Durham, NC

Down payment assistance in Durham, NC

The City of Durham can fund up to 25% of a home's price, capped at $80,000, for buyers at or below 80% AMI inside city limits.

Durham's Community Development Department runs the City of Durham Down Payment Assistance (DPA) Program, one of the larger city awards in the state. The City may provide 25% of the purchase price up to $80,000 as a 0% loan with a 15-year term, forgiven one-fifteenth each year you live in the home. It's first come, first served until the $3.2 million budget runs out, so treat it as funding-dependent and move quickly once you're under contract.

Who can use Durham's program?

You must be at or below 80% AMI (HUD FY2026: $101,700 for four people, $71,200 for one), not have owned a home in the last 3 years, and buy inside Durham city limits. Expect at least 8 hours of HUD-approved homebuyer education, a $1,000 minimum contribution from your own cash, and a rule that liquid assets above $25,000 go toward the purchase. The first mortgage can be conventional, FHA, VA or jumbo, but USDA isn't supported. Single-family homes, townhomes, condos and affixed manufactured homes all qualify, and the price must stay within 95% of HUD's area maximum for Durham. Apply through a lender on the City's list, last dated May 8, 2026.

The guidelines place no subsidy-layering restriction, so the City loan can sit alongside NCHFA's NC Home Advantage Mortgage, which gives 3% of the loan or $15,000 for qualifying first-time buyers. That's useful for Durham Public Schools staff and Durham Police or Fire employees who earn too much for the City's 80% AMI cap, since the state option in Durham County allows income up to $129,000 for one or two people. Compare both on the Durham County page.

Programs run by Durham

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

Read the full program page Check if I qualify

Statewide programs

Buyers in Durham can also draw on 2 statewide programs, NC Home Advantage Mortgage with Down Payment Assistance among them. Open the North Carolina program directory or try the program matcher.

County guide: Durham County

Book your homebuyer class near Durham County

Plan on a homebuyer class; most programs want the certificate in hand before you close. Below are HUD-approved agencies within driving distance of Durham County, with the services, languages and meeting formats each one lists.

Counseling agency	Town	Miles	Services	Spoken in	Format
Centre for Home Ownership & Economic Development Corporation	Hillsborough	11 mi	homebuyer education class, pre-purchase counseling	English	Face to Face, Phone, Internet
Empowerment Incorporated	Chapel Hill	14 mi	homebuyer education class, pre-purchase counseling	English	Face to Face, Phone
Telamon Corporation, Inc	Raleigh	16 mi	homebuyer education class, pre-purchase counseling	English, Spanish	Face to Face, Phone, Internet
Consumer Education Services, Inc	Raleigh	19 mi	homebuyer education class, pre-purchase counseling	English, Spanish	Phone

Pulled from the HUD housing counseling directory. Ask before you enroll, because programs differ on which classes count.

Which class counts? Ask a loan officer who handles North Carolina programs. They can name the right class and begin your pre-approval in the same call. Start the eligibility check

Durham: questions and answers

How much can the City of Durham give me?

Up to 25% of the purchase price, capped at $80,000. The exact amount depends on what you need to make the home affordable under the City's underwriting guidelines.

Can I use a USDA loan with Durham's DPA?

No. The program works with conventional, FHA, VA or jumbo first mortgages, but not USDA.

What happens if I move before 15 years?

The loan is forgiven 1/15 per year while you live in the home. If you sell or stop living there early, the unforgiven balance is generally due.