First-Time Home Buyer Programs in North Carolina

North Carolina Housing Finance Agency (NCHFA) Programs:

NC Home Advantage Mortgage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) and veterans or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed $126,500 (statewide limit as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $400,000.

NC 1st Home Advantage Down Payment:

Benefits: Offers up to $15,000 as a 0% interest deferred loan (forgiven after 15 years if the home remains owner-occupied) for down payment and closing costs; available with NC Home Advantage Mortgage.
Eligibility: Must use an NCHFA first mortgage; income and purchase price limits apply (same as NC Home Advantage Mortgage).

NC Home Advantage Mortgage with MCC:

Description: Combines a 30-year fixed-rate mortgage with a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly) for first-time buyers or those in targeted areas.
Requirements: Must meet NC Home Advantage Mortgage criteria; fee applies for MCC; credit score of 640.

Local Programs:

Charlotte

HouseCharlotte Program: Offers up to $20,000 as a deferred loan (0% interest, due upon sale or refinance) for down payment and closing costs; income must be at or below 80% AMI (e.g., $66,750 for a family of four).

Raleigh

Raleigh First-Time Homebuyer Assistance: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets revitalization areas.

Greensboro

Greensboro Homebuyer Assistance: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with NCHFA loans (standalone or with NC Home Advantage).
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural North Carolina areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.