Interest-free down payment loans are available through the city to qualifying first-time home purchasers who are in low- and moderate income brackets.

Awardees could save thousands of dollars in interest payments over the life of their mortgages and get themselves on the path to financial security, city officials said in urging the eligible to apply.

The Department of Community Services is accepting applications from applicants’ mortgage lenders for loans of up to $40,000, Community Services Director Pamela Witty-Oakland said. The agency has about $400,000 available annually in federal HOME funds for the loan program.

In the last fiscal year, the department made 21 down payment loans.

Loans are awarded on a first-come, first-served basis to qualified households, Witty-Oakland said.

Interested parties should apply through a mortgage lender after being approved for a first mortgage. Applying is free.

To qualify, an applicant need to provide 5 percent of the purchase price as a down payment and complete an approved home ownership course. A home inspection is also required.

Call the Department of Community Services loan branch at 768-7076 for information.