First-Time Home Buyer in Gastonia, NC? How Down Payment Assistance Works (2026)
The City of Gastonia runs a homebuyer assistance program for first-time buyers across most of Gaston County. We're a mortgage broker, and our lender partners accept the city's program with FHA and conventional loans. Here's who qualifies, how much help is available, and what the process looks like.
Last reviewed: Oct 2026 · BD Group is a mortgage broker and is not affiliated with the City of Gastonia or any government agency.
Short answer
Yes, Gastonia has down payment assistance for first-time buyers. The City of Gastonia's Homebuyer Assistance Program, funded by HUD's HOME program, offers up to $15,000 (city-administered) toward down payment and closing costs. While a limited pilot lasts, it offers up to $50,000. The help comes as a deferred, forgivable second mortgage, and the amount depends on each household's need. You generally must be a first-time buyer, already live in Gaston County, earn no more than 80% of the area median income, buy a home within the city's price limits, and complete the city's homebuyer class and counseling. (City Guide §3–4)
Funds are limited and handed out first come, first served. The city sets the program's terms and can change them. Confirm current availability with the City of Gastonia Housing Division.
Might you qualify for City of Gastonia assistance?
Answer five quick questions. This is a rough screen, not an approval. The city makes the final decision.
Households larger than 8: call the city. Limits change every year.
This tool is an estimate for education only. It is not a loan application, pre-approval, or decision by the City of Gastonia.
Down payment help available in Gastonia
City of Gastonia Homebuyer Assistance Program
- Who runs it: City of Gastonia, Housing & Community Engagement Department (Housing Division). HUD funds it through the HOME Investment Partnerships Program. (City Guide §2.1)
- How much: up to $15,000 (city-administered) toward down payment and eligible closing costs. While a limited pilot program lasts, up to $50,000. The amount is based on each household's documented need, with a minimum of $1,000. (City Guide §3.1–3.3)
- What form it takes: a deferred, forgivable second mortgage from the city. It's forgiven a little each year you live in the home: over 5 years for most amounts, or over 10 years for pilot amounts of $25,000 and up. You repay the unforgiven part if you sell, refinance without the city's approval, stop living there, or the home is foreclosed on. (Brochure; City Guide §3.1)
- Key requirements (City Guide §4, §6.2, §10, §11, §13):
- First-time buyer (no ownership in the past 3 years). You must currently live in Gaston County and buy there.
- Household income at or below 80% AMI (see the income limits below). Liquid assets of $20,000 or less.
- A small required contribution from your own funds, plus at least $1,000 in savings kept for two months in a row.
- The homebuyer education class and one-on-one housing counseling, both through the city, which is a HUD-approved counseling agency.
- Price within the city's limits, and a city inspection of the home.
- A fixed-rate first mortgage. The city doesn't allow adjustable-rate, interest-only, or balloon loans.
- How it works with us: the city's program is on our lender partners' approved assistance lists for FHA and conventional loans. We coordinate with city program staff from the start, as the city requires of lenders. (City Guide §6.5)
- City contact: Housing Division, 150 S. York St., Garland Center, 2nd Floor, Gastonia, NC 28052 · 704-854-6602 · Contact: Lauretta Gordon, City of Gastonia Housing Division, 704-854-6602 · (City program page)
80% AMI income limits (effective 6/1/26)
| Household size | Income limit |
|---|---|
| 1 person | $65,750 |
| 2 people | $75,150 |
| 3 people | $84,550 |
| 4 people | $93,900 |
| 5 people | $101,450 |
| 6 people | $108,950 |
| 7 people | $116,450 |
| 8 people | $123,950 |
Lender grants and assistance (through BD Group)
Some of our lender partners offer first-time homebuyer grants that can help with down payment or closing costs — including for buyers who don't qualify for the city program. Eligibility, amounts and availability vary by lender and change often, so ask us what's available for your situation.
Habitat for Humanity
Habitat for Humanity of the Charlotte Region, which now serves Gaston County (Habitat Gaston and Habitat Charlotte Region joined forces in 2024), runs its own Homebuyer Program. Applicants must live or work in its service area (Gaston County, Iredell County, and most of Mecklenburg County) and meet Habitat's own income, employment, and volunteer-hour requirements. You apply directly with Habitat; it's separate from a BD Group loan. (Habitat Charlotte Region Homebuyer Program; About Habitat Charlotte Region)
Learn about Habitat's Homebuyer ProgramResource link only. BD Group isn't affiliated with Habitat for Humanity.
Ask about lender grants and down payment help
Besides the city's program, some of the wholesale lenders we work with offer their own first-time buyer grants or down payment assistance. Eligibility often depends on the property's location (census tract), household income, or first-time buyer status. Residency rules can differ from the city's program. Because we're a broker, we can compare options across several lenders instead of just one.
Can you combine them? Sometimes. The city's program lets you combine its help with other assistance only after its own review, as long as the total doesn't exceed what you actually need. Every other source has to be committed in writing and disclosed before closing. Each lender program has its own rules too. We'll check how the options fit together for your file. (City Guide §2.2, §6.1)
Not sure which option fits? Ask about lender grants and we'll compare them for your situation.
How it works with BD Group
Talk to us and get pre-approved.
We review your income, credit, and savings and find out which loan types (FHA or conventional) and assistance options fit. Pre-approval is subject to verification and underwriting.
Sign up for the city's homebuyer class and counseling.
The City of Gastonia requires a homebuyer education class for every buyer on its deed of trust, followed by one-on-one housing counseling, before assistance is approved. A certificate from an acceptable course taken within the past two years may count. (City Guide §6.2, §16)
Apply to the city.
You submit the city's application packet: two years of W-2s and tax returns, two months of pay stubs and bank statements, income documents for every working adult in the household, and proof of savings. City staff check it for completeness, then meet with you one-on-one about your debts, credit, and a personal action plan. (Brochure; Application)
Shop with your agent, then go under contract.
Stay within the city's price limits. The city inspects the home, and we coordinate the loan with the city's program staff.
Close.
Closing has to be handled by an attorney or closing agent who has coordinated with the city's program staff. The city's assistance and every other funding source appear on your Closing Disclosure. (City Guide §8)
Plan ahead: the class, counseling, and city review take time. Start early, ideally before you write an offer.
Your Gastonia loan officer
Brian DeFranco
Mortgage Loan Originator, NMLS #1600091 · BD Group powered by GoRascal, Inc., NMLS #2072896
First-time buyer financing for Gastonia and Gaston County: FHA and conventional loans, used with the City of Gastonia program and lender grant options. Based in Charlotte, about 25 minutes from Gastonia.
FAQ
Start your Gastonia first-time buyer plan
Tell us where you are in the process. We'll check the city program and lender grant options, and map out your next steps.
BD Group powered by GoRascal, Inc. · NMLS #2072896 · Brian DeFranco, NMLS #1600091 · NMLS Consumer Access
933 Louisa Ave, Suite 101, Charlotte, NC 28204 · 740-632-4290
Equal Housing OpportunityBD Group is a mortgage broker and is not affiliated with, endorsed by, or acting on behalf of the City of Gastonia, Gaston County, HUD, Habitat for Humanity, or any other government agency or nonprofit. Program names belong to their administrators. Eligibility, assistance amounts, and approval are decided by each program's administrator. Assistance funds are limited and handed out first come, first served. Program terms, income limits, and price limits change, often every year. Information summarized from City of Gastonia program documents as of Oct 2026. Last reviewed: Oct 2026. This is not a commitment to lend. All loans are subject to credit approval, underwriting, and property eligibility. Programs and terms are subject to change without notice.