The Community Partners Loan Pool (CPLP) provides qualified home buyers with down payment assistance:
- Up to 20% of the purchase price when combined with a N.C. Home Advantage Mortgage™
- Up to 10% of the purchase price when combined with a USDA’s Section 502 loan
CPLP assistance is structured as a 0% interest, deferred, second mortgage. The term of the CPLP loan matches the term of the first mortgage.
Borrowers may combine a CPLP loan with a Mortgage Credit Certificate as well as with other down payment assistance loans or grants.
Eligible Home Buyers:
- Total household income cannot exceed 80% of the Area Median Income for the county in which they intend to purchase a home
- Proof of sufficient, stable income to afford and maintain their potential home
- Minimum credit score of 640
- Complete a minimum of 8 hours of home buyer education and/or homeownership counseling, provided by the CPLP Member or an agency partnering with the Member
- Borrower’s Housing Ratio must be between 20% - 32% and Total Debt-to-Income should be below 41%, but may not exceed 45%.
- Newly constructed house or an existing home in “like new” condition (generally less than 10 years old). In addition, an older home that has been comprehensively evaluated and rehabilitated may be eligible for purchase with CPLP funds.
- The sales price cannot exceed the Sales Price Limit for the county.
- All newly constructed homes must receive a Certificate of Occupancy (less than 12 months old at the time of closing).
- All existing homes must pass two inspections: (1) a Home Inspection by a licensed N.C. home inspector; and (2) a Local Housing Code Inspection or in the absence of a local Housing Code, a Housing Quality Standard (HQS) Inspection. Any significant deficiencies identified that threaten the property or borrower must be repaired before assistance can be approved. Repairs and replacements may be required for the home to be eligible for CPLP.
NOTE: Existing homes that have been comprehensively evaluated and rehabilitated must receive a Certificate of Occupancy/Compliance.
Applying for CPLP Assistance:
Interested home buyers must contact a local CPLP Member for further assistance. If the Member determines the borrower is potentially eligible and the home to be purchased meets program guidelines, they will submit an application for CPLP assistance on behalf of the home buyer(s). Please note that NCHFA will only accept applications submitted by a CPLP Member. Home buyers(s) must allow enough time (usually > 60 days) for the CPLP Member to provide home buyer education, counseling, collect documents, and review inspections and they must actively work to provide the information the CPLP Member needs to submit the CPLP application.
Member Responsibilities and Fees:
CPLP Members provide a variety of services including:
- Verifying home buyer eligibility and that the home to be purchase meets program guidelines.
- Providing homeownership education and counseling
- Collecting and submitting the required CPLP documentation to the Agency on behalf of the borrower
- Coordinating the loan closing working with the closing attorney, home buyer and first mortgage lender
After a successful closing NCHFA pays the CPLP Member a service fee of $1,600 for each CPLP loan for the services provided.
In addition, CPLP Members who develop homes certified under SystemVision™ or other approved Green Building standards may be eligible to receive the following fees:
- Up to a $4,500 for meeting SystemVision™ standards for New Homes
- Up to a $6,000 for meeting SystemVision™ standards for Existing Homes
- Up to a $1,000 for meeting any of the five Agency-approved Green Building standards
CPLP Membership is open to North Carolina-based nonprofit organizations and government agencies, local or regional, that develop affordable for-sale homes and/or provide homeownership education and counseling. Members may also represent a partnership between several organizations including a local builder or developer.
Organizations interested in becoming a CPLP Member need to complete a Membership Application.
Before submitting their application, prospective Members should contact Josh Burton, Team Leader for Homeownership Development (919-877-5678 or firstname.lastname@example.org) or Rich Lee, Community Partner Coordinator (919-877-5688 or email@example.com).