As a first time home buyer in North Carolina, you might want to have a look at this list of assistance programs. Hanfincal has brought them together with key information necessary to consider. Let’s see which program is the best-suited option for you this year.
1. First-Time Home Buyer Programs North Carolina
1.1. 1st-Time Homebuyer Programs
As a first-time home buyer, you may find yourself overwhelmed with the prospect of finding your own place to live. The process can be confusing, and it seems like there’s always another obstacle in the way.
Fortunately, most states, including North Carolina, have programs that are designed to help first-time home buyers. But there are some differences in how these programs operate, determining whether you can be eligible for them.
‘1st-Time Homebuyer Programs’ is a professional housing consultant that will find the best program for you. Additionally, it will guide you through the overwhelming homebuying process to help you achieve your homeownership goal.
Simply submit your name, phone number, and email address — and be ready to get the best advice on which program is the most beneficial for you.
Get a new home in NC is very easy with a free consultant here!
1.2. North Carolina (NC) Home Advantage Mortgage
NCHFA NC Home Advantage Mortgage is a fixed-rate mortgage designed specifically to help first-time home buyers in North Carolina buy their first home.
Whether as a first-time homebuyer or not, you can avail of this program to get a fixed-rate mortgage and assistance toward the down payment. To qualify, you must meet certain requirements.
Here’s how it works:
- The program is available for an FHA, VA, USDA, or conventional loan.
- It offers up to 5% for your down payment. This works as a second mortgage that requires no interest as well as no repayment within the first 15 years.
- It requires your debt-to-income (DTI) ratio to be above 43%.
- You must have a credit score of at least 620.
- The assistance only works for buying a single-family home, condo, duplex, townhome, or new manufactured home.
A lender may consider other factors when determining whether someone qualifies for an NCHFA NC Home Advantage Mortgage — such as the length of time since their last purchase or whether they have children living at home. But these are typically not considered by the program’s lenders as part of your application process.
1.3. North Carolina 1st Home Advantage Down Payment
You can obtain a second mortgage with 0% interest through this program. As a result, unless you sell, transfer, or refinance your house within 15 years of ownership from the date of purchase, you are not required to make any payments.
Aside from that, it’s required that you haven’t purchased a residence in the last three years. Other demands from North Carolina First Home Advantage Down Payment include the following:
- North Carolina must be the location of the house you’ll buy with program assistance.
- The buyer’s ability must fall within the program’s offered income and selling price limits.
- Homebuyers must participate in an NC Home Advantage mortgage.
- Your credit score shouldn’t be lower than 640.
- Only the purchase of single-family homes, condominiums, townhomes, and brand-new prefabricated homes is permitted under the program.
- You must have a credit score of 660 or better to purchase a new prefabricated house.
1.4. NC Home Advantage Tax Credit
First-time homebuyers and veterans can combine an NC Home Advantage Mortgage with the NC Home Advantage Tax Credit, the state’s mortgage credit certificate (MCC) program.
This allows eligible borrowers to receive a maximum property tax credit of up to $10,000 on their mortgage, which is equivalent to an interest rate reduction of up to 1%.
Moreover, it gives first-time homebuyers a 50% tax credit on their income taxes paid during the year they purchase their home. It also provides additional savings for veterans by covering 100% of their mortgage interest costs for up to two years after they move into their new home.
This NC first-time home buyer program is open to all buyers, including those who live in Charlotte, Raleigh, Greensboro, Durham, Fayetteville, and Winston-Salem.
1.5. Federal First-time Home Buyer Loans In NC
FHA loan — The Federal Housing Administration is the sponsor of an FHA loan. 3.5% down payment and a minimum credit score of 580 are required. However, you’re responsible for paying mortgage insurance up until you refinance to a new kind of mortgage, sell your house, or settle your debt.
VA loan — Only active military personnel and veterans are eligible for VA loans. There is no deposit necessary. Depending on the lender, a minimum credit score of 620 is typical. After closing, no more mortgage insurance is required. Apply if you qualify because these mortgages are undoubtedly the greatest ones available.
USDA loan — Loans from the USDA are available to buyers in certain rural areas who have low to moderate incomes. There is no deposit necessary. Lender requirements on credit score differ, but often 640 is required.
2. Local First-time Home Buyers
2.1. First-Time Home Buyer Programs Charlotte NC
The median price of a home in Charlotte, North Carolina, in the second quarter of 2022 was $400,000, according to Realtor.com. There was a rise of 12%.
As a result, you have the following possibilities for down payments if you wish to buy a house at that price:
- $80,000 for 20% down payment
- $12,000 for 3% down payment
Make sure to look into the ‘1st-Time Homebuyer Programs’ if you’re thinking about purchasing a home in Charlotte. As was already mentioned, this consultant service will select the most advantageous first time home buyer programs in North Carolina for you.
2.2. First-Time Home Buyer Programs in Raleigh NC
In April 2022, the median sales price of a home in Raleigh was $400,000, similar to Charlotte. That was a 15.9% increase from the previous year, according to Realtor.com.
Like in Charlotte, your possibilities for a down payment if you wish to purchase a home at that median price could range from:
- $80,000 for 20% down payment
- $12,000 for 3% down payment
Before you are eligible to apply for the City of Raleigh’s down payment aid program, you must complete a homeownership course and obtain a certificate.
2.3. First-Time Home Buyer Programs Greensboro NC
According to Realtor.com, the median list price of a property in Greensboro in April 2022 was $280,000. That increased by 27.3% from the prior year.
Your possibilities for a down payment if you wish to purchase a home at that median price could range from:
- $56,000 for 20% down payment
- $8,400 for 3% down payment
First-time buyers who qualify can receive up to $10,000 through the Housing Connect Homebuyer Down Payment Assistance Program of the City of Greensboro. It’s a second mortgage with no interest and no payments for just five years as long as you continue to live there and maintain ownership of the property.
Also, if you purchase a home in one of the city’s redevelopment areas, you are also eligible to borrow on the same terms up to $15,000 in total down payment assistance.
3. First-Time Homebuyer In North Carolina Stats
The average home sale price in North Carolina was $360,000. This figure represents a 19% increase over the previous year. Below are the overall stats.
- Average Home Sale Price in NC: $360,200
- 20% Down Payment in NC: $72,040
- Minimum Down Payment in NC (3%): $10,806
- Average Credit Score in NC2: 707
- Maximum NC Home Buyer Grant3: Up to 5% of the loan amount (NCHFA, below)
As a first time home buyer in North Carolina, it’s important to find the best mortgage and the best lender associated with it. You also need to check out the mortgage rate carefully to see whether it fits your financial abilities and credit levels. If everything seems frustrating for you, rely on an expert housing consultant like the ‘1st-Time Homebuyer Programs’. Hanfincal hopes you find this blog informative and helpful.