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First-time homebuyer programs in North Carolina

The North Carolina Housing Finance Agency (NCHFA) offers options to help first-time homebuyers find low-interest mortgages and no-interest down payment assistance loans.

NC Home Advantage Mortgage

With an NC Home Advantage Mortgage, offered through the NCHFA, borrowers can get a fixed-rate mortgage coupled with down payment assistance up to $15,000. To qualify:

  • Your annual income must be $126,000 or less.
  • Your credit score must be 640 or higher.
  • You must be a legal resident of the U.S. and buying a home in North Carolina.
  • You must occupy the home as your primary residence within 60 days of closing.
  • You are applying for a qualifying mortgage through a participating lender.

The NC Home Advantage Mortgage is available for single-family homes, condos, duplexes and townhouses, as well as new manufactured homes if your credit score is 660 or higher.

NC 1st Home Advantage Down Payment

For NC Home Advantage Mortgage borrowers, the NCHFA also offers the 1st Home Advantage Down Payment program, which is specifically for first-time homebuyers (defined as those who haven’t owned a home in the past three years) and military veterans.

Through this program, borrowers can get up to $15,000 to assist with the down payment in the form of a deferred, zero-percent second mortgage. The second mortgage is forgiven in 20 percent increments between years 11 and 15 of the loan term, and completely forgiven at the end of year 15.

NC Home Advantage Tax Credit

The NC Home Advantage Tax Credit allows first-time homebuyers and military veterans to claim a federal tax credit for the interest on their mortgage through a Mortgage Credit Certificate (MCC). The credit is equal to 30 percent of the interest paid yearly for an existing home, or 50 percent of the interest paid yearly for a new-construction home. Borrowers can claim credits up to $2,000 per year through the program.

To claim this credit, borrowers must apply for the MCC through the NCHFA before buying their home.

Source: thesimpledollar.com