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First time home buyer NC information and buyer assistance programs. First-time homebuying might be intimidating, especially when applying for a mortgage and paying the down payment.
If you qualify, the North Carolina Housing Finance Agency can assist you with your down payment and give you with an inexpensive loan and other options to save money if you’re looking for a home in North Carolina.
Loan programs for first-time homebuyers in North Carolina
The North Carolina Housing Finance Agency (NCHFA)
The NC Home Advantage Mortgage, the NC 1st Home Advantage Down Payment, and the NC Home Advantage Tax Credit are administered to accommodate the diverse needs of prospective homeowners.
NCHFA NC Home Advantage Mortgage
The NC House Advantage Mortgage is offered to both first-time homebuyers and “move-up” buyers, who already own a home.
A first-time homebuyer is defined as an individual who has not owned a property within the past three years.
The program provides a fixed-rate mortgage – either a conventional, FHA, VA, or USDA loan – along with up to 5 percent down payment assistance (3 percent for a conventional loan).
This assistance is packaged as a second mortgage with no interest that does not need to be returned unless the home is sold or the first mortgage is paid off or refinanced within the first 15 years of the loan term.
Here are the eligibility requirements:
⮞ Your yearly income does not exceed $99,000
⮞ Your credit score is at least 640.
⮞ Your debt-to-income ratio (DTI) does not exceed 43 percent.
⮞ You are purchasing a single-family home, a townhouse, a condominium, a duplex (with an FHA loan only), or a new manufactured home (FHA, VA or USDA loans only, with a minimum credit score of 660).
North Carolina down payment assistance
NCHFA NC 1st Home Advantage Down Payment
The NC 1st Home Advantage Down Payment program provides $8,000 in down payment help to first-time homebuyers, veterans, and those purchasing in special targeted markets.
This aid is provided in the form of a second mortgage with no interest that is totally forgiven after 15 years. To qualify, you must get an NC Home Advantage Mortgage and satisfy the program’s conditions.
Additional Homebuyers Help Programs in North Carolina
NC Home Advantage Tax Credit
Veterans and first-time homebuyers can combine an NC Home Advantage Mortgage with the state’s Mortgage Credit Certificate (MCC) program for the NC Home Advantage Tax Credit.
A MCC allows you to claim a federal tax credit equal to either 30 percent or 50 percent of your mortgage interest, depending on whether you’re purchasing an existing or new-construction house.
At either rate, the maximum annual credit is $2,000, but it can be used annually for as long as you live in your house.
Note: When the MCC is used with the NC Home Advantage Mortgage, only certain property types qualify.
Other NC First-Time Homebuyer Loan Programs
Although the NCHFA can assist you with your first home purchase, you are not required to go through your state’s housing finance authority to obtain an affordable first-time homebuyer loan.
Numerous mortgage lenders provide mortgages with low or no down payment, including FHA, VA, and USDA loans, which can help you purchase your first home faster.
First Time Home Buyer NC Conclusion
If you’re interested in one of the North Carolina Housing Finance Agency’s programs, visit the agency’s website for program details and recommendations on what you need to know before buying your first home.
Additionally, you can utilize the website to locate a mortgage lender in your location as well as Spanish-speaking lenders.
Regardless of the mortgage that ends up being the best fit for you, it is in your best interest to compare lenders and offers to obtain the best mortgage rate for your credit score and financial condition.