City's Homebuying HERO Program opens more doors to Homeownership

Published on July 17, 2026

FAYETTEVILLE, N.C. — The City of Fayetteville is investing in more opportunities for residents to achieve homeownership with updated guidelines and renewed funding for its Homebuying HERO (Homebuyer Education and Readiness Opportunity) Program.

As the City's flagship down payment assistance program, Homebuying HERO helps income-qualified households overcome one of the biggest barriers to buying a home by providing assistance with down payment and closing costs. The updated guidelines build on the program's success by creating a clearer, more transparent process for applicants and lending partners while strengthening the financial safeguards that help the City serve more families.

Eligible homebuyers may continue to receive up to $20,000 in down payment and closing cost assistance, while qualified public service employees remain eligible for up to $30,000 in forgivable assistance.

One of the most significant updates is a new affordability analysis that ensures City assistance fills only the remaining financial gap after all other available funding sources have been explored, including lender credits, seller contributions, employer assistance, North Carolina Housing Finance Agency programs, nonprofit assistance and gift funds. By leveraging every available resource first, the City can stretch program dollars further and assist more homebuyers.

The updated guidelines also establish a clear, step-by-step process for calculating assistance, giving applicants and participating lenders greater consistency and transparency throughout the homebuying process. Additional updates strengthen accountability by ensuring program funds are used only for eligible homeownership expenses.

Additional enhancements include:

A standardized affordability gap calculation that ensures City assistance addresses only the remaining financing need.
Revised borrower contribution and cash-at-closing requirements, including a $500 minimum borrower contribution and a $2,500 maximum cash back at closing.
Clearer guidance on eligible uses of program funds, including closing costs, affordability gap assistance, and permanent interest rate buy-downs.
Enhanced lender documentation requirements to verify all available assistance has been considered.
Updated underwriting and property standards to improve consistency and maintain compliance.

The revised guidelines also simplify several program requirements. While the required First-Time Homebuyers Workshop remains the foundation of the program's education component, one-on-one housing counseling will now be available on a case-by-case basis rather than required for every participant.

"Buying a home is one of the most important investments a family can make, and we want Homebuying HERO to open that door for as many eligible Fayetteville residents as possible," said Chris Cauley, Economic & Community Development Director. "These updates make the program easier to navigate, strengthen accountability, and ensure we're using public funds in a way that helps more families build long-term stability through homeownership."

The Homebuying HERO Program is available to households earning up to 120 percent of the Area Median Income purchasing an eligible home within the Fayetteville city limits.

For more information about the Homebuying HERO Program, including participating lenders and upcoming workshops, visit FayettevilleNC.gov/ECD.

Residents can also contact the City of Fayetteville Economic & Community Development Department at (910) 433-1590 or EconCommDev@fayettevillenc.gov.

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