North Carolina First-Time Homebuyer Programs

If you're purchasing your first home in North Carolina, you may be feeling daunted by the numerous headlines about elevated mortgage rates and home prices. Although the present market can make home buying seem unattainable for many, there is still good news to celebrate in the Tar Heel State.

The median sales price in this area is $367,800, based on the latest data from Redfin, making it relatively affordable compared to national statistics. Additionally, the number of homes on the market has increased by approximately 18 percent compared to the same period last year, indicating that if you have the means to purchase, you might encounter less competition for the homes available.

The median sales price here is $367,800, a relative bargain compared to national figures. Homes for sale have increased by about 18 percent since last year, potentially reducing competition for buyers.

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North Carolina first-time homebuyer programs

NCHFA NC Home Advantage Mortgage

NCHFA’s NC Home Advantage Mortgage is available to both first-time homebuyers and those who already own a home. The program offers a fixed-rate mortgage — either a conventional, Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA) loan — and up to three percent of the loan amount to be used toward a down payment. You need not repay the assistance unless you sell, refinance or move out of your home before you’ve lived there for 15 years. After 15 years, the assistance is forgiven.

Requirements
- Purchase a primary residence within the state of North Carolina
- Maximum annual income of $140,000
- Minimum credit score of 640 (660 if buying a manufactured home)

North Carolina down payment assistance and grants

NCHFA NC 1st Home Advantage Down Payment

NCHFA also offers $15,000 in down payment assistance specifically to first-time homebuyers, veterans and those buying in targeted markets through the NC 1st Home Advantage Down Payment program. This assistance comes in the form of a zero-interest second mortgage, which is forgiven after you’ve lived in the home for 15 years. To be eligible, you must obtain an NC Home Advantage Mortgage.

Requirements
- Purchase a primary residence within the state of North Carolina
- Be a first-time homebuyer, veteran or buy within a targeted area
- Meet income and sales price limits, which vary by county
- Minimum credit score of 640 (660 if buying a manufactured home)

NCHFA Community Partners Loan Pool Program

If you earn 80 percent or less of your county’s area median income (AMI), you may be eligible for 25 percent of your home’s sale price — up to $50,000 — in down payment assistance from NCHFA. The assistance is structured as a zero-interest, deferred-payment loan. Payment is required at the end of the 30-year term, or if you sell or move out of the home before the term ends.

Requirements
- Buy a primary residence within the state of North Carolina
- Qualify for an NC Home Advantage Mortgage or a USDA Section 502 Direct Loan
- Earn less than 80 percent of the local area median income
- Meet sales price limits, depending on the county and home type
- Complete a homebuyer education course

City-specific homebuyer assistance programs

In addition to statewide help, some of the biggest cities in the state offer help for buyers with low and moderate incomes.

Raleigh: Homebuyer Assistance Program and Enhanced Homebuyer Assistance Program

Raleigh offers up to $45,000 of down payment assistance with a traditional Homebuyer Assistance Program and up to $60,000 with its Enhanced Homebuyer Assistance Program, which is reserved for anyone buying in a targeted area. The aid is a zero-interest loan that comes due only if you sell or move out of the home.

To qualify for both programs, you must be a first-time homebuyer earning no more than 80 percent of the local AMI.

Requirements
- Be a first-time homebuyer
- Purchase a single-family home within city limits
- Earn no more than 80 percent of the local AMI
- Meet sales price limits: $348,750 for traditional Homebuyer Assistance and $450,000 for the Enhanced Program

Durham: City of Durham Down Payment Assistance Program

If you're buying a home in Durham and earn 80% or less of the local AMI, you may qualify for an $80,000 forgivable, zero-percent loan for the down payment and closing costs, forgivable after 15 years.

Requirements

Be a first-time homebuyer
Purchase a primary residence within city limits
Earn no more than 80 percent of the local AMI

Charlotte: House Charlotte

House Charlotte offers down payment assistance in three amounts: $10,000 for buyers with annual earnings above 80 percent and up to 110 percent of the local AMI, $30,000 for buyers who earn 80 percent or less of the local AMI and $80,000 for city employees who meet income limits. All assistance programs are structured as zero-interest loans which are forgivable after the 15- or 30-year term expires, depending on the program.

Requirements

Purchase a primary residence within city limits
Meet income limits, varying by program
Home must cost less than $300,000 ($315,000 for new construction)
Complete a homebuyer education course

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