Programs For First-Time Home Buyers In North Carolina

Nov 22, 2022 By Susan Kelly

To help prospective homebuyers in North Carolina, the North Carolina Housing Finance Agency (NCHFA) offers the NC Home Advantage Mortgage, the NC 1st Home Advantage Down Payment, and the NC Home Advantage Tax Credit. First-time home buying is challenging wherever you go. But there is good news: you don't have to do it alone. A wealth of information and resources is available in North Carolina for first-time homebuyers. You may be eligible for assistance with your down payment and (sometimes) closing fees via several programs available in the Old North State. This is the starting point. North Carolina's lending program includes down payment help, which is great news for first-time homebuyers and repeats purchasers alike. NC Home Advantage Mortgage is a program offered by the North Carolina Housing Finance Agency (NCHFA) that combines down payment assistance with low-interest, fixed-rate mortgages.

First-Time Homebuyer Programs In North Carolina

The majority of North Carolina 1st homebuyer aid programs are designed to help people with lower to moderate incomes who are trying to save for principal payments or closing costs. Participation in programs is frequently restricted based on income, credit rating, and debt-to-income ratio (DTI). Home prices may even be capped; in most circumstances, the buyer must reside there full-time. As an additional requirement, the seller may demand one of the buyers to attend a homebuyer education class. Veterans as well as buyers in specific census tracts may qualify for the same incentives as first-time buyers.

The North Carolina Housing Financing Agency (NCHFA) offers a variety of solutions to help North Features generally finance a home. The North Carolina Mortgage Lending Agency First Home Ground advantage Down Payment Program is funded by the Carolina Mortgage Financing Agency. The NCHFA provided funding. North Carolina Mortgage Lending Agency NCHFA Way To assist Loan Pool Florida Home Buyer Tax Credit

North Carolina Housing Finance Agency Home Advantage Mortgage

Mortgages under the NC Housing Finance Agency's (NCHFA) NC Home Advantage program are accessible to first-time homebuyers and current homeowners looking to upgrade. Whoever has yet to be a homeowner in the preceding three years is called a first-time buyer. Applicants may choose a conventional, FHA, VA, or USDA fixed-rate mortgage and get up to 5% in down payment help via the program. This help is provided in the form of a second mortgage with no interest that is not due until the borrower sells the house, pays off the original mortgage, or refinances.

If You Want To Apply, You Need To Meet These Criteria First:

  • You probably earn at most $99,000 a year.
  • If your score is 640 or greater, your credit is considered excellent.
  • It would be best if you didn't have a debt-to-income (DTI) ratio of more than 43%.
  • A new prefabricated home, townhouse, condo, or duplex (with an FHA loan) fits your needs (FHA, VA, or USDA loans only, with a minimum credit score of 660).

Other Homebuyer Help Programs In North Carolina

North Carolina Home Advantage Tax Credit. In North Carolina, first-time homeowners and qualified veterans may take advantage of the state's mortgage credit certificate (MCC) program and the NC Home Advantage Mortgage. When purchasing an existing house, an MCC entitles you to a federal tax credit equivalent to 30 percent of your mortgage interest; when purchasing new construction, the credit rises to 50 percent. Either way, the credit is limited to $2,000 annually when you own the house.

Other Lending Options For First-Time Homebuyers

While the National Capital Home Financing Association (NCHFA) is an excellent resource for first-time homebuyers, they are not required to use NCHFA to get a low-interest loan from the state's housing finance authority. FHA, VA, and USDA loans are just a few examples of government-backed mortgage programs that need little or no down payment and may help you buy a house sooner. Bankrate has compiled a comprehensive resource for first-time homebuyer loans and other assistance choices.


North Carolina has a little bit of everything: ocean, mountains, cities, little towns, major cities, and everything in between. This is why people from all over the country flock to the "Tar Heel State" in search of the high quality of life that the state is known for offering. For first-time homeowners in the Tar Heel State, that's not good news. It's becoming more challenging to enter the property market due to rising costs and falling supply. A year later, in May 2022, the median sales price of a house in North Carolina was $360,900, up 17% over the previous year. Statistics have shown substantially higher rates in several areas. The typical price of a property in Raleigh, North Carolina, was $430,000 in May, up 19.4 percent from a year earlier. And the median price of a property in Wake Forest was $555,000, up 46% from the previous year.

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