From staff reports
The City of Beaufort, recognizing the high cost of homes in the region, is beginning a program to help its employees with a down payment forgivable loan.
The City is partnering with Community Works, a nonprofit organization that specializes in affordable housing and financial education, to administer the program, which begins on July 1.
The program will be available to employees who are in good standing with the City of Beaufort, and have been employed past their probation period.
“Our employees are very important to us,” City Manager Bill Prokop said in a news release. “We continually look at the benefits we offer to make sure we are as competitive as possible so that we can attract and keep talented people. We believe that the money we invest in this will pay off in the long run. We hope to lessen turnover, and make our city an even more attractive place to work.
The City will provide up to $10,000 in a forgivable loan if the employee meets the following conditions:
The loan must be used for all or a portion of a down payment or closing costs for the purchase of a home.
The employee’s household income cannot exceed 200% of area median income.
The employee must be able to obtain a 30-year fixed rate mortgage.
The employee must invest a minimum of $500 into the home purchase and attend a homebuyer education workshop.
Additionally, the home must be in Beaufort County, as well as the primary residence of the employee, and monthly mortgage payments cannot exceed 35% of monthly income.
The loan will be forgiven over five years, with 20% forgiven each year. Employees who leave the City before the five years are up must repay the balance of the loan.
The program is identical to one started recently by Beaufort Memorial Hospital to help its employees better afford a home purchase.
