NC 1st Home Advantage Down Payment 101

Madison Fisler Lewis
a person writing on forms

More than 17,840 North Carolinians have been able to buy a new home thanks to the NC Housing Finance Agency’s NC Home Advantage Mortgage™, which has offered competitive rates and  down payment assistance up to 5% of the loan amount since its launch five years ago. But a new down payment product from the Agency could provide an even better option for first time-buyers and military veterans who qualify for the NC Home Advantage Mortgage™. The NC 1st Home Advantage Down Payment is an $8000 down payment, providing just the boost that buyers may need to buy a home that they can afford.

What Does the NC 1st Home Advantage Down Payment Offer?
The NC 1st Home Advantage Down Payment offers eligible home buyers $8,000 in down payment assistance. Similar to the other down payment options offered with the NC Home Advantage Mortgage™, this help is structured as a 0%, deferred second mortgage that is forgiven at a rate of 20% per year beginning at year 11. After year 15 of the loan, the down payment help is considered completely forgiven.

Who Qualifies for the NC 1st Home Advantage Down Payment?
You may be eligible for the NC 1st Home Advantage Down Payment if:

  • You are a first-time buyer, military veteran or are buying a home in a targeted census tract. Please note you are considered a first-time buyer if you have not owned a home as your principal residence in the past three years.
  • You meet income and sales price limits
  • The home you are purchasing is in North Carolina
  • You occupy your home as your principal residence within 60 days of closing
  • Your credit score is 640 or higher
  • You are a permanent legal resident of the United States

If you do not meet the requirements for the NC 1st Home Advantage Down Payment, but qualify for the NC Home Advantage Mortgage™, you may be eligible for the down payment assistance up to 5% of the loan amount that  is available for qualified first-time and move-up buyers.

What Property Types Are Eligible?
Many types of properties are eligible for the NC 1st Home Advantage Down Payment, including:

  • Single-family homes
  • Townhouses
  • Condominiums
  • And new manufactured homes

How Can I Learn More About the NC 1st Home Advantage Down Payment?

If you think the NC 1st Home Advantage Down Payment might be right for you, talk to a participating lender near you today! Learn more about all the ways the NC Housing Finance Agency can help make home ownership a reality for you at www.nchfa.com/home-buyers.

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North Carolina Housing Finance Agency / 3508 Bush Street / Raleigh, NC 27609 / 919-877-5700

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