Morgantown Down Payment Assistance Program

Unlocking Homeownership: Your Guide to the Morgantown Down Payment Assistance Program

Saving for a first home can feel like climbing Coopers Rock without a trail map. The Morgantown Down Payment Assistance Program (DPA) offers a sturdy handhold: up to $5,000 toward your down payment. In the next few minutes, you’ll discover who qualifies, how to apply, and clever ways to stretch that grant so your West Virginia keys jingle sooner.

Why Down Payment Help Matters in West Virginia

Typical buyers in Morgantown put down 6–7% of the purchase price, according to regional MLS data aggregated in early 2024. On a $225,000 starter home, that’s roughly $14,000—enough to buy a secondhand pickup or fund a semester at WVU. With wages in Monongalia County averaging $50,000, scraping together that sum can take three to five years of disciplined saving.

The Morgantown homebuyer assistance program compresses the timeline. By covering up to $5,000 of your upfront costs, it chops the required cash by more than a third, often reducing time-to-purchase to under 18 months. In a fast-moving market where listings go under contract in 12 days on average, speed is leverage.

How the Morgantown Down Payment Assistance Program Works

The city administers the DPA with federal HOME funds. Think of it as a silent partner that chips in today so you can build equity tomorrow. Below are the moving parts.

• Maximum assistance: $5,000 toward down payment and allowable closing costs.
• Structure: Forgivable, zero-interest lien recorded against the property for five years. Stay in the home, and the debt quietly disappears.
• Property type: Single-family, townhouse, or condo within Morgantown city limits.
• Income cap: 80% of area median income (AMI), adjusted for household size.
• Minimum buyer contribution: 1% of the sales price from personal funds.

Eligibility Requirements: Can You Qualify for the Morgantown Down Payment Assistance Program?

Qualifying is simpler than you might expect; it boils down to four pillars.

1. First-time status: No ownership interest in a primary residence during the past three years.
2. Income: Not above HUD’s 80% AMI limit—$55,900 for a family of four in 2024.
3. Credit: A middle FICO of at least 620 and no outstanding tax liens.
4. Education: Completion of an eight-hour HUD-approved homebuyer course.

Miss one piece? Don’t write yourself off. For instance, a recent applicant with a 612 score succeeded after paying down two medical collections and re-applying 60 days later. Persistence pays.

Application Process in Five Simple Steps

1. Pre-approval: Secure a mortgage pre-approval from a lender that participates in the city’s program.
2. Homebuyer class: Attend (online or in person) and grab your completion certificate—your golden ticket.
3. Submit DPA packet: Your lender forwards income docs, purchase contract, and inspection reports to the city’s Community Development office.
4. City review: Staff issue a commitment letter within 10 business days on average.
5. Closing: Funds wire to the settlement agent; a five-year forgivable note is recorded.

The entire cycle can finish in 45 days—faster than it takes to binge an entire season of Mountaineer football replays.

Is the Morgantown Down Payment Assistance Program a Loan or a Grant?

Technically, it’s a deferred, forgivable loan. In everyday language: behave like a homeowner for five years, and you never pay it back. Sell, refinance, or move out early, and you’ll owe the prorated balance. Because no interest accrues, even a partial repayment is gentle on the wallet.

This structure helps the city recycle funds without punishing buyers who choose to stay. It’s the public-policy equivalent of a boomerang—you throw assistance out, and after five years it doesn’t return, freeing the budget to help the next family.

Maximizing the $5,000 Benefit: Insider Tips

Five grand can evaporate if you’re not strategic. Use these local hacks:

• Negotiate seller concessions for repairs; keep the city money strictly for down payment so you hit the 80% loan-to-value sweet spot.
• Target energy-efficient homes. The city allows weatherization costs to be rolled into certain mortgages, lowering utility bills by up to $900 a year per WVU Extension data.
• Shop lenders. One Morgantown credit union waives its $995 origination fee for DPA users—a stealth 20% boost to your subsidy.

Combining Morgantown DPA with Other WV Programs

The Morgantown down payment grant can be layered with:

• West Virginia Housing Development Fund Homeownership Program.
• FHA and USDA 502 loans.
• Employer-based incentives like WVU’s Live-Near-Work initiative.

The trick is sequencing—state funds generally sit in second lien position, while the city’s assistance records as third. Work with a lender versed in these rules; a mis-filed lien can sink your deal at the closing table.

Real Numbers: What $5,000 Means in Morgantown’s Housing Market

Let’s crunch a not-so-hypothetical scenario. Sarah, a lab technician at Ruby Memorial, earns $46,000. She targets a $200,000 townhouse in Suncrest.

By shaving $5,000 off her upfront costs, Sarah preserved a three-month emergency fund—money she later used to replace a faulty HVAC coil. Real assistance breeds real stability.

Another buyer, Tyler, a recent WVU grad, snagged a condo near High Street. He combined the Morgantown DPA with a 3% down conventional loan and persuaded the seller to cover half the closing costs. His Yelp review of the process? “Felt like someone kicked open a locked door to adulthood.” Poetic, but also accurate.

Frequently Asked Questions

Ready to Put Down Roots in Morgantown?

Your future address could be closer than you think. Contact the city’s Community Development office or reach out to a participating lender today. With the Morgantown Down Payment Assistance Program on your side, that welcome mat may hit your porch sooner than spring’s first dogwood bloom.