Frequently Asked Questions on CPLP for Potential Home Buyers
Updated: 9/01/22
If you are buying a home and your income is below 80% of your county’s median income, you
may be eligible for down payment assistance that could reduce your overall mortgage
payments up to 25% through NCHFA’s Community Partners Loan Pool (CPLP) program.
What is CPLP?
CPLP is the Agency’s most generous down payment assistance (DPA) program for eligible low-
and moderate-income home buyers. Borrowers can receive up to 25% of the Sales Price or a
maximum loan of $50,000, whichever is less. Our assistance is provided as a zero interest,
deferred, subordinate loan that must be combined with a NC Home Advantage Mortgage™ or a
USDA Section 502 loan.
Eligible borrowers work with a CPLP member who will explain the various program
requirements as well as help you apply for assistance. For more information, please contact a
CPLP member in your area. To search for members by county served, please go to the “Current
Community Partners” page on our website: https://www.nchfa.com/homeownership-
partners/community-partners/current-community-partners
You can also read about CPLP on the Community Home Buying Programs page on our website.
Am I Eligible for CPLP Assistance?
CPLP assistance is limited to households earning no more than 80% of your county’s median
income, adjusted for household size. We use the federal HOME Program limits for CPLP. Please
check the CPLP Forms & Resources page on our website for the latest Household Income limits:
https://www.nchfa.com/homeownership-partners/community-partners/community-
programs/community-partners-loan-pool/forms-and-resources
In addition, you must qualify for an approved mortgage and meet minimum credit and
underwriting guidelines.
Are There Sales Price Limits for homes purchased with CPLP funds?
Yes, there are Sales Price limits which vary by County and Type of Home (New Construction vs.
Existing). We use the federal HOME Program limits for CPLP. Please check out the CPLP Forms &
Resources page on our website for the latest Sales Price limits:
https://www.nchfa.com/homeownership-partners/community-partners/community-
programs/community-partners-loan-pool/forms-and-resources
How do I apply for CPLP assistance?
Potential borrowers should contact a CPLP member, an approved nonprofit or local
government housing agency, who will help explain the program to you in more details. If you
are eligible and the home you want to purchase meets program guidelines, the member will
help you apply for CPLP assistance.
What are the CPLP home buyer education and counseling requirements?
Home ownership is both a great opportunity and a big responsibility. The NC Housing Finance
Agency wants to help individuals and families not just buy a home but to be successful
homeowners. That’s why we require every CPLP borrower complete a minimum of eight (8)
hours of home buyer education and pre-purchase counseling provided by the CPLP member or
another HUD-approved provider. For more information, please contact a CPLP member.
Which mortgage lenders can I use with CPLP assistance?
CPLP borrowers have two options:
1. The majority of borrowers work with a participating NC Home Advantage Mortgage™
lender. To find one in your area, please visit the Find a Lender page on the NCHFA website.
2. Borrowers purchasing a home in a rural community can use a USDA Section 502 Loan. For
more info on 502 loans, please contact your area USDA Rural Development office.
What is pre-approval?
Meeting with a lender to be “pre-approved” for a mortgage is an important step for potential
borrowers to take in the home buying process. It will help determine if you are “mortgage
ready” as well as let you know how much you can borrow from of the lender. The loan amount
is based on information you provide to the lender.
However, before you go to a lender, you should complete a home buyer education class to
learn more about the entire home buying process. You can contact a CPLP member to sign up
for one of their home buyer classes.
What are the required home inspections for CPLP?
As you look at possible homes to purchase, please keep in the mind that CPLP requires the
following home inspections:
• Newly Constructed homes, a Certificate of Occupancy or CO is required.
• Existing Homes: > Home Inspection by a N.C. licensed Inspector
> Minimum Housing Code Inspection or a Housing Quality Standards
(HQS) Inspection, whichever is applicable.
Please note that NCHFA requires an additional inspection on homes built prior to 1978 to assess
potential lead based paint hazards. Contact a CPLP member for more information.
When do I repay my CPLP Loan?
Your CPLP assistance is structured as no interest, deferred payment loan, with a term that
matches the 1ST Mortgage, which is 30 years. This means you don’t have to make any monthly
payments on your CPLP loan as long as you remain in the home for the entire term. Please note
that your loan is not forgiven over time like the NC Home Advantage™ down payment
assistance programs.
At the end of 30 years, the entire CPLP loan amount is due and payable to NCHFA but with no
interest. However, most borrowers will sell their home well before the 30-year term ends and
use the sales proceeds to pay off their CPLP loan.
Please note that other conditions will trigger repayment of the CPLP loan. These include
refinancing your home to get cash out OR if you no longer reside in the home as your principal
place of residence. If you have questions, please contact a CPLP member.
