City of Durham

City of Durham Down Payment Assistance: up to $80,000

Buyers at or below 80% of area median income who haven't owned a home in 3 years can get up to 25% of the purchase price, capped at $80,000, for a home inside Durham city limits.

Fact sheet

City of Durham Down Payment Assistance (DPA) Program

Limited funds

City of Durham

For: Buyers at or below 80% AMI who haven't owned a home in 3 years, buying inside Durham city limits
Amount: Up to $80,000 (City may provide 25% of purchase price, capped at $80,000)
Form: Forgivable loan
Income cap: 80% AMI (HUD FY2026): 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
Price cap: Up to 95% of HUD's area maximum sales price for Durham (guidelines Exhibit L; no dollar figure on the page)
Only first-time buyers?: Yes
Other conditions: 0% interest, 15-year term, forgiven 1/15 per year while owner-occupied (per guidelines rev. 8/20/2024); at least 8 hours of HUD-approved homebuyer education; $1,000 minimum buyer cash; liquid assets over $25,000 must go toward the purchase; conventional, FHA, VA or jumbo first mortgage (USDA not supported); single-family homes, townhomes, condos and affixed manufactured homes; no subsidy-layering restriction. Contact 919-560-4570.

First-come, first-served 'until the $3.2 million in funding is depleted.' Lender list dated May 8, 2026. Guidelines: https://www.durhamnc.gov/DocumentCenter/View/63161/DPA-Program-Policy-and-Underwriting-Guidelines

Last checked November 2026 · our sources

Check if I qualify

Watch list: City of Durham Down Payment Assistance (DPA) Program draws on a limited pot of money that can be used up. Ask for an alert and you'll hear when a new round is funded.

How Durham's assistance is structured

The City can provide up to 25% of the purchase price, with a hard cap of $80,000. It's a 0% loan with a 15-year term. While you live in the home, one-fifteenth is forgiven each year, so the balance shrinks steadily rather than all at once (guidelines revised August 20, 2024). A buyer who stays the full 15 years owes nothing. If you move out sooner, the City or your lender explains what is still owed. Compare that with other structures in our grant vs. forgivable guide.

Eligibility

Income limits are 80% of area median under HUD's FY2026 figures: $71,200 for one person, $81,400 for two, $91,550 for three, $101,700 for four, $109,850 for five, $118,000 for six, $126,150 for seven and $134,250 for eight. You can't have owned a home in the past 3 years. The price can be up to 95% of HUD's area maximum sales price for Durham; the City page gives no dollar figure, so ask the lender for the current number. You need at least 8 hours of HUD-approved homebuyer education and must bring at least $1,000 of your own cash. If you hold more than $25,000 in liquid assets, the excess goes toward the purchase.

Eligible homes include single-family houses, townhomes, condos and manufactured homes on a permanent foundation. The first mortgage can be conventional, FHA, VA or jumbo. USDA loans aren't supported. Only addresses in the City of Durham qualify, not the rest of Durham County.

Combining with NCHFA programs

Durham's guidelines include no subsidy-layering restriction, which is unusual. That still doesn't guarantee NCHFA will allow its NC Home Advantage Mortgage alongside the City loan, so a participating lender confirms the combination.

Applying before the money runs out

The City's Community Development Department runs the program. Funding is first-come, first-served until the $3.2 million allocation is used up, and the City hasn't said how much remains. Work through a lender on the City's approved list (dated May 8, 2026), who submits the request. Finish your education class early. For questions, the Community Development Department is at 919-560-4570. Check your eligibility to move quickly.

County guides for this area: Durham County

City of Durham Down Payment Assistance (DPA) Program: questions and answers

How much does Durham's DPA program give?

Up to 25% of the purchase price, capped at $80,000, as a 0% loan.

How is the Durham loan forgiven?

It has a 15-year term and is forgiven one-fifteenth each year while you live in the home.

Can I use a USDA loan with Durham DPA?

No. The first mortgage must be conventional, FHA, VA or jumbo.

See if I qualify for this one

Programs to compare

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City of Raleigh Homebuyer Assistance Program (City of Raleigh)
City of Raleigh Enhanced Homebuyer Assistance Program (City of Raleigh (designated target areas only))
Greensboro Homebuyer Assistance Program (Housing Connect GSO): Low- to Moderate-Income and Moderate-Income offerings (City of Greensboro)
City of Concord Downpayment Assistance Program (City of Concord)
Greensboro Public Service Heroes homebuyer assistance (City of Greensboro)

Drawn from the program's own web page as of November 2026. Money runs out and terms get revised, so check the latest with the program office or a lender that handles it. North Carolina Down Payment Assistance has no tie to this program.