The cost of housing has gone up more than 100 percent in the last decade. In the Triad, local programs are helping families with down payments.

For many Americans, the prospect of buying a home can seem insurmountable. According to a 2023 article by the Urban Institute, home prices rose by 114 percent between September 2010 and September 2023 while wages only rose by 50 percent.

“In 2010, $10,400 would have covered a 5 percent down payment on the median home purchase, whereas now, a borrower would need $22,240 for the same 5 percent down payment,” the article states.

But in the Triad, a variety of programs are working to help those looking to buy homes. One of the ways in which this is done is through down payment assistance programs.

As of 2023, there were more than 1,670 active down payment assistance programs in the country. According to the Urban Institute, 45 percent of these programs are only available to families that make less than 80 percent of the area median income, or AMI, which measures the midpoint of an area’s income distribution. Forsyth County’s AMI is $81,900, meaning that families would need to make $65,520 or less annually in order to qualify.

During the pandemic, the federal government gave local governments in NC more than $8 billion in relief funding and $1.9 trillion nationwide through the American Rescue Plan Act. Among that funding was $110,000 allocated to Habitat for Humanity of Forsyth County, which is giving 11 families the chance to put $10,000 toward a down payment on a home. 

Originally, the deadline for money to be obligated was at the end of this year. But according to county officials, the money can’t be given to families until there are homes for them to spend it on.

During a Sept. 26 Forsyth County Commission briefing, Bailey Arnold, the county’s ARPA administrator, explained that delays in home construction meant that while seven families had received assistance, $40,000 still remained unspent. 

Now, Forsyth County will be giving Habitat Forsyth an extension until Dec. 31, 2025 to spend the remaining $40,000 on the remaining four families once the homes are built. This extension will be officially approved when county commissioners meet again on Oct. 3.

“These funds are helping make homeownership more accessible for families… significantly reducing the financial burden of purchasing a home,” Habitat Forsyth’s Chief Programs Officer Paola Candelaria told TCB via email. 

“This support ensures that mortgages remain affordable and sustainable for hardworking families, allowing them to achieve the dream of homeownership and build long-term stability,” Candelaria wrote.

Why they’re important

Twenty-five percent of NC residents are “cost-burdened” by housing — meaning that they are spending more than 30 percent or more of their income on their housing. Another 12 percent are severely cost-burdened, spending 50 percent or more on housing. A financial boost can help give people a bit of breathing room. 

ARPA funding has helped fund dozens of down payment assistance programs across the country, and Vice President Kamala Harris has proposed giving first-time homebuyers $25,000 in down payment support as part of her presidential campaign. This program would provide support to working families who have paid rent on time for the past two years and benefit more than 4 million first-time homebuyers over the course of four years, according to Harris’s campaign. 

Forsyth County also offers help to first-time homebuyers who make 80 percent AMI or less by offering programs with different loan options such as a second mortgage or a zero percent deferred repayment loan.

Neighboring local governments in the Triad also offer this type of assistance to prospective homebuyers.

Winston-Salem

The city has partnered with Financial Pathways of the Piedmont’s Center for Homeownership to offer residents homebuyer counseling and other services. They also offer financial assistance for housing development and rehabilitation projects. The city recently allocated ARPA dollars to Habitat Forsyth so they could build houses in the city’s Happy Hill neighborhood. 

Guilford County

This neighboring county offers low-to-moderate income homebuyers a $10,000 loan at zero percent interest; a loan that is forgiven once the family has lived in the home after five years have passed. The home has to be in Guilford County, but outside the city limits of Greensboro and High Point. If you haven’t owned a home within the last three years, you’re qualified to apply. Funding for this program comes from the Department of Housing and Urban Development, and the funding period runs from July 1-June 30 each year. The county allocates this money to homebuyers until it’s depleted.

Greensboro

The city’s homebuyer assistance program offers up to $15,000 toward a home to people who make 80 percent or less of the area median income, or AMI, plus a $5,000 bonus if the purchased home is in an area designated for reinvestment or redevelopment. Greensboro’s AMI is $80,700, so the prospective homebuyer would need to make $64,560 annually or less. The home has to be located within city limits, and you have to be a first-time homebuyer or have not owned a home for the last three years in order to qualify for this program.

• Share this article: