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Get Matched Free →Durham Down Payment Assistance Program
How much assistance
Up to $80,000 (Forgivable Loan)
Zero-interest, 15-year forgivable loan with no monthly payment. The loan is fully forgiven after 15 years if you remain in the home as your primary residence. If you sell, refinance, or move before 15 years, repayment may be required.
Eligibility
- Income limits: Household income at or below 80% of the Area Median Income (AMI) for Durham County. 1-person: $64,750; 2-person: $74,000; 3-person: $83,250; 4-person: $92,500; 5-person: $99,900 (2025 HUD guidelines).
- First-time buyer required: Yes — Must not have owned a home within the last three years.
- Geographic restrictions: Home must be located within Durham city limits and serve as the buyer's primary residence.
- Homebuyer education required: Yes
How to Apply for Durham Down Payment Assistance Program
Step 1: Confirm you meet eligibility requirements. Your household income must be at or below 80% of the Area Median Income, you must not have owned a home in the past 3 years, and you must plan to use the home as your primary residence within Durham city limits.
Step 2: Complete a HUD-approved homebuyer education course. DHIC offers the Bringing Home the Dream workshop, an 8-hour course covering budgeting, financing, and the homebuying process. Contact DHIC at (919) 832-4345. The Durham Housing Authority also offers homeownership counseling.
Step 3: Contact one of the City of Durham approved participating DPA lenders. The city maintains an updated list of approved lenders on its website at durhamnc.gov/4609. These lenders have completed compliance training with the city's Housing and Neighborhood Services team.
Step 4: Get pre-approved through your approved lender. The lender will assess your income, creditworthiness, and eligibility for the DPA program alongside your mortgage application.
Step 5: Find a home within Durham city limits that will serve as your primary residence.
Step 6: Your approved lender will submit the DPA application on your behalf through the Neighborly platform at the time of your loan application. The lender handles the DPA request as part of the mortgage process.
Notes
Updated March 2026. Added specific AMI dollar figures from 2025 HUD income limits. Funded with $5.7 million from the City of Durham Community Development Department. Applications are processed through the Neighborly software platform by approved participating lenders. The list of approved lenders is maintained on the city's website and was last updated February 18, 2026. This is one of the largest city-level DPA programs in North Carolina by dollar amount. Homebuyer education is required; Reinvestment Partners and Durham Housing Authority both offer HUD-approved courses in the Durham area.