What is the GAP & DAP?
The purpose of the GAP and Down-payment Assistance Program (DAP) is to provide affordable homes to low income families.
Who is eligible for assistance?
- A low income household that has not owned a home within the past 3 years;
- Displaced homemaker;
- Single parents;
- Families living in a mobile home, which currently is not on a permanent foundation;
- Owner-occupants of homes which are feasible for renovation
How do I apply for the Home-Buyer Assistance Program (HBP)?
- Contact Kingdom CDC at 910-436-2426 to sign up for the Home-buyer Workshop.
- Once you’ve completed the Workshop and obtained your certificate, you will need to contact a local lender to determine if you qualify for a mortgage
- The lender submits package to Cumberland County Community Development office
- Shop for your new home
Are there any other requirements?
- Home must be purchased in Cumberland County, outside the City limits of Fayetteville.
- Property must be used as principle residence.
- Property must be retained as principle residence by the owner for the period of affordability which is based upon the amount of HOME funds invested.
- If property is sold or refinanced during the period of affordability, CCCD will recapture loan proceeds to be used for another home buyer.
Types of Assistance:
DAP
- Deferred forgivable, loan is considered a second mortgage
- Maximum loan amount is $5,000; Funds used towards closing cost cannot be more than $2,500
- Interest rate: 4%
- Term: 10 years
- Payments and interest deferred for first 5 years
- Forgiveness begins in the 61st month & on each anniversary thereafter over remaining term
- Cannot refinance without approval of CCCD
GAP or Combination GAP and DAP
- Loan is secure with a first, second, (or third, if USDA, Rural Development) mortgage
- Maximum GAP loan is $20,000. Maximum combination GAP & DAP loan is &25,000
- Interest rate: 4%
- Term: 30 years
- Cannot refinance without approval of CCCD during period of affordability, which is 5, 10, or 15 years depending on the amount of HOME funds invested in the property.
Links to Other Community Resources