I am also participating in the Affordable Dwelling Unit (ADU) Purchase program. Can I use the PEG program in conjunction with my home purchase?
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The loan is secured by a second lien on the home for a 5-year term at 0.00%. The maximum loan amount is $10,000. As long as you maintain employment with Loudoun County or Loudoun County Public Schools (LCPS), keep the home as your primary residence and do not sell your home for a period of 5 years, the entire loan balance will be forgiven.
Should you decide to sell the home prior to the 5-year residency requirement being met, the remaining unforgiven loan balance must be paid in full through the loan proceeds.
If you discontinue employment with Loudoun County or LCPS, the remaining unforgiven amount will be converted to a loan at an interest rate of 3%. Monthly payments will be required until the balance has been paid in full.
The funds are a forgivable loan. Your loan balance will be forgiven at 20%, or $2,000 each year for five years as long as you comply with the terms and conditions of the program. You will receive a 1099-form annually from the county for the forgiven amount as it is considered taxable income.
No - even if borrowers are eligible for both down payment assistance programs, only one may be used.
Occupants over 18 who do not receive income must submit a notarized statement certifying that they do not receive income from employment or any other source. You may request a Zero Income Certification form from the county if you prefer.
Full-time students may submit proof of enrollment such as a class schedule to fulfill this requirement.