North Carolina Down Payment Assistance

NCHFA programs at a glance

NC 1st Home Advantage Down Payment

For buyers who qualify, the NC 1st Home Advantage Down Payment provides $15,000 of assistance. It is reserved for first-time buyers, which NCHFA defines as someone who has not owned a home as their principal residence in the past three years, and for military veterans. There are additional eligibility criteria beyond the NC Home Advantage rules, so this is one to confirm with a participating lender before you count on it.

Because it is a flat dollar amount rather than a percentage, $15,000 tends to go further on lower-priced homes. On a higher-priced home, the 3% option can sometimes be comparable, which is why both are worth comparing when a participating lender is available.

What is different about buying in North Carolina

• Attorney closings. North Carolina is an attorney-closing state, so a licensed NC attorney handles your closing and records both the first mortgage and the NCHFA second lien.
• County loan limits vary. FHA limits differ by county, and higher-cost areas around Charlotte and the Triangle can have higher limits than rural counties. Your program must fit within the limit for your loan type.
• USDA eligibility. Many towns outside the metro cores qualify for USDA, which can pair with NCHFA assistance to cover closing costs. See the USDA guide.
• Local programs. Some NC cities and counties run their own assistance for buyers in their jurisdiction. Availability and funding change often, so I check what is currently open for your target address instead of listing programs here that may be closed.

How to apply for NCHFA assistance

1. 1

   Run your numbers

   Use the affordability calculator to see a comfortable price range, then compare paths with the program compare tool.

2. 2

   Talk to me about eligibility

   NCHFA products are only available through the agency's participating lenders. As a broker, I confirm whether one of my wholesale lenders participates before recommending an NCHFA option, and I compare it with the Chenoa Fund and a standard low-down loan.

3. 3

   Get pre-approved for the right program

   Your approval should reflect the program you actually plan to use, including its credit, income, and loan type requirements.

4. 4

   Find a home within the limits

   Shop within the sales price limit for your loan type. An agent familiar with NCHFA programs helps, and NCHFA lists preferred real estate agents on its site.

5. 5

   Reserve funds and close

   Once you are under contract, the lender reserves the assistance. Your NC closing attorney records both loans at closing.

Common questions.

• What down payment assistance can Keith place in North Carolina?

  The Chenoa Fund, from CBC Mortgage Agency. It pairs an FHA 30-year fixed loan with a second mortgage for 3.5% or 5% of the sales price or appraised value, whichever is less, with no income limits and no first-time buyer requirement. The home must be your primary residence (1 to 2 units), and credit and underwriting requirements apply. Program terms and availability change with market conditions, so I confirm current terms for your file before you count on it.

• Do I have to repay the Chenoa Fund?

  On the forgivable option, no, as long as you make the first three years of on-time payments on the FHA loan. It has 0% interest and no monthly payment, but refinancing the FHA loan during those first three years can cancel the forgiveness. The repayable option is a 10-year second mortgage with a monthly payment.

• How much down payment assistance can I get in North Carolina?

  With the Chenoa Fund on an FHA loan, 3.5% or 5% of the sales price or appraised value, whichever is less. Through NCHFA, the NC Home Advantage Mortgage offers assistance up to 3% of the loan amount, and the NC 1st Home Advantage Down Payment offers $15,000 for eligible first-time buyers and military veterans. Which one fits depends on your eligibility, whether a participating lender is available for the NCHFA options, and which gives the better overall result.

• Do I have to repay NC down payment assistance?

  Only if you sell, refinance, or transfer the home before year 15, according to NCHFA. The assistance is forgiven 20% per year at the end of years 11 through 15 and is fully forgiven at the end of year 15.

• Do I have to be a first-time buyer in NC?

  Not for the NC Home Advantage Mortgage, which is open to first-time and move-up buyers. The $15,000 NC 1st Home Advantage Down Payment is limited to first-time buyers (no home owned as a principal residence in the past three years) and military veterans.

• What credit score do I need for NCHFA?

  NCHFA lists a minimum credit score of 640, or 660 for manufactured homes. Your loan type and lender may have additional requirements.

• What is the income limit for NC Home Advantage?

  NCHFA states that your annual income cannot exceed $158,000 for the NC Home Advantage Mortgage. Limits can change, so we confirm the current figure when you apply.

• Can I use NC down payment assistance with a VA or USDA loan?

  Yes. NCHFA lists FHA, USDA, VA, and conventional loans as eligible, as long as you go through a participating lender and meet the sales price limits of the loan type. With VA or USDA, the assistance often goes toward closing costs since those loans can be $0 down.

• Can I buy a condo or duplex with NCHFA assistance?

  Yes. NCHFA lists single-family homes, townhouses, condominiums, duplexes, and manufactured homes as eligible property types, with a 660 score required for manufactured homes. You must live in the home as your principal residence.

• Is Keith an NCHFA participating lender?

  I am a mortgage broker, not a lender, and NCHFA programs are offered only through the agency's participating lenders. Before recommending an NCHFA option, I confirm whether one of my wholesale lenders participates for your file, so treat it as an option to ask about rather than a promise. The down payment assistance I can place is the Chenoa Fund on an FHA loan, and I compare the options side by side.