The City of Durham Down Payment Assistance (DPA) Program provides assistance to low-income persons and families for the purchase of a home, to be used as the primary residence, within the geographic boundary of the City of Durham.

The objective of the program is to:

  • provide knowledge of homeownership through homebuyer education and counseling,
  • ensure that the applicant(s) are ready to purchase a home and will be able to sustain it, and
  • assist with funding gaps by providing down payment and closing cost assistance.

Program Requirements:

Must be a first-time homebuyer and cannot have owned a home within the last three (3) years (Code of Federal Regulations 24 CFR 572.5).

May not own any other real property or have an ownership interest in any real estate at the time of closing (i.e. vacation homes, timeshares, and vacant land).

Total household income cannot exceed 80% of the area median income (AMI) for the Durham-Chapel Hill HUD Metro Fair Market Rent (FMR) Area as published annually by HUD for the HOME program. Current AMI limits can be found here. The limits for 2022 are shown below.

Liquid Assets are limited to $20,000.00 (this excludes pension(s), IRA, 401K, 529 plans, Burial Accounts, and cash-valued life insurance).

Only fixed rate mortgages are allowed.  Adjustable-rate mortgages are not allowed.  No owner financing will be allowed.

An applicant household should contain at least one individual who works a minimum of 32 hours per week. Exceptions will be made for applicants who meet one of the following criteria:

  • An individual that is disabled, yet has sufficient income to meet affordability guidelines;
  • An individual aged 65 or older;
  • An independent contractor or self-employed individual who has intermittent or seasonal work, that otherwise meets program guidelines;
  • An individual who is the primary caretaker of either 1) a child under the age of 12, or 2) a person who requires care throughout the day.

The applicant’s residency being in Durham or Durham County is not required at the time of application. The applicant must be a citizen or legal alien of the United States. A legal alien must provide:

  • Copy of a green card and social security card (Tax Identification Numbers are not accepted)
  • Evidence of citizenship

The proposed property must be within the City of Durham.

A preference will be given to residences in the City of Durham, documented by the applicant’s providing a current address located within the City of Durham.

A household which includes a full-time or part-time student at an institution of higher education, and in which the student’s parent(s) (or other legal guardians) are not students, is ineligible to participate in the program.

Other households with a full-time or part-time student at an institution of higher education may be eligible if ALL of the following statements are true for the student(s):

  • Under the age of 24;
  • Not a veteran of the United States military;
  • Not married (if married, the couple cannot live apart);
  • Does not have a dependent child who resides at least 50% of the time with the household member;
  • Is not a disabled person receiving Section 8 assistance as of November 30, 2005;
  • Is not otherwise individually eligible or has parents who (individually or jointly) are not income-eligible to receive Section 8 assistance, unless the student can demonstrate his or her independence from his/her parents as defined in the Federal Register (71 FR 18145).
Household Size 1 2 3 4 5 6 7
80% of AMI $53,500 $61,150 $68,800 $76,400 $82,550 $88,650 $94,750

* Income limits provided by HUD. Updated on April 22, 2022.

Frequently Asked Questions
Download Complete Program Guidelines
Become an approved lender

Before you begin your application, please note that you will need to provide the following information:

  • Lender pre-qualification letter
  • 3 months of paystubs for all wage earners in the household
  • 3 months of bank statements for all accounts
  • 3 years of taxes
  • Separation Agreement (if applicable)
  • Profit & Loss for the past 12 months for all self-employment income (if applicable)
  • Child Support Agreements (if applicable)
  • Disability or Social Security award letter from the current year (if applicable)
  • Employment Verification (if applicable)  Download a copy HERE.

We will not be able to review your application until this information is received. You can upload it as part of your application or email it to imercado@communityhometrust.org OR bring it by our office.   If the office is closed, please drop all documents in the mail slot in the door.

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Aplicación en Español

Questions? Please consult our FAQ page.

If you do not find the answer to your question, you can contact Community Home Trust’s Community Engagement and Outreach Coordinator Ivelisse Mercado at imercado@communityhometrust.org or 919.967.1545 ext. 302 (English and Spanish available). Translation services can be arranged for other languages.