Buying a home is one of the biggest financial moves you’ll ever make, but let’s be real—it’s not just about affording the monthly mortgage payment. You also need upfront cash for a down payment, and for many would-be homeowners, that’s the biggest hurdle. If you’re in that boat, I have some exciting news for you!
Down Payment Assistance Can Make Homeownership Possible
The truth is that so many people could handle the mortgage payment but just don’t have enough savings to cover the upfront costs. That’s where down payment assistance (DPA) programs come in! The North Carolina Housing Finance Agency (NCHFA) offers two standout programs designed to assist homebuyers with down payments and make homeownership more accessible and I’m proud to be one of the select lenders offering access to these incredible opportunities.
In North Carolina, the NC Home Advantage Mortgage provides eligible homebuyers with stable, fixed-rate mortgages and up to 3% of the loan amount in down payment assistance. For first-time buyers and military veterans who meet additional qualifications, the NC 1st Home Advantage Down Payment option offers up to $15,000 in assistance—helping turn homeownership dreams into reality.
The best part? This assistance comes in the form of a 0% interest, deferred second mortgage that doesn’t require repayment unless you sell, refinance, or transfer your home within 15 years. Even then, the loan is forgiven at 20% per year starting in year 11, meaning by year 15, it’s completely forgiven!
And for first-time buyers and military veterans, there’s another potential perk: The NC Home Advantage Tax Credit. If you apply and are approved for a Mortgage Credit Certificate (MCC) before purchasing your home, you could save up to $2,000 per year on your federal taxes. (Note: This tax credit cannot be combined with the NC 1st Home Advantage Down Payment.)
How Do You Know If You’re Eligible?
This program could be your ticket to homeownership if you check these boxes:
- You are a first-time homebuyer (haven’t owned a home as your primary residence in the last three years), a military veteran, or you’re purchasing a home in a targeted county census area
- You are buying a home in North Carolina
- You will live in the home as your primary residence within 60 days of closing
- Your income and home price fit within program limits
- Your credit score is 640 or higher
- You are a legal U.S. resident
- Eligible properties include single-family homes, townhouses, condominiums, and new manufactured homes (which require a minimum credit score of 660).
If you meet these criteria, you could be on your way to securing safe, affordable financing with down payment help! This program can be structured as an FHA, VA, USDA, or conventional loan, meaning you have options to find the right fit for your financial situation.
Ready to Take the Next Step?
You don’t have to navigate this process alone. As a seasoned mortgage expert, I’m here to guide you through the ins and outs of home financing and help you access every opportunity available to you. Don’t let a lack of savings hold you back from achieving your dream of homeownership—this program is designed to make it happen!
Let’s chat and see if you qualify! Contact us today, and let’s get you started on the path to homeownership.
