First-time homebuyers are able to receive down payment assistance through the city of DeKalb.

The First-Home Program can help buyers with medium income purchase their first houses.

“Right now, in the city of DeKalb, we have one program funded by a federal grant that provides assistance to help with down payments,” said Community Services Planner Sue Guio. “The grant amounts to a maximum of 2 percent of the purchase price of a home.”

The DeKalb City Council revised the First-Home Program in 2005. In addition to approving funding, two major changes were added to the program. The first was an increase in maximum housing sale price to $150,000 and the second placed a maximum income level based on the size of a family. The maximum and average grant amount also was raised to $3,000 as a result of the increase in sales price.

According to the guidelines of the program, those who are eligible to apply for down payment assistance are: First-time homebuyers who have not owned a home for three years prior to applying, first-time homebuyers with eligible incomes according to family size and buyers seeking to obtain a mortgage 95 percent or more of the purchase price of the house. In addition, all applicants must live within the city limits of DeKalb.

“The main goal of the plan is to provide a means for individuals who have adequate income but are unable to make a down payment,” said Guio. “We want to help them realize the American dream of home ownership.”

Last year, DeKalb had a low total of eight buyers take advantage of the local down payment assistance program. The average is closer to 20 people per year.

The reason for this low number of applicants was because of increasing interest rates, Guio said. About $38,000 was spent last year on the First-Home Program.

Loans for this program cannot only be used to assist in making a down payment, but the money also can go toward any other costs associated with the purchase of a house, including closing costs or attorney’s fees.

There currently are two additional programs in place that may help first time homebuyers: The Mortgage Credit Program and the Low Interest Loan Program. Buyers can contact their local lenders if they wish to seek help from these programs in addition to the First-Home Program. These programs also are funded by the city of DeKalb.