First Time Home Buyer North Carolina: Incentives and Programs

North Carolina is a great place to live and to buy your first home. Whether you have lived in North Carolina all of your life or are moving there for the first time, you will find that there are many beautiful places to live, and that North Carolina has many programs in place to help first time home buyers. We have compiled a list of incentives and programs that North Carolina offers first time home buyers to help you begin your research.

What Is the NC Home Advantage Mortgage?

first time home buyer North Carolina

The North Carolina Housing Finance Agency (NCFHA) offers a N.C. Home Advantage Mortgage with fair interest rates and help with down payment up to 5 percent of the mortgage loan amount. This mortgage can be used with with several mortgage types and provides a safe, affordable financing option for first time home buyers. The N.C. Home Advantage Mortgage is available from participating lenders at 700 offices throughout the state. You can qualify for the N.C. Home Advantage Mortgage if:

You are a first time buyer.
You buy a North Carolina home and inhabit it within 60 days of closing.
Your income is less than $87,500.
You are applying for a loan from a participating lender.
You are a legal resident of the United States.
Your credit score is 640 or above.

Another great part of the NC Home Advantage Mortgage is that buyers can get assistance with down payments and closing costs in the form of an interest-free, deferred, and forgivable second mortgage up to 5 percent of the initial mortgage amount. Repayment on these mortgages is only required if you sell, refinance or transfer the home before you have occupied it for 15 years. The mortgage payment is forgiven at 20 percent per year after you have occupied the home for 10 years, and then fully forgiven at 15 years.

Mecklenburg, Johnston, Guilford, Cumberland, and Cabarrus counties also offer additional assistance up to $15,000 if you are within certain income sales price limits.

What Is the Mortgage Credit Certificate?

first time home buyer North Carolina

The NCHFA also offers first time home buyers in specified income and sales price brackets (which vary by county) a Mortgage Credit Certificate. The Mortgage Credit Certificate can be worth up to $2,000 in tax savings that you can use toward mortgage payments. You can claim up to 30 percent of the interest on the mortgage for an existing home, and up to 50 percent of the interest on the mortgage for a new home, up to $2,000.

Both the NC Home Advantage Mortgage and the Mortgage Credit Certificate can be used together to help you buy your first home in North Carolina. The North Carolina Housing Finance Agency offers housing counseling to help anyone seeking to learn more about their North Carolina housing situation.

What Is the Single Housing Family Guaranteed Loan Program?

North Carolina offers this loan program through the USDA’s Rural Development program. Qualified lenders are backed by this program for up to 90 percent of the loan amount, making it easier for low to moderate income families to get loans in rural areas. The funds backed by these guaranteed loans may be used to build, improve, rehabilitate, or relocate housing in rural areas, and can also be used toward closing costs, refinancing, real estate taxes, and many other expenses associated with buying or refinishing a home. Applicants to this program must meet income eligibility and other requirements, and their property must be in one of the eligible rural areas.

What Is Downtown Housing Improvement Corporation in Raleigh?

Wake County residents can turn to the Downtown Housing Improvement Corporation (DHIC) for counseling through the first time home buying process. The DHIC helps first time home buyers create a plan for buying their home and assists them with finding the best financing options with preferred lenders. DHIC advisors will continue to work with first time home buyers after they have made their purchase if financial difficulties arise.

What Is the House Charlotte Program?

first time home buyer North Carolina

First time home buyers looking for homes in the Charlotte/Mecklenburg area may qualify for the Charlotte Mecklenburg Housing Partnership’s House Charlotte Program. The program features several different funding options for families at various income brackets, and a special funding program for buyers who are Charlotte/Mecklenburg police officers. Many applicants can receive up to ten-year forgivable, deferred loans.

What Is the Greensboro Affordable Home Loan Initiative?

The Greensboro Housing Counseling Service (GHCS) aims to serve up to 40 households per year through their affordable home loan initiative. The GHCS provides a detailed step-by-step process with counseling and training as part of qualifying for the initiative. Qualified applicants receive a no-interest mortgage with deferred payments that may be used to help with down payments and other expenses associated with buying a home. The amount of available assistance varies by income level.

The NCHFA works with several community partners to assist first time home buyers in many areas throughout the state. Many of North Carolina’s first time home buyer programs are run by local agencies, so searching for programs available in your desired area is a great place to start.