First-Time Home Buyer Guide for North Carolina, South Carolina, and Georgia

Buying your first home is mostly a sequence of small, knowable decisions. I work with first-time buyers across North Carolina, South Carolina, and Georgia every week, and the ones who feel calm at closing are not the ones with perfect credit or huge savings. They are the ones who knew what was coming. This guide walks through the whole path in the order it actually happens, with the state-specific details that national articles skip.

If you would rather see your own numbers first, the affordability calculator gives you a comfortable and a stretch price range in about two minutes.

The first-time home buying process in 10 steps

Short answer: set your budget, check credit and savings, choose a loan program, get fully pre-approved, line up down payment help, shop and make an offer, then work through inspection, appraisal, underwriting, and an attorney closing. Here is each step in plain terms.

1. Pick a monthly payment you are comfortable with. Start with the full payment (principal, interest, taxes, insurance, mortgage insurance, and any HOA), not the price. The mortgage payment calculator breaks it down by program.
2. Check your credit and savings. Pull your reports, look for errors or collections, and total up what you have for a down payment, closing costs, and a cushion.
3. Decide whether renting longer makes sense. If you might move within a few years, run the rent vs. buy calculator before you commit.
4. Choose a loan program. Conventional, FHA, VA, and USDA each fit different buyers. The program comparison lays them side by side.
5. Get a full pre-approval. A loan officer reviews credit, income, and assets against a specific program. See pre-qualified vs. pre-approved for why the difference matters.
6. Line up down payment help if you need it. Ask about the Chenoa Fund, the down payment assistance I can place on FHA loans, and the state programs that depend on lender participation, and plan for any required homebuyer education course early.
7. Shop with an agent and compare real payments. Two homes at the same price can have very different taxes, insurance, and HOA dues. Property compare puts up to three homes side by side.
8. Make an offer and go under contract. Your agent handles terms, due diligence, and earnest money. I update your numbers for the exact property.
9. Inspection, appraisal, and underwriting. You order the inspection, the lender orders the appraisal, and underwriting clears conditions. Keep your finances steady during this stretch.
10. Closing with an attorney. You review your Closing Disclosure, wire funds or bring certified funds, sign, and get keys. The mortgage roadmap shows what I do at each stage.

Who counts as a first-time home buyer?

Short answer: for many programs, anyone who has not owned a home as their primary residence in the past three years counts as a first-time buyer, even if they owned a home before that.

That three-year definition shows up in Fannie Mae's first-time buyer rules and in several state programs. NCHFA uses it for the NC 1st Home Advantage Down Payment, and Georgia Dream uses a similar test. So if you sold a house five years ago and have been renting since, you may qualify for options labeled "first-time buyer."

Some programs do not care at all. The Chenoa Fund has no first-time buyer requirement, SC Housing's Palmetto Home Advantage is open to first-time, move-up, and repeat buyers, and NCHFA's NC Home Advantage Mortgage is open to move-up buyers too. Each program sets its own definition, so I check the one you plan to use rather than assuming.

What credit score do you need to buy a first home?

Short answer: 580 can work for FHA with 3.5% down, around 620 is the usual starting point for conventional, and 640 is the common minimum for state down payment assistance in NC and SC. VA sets no minimum, but lenders do.

Your score also changes your price. Conventional pricing and mortgage insurance improve as scores rise, so moving from the low 600s into the 700s can lower your payment even on the same loan. If you are close to a threshold, paying a card balance down before applying can help. If credit needs real work, I refer buyers to specialists on my trusted partners page and we set a date to revisit.

How much do you need for a down payment?

Short answer: much less than 20%. Eligible buyers can put 0% down with VA or USDA, 3% down on some conventional loans, or 3.5% down with FHA.

Twenty percent down avoids mortgage insurance on a conventional loan, but it is not a requirement. On a $300,000 home, 3% down is $9,000 and 3.5% is $10,500. The trade-off for putting less down is mortgage insurance and a larger loan balance, which I show you side by side so the choice is yours.

Three honest tools lower the cash you bring:

• Gift funds from eligible family members, documented with a gift letter and a paper trail.
• Seller concessions, where the seller credits part of your closing costs. FHA allows up to 6% of the price, conventional limits run from 3% to 9% depending on down payment and occupancy, and VA limits concessions to 4% with normal closing costs handled separately.
• Down payment assistance, such as the Chenoa Fund on an FHA loan or a state program where a participating lender is available, covered in the next section.

More detail on combining these is in gift funds, seller concessions, and cash to close, and North Carolina buyers can read how much down payment you need in North Carolina.

Down payment assistance in NC, SC, and GA

Short answer: the down payment assistance I can place is the Chenoa Fund, which pairs with an FHA loan in all three states. Each state also runs its own program through approved lenders. North Carolina offers up to 3% of the loan or a $15,000 option, South Carolina offers 0%, 3%, or 4% of the loan, and Georgia Dream offers up to $10,000 (or $12,500 for eligible buyers). All of these are second mortgages, not grants.

Chenoa Fund (NC, SC, and GA)

The Chenoa Fund, from CBC Mortgage Agency, pairs an FHA 30-year fixed first mortgage with a second mortgage for 3.5% or 5% of the sales price or appraised value, whichever is less. The forgivable option has 0% interest and no monthly payment and is forgiven after three years of on-time payments on the FHA loan, and the repayable option is a 10-year second mortgage with a monthly payment. There are no income limits and no first-time buyer requirement, the home must be your primary residence (1 to 2 units), and in South Carolina the minimum assistance amount is $5,000. Credit and underwriting requirements apply, and refinancing during the first three years can cancel the forgiveness. Program terms and availability change with market conditions, so I confirm current terms for your file before you count on it.

The state programs below are offered only through participating lenders. As a broker, I confirm whether one of my wholesale lenders participates before recommending one, so treat them as options to ask about rather than a promise.

North Carolina (NCHFA)

The NC Home Advantage Mortgage provides assistance of up to 3% of the loan amount for first-time and move-up buyers. The NC 1st Home Advantage Down Payment provides $15,000 for eligible first-time buyers and military veterans who meet additional criteria. NCHFA lists a 640 minimum score and an income limit of $158,000 for NC Home Advantage. The assistance is repaid only if you sell, refinance, or transfer the home before year 15, and it is forgiven 20% per year at the end of years 11 through 15. Full details are on my North Carolina down payment assistance page.

South Carolina (SC Housing)

Palmetto Home Advantage lets you choose 0%, 3%, or 4% of the first mortgage as a forgivable second mortgage with a 10-year term, 0% interest, and no monthly payment. It works in all 46 counties, requires a 640 score, has no first-time buyer requirement and no program sales price limit, and lists a $140,000 borrower income limit for 2026/2027. SC Housing also runs a separate Homebuyer program with $10,000 of assistance forgiven over 15 years, county income limits, and a $450,000 price limit. See the South Carolina assistance page and my article on first-time buyer loan options in South Carolina.

Georgia (Georgia Dream)

Georgia Dream, run by the Department of Community Affairs, provides 5% of the price or $10,000, whichever is less, as a 0% deferred second mortgage. PEN (public protectors, educators, healthcare workers, and active military) and CHOICE (households with a member living with a disability) provide 6% or $12,500, whichever is less. It has area-based price and income limits, for example a $625,000 price limit in the Atlanta metro and $475,000 in most other counties, and it is repaid when you sell, refinance, or pay off the first mortgage. Details are on the Georgia Dream page.

Program terms, limits, and funding change. I confirm what is open for your address at application instead of relying on last year's numbers.

Which loan program fits a first-time buyer?

Short answer: it depends on your credit, savings, service history, and where you are buying. Stronger credit usually points to conventional, lower scores or higher debt to FHA, military service to VA, and eligible rural or suburban addresses to USDA.

Conventional

Conventional loans allow 3% down for eligible first-time buyers. Mortgage insurance is required under 20% down, but it can be removed later as you build equity, which often makes conventional the lowest long-term cost for buyers with good credit. The 2026 conforming limit is $832,750 across our NC, SC, and GA markets.

FHA

FHA loans allow 3.5% down at a 580 score and are more forgiving of past credit events and higher debt. The trade-off is an upfront mortgage insurance premium plus annual premiums that, for most buyers putting less than 10% down, stay for the life of the loan unless you refinance. My FHA vs. conventional comparison walks through a real example.

VA

VA loans allow $0 down with no monthly mortgage insurance for eligible veterans, service members, and certain surviving spouses. Most borrowers pay a one-time funding fee unless exempt. The VA loan guide covers entitlement, occupancy, and appraisals in depth.

USDA

USDA loans allow $0 down on eligible addresses for households under the income limit. Many towns outside the metro cores in all three states qualify, so it is worth checking even if you think of the area as suburban.

You can model two to four of these for the same home with the loan program compare tool, which shows cash to close and monthly payment together.

What does it cost to buy a home beyond the down payment?

Short answer: buyer closing costs typically run about 2 to 5% of the price, plus a cushion for moving, utilities, and early repairs.

Closing costs usually include:

• Lender fees and any discount points you choose to pay
• Appraisal and credit report
• Closing attorney, title search, and title insurance
• Recording fees and, in Georgia, the intangible recording tax on the mortgage ($1.50 per $500 of the loan amount)
• Prepaid items: homeowners insurance, property tax escrow, and interest to the end of the month

Sellers usually cover the state transfer taxes: North Carolina's excise tax of $1 per $500, South Carolina's deed recording fee of $1.85 per $500 (the seller is primarily liable), and Georgia's transfer tax of about $1 per $1,000. North Carolina buyers can read more in what an attorney closing state means for your costs.

Two local costs catch first-time buyers off guard. Near the coast, homeowners and flood insurance can be much higher than inland, and a home in a FEMA high-risk flood zone requires flood insurance with a mortgage. In South Carolina, a primary residence is taxed at a 4% assessment ratio instead of 6%, but only after you apply with the county assessor, so the previous owner's tax bill may not match yours. The relocation guide covers both in detail.

If paying points to lower your rate is on the table, the rate options calculator shows how long it takes to earn the cost back.

How long does it take to buy a first home?

Short answer: most purchases close in about 30 to 45 days after your offer is accepted. Getting pre-approved and finding the right home before that can take anywhere from a couple of weeks to several months.

A typical contract-to-close window looks like this:

• First week: sign disclosures, deliver earnest money, schedule the inspection, and send any updated documents.
• Weeks one to three: inspection and repair negotiation, appraisal ordered, file in underwriting.
• Weeks three to five: conditions cleared, clear to close, and your Closing Disclosure, which federal rules require you to receive at least three business days before closing.
• Closing day: sign with your attorney, fund, record, and get keys.

Down payment assistance, VA or USDA loans, condos, and new construction can add steps, so I build those into the contract dates from the start. The week-by-week version is in the real mortgage timeline in the Carolinas.

Common first-time buyer mistakes to avoid

Short answer: most deals that fall apart do so because something changed after pre-approval: new debt, a job change, or money that cannot be traced.

• Opening new credit. Financing furniture or a car before closing changes your debt ratio and can pull your approval.
• Moving money without a paper trail. Large cash deposits or transfers that cannot be documented slow underwriting or remove funds from your file.
• Changing jobs mid-process. Talk to me first. Some changes are fine; some are not.
• Shopping at the maximum approval. The top number a lender approves is not the same as a comfortable payment.
• Ignoring taxes and insurance. Coastal insurance, flood zones, and HOA dues change what you can afford.
• Skipping the inspection. The appraisal checks value, not the condition you will live with.
• Leaving homebuyer education to the last week. If your program requires it, finish it early.
• Not comparing loan offers. Compare Loan Estimates line by line. I offer a free Loan Estimate second opinion.

Your next step

Short answer: start with a free conversation, not a credit pull. I will look at your goals, income, savings, and target area, and you will leave knowing which programs fit and what to do next.

You can also download the free Carolina Homebuyer Guide, browse the markets I serve (including the North Carolina, South Carolina, and Georgia hubs), or take the short get started quiz. For the loan-level details, see first-time homebuyer loans and low down payment loan options.