Buying a home in the North Carolina Triad, whether you’re looking in Winston-Salem, Greensboro, High Point, or a surrounding community, can feel especially confusing when it comes to your down payment. There’s a lot of half-true “advice” floating around, and much of it leaves people thinking they need way more money than they actually do.

That’s where Down Payment Assistance (DPA), otherwise known as the SmartBuy^TM program through Highlands Residential Mortgage comes in and where we at The Sharpe Mortgage Team are here to guide you, step-by-step.

What is Down Payment Assistance?

At Highlands Residential Mortgage, our down payment assistance is offered through our SmartBuy™ program, and that’s how we’ll refer to it throughout this article. However, you can always reach out to any loan officer to ask about the down payment assistance options available through their company.

The purpose of SmartBuy™ is to help hopeful homebuyers (especially first-time buyers) purchase a home they love without needing a large down payment to qualify

Qualifying: Who and How

While the specifics depend on the exact program and current guidelines, here are some common factors that are considered for most DPA’s.

1. Income and Household Size
   Many DPA’s have income limits based on how many people live in the household and where the home is located.
2. First-Time or Renting Buyer Status
   If you have never purchased a home or in some cases haven’t purchased a home in the past three years.
3. Credit & Debt
   You definitely do not need perfect credit to qualify but there is usually a minimum score requirement and your Debt-to-Income ratio also puts limitations on qualifications.
4. Property Location and Type
   You will typically need to purchase a primary residence (a home you will actually live in vs. an investment property) and purchase in an approved area with certain price limits.

What documents you’ll likely need:

1. Proof of Income
   Paystubs and/or W-2’s. If self-employed, then tax returns and possibly a profit & loss statement.
2. Identification
   Driver’s License or government-issued ID and/or social security card.
3. Asset Information
   Recent bank statements and statements for any retirement or investment accounts being used for funds.
   

What SmartBuy^TM Does

SmartBuy^TM is generally designed to lower your upfront cash requirement by helping cover some or all of your down payment and, in some cases, assisting with closing costs as well.

This can help you buy sooner, instead of waiting years to save a large down payment, by allowing you to purchase with far less out of pocket. It also helps you preserve your savings, so you can keep more of your own cash in the bank for emergencies, moving costs, or simply peace of mind.

Overall, DPA programs are meant to make homeownership more accessible, especially for buyers who are financially stable but don’t have a large amount of cash saved up.

What SmartBuy^TM Does NOT Do

Just as important as what they were designed to do, we also want to be clear upfront about what these programs are not accessible for. In general, you can assume that any DPA program does not:

• Make every home or buyer automatically eligible
• Eliminate your monthly mortgage payment
• Replace solid budgeting
• Guarantee the “perfect” house at the very top of your budget

The reason “smart” is in the name of our DPA is because at Highlands Residential, we believe that when used with proper budgeting and planning, new homeowners can finally get into a home that fits their needs, start building equity instead of paying rent to someone else, and begin working towards their long-term financial goals. What could be smarter than that?

Ready to Explore SmartBuy^TM in North Carolina?

If you’re curious, even just a little, about whether SmartBuy^TM might work for you, here’s what to do next:

1. Reach out to us at The Sharpe Mortgage Team so we can begin answering your questions and determine your eligibility for our SmartBuy^TM program.
2. Gather your documents and get your finances in order.
3. In tandem with us, create a custom-made plan specific to your needs and map out clear next steps.

The exciting news is you may be closer to homeownership than you realize. Don’t sit back and assume this program isn’t for you. Give us a call at (336) 575-9448 and let’s start the conversation.

We can often review scenarios quickly and see what’s possible—and if your project is a little complicated, even better. We love digging into the details and building a smart, realistic plan for your or your clients.