Wake County program offers forgivable loan to help first-time homebuyers and avoid foreclosures

RALEIGH, NC (WTVD) – When homeownership is simply out of reach, Wake County offers a way to make it happen.

Not only the new Affordable Home Ownership Program aimed at helping first-time homebuyers amid a hot housing market, but it’s also being put in place to help families – possibly affected by COVID-19 – stay in their homes.

DHIC Inc. is running the program and is now accepting applications. The company has $ 475,000 to provide forgivable loans to qualifying homebuyers or help with foreclosure prevention.

First-time homebuyers and homeowners who are buying a home or already living outside of Raleigh and Cary and earning up to 80% of the area’s median income can apply for loans of up to 20,000. $.

Every five years, $ 5,000 will give up on the loan, which means that if a family stays at home for 20 years, they won’t have to pay back anything.

“In Wake County, we are very fortunate to be a great place to live and that obviously has benefits, but also challenges,” said Alicia Arnold, Fair Housing and Community Development Division of County of Wake. Wake. Dir.

Arnold said the idea for the program came from 2017 Wake County Affordable Housing Planot; the county started out by making improvements to the rental market and is now focused on helping families build generational wealth through home ownership, especially low to moderate income households struggling in a market where demand far exceeds supply.

“We understand that we need to create more housing and when the housing stock does not keep up with the growth that we are seeing, both of the people coming back to this area and of the people doing it alone, we know that the people low income are the ones who lose in this hot market, ”said Arnold.

Wake County, which matched a $ 250,000 federal grant for community development, hopes to help 25 families a year and is already looking for ways to increase funding for its Affordable Home Ownership Program.

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