How do I know if I’m Eligible?

A circular orange icon with a checkmark inside, accompanied by the words 'Raleigh Area Land Trust' in blue and orange text.

  • Homebuyer(s) must be a citizen of the USA or a registered alien. 

  • Homebuyer(s) must be 18 or older to qualify for a mortgage.

  • Homebuyer(s) have not owned a principal residence in the past 36 months; or be a single parent who may have owned a home with a former spouse in the past 36 months but no longer resides there.

  • Household must have an annual income which does not exceed eighty percent (80%) of the Area Median Income (AMI) of households of equal size in Wake County, or the area where the home is located. For more info, please refer to the HUD income limits. 

  • Household’s monthly income, when multiplied by the appropriate debt-to-income ratio, must be sufficient to support the housing costs for the housing opportunity in question.

  • Prospective homebuyers with an annual income less than 40% of the Area Median Income or those who require a co-signer in order to obtain a mortgage typically do not have sufficient income for our homeownership opportunities. 

  • Household must be able to demonstrate a sense of ownership of its financial obligations, and a history of responsible effort to meet them. The mortgage underwriting guidelines of the lending programs available to RALT homebuyers shall determine the credit risk and overall creditworthiness of the applicant. 

  • Household’s financial resources and circumstances should clearly indicate a limited ability to compete successfully in the conventional housing market. 

  • Homebuyer(s) must cover closing costs ranging from $5,000 to $8,000 There is a minimum 1% of purchase price contribution requirement towards the downpayment and/or closing costs from buyers own funds. The rest of the closing costs can come from gifts, down payment assistance and other grants, loans, or other sources.

  • Household must complete a 1-hour financial counseling session through DHIC Homeownership Center to determine homeownership readiness and eligibility for down payment assistance.

Infographic displaying eligibility guidelines for area median income. It compares Prestwick and Huxley areas with figures indicating different income thresholds for home affordability and mortgage amounts. Prestwick requires 100% and 80% AMI, with mortgage affordability at $346,000. Huxley requires 80% and 70% AMI, with mortgage affordability at $316,000.
Table displaying income levels associated with various family sizes, from one to seven members, and different percentages of average median income, sourced from the U.S. Department of Housing and Urban Development.
How do I purchase a home?