Down Payment Path

Down Payment Assistance Programs in North Carolina

North Carolina provides a variety of down payment assistance programs to help homebuyers cover upfront costs and make homeownership more attainable. These programs are available to both first-time and repeat buyers across the Tar Heel State.

NC Home Advantage Mortgage Program

The NC Home Advantage Mortgage Program, offered by the North Carolina Housing Finance Agency (NCHFA), provides financial support for down payments.

  • Offers up to 3% of the loan amount as assistance for down payments.
  • Available as a deferred, forgivable loan after living in the home for 15 years.
  • Pairs with FHA, VA, USDA, and conventional loans through NCHFA-approved lenders.
  • Open to buyers meeting income and credit requirements.

NC 1st Home Advantage Down Payment

The NC 1st Home Advantage Down Payment program provides enhanced assistance for eligible first-time buyers and military veterans.

  • Offers up to $15,000 in down payment assistance.
  • Forgivable after living in the home for 15 years.
  • Designed for buyers purchasing in specific targeted areas or meeting income qualifications.

USDA Rural Development Loans

For buyers in rural areas of North Carolina, the USDA Rural Development Loan offers no down payment financing.

  • Open to low- and moderate-income buyers in USDA-designated areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with state assistance programs to cover closing costs.

Community Partner Loan Pool (CPLP)

The Community Partner Loan Pool program provides additional support for buyers working with local housing organizations.

  • Offers second mortgages for down payment and closing cost assistance.
  • Loans are deferred and forgiven over time, depending on the terms of the program.
  • Eligibility is based on income and other factors determined by local housing partners.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers significant tax benefits for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with NCHFA loans and other down payment assistance programs.
  • Income and purchase price limits apply but accommodate a wide range of buyers.

Local Assistance Programs

Several cities and counties in North Carolina provide additional resources for homebuyers to help with upfront costs.

  • Programs in areas like Charlotte, Raleigh, and Greensboro often include grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target buyers in revitalization zones or offer benefits for public service workers and first responders.
  • Eligibility and assistance levels vary based on location and program specifics.

North Carolina’s down payment assistance programs are tailored to reduce financial barriers, making homeownership more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Tar Heel State.