Buying your first home in North Carolina can feel overwhelming, especially with rising home prices and mortgage rates. But here’s the good news, North Carolina offers several homebuyer assistance programs that make homeownership more affordable. These programs provide down payment assistance, competitive mortgage rates, and even forgivable loans to eligible buyers.

This guide covers the best first-time homebuyer programs in North Carolina, including eligibility requirements and how to take advantage of these opportunities.

Why Buy a Home in North Carolina?

North Carolina’s housing market remains more affordable than national trends. Key benefits include:

• Lower home prices: The median home price is $367,800, below the national average.
• Increased inventory: Home listings have grown by 18% year over year.
• Homebuyer assistance programs: State and local initiatives help with down payments, interest rates, and closing costs.

With the right assistance, buying a home in North Carolina may be more accessible than expected.

North Carolina First-Time Homebuyer Programs

NC Home Advantage Mortgage

The NC Home Advantage Mortgage program offers fixed-rate loans (conventional, FHA, VA, or USDA) with up to 3% down payment assistance.

Key Benefits:

• Up to 3% down payment assistance (forgiven after 15 years).
• No repayment unless the home is sold, refinanced, or the buyer moves within 15 years.
• Eligible for single-family homes, townhomes, condos, and some manufactured homes.

Eligibility Requirements:

• Must purchase a primary residence in North Carolina.
• First-time homebuyer, veteran, or purchasing in a targeted area.
• Meet income and sales price limits (varies by county).
• Minimum 640 credit score (660 for manufactured homes).

Potential Drawbacks:

• Duplexes do not qualify.
• Manufactured homes require a higher credit score.

NC 1st Home Advantage Down Payment Program

This program provides $15,000 in down payment assistance for first-time buyers, veterans, and those purchasing in targeted areas. The assistance comes as a zero-interest second mortgage, forgiven after 15 years.

Key Benefits:

• $15,000 in down payment assistance.
• No interest or monthly payments.
• Fully forgiven after 15 years.

Eligibility Requirements:

• Must qualify for an NC Home Advantage Mortgage.
• Must be a first-time homebuyer, veteran, or purchasing in a targeted area.

Community Partners Loan Pool Program

For homebuyers earning 80% or less of their county’s median income, this program provides up to $50,000 in down payment assistance through a zero-interest deferred-payment loan. Repayment is required only at the end of the 30-year term or if the home is sold or refinanced.

Key Benefits:

• No-interest loan for down payment assistance.
• Helps low-income buyers afford homeownership.

Potential Drawbacks:

• • Loan must be repaid after 30 years.

City-Specific First-Time Homebuyer Programs

Several North Carolina cities offer additional homebuyer assistance programs.

Raleigh: Homebuyer Assistance Program

Raleigh offers up to $45,000 in down payment assistance through a zero-interest loan. Buyers in targeted areas may qualify for up to $60,000. Repayment is required only if the home is sold or the buyer moves.

Eligibility Requirements:

• First-time homebuyer.
• Earn 80% or less of the area median income (AMI).
• Purchase a home within Raleigh city limits.

Potential Drawbacks:

• If the home is sold within 10 years, sales proceeds may be limited.

Durham: Down Payment Assistance Program

Durham homebuyers can receive up to $80,000 for down payment and closing costs. This assistance comes as a zero-percent interest loan, forgiven after 15 years.

Key Benefits:

• Large down payment assistance amount.
• Fully forgiven after 15 years.

Eligibility Requirements:

• • First-time homebuyer.
  • Purchase a home within Durham city limits.
  • Earn 80% or less of the area median income.

Charlotte: House Charlotte Program

Charlotte’s program offers three tiers of assistance based on income:

• $10,000 for buyers earning 80-110% AMI.
• $30,000 for buyers earning 80% or less AMI.
• $80,000 for city employees who meet income limits.

Assistance is structured as a zero-interest loan, forgiven after 15-30 years depending on the program.

Eligibility Requirements:

• Must purchase a home in Charlotte city limits.
• Home price must be $300,000 or less ($315,000 for new construction).
• Must complete a homebuyer education course.

Potential Drawbacks:

• • • Sales price limits are relatively low.

National First-Time Homebuyer Loan Programs

In addition to North Carolina-specific programs, several national loan options can help first-time buyers:

• • • • FHA Loans: 3.5% down payment, credit score as low as 580.
      • VA Loans: No down payment required for military service members and veterans.
      • USDA Loans: No down payment required for eligible rural areas.
      • Good Neighbor Next Door Program: 50% discount on select homes for teachers, law enforcement, and firefighters.

How to Get Started

If you’re ready to buy your first home in North Carolina, follow these steps:

1. 1. • Check eligibility: Use the USDA eligibility map and consult your local housing authority.
      • Compare mortgage rates: Shop around for the best loan terms.
      • Research lenders: Look at lender reviews and fees.
      • Estimate homeowners insurance: Factor in insurance costs, including flood coverage if necessary.
      • Improve your credit score: A higher credit score leads to better loan terms.

North Carolina offers multiple programs to help first-time homebuyers afford a home through down payment assistance, lower interest rates, and forgivable loans. Whether you qualify for a statewide program or a city-specific initiative in Raleigh, Durham, or Charlotte, these resources can make homeownership more accessible.

If you’re ready to explore your homebuying options, contact us today to discuss loan programs that fit your needs.

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