The Department of Community Development administers affordable housing programs on behalf of the City of Durham. These programs include subordinate lending for many types of residential properties including attached and detached single-family homes and condominium townhomes. The department's homeownership purchase assistance programs provide funding for second mortgage loans to households for the purchase of a home.
The sources of funding are housing bond program income, CDBG, HOME Investment Partnerships and American Dream Downpayment Initiative (ADDI) funds. All loans have low interest rates and require immediate amortized repayment.
The City of Durham loans are underwritten to assure full repayment of funds utilizing program guidelines and underwriting criteria. The City staff and its originating and underwriting agent will closely review all applications for compliance, eligibility, and loan approval.
For information on homeownership programs, call the Department of Community Development at (919) 560-4570.
The City of Durham Department of Community Development is committed to effective and timely processing of loan applications. The following table outlines the activity, timeline, and contact source necessary for loan closings.
| Activity | Timelines | Contact Source |
|---|---|---|
| Pre-application Intake & Transmittal of Pre-Application to SunTrust (If all documentation is correct) | 7 Business Days | Department of Community Development (919) 560-4570 & SunTrust Agent (919) 381-3633 |
| Pre-Approval or Decline Pre-Application Process | 10 Business Days | Department of Community Development (919) 560-4570 |
| Homeownership Workshops | Monthly Sessions | Counseling Agency |
| Homeownership Counseling One-on-One sessions | 2 One-hour Sessions | Counseling Agency |
| Minimum Housing Code Inspection | 3 Business Days | Department of Community Development (919) 560-1647 |
| Review of First Mortgage Package by Originating/Underwriting Agent | 5 Business Days ( Based on complete Package) | Originating and Underwriting Agency |
| Request for Funds | 12 Business Days (Allows sufficient mail delivery) | Department of Community Development (919) 560-4570 |
Lender Referral List 2009 - 2010 - Realtor Referral List 2009 - 2010
Information and Forms for Lenders and Realtors
Durham Affordable Housing Coalition Homebuyer Workshops
The Homeownership Center Workshop Schedule
City of Durham First Time Home Buyer Programs require that participants' income fall at or below 80 percent of the Area Median Income, which is established by HUD each year. Income limits are determined by family size. Please see below.
| Family Size | Maximum Income (80 %) |
|---|---|
| 1 | $38,000 |
| 2 | $43,400 |
| 3 | $48,850 |
| 4 | $54,250 |
| 5 | $58,600 |
| 6 | $62,950 |
| 7 | $67,300 |
| 8 | $71,650 |
The homeownership purchase assistance programs are designed by the City of Durham, Department of Community Development to assist prospective homebuyers in purchasing their primary residence and becoming first time homebuyers.
First Time Home Buyer Guidelines and Application
First Time Home Buyer Section 8 Pre-Application
The Individual Development Accounts (IDA) Program is a savings program in which the City provides matching grant funds toward the purchase of a home. The IDA Program teaches a pattern of savings to enable low wealth households to reach the goal of homeownership by saving for a down payment on a new home.
If you wish to participate in this program, call the Department of Community Development, Homeownership Program at (919) 560-4570.
To encourage investment in targeted neighborhoods, the City of Durham created a Neighborhood Incentive Program (NIP) Program. This program complements the City’s efforts to revitalize its inner City neighborhoods not only by providing a financial incentive, but also by eliminating a major obstacle to the purchase of older homes. HUD regulations require that when its funds are used for the purchase of a home built prior to 1978, the home must be tested for lead-based paint and any hazards abated. Because abating lead hazards seldom results in an equal increment in the home’s value compared to the abatement costs, the NIP program incorporates a limited grant for lead abatement.
Under the NIP program, income eligible households will be able to purchase a home built before 1978 located in a central city neighborhood and receive a second mortgage loan of up to $30,000 and a grant for lead hazard abatement of up to $16,000. All required lead hazard abatement will be supervised by the department’s lead specialists.
If the home is located in a central city neighborhood and was built after 1978, the amount of the second mortgage loan will be up to $25,000.
Neighborhood Incentive Program Guidelines and Application