Is there a maximum contract price for a homebuyer assistance program? Is there a general rule or requirement of the price range a low income applicant should be looking for when they are home searching?
Date Published: May 2015
Absent limiting local program guidelines, and unlike the HOME program which limits the value of any homebuyer/homeowner property to 95% of the median purchase price for that area, CDBG regulations do not cap the maximum purchase price of a property. HUD does encourage the grantee to establish and follow written program and underwriting guidelines for its programs. These guidelines should include property eligibility and could include a limit on value.