Good news for first-time home buyers and repeat buyers in North Carolina: The state offers a loan program that comes with down payment assistance.
The North Carolina Housing Finance Agency has a program called NC Home Advantage Mortgage, which combines affordable, fixed-rate loans with down payment assistance of up to 5% of the loan amount. Even better: Borrowers don’t have to pay back the down payment help if they own the home long enough.
National first-time home buyer programs
» MORE: Requirements for getting an FHA loan
NCHFA highlights and eligibility requirements
HIGHLIGHTS
- Available for credit scores as low as 640
- Get up to 5% down payment assistance on an FHA, VA or USDA loan, and up to 3% down payment assistance on a conventional loan
- Choose among conventional, FHA, VA or USDA mortgages from private lenders recommended by the NCHFA
- Depending on loan type, buy a house, town house, condominium, duplex or new manufactured home
- There is no sales price limit on the home for the loan program
ELIGIBILITY
- Must meet limits on income
- Overall debt-to-income ratio has to be 43% or less
- Home buyer education may be required
- Mortgage insurance will be required when a down payment is less than 20%
» MORE: 25 tips for first-time home buyers
North Carolina home buyer assistance programs
Your next step
Visit the NCHFA’s information page for the NC Home Advantage Mortgage. This page has a link to a lender lookup tool and a way to find a real estate agent who has worked with program participants in the past.
The program requires you to take a homeownership education course. The lender will help you enroll.
If you’re interested in the Self-Help Loan Pool, visit NCHFA’s community partners page and select your county and the “Self-Help Loan Pool” program to see what’s available.
» MORE: Best North Carolina mortgage lenders
More from NerdWallet
How much can you pay for a house?