Frequently Asked Questions
about the My First Home program
What is “My First Home WSFC”?
Through the My First Home WSFC, the City of Winston-Salem (Housing Neighborhood Development Department) and Forsyth County Housing will offer up to $20,000 to qualified homebuyers who will purchase and/or rehabilitate a foreclosed home as their primary residence.
What is the source of funding for My First Home WSFC?
- Forsyth County, in partnership with Winston-Salem, has been awarded a $2,625,000 Neighborhood Stabilization Program (NSP), Community Development Block Grant from the North Carolina Department of Commerce, Division of Community Assistance.
- The grant will be used to provide homeownership training, down payment assistance, closing cost and rehabilitation for foreclosed or abandoned homes purchased by households with incomes at or below 120% of median household income.
- The NSP is intended to reduce blight, rehabilitate abandoned and foreclosed properties, provide affordable housing for buyers and renters, and stimulate the local real estate market.
Who is eligible to apply?
The participant must be a first time homebuyer or cannot have owned a home within the last three years. Eligibility for the Forsyth County NSP is dependent upon each household’s income being at or below 120% of the median household income for the area based on household size. These income levels are set annually by the United States Department of Housing and Urban Development. The current incomes are listed in the Table below with the maximum NSP eligible household income highlighted in light blue:
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2008-2009 Income Limits for Forsyth County
My First Home WSFC |
| Number in Household |
50% of Median Income |
Median Income |
120% Median Income |
| 1 |
$ 20,900 |
$ 41,800 |
$ 50,160 |
| 2 |
$ 23,900 |
$ 47,800 |
$ 57,360 |
| 3 |
$ 26,850 |
$ 53,700 |
$ 64,440 |
| 4 |
$ 29,850 |
$ 59,700 |
$ 71,640 |
| 5 |
$ 32,250 |
$ 64,500 |
$ 77,400 |
| 6 |
$ 34,650 |
$ 69,300 |
$ 83,160 |
| 7 |
$ 37,000 |
$ 74,000 |
$ 88,800 |
| 8 |
$ 39,400 |
$ 78,800 |
$ 94,560 |
- The eligibility of the households includes factors relating to the participant’s credit worthiness, job stability, income, and ability to qualify for an affordable first mortgage from a private lender.
- Homebuyers must complete up to eight hours of pre-purchase education provided through the Center for Homeownership 773-0286 x101
For what can the funds be used?
- Closing cost and down payment assistance to buy a foreclosed home
- Rehabilitation funds to bring the foreclosed home up to local building code
How much assistance will be provided?
An up to $20,000 deferred forgiveness loan will be provided to homebuyers to assist with down payment and closing costs. These loans are 0% deferred second mortgages and no interest accrues on the loan.
What is a deferred forgiveness loan?
The deferred forgiveness loan terms mean that starting at the beginning of the tenth year, NSP buyers will have their loan reduced by 10% each year for ten years. At the end of the second ten year period the NSP second mortgage will be completely forgiven. Forgiveness will occur only for a full year of occupancy. No payments are due on the mortgage unless the home is sold or conveyed to another person or the owner no longer occupies the dwelling. If any of these activities occur, the NSP loan immediately becomes due and payable.
What types of homes are eligible?
- The home must be a foreclosed property. Properties involved in short sales are NOT eligible. Short sales are typically used to prevent a foreclosure. Accordingly, a short sale property would not meet the definition of a “foreclosed upon” property.
- The home must be located in one of the targeted Census Tracts of Forsyth County Housing or the City of Winston-Salem as identified having experienced the greatest amount of foreclosures.
Targeted Census Tracts
Forsyth County
28.05, 28.07, 30.01, 31.01, 31.03, 31.04, 32.01, 32.02, 33.05, 33.07, 33.08, 40.08
City of Winston-Salem
3.01, 3.02, 4, 5, 6, 7, 8.01, 8.02, 9, 10, 14, 15, 16.01, 16.02, 17, 18, 19.01, 19.02, 20.01, 20.02, 27.01, 27.02, 33.03, 34.01, 35, 36, 37, 38.02, 38.03, 38.04 and 39.03
How will I find out what Census Tract a home is in?
A useful site to check for the census tract is http://www.ffiec.gov/Geocode and enter the address of the property to identify the specific census tract.
Do you have a list of homes available?
No, we recommend that buyers enlist the help of a REALTOR® to assist them in identifying eligible properties.
A list of “Participating REALTORS® and Lenders” who have attended the NSP Training will be posted.
Can clients eligible to participate in the Section 8 Homeownership program also participate in financing provided through the NSP?
Yes, persons with Section 8 homeownership vouchers may use NSP assistance to purchase a home. However, through underwriting such forms of dual assistance will be assessed carefully to ensure that over-subsidy does not occur.
Can New Century IDA (Individual Development Account) participants receive assistance with NSP?
Yes, participants who have completed the requirements of the IDA program, as evidenced by a Referral from their Success Coach will be eligible to purchase using NSP funds. Note: Various programs of assistance available in conjunction with North Carolina Housing Finance Agency’s IDALP program for IDA participants.
I applied for funds but was advised that I would not receive the full $20,000. Please explain.
The applicant has to be within 120% of the Area Median Income. We review an applicant's income, debts, and ratios. Once this info is analyzed, it helps us to determine the amount of assistance. The program allows "up to" $20,000. It is not an absolute amount. For example, if a person has low ratios of 22%/30%, their income vs. debt is considerably low. Our goal is to assist as many people as possible, so we wouldn't authorize $20,000, in this example. There is no need to over-subsidize. The client would receive funds based upon the need.
How can I get started?
You can get started by reading the information on this web site and then filling in the online pre-application form.
You can get started by calling the NSP hotline at (336) 722-0954
Information about foreclosure, from the State of North Carolina
What you need to know about foreclosures
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