter said. “Right now, it may be a way not only to build generational wealth for the long term, but to keep that housing payment stable.”

For information on how to apply, how much assistance you may be eligible for and more details, visit the House Charlotte website.

This story was originally published June 30, 2022 10:55 AM.