Buying your first home in North Carolina? Start here
August 7, 2024
1 min read
First-Time Homebuyer and Down Payment Assistance Programs in North Carolina
There are two major state-wide programs for First Time Homebuyers in North Carolina you should be aware of if you’re a first time homebuyer in NC. Both are offered by the North Carolina Housing Finance Agency (NCHFA), a government agency focused on improving access to stable and affordable housing for North Carolinians. The agency has financed over 310,000 homes since its creation.
NCHFA NC 1st Home Advantage Down Payment Assistance Program
What It Offers
This program offers $15,000 in down payment assistance, given as a zero-percent interest second mortgage that is fully forgiven after 15 years. To qualify, you need to secure an NC Home Advantage Mortgage and meet the program’s eligibility criteria.
Key Advantages
1. $15,000 towards your down payment, which is fully forgiven after 15 years if you maintain residency in the home. If you sell or refinance before year 15, you must repay the loan.
Who Qualifies
- First-Time Buyers: You must not have not owned a home as your principal residence in the last 3 years.
-Principal residency: You must occupy the home as your primary residence within 60 days of closing
- Income Requirements: There are specific income limits, which vary based on household size and county.
- Credit Score: You’ll need a credit score of 640 or higher.
- Residency: You must be a permanent, legal resident of the US and be purchasing a home in the state of NC
What It Offers
The NCHFA Home Advantage Mortgage helps first-time homebuyers with fixed-rate mortgages and down payment assistance up to 3% of the loan amount.
Who Qualifies
- Principal residency: You must occupy the home as your primary residence within 60 days of closing
- Income Requirements: Your annual income does not exceed $140,000
- Credit Score: You’ll need a credit score of 640 or higher.
- Residency: You must be a permanent, legal resident of the US and be purchasing a home in the state of NC
- Mortgage: You are applying for an FHA, USDA, VA, or conventional loan through a participating lender and meet the sales price limits of the mortgage type
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