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Home Lending Application

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1. Who can apply for assistance?

Citizens located in the City of Winston-Salem.

2. How do I apply for assistance?

• Please call 311 to receive more information about the application process
• You will need to upload the following documentation for your application to be considered complete:
• Copy of valid North Carolina Driver’s License or other government issued photo identification
• Documentation of all household income (Two (2) current Payroll Check Stubs, Benefits Statement from Social Security and Pension)
• Tax returns for (2) two consecutive years
• A mortgage statement that includes the address of your mortgage company and payment information
• Proof of Homeowner’s Insurance including insurance company’s address
• Copy of your most recent Duke Power bill and/or Piedmont Natural Gas bill
• Power of Attorney, if applicable
• Divorce Decree, if applicable
• Death Certificate, if applicable

**If you need assistance applying or uploading documents please contact our office at 336-727-8000.

3. What types of assistance is offered under Housing rehabilitation?

• Rehab: Repairs or improves properties to meet the minimum housing code standard. 
• TURN: Repairs or improves properties to meet the minimum housing code standard. * Only available to designated neighborhoods located in the City of Winston-Salem. *To see if your neighborhood is in a designated neighborhood contact us today at 336-727-8000.
• Emergency Repair: Addresses conditions which present an imminent threat to the health and/or safety to the residents occupying the property.
• Physical Accessibility: Addresses properties with architectural barriers that create a physical impediment to the mobility of the handicapped residents.
• Hazard Reduction: Addresses conditions where the presence of Lead Based Paint hazards and asbestos must be decreased or eliminated in order to avoid exposure to the occupants.

4. Is assistance offered year round?

• At this time Emergency Repair and Physical Accessibility are the only programs offered year round.
• Rehab applications are accepted upon advertised dates.

5. Is this a grant?

• Financial assistance is income based. Household income determines if the assistance provided will be “Direct Pay”-requiring a monthly payment or “Forgivable”-no monthly payment is required.
  • Household income is defined as all who occupy a dwelling unit and receive income.
  • Income is defined as:
    • Gross income of all adult household members anticipated to be received from employment (income before any deductions have been taken) in the next 12-month period
    • Net self-employment income
    • Interest, dividends, and other investment income
    • The full amount of periodic payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability, or death benefits, and other similar types of periodic receipts.
    • Payments in lieu of earnings, such as unemployment, and disability compensation, workers compensation and severance pay.
    • The full amount of periodic public assistance payments, alimony, and other payments or contributions which are received on a recurrent basis and which may reasonably be expected to continue.  

6. If I apply how long does it take until the work is done on my house?

• Applications are subject to approval. If an application is approved the applicant is placed on the winning Contractors job list. The start date of construction is dependent upon the availability of the Contractor.

7. Can I apply more than once?

• An applicant may receive one time assistance for each program.
• Once an applicant has received one time assistance they may not receive assistance again.

8. Does the City place a lien on my property?

• A Deed of Trust is drafted once a closing is held for work to commence. The Deed of Trust places a Lien on the property for the term of the loan.

9. What happens to my loan if I pass away?

• All applicants are encouraged to have a Will and someone in place to assume any remaining debt left on the property.
• If a loan is not assumed upon death of an applicant the loan will go into foreclosure.

10. What happens to my home if I cannot repay my loan?

• If an applicant faces challenges making payments towards their loan they will need to contact our office at 336-727-8000 to speak with a Loan Officer about a possible modification.

11. What if I’m a renter?

• Applicants must own the residence in need of repair. If you are a renter please have the owner contact us at 336-727-8000 to place an application for Rehabilitation.

12. Can I pick my Contractor?

• Contractors conducting work on a home receiving assistance must be an approved Contractor ordained by the Community Development Lending Division.

13. Am I approved once I apply?

• All applications are subject to approval.

14. Is the work under warranty?

• The contractor will guarantee the workmanship in the installation of roofs, central furnace systems, central air systems and gas or electric water heaters for a period of two (2) years from the date of final acceptance of all work. Defects in the roofing materials, furnace appliance, air conditioning appliance and water heater appliance shall be covered under the manufacturer’s warranty.
• The contractor will guarantee all other work and workmanship for a period of one (1) year from the date of final acceptance of all the work required by the contract.

15. Is there an income limit?

• Clients who exceed 80% of the income limit as shown on the income chart are ineligible for Rehab, Emergency, Physical Accessibility, and Hazard Reduction.

• Clients who exceed 200% of the income limit as shown on the income chart below are ineligible for TURN.
  • TURN is only available to designated neighborhoods in the City of Winston-Salem. *To see if your neighborhood is in a designated area contact us today at 336-727-8000.

16. Do we check for lead?

• All properties built prior to 1978 are required to undergo a Lead Test provided by the Community Development Lending Division as apart of the application process.

17. Do we help with bed bugs?

• All properties will undergo a pest inspection, and pest control as a part of the application process.

18. How do I assume a loan?

• All parties involved must have ownership of the property before an assumption may commence.
• Contact our office for further information 336-727-8000.

19. How do I request a subordination?

• We ask that the Lending Institution submit the following:
  • Good Faith Estimate
  • Appraisal
  • Loan Modification Application
  • A letter from the applicant requesting the subordination on the lending institution letterhead.
  • The most recent mortgage statement
• The items listed above may be mailed to

City of Winston-Salem
Community Development Dept.
Lending Division
100 E. First St., Suite 423
Winston-Salem, NC 27101

20. What will my payment be?

• Monthly payments are dependent upon the cost of repair and third party fees.

21. How long is my payment term?

• Payment terms are as follows:
  • Rehab – 20 year amortization
  • TURN – 20 year amortization * forgiveness after 10 years
  • Emergency repair – 10 year amortization
  • Physical Accessibility – 10 year amortization
  • Hazard Reduction – Forgiven at year 10

22. What is my interest rate?

• Interest rates are income based.