first time home buyer programs NC

New First Time Home Buyer Programs in NC

first steps in home buying processNC has one of the BEST First Time Home Buyer Programs Around! Yesterday, the Agency in charge of the program announced that it will be adding to and enhancing the program starting sometime in February of 2013.

Currently, to qualify a borrower (and their household / family) must meet fairly strict Income Requirements (set differently for each County), purchase a home that is below the maximum Sales Price (set differently for each County) and have a RENTAL History for at least the last 3 years.

That’s All Going To Change!

So what are the big changes? Here are some highlights:

No first-time home buyer restriction (move up buyers are eligible too)!
– No forms! Yes, I’m not kidding. No NCHFA forms required (no seller affidavit, no affidavits period)
– 3% Down Payment Assistance Program (“DPA”) – that is forgivable over 15 years!
– $85,000 statewide income limit based on 1003 income (no longer use household income)
– No cash flow analysis or $1,000 investment required to get the 3% Downpayment Assitance Program
– Lower credit score of 640 (vs. 650) for the Downpayment Assistance Program
– Government loans types only (FHA, VA, and USDA)
– 60 day locks (no free extensions, sorry)
– No NCHFA sales price limitation (follow FHA, VA, or USDA sales price limits)
MCC and Home Advantage product can be combined!

This is really really great news – especially since it looks like the USDA Home Loan Program is NOT going to be available for nearly 1/3 of our State starting at the end of September!  You can currently use this program with the Mortgage Credit Certificate to purchase a home if you have at least 2 credit scores over 600!

As we get more details – we’ll fill you in!  Here are details on First Time Home Buyer Programs, as it works TODAY.    Please call Steve and Eleanor Thorne 919 649 5058 if you’d like for us to pre-qualify you to purchase with the new First Time Home Buyer Programs (or your second or third!)  We think that the fact that you can use this program as a “move up” buyer is going to be HUGE!


FHA Underwriting Guidelines


USDA Home Loan Underwriting Guidelines


VA Loan Underwriting Guidelines




  1. Scott Byrum says

    We helped our son purchase a condo in Raleigh a couple years ago under the Kiddie Condo loan program. We now have a daughter in Greenville at ECU and we are looking at helping her buy a home. What is available under the program like our son took advantage of? We can buy as a second home but will have to pay 20% down and finance for 15 yrs. We really would like to minimize our up front money. Are their some FHA options?

  2. says

    Scott – please call us. It could be that we can refinance the loan with your son – and then make the program available to you for your daughter. 919 649 5058

  3. NCGuy says

    One aspect that is somewhat unclear to me here, is the difference between household income vs borrower income. The documents state that NC Home Advantage does not count household income in determining eligibility, however I have been told that house hold income is still considered if you are going through this program AND USDA. So in essence, household income would continue to act the same since FHA doesn’t have a limit, so this change does not help those who are between 74-85k.

  4. says

    Not sure I understand the question. Let’s say a grandmother lives in the house, and she receives Social Security Income. Even if she is not on the loan, her income is including when determining if the “household” income limits are met.

  5. Maxine Crawford says

    My job may be relocating to the Cary area later this year. I have a less than perfect credit score but have an excellent rental history, and a salary close to 70k. What are the chances of my becoming qualified for an FHA Mortgage. I am interested in the Glen Echo Lane condo development.

  6. sheika wimbley says

    Hello, i am in the process of building a new home in Charlotte (expected completion is middle of June) and I applied for a FHA loan with my credit union, would i be able to apply for a loan for just the down payment assistance or do I need to apply for the first mortgage through the agency and then the second mortage is the DPA?

  7. sara gilliam says


    I am looking to purchase a home by August 2015. I am working with a company that is assisting me with repairing my Credit . I have saved money to put down as a down payment. 5% or more. My credit scores has gone up and still making all payments on time over a 9+ months.

    Please contact me I am looking forward to reaching my Homeowner ship goal!

    Thank you and I look forward to hearing from you soon!

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