DownPaymentMap

Durham DPA: City Forgivable Down Payment Loan

City of Durham Down Payment Assistance (DPA) ProgramAdministered by City of Durham Housing & Neighborhood Services DepartmentForgivable loanNorth Carolina

Reviewed by Tyler Thompson, holds real estate licenses in North Carolina and South Carolina

Published · Updated · Facts verified against the official source

What Is the City of Durham Down Payment Assistance (DPA) Program?

The City of Durham Down Payment Assistance (DPA) Program is a North Carolina homebuyer program that gives down payment assistance, including help with closing costs, as a forgivable loan of up to 25% of the purchase price, not to exceed $80,000. It is run by the City of Durham Housing & Neighborhood Services Department and applies to homes inside the Durham city limits. It works with 30-year fixed-rate conventional, FHA and VA mortgages, and you apply through one of the City's approved participating lenders.

The loan carries no interest and is forgiven over 15 years while you live in the home.

City of Durham Down Payment Assistance (DPA) Program at a glance

Maximum help
Up to 25% of the purchase price, capped at $80,000.
Kind of help
A forgivable loan.
Interest and forgiveness
0% interest. Forgiven after 15 years.
Income limit
The program publishes its own income limits by county and household size.
First-time buyers only?
Yes, with exceptions.
Credit
The Applicant(s) must be a reasonable credit risk. The current lending institutions dictate credit score requirements. Non-traditional credit is not acceptable (i.e., utilities, cable, furniture rentals, etc.).
Loan types
conventional, FHA, VA.
Home price limit
Homes priced up to $400,000.
Where
Durham city.
Homebuyer education
Required.
Buyer contribution
At least $1,000 of your own money
Liquid assets limit
$25,000, with any excess applied toward the down payment
Current funding status
Funding status could not be confirmed.
Who runs it
City of Durham Housing & Neighborhood Services Department

What that could look like in dollars

Home priceUp to
$200,000$50,000
$250,000$62,500
$300,000$75,000
$350,000$80,000 (the cap)
$400,000$80,000 (the cap)

Illustration only. Up to 25% of the purchase price, capped at $80,000, on homes priced up to $400,000. The administrator decides the actual amount.

Check your eligibility

Answer a few quick questions to see whether City of Durham Down Payment Assistance (DPA) Program and other North Carolina programs may fit you.

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How Much Down Payment Assistance Does Durham DPA Give?

The City provides 25% of the home's purchase price, up to a cap of $80,000. The help covers down payment and closing costs. The amount is tied to the price of the home you buy, so a lower price means a smaller loan.

The site shows a table below the opening with what that percentage looks like at different prices.

Who Qualifies for the Durham DPA Program?

The City sets these rules, and its lenders apply them when you apply:

  • Income: Household income must be 80% or below of the Area Median Income (AMI), using HUD HOME adjusted limits by household size.
  • First-time or repeat buyers: You must be a first-time homebuyer or not have owned a home within the last three years. Exceptions exist for parents who owned a home with a former spouse and displaced homemakers.
  • Home price: The home can cost no more than $400,000, for existing and new construction alike.
  • Property types: Single-family homes, townhomes, condos and manufactured homes.
  • Occupancy: The home must be your own residence.
  • Credit: You must be a reasonable credit risk. Your lender sets the credit score, and non-traditional credit is not accepted.
  • Work: Applicants should work at least 32 hours per week, with stated exceptions for disability with sufficient income, retirement or age 65 and older, certain self-employed or seasonal workers, and primary caretakers.
  • Assets: Liquid assets are limited to $25,000, with any excess applied toward the required down payment.
  • Residency status: U.S. citizen, non-citizen national or qualified alien.

Only the City and its approved lenders decide who qualifies.

Is Durham DPA a Grant or a Loan?

It is a forgivable loan. It is a second mortgage on your home at zero percent interest, so it adds no monthly interest cost.

The balance is forgiven a little each year rather than all at once, as long as you stay in the home.

Do You Have to Pay Back Durham DPA?

Not if you keep living in the home. The 15-year loan is forgiven at 1/15th each year while you continue to occupy the residence.

The remaining balance becomes due if you sell or transfer the home, stop living in it as your residence, or default on your first mortgage during the 15-year period.

What Loans Work With Durham DPA?

Durham DPA pairs with conventional, FHA and VA financing. The program only allows 30-year fixed-rate mortgages. USDA loans are not currently supported.

You must also complete at least eight hours of homebuyer education before receiving funds. It must come from an approved HUD counseling agency, and Fannie Mae HomeView is allowed for online coursework.

Where Is Durham DPA Available?

The property must be inside the City of Durham limits. Homes elsewhere in Durham County are not covered.

Alamance CountyAlexander CountyAlleghany CountyAnson CountyAshe CountyAvery CountyBeaufort CountyBertie CountyBladen CountyBrunswick CountyBuncombe CountyBurke CountyCabarrus CountyCaldwell CountyCamden CountyCarteret CountyCaswell CountyCatawba CountyChatham CountyCherokee CountyChowan CountyClay CountyCleveland CountyColumbus CountyCraven CountyCumberland CountyCurrituck CountyDare CountyDavidson CountyDavie CountyDuplin CountyDurham CountyEdgecombe CountyForsyth CountyFranklin CountyGaston CountyGates CountyGraham CountyGranville CountyGreene CountyGuilford CountyHalifax CountyHarnett CountyHaywood CountyHenderson CountyHertford CountyHoke CountyHyde CountyIredell CountyJackson CountyJohnston CountyJones CountyLee CountyLenoir CountyLincoln CountyMcDowell CountyMacon CountyMadison CountyMartin CountyMecklenburg CountyMitchell CountyMontgomery CountyMoore CountyNash CountyNew Hanover CountyNorthampton CountyOnslow CountyOrange CountyPamlico CountyPasquotank CountyPender CountyPerquimans CountyPerson CountyPitt CountyPolk CountyRandolph CountyRichmond CountyRobeson CountyRockingham CountyRowan CountyRutherford CountySampson CountyScotland CountyStanly CountyStokes CountySurry CountySwain CountyTransylvania CountyTyrrell CountyUnion CountyVance CountyWake CountyWarren CountyWashington CountyWatauga CountyWayne CountyWilkes CountyWilson CountyYadkin CountyYancey County
Covers the city of Durham. Where the program applies, from its approved record.

How to Apply for Durham DPA

Apply through one of the City of Durham's approved participating lenders. These lenders have completed City compliance training and process applications under the City's program procedures.

The record states that loans are provided first-come, first-served until $3.2 million in funding is depleted. Funding status was last checked on 2026-09-26 and is listed as unknown, because the official page does not explicitly say funds are currently available. Ask a participating lender before you plan around it. You can also see which programs may fit you or compare other North Carolina down payment assistance programs.

Durham DPA Example: First-Time Buyer in Durham

A three-person household in Durham earns $70,000 a year and is shopping for a $300,000 home inside the city.

Illustration only

Where
Durham city, Durham County
Household
3 people
Income
$70,000 a year
Home price
$300,000

About $75,00025% of the purchase price

May fit, with a question on the rules below, checked against the current record.

  • Where: Covers their city or town.
  • Property: Single-family homes.
  • Income: Within the program's limit of $91,550 for a household of 3.
  • First-time buyer: They count as a first-time buyer.
  • Home price: Within the maximum of $400,000.
  • Who it is for: Open to anyone.
  • Funding: Funding could not be confirmed.

An example household, not a quote. Only the administrator decides who qualifies and for how much.

Questions about City of Durham Down Payment Assistance (DPA) Program

What is the income limit for Durham DPA?

Household income must be 80% or below of the Area Median Income (AMI), using HUD HOME adjusted limits that depend on household size.

How much does the Durham DPA Program give?

The City provides 25% of the purchase price, up to $80,000, as a forgivable loan for down payment and closing costs.

Can repeat buyers use Durham DPA?

Only some can. You must be a first-time homebuyer or not have owned a home within the last three years, with exceptions for parents who owned with a former spouse and displaced homemakers.

Does Durham DPA help with closing costs?

Yes. The program's stated help is down payment and closing cost assistance.

Do you have to pay back Durham DPA?

Not while you stay in the home. The loan is forgiven at 1/15th each year over 15 years, and the balance comes due if you sell, transfer, stop living there or default on your first mortgage.

What credit score do you need for Durham DPA?

The record states no minimum score. You must be a reasonable credit risk, and your lender sets the credit score requirement.

Does Durham DPA work with FHA or VA loans?

Yes. It works with 30-year fixed-rate conventional, FHA and VA mortgages. USDA is not currently supported.

How do you find a Durham DPA participating lender?

Apply through one of the City of Durham's approved lenders, which have completed City compliance training. The City's official program page is the place to confirm the current list.

Is Durham DPA available outside the city of Durham?

No. The property must be located within the City of Durham limits.

Complete City of Durham Down Payment Assistance (DPA) Program program record

The nineteen things a buyer needs to know, in the same order on every program page, each checked against the program’s official sources. Where the program does not state one, this says so.

  • 19 program details reviewed; 17 stated by the program
  • 4 official sources checked from City of Durham
  • Last verified October 13, 2026
  • Current funding status could not be confirmed
View all 19 verified program details ↓

  1. 1 of 19

    Program name

    City of Durham Down Payment Assistance (DPA) Program

    From the official source
    • “Down Payment Assistance Program The City of Durham Down Payment Assistance (DPA) Program provides assistance to eligible persons and families for the purchase of a home to be used as the primary residence within the City of Durham.”

      https://www.durhamnc.gov/4609/Down-Payment-Assistance-Program · Web page heading and introductory paragraph

  2. 2 of 19

    Who runs it

    City of Durham Housing & Neighborhood Services Department

    919-560-4570

    DownPayment@DurhamNC.gov

    From the official source

  3. 3 of 19

    Kind of help

    A forgivable loan.

    Down payment and closing cost assistance.

    From the official source

  4. 4 of 19

    Maximum amount

    Up to 25% of the purchase price, capped at $80,000.

    The City will provide 25% of the purchase price of the home not to exceed $80,000.

    From the official source

  5. 5 of 19

    Amount tiers

    The program does not state this. Ask the administrator before relying on it.

  6. 6 of 19

    Forgiveness, interest and term

    0% interest. Forgiven after 15 years.

    15-year term, zero percent interest forgivable mortgage loan; the balance is forgiven at 1/15th each year while the applicant continues to occupy the residence. The remaining balance becomes due upon sale or transfer, change in owner-occupancy status, or default of the first mortgage during the 15-year period.

    From the official source

  7. 7 of 19

    Income limit

    The program publishes its own income limits by county and household size.

    Applicant(s) must earn 80% or below of the Area Median Income (AMI). HUD Fiscal Year 2026 HOME Adjusted Income Limits: 1 person $71,200; 2 $81,400; 3 $91,550; 4 $101,700; 5 $109,850; 6 $118,000; 7 $126,150; 8 $134,250.

    From the official source

  8. 8 of 19

    First-time buyer rule

    Yes, with exceptions.

    The applicant must be a first-time homebuyer or have not owned a home within the last three (3) years. Eligible-homeowner exceptions include parents who owned a home with a former spouse while married and displaced homemakers who have owned a home with a spouse, subject to the guidelines.

    From the official source

  9. 9 of 19

    Maximum home price

    Homes priced up to $400,000.

    The maximum allowable sales price for any home purchased using Durham’s Down Payment Assistance (DPA) funds is $400,000. This maximum price applies equally to both existing homes and newly constructed homes.

    From the official source

  10. 10 of 19

    Other must-know rules

    You must live in the home as your primary residence. Eligible property types: single family, manufactured, townhome, condo.

    Applicant must be a U.S. Citizen, non-citizen national, or qualified alien; household income must be at or below 80% AMI; applicant must complete required homebuyer education before closing. Applicant(s) should work at least 32 hours per week, with stated exceptions for disability with sufficient income, retirement/age 65+, certain self-employed or seasonal workers, and primary caretakers. Liquid assets are limited to $25,000, with excess applied toward the required down payment; buyer must contribute at least $1,000 of their own funds.

    From the official source

  11. 11 of 19

    Where it applies

    Durham city.

    Properties must be located within the City of Durham / Durham city limits.

    From the official source

  12. 12 of 19

    Current funding status

    Funding status could not be confirmed.

    The current official program page states that loans will be provided first-come, first-served until $3.2 million in funding is depleted and currently directs eligible homebuyers to apply through approved lenders, but it does not explicitly state that funds are currently available.

    Checked 2026-09-26.

    From the official source

  13. 13 of 19

    How to apply

    Apply through one of the City of Durham's approved participating lenders. The approved lenders have completed City compliance training and submit/process DPA applications under the City's program procedures.

    From the official source
    • “Eligible homebuyers can apply for up to $80,000 through one of the City's approved lenders listed below. These lenders have completed compliance training with the City's Housing & Neighborhood Services team to understand the updated policy and underwriting guidelines as well as train on the software used to process the applications.”

      https://www.durhamnc.gov/4609/Down-Payment-Assistance-Program · How to Apply section

    • “Eligible homebuyers can apply for up to $80,000 through one of the City's approved lenders listed below.”

      https://www.durhamnc.gov/4609/Down-Payment-Assistance-Program · How to Apply section

  14. 14 of 19

    Official source

    https://www.durhamnc.gov/4609/Down-Payment-Assistance-Program

  15. 15 of 19

    Dates

    In effect since 2026-04-16.

    Current Policy and Underwriting Guidelines are Rev 4.16.2026; Amendment #4 states revisions were made April 16, 2026.

    From the official source

  16. 16 of 19

    Report a mistake

    Use the form on this page.

  17. 17 of 19

    Credit requirements

    The Applicant(s) must be a reasonable credit risk. The current lending institutions dictate credit score requirements. Non-traditional credit is not acceptable (i.e., utilities, cable, furniture rentals, etc.).

    From the official source

  18. 18 of 19

    Eligible loan types

    conventional, FHA, VA.

    The DPA program only allows for 30-year fixed rate mortgages. The applicant must qualify for a fixed-rate mortgage loan product offered through conventional, FHA, or VA financing; USDA is not currently supported.

    From the official source

  19. 19 of 19

    Homebuyer education

    Required.

    Prior to receiving DPA Program funding, the Applicant must receive housing counseling and complete a minimum of eight (8) hours of homebuyer education, in person or virtual; for co-applicants, only one applicant is required to complete it. Education must be provided by an approved HUD counseling agency, with Fannie Mae HomeView allowed for virtual/online coursework.

    From the official source

Report a mistake

If a figure here does not match the program’s own terms, tell us. Every report is read by a person and checked against the official source before the record changes.

A link to the official page or document helps most. Please do not include account numbers, your Social Security number or other financial details.

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Programs differ in how much they give, who they are for, where they apply and how they are repaid. These may be worth comparing.

Compare all North Carolina programs →

Official sources for City of Durham Down Payment Assistance (DPA) Program

The facts on this page were taken from these sources. Read the program’s own terms there before you rely on a figure.

Visit the official source →

Program rules can change. Confirm current terms with City of Durham Housing & Neighborhood Services Department or a participating lender before you rely on a figure. Record version 11.

Educational information, not a loan offer or an eligibility decision. Read the disclaimer or how we verify programs.