Through the Self-Help Loan Pool (SHLP) program, the NC Housing Finance Agency offers up to $50,000 in shared mortgage financing to assist eligible borrowers purchase a home built or rehabilitated by a participating Habitat for Humanity affiliate (SHLP Member).
NOTE: Effective 1/1/23, a maximum of $35,000 available if Habitat home purchased is within one of the 24 CDBG Entitlement Cities in NC.
The SHLP Member provides mortgage financing that is combined with Agency funds to provide a single, affordable mortgage that is structured as a 0%, amortizing loan with a typical term of 20-30 years. The home buyer makes their mortgage payment to the SHLP Member (or their designated Loan Servicer) who is responsible for sending the Agency its share of the payment.
The North Carolina Housing Finance Agency allocates funds to support the SHLP Program on an annual basis. For 2024, the Agency has budgeted up to $10 million to assist SHLP eligible home buyers. These funds are available on January 1, 2024.
Eligible Home Buyers:
To be eligible for SHLP funding, a home buyer must already be a participant in a self-help housing program (i.e. helping with the construction or rehab of the house they are buying) as well as meet SHLP program guidelines, which include:
- Household income at or below 80% of the Area Median Income.
- Completed an approved home buyer education course and at least two hours of one-on-one pre-purchase counseling.
Most borrowers complete an in-person or virtual home buyer education class offered by the SHLP member or a partnering agency. However, an alternative is eHome America, an online home buyer education course based on NeighborWorks America’s acclaimed “Realizing the American Dream” that takes an estimated six to eight hours to complete. The course is HUD-approved, exceeds the National Industry Standards for Home Ownership Education and Counseling and is available in Spanish.
The Agency is offering eHome America at a special price of $35 for potential SHLP borrowers. After completing the course, borrowers will receive a Certificate of Completion. To get started, please click on the following graphic:
Please note that all SHLP applicants must also receive a minimum of two hours of one-on-one pre-purchase counseling from a SHLP Member or a partnering agency before they can be approved for assistance. Contact the SHLP Member to discuss your home buyer education and counseling options.
- Buyers must be purchasing a new or rehabilitated home from a SHLP Member that is less than the maximum sales price limit for the county.
Interested home buyers should contact a SHLP Member for additional information.
SHLP members are responsible for identifying eligible home buyers, ensuring the home buyer(s) complete approved home buyer education and one-on-one pre-purchase counseling (at least two hours), submitting the SHLP loan application with required documentation and coordinating the loan closing. In exchange for these services. The Agency pays the Member a $1,500 service fee for each SHLP loan closed.
In addition, SHLP Members that develop homes certified under SystemVision™ or other approved Green Building Standards may be eligible to receive the following fees:
- Up to $5,000 for meeting SystemVision™ for New Home standards.
- Up to $6,000 for meeting SystemVision™ for Existing Home standards.
- $1,000 for meeting any of the five Agency approved Green Building standards.
Organizations interested in becoming a SHLP Member need to complete and submit a Membership Application, which can be downloaded from the SHLP Program Forms and Resources page.
SHLP membership is open to all North Carolina based Habitat for Humanity affiliates in good standing with Habitat International.
In addition, SHLP membership is also open to other NC-based nonprofit organizations that operate a Self-Help Housing program for low- to moderate-income home buyers with the following components:
- Develops affordable homes utilizing sweat-equity of the home buyer(s), volunteer labor and donations of materials, services and funds.
- Provides first and/or subordinate mortgage financing to eligible home buyers at 0% over a 20–30 year term.
- Services the first and/or subordinate mortgage after closing.
- Partners with a HUD-approved housing counseling agency that provides home buyer education and pre-purchase counseling service to their home buyers.