North Carolina has a beautiful climate, wonderful people, and a fascinating history, making it an ideal location for many families. However, rising real estate prices can make home ownership in North Carolina difficult. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Housing Finance Agency of North Carolina is one organization that offers such programs.
If you're thinking about purchasing a home in North Carolina, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!
The Housing Finance Agency of North Carolina offers the Home Advantage Mortgage Program to qualified applicants.
As much as 5% of the loan amount can be provided as down payment assistance. This assistance is a loan which can be forgiven. After 10 years living at the property, the loan is forgiven at a rate of 20% each year. In the event that the property is refinanced, transferred, or sold prior to the 15-year term, the loan has to be repaid.
Only legal US residents are allowed to apply. Further, applicants cannot have an annual household income higher than $87,500 or a credit score lower than 640. These amounts are accurate as of this writing but may change.
Applicants also have to be working with a participating lender, and the purchase price of the property must be within a certain limit. Applicants must live in their new house within 60 days of the property closing.
Only new and previously owned single-family homes, townhouses, condominiums, and duplexes are allowed. New manufactured houses are allowed as well, but with a 660 minimum credit score requirement.