North Carolina Community Partners Loan Pool (CPLP) Guide

Guide to the North Carolina Community Partners Loan Pool (CPLP)

The North Carolina Community Partners Loan Pool (CPLP) is a unique program offering deferred second mortgages to help eligible homebuyers bridge the gap between the cost of a home and their primary mortgage. Administered through nonprofit and local government partners, the CPLP is designed to make homeownership more affordable for low- and moderate-income families. Below is a detailed guide to the program’s benefits, eligibility requirements, and how to apply for 2025.

1. Program Overview:

• Purpose: The CPLP provides deferred second mortgages to reduce the amount homebuyers need to borrow from their primary lender, making monthly payments more affordable.
• Down Payment Assistance: The program helps cover down payment and closing costs, reducing the upfront financial burden of purchasing a home.
• Partnership-Based: CPLP funds are distributed through a network of participating nonprofit organizations and local government partners.

2. Eligibility Requirements for 2025:

To qualify for the North Carolina CPLP program, applicants must meet the following criteria:

• Income Limits: Household income must fall within program limits, which are based on location and household size. These limits are updated annually and typically align with area median income (AMI).
• First-Time Homebuyer: Applicants must be first-time homebuyers, defined as individuals who have not owned a home in the last three years. Exceptions may apply for veterans and buyers in targeted areas.
• Primary Residence: The property must be located in North Carolina and used as the buyer’s primary residence. Investment properties and second homes are not eligible.
• Credit Requirements: A satisfactory credit score is required, with specific requirements varying by lender and partner organization.
• Homebuyer Education: Completion of a homebuyer education course is mandatory to ensure participants are prepared for the responsibilities of homeownership.

3. How to Apply:

The application process for the CPLP involves the following steps:

• Work with a CPLP Partner: Begin by contacting a participating nonprofit organization or local government partner to discuss your eligibility and start the application process.
• Complete Homebuyer Education: Enroll in and complete a homebuyer education course to gain the necessary skills and knowledge for successful homeownership.
• Submit Documentation: Provide proof of income, tax returns, credit history, and any additional documentation required by the partner organization.
• Application Approval: Once your application is approved, the CPLP partner will coordinate with your primary lender to finalize the second mortgage.

4. Program Benefits:

• Deferred Second Mortgage: The CPLP provides a second mortgage with no monthly payments, reducing the financial strain on homebuyers.
• Affordable Homeownership: By bridging the gap between the cost of the home and the primary mortgage, the program makes homeownership more attainable.
• Collaborative Support: CPLP partners offer guidance throughout the homebuying process, ensuring a smooth and informed experience.

5. Assistance Details:

• Assistance Amount: Eligible buyers can receive up to 25% of the home’s purchase price or a fixed dollar amount as a second mortgage, depending on program guidelines and individual circumstances.
• Repayment Terms: The second mortgage is deferred and may be forgivable if certain residency conditions, such as living in the home for a specified period, are met. Details will be provided by your CPLP partner.

6. Additional Considerations:

• Combination with Other Programs: CPLP funds can often be combined with other state or federal assistance programs, such as NC Housing Finance Agency programs, to maximize benefits.
• Program Fees: Some fees may apply during the application process, which your CPLP partner will explain in detail.

The North Carolina Community Partners Loan Pool (CPLP) is an excellent resource for eligible buyers looking to bridge the financial gap in purchasing their home in 2025. By offering deferred second mortgages and support through local partners, this program helps make homeownership more accessible and affordable. Contact a CPLP partner organization today to learn more and start your application process.