Cleveland County Launches First-Time Homebuyer Assistance Program

The Cleveland County Home Loan Authority is launching a program to provide relief to first-time homebuyers in the county, aiming to make the process smoother and encourage people to make Cleveland County their permanent home.

What is it?

Cleveland County’s First-Home Homebuyer Assistance Program is available to first-time homebuyers looking to purchase a home in Cleveland County.

The Cleveland County Home Loan Authority launched the program in response to increases in home prices and mortgage rates putting pressure on families trying to afford a median single-family home.

“The last couple of years have definitely been hard for folks wanting to buy their first home. Between interest rates and just the economy in general, a lot of folks say they don't have enough money to save and can't compete with those high interest rates to buy their first home,” said Storme Jones, Cleveland County’s communications director.

How does it work?

The program offers a below-market fixed mortgage rate of 5.84%.

Qualifying homebuyers will also receive 3.5% of their total home price upfront to help with down payments or closing costs.

“We actually talked to folks, and 40% of people say they're wanting to move into their first home but simply don't have enough money to make that first down payment. So, hopefully this 3.5% will really help folks who are wanting to get into their first home,” Jones said.

The program is supported by 12 lenders and a $25 million commitment in mortgage revenue bonds. Funds are available on a first-come, first-served basis.

“There's really no way to tell how quickly that money will be used through. As those loans are applied for and approved, that money will just slowly come down,” Jones said.

What are the benefits?

The fixed mortgage rate is lower than the current 30-year residential mortgage rate and is locked in as of Dec. 5.

“It's about 75 basis points lower than what everyone else would be paying at this time,” Jones said.

Homebuyers only need to stay in the home for five years to receive full forgiveness on the 3.5% loan for down payments and closing costs.

“It's to incentivize Cleveland County residents to buy a home, to make Cleveland County your full-time permanent residence. It's also open to anyone looking to move into the county for the first time. That's a great added benefit as well,” Jones said.

How do I apply?

Jones says the best way to utilize the program is by talking with your realtor, but you can click here for more information on the First-Home Homebuyer Assistance Program.

“If you've been sitting on the sidelines waiting for those rates to come down, this could be a really good opportunity to get you in your first home,” Jones said.