We’ve done several loans for folks this year who wanted to purchase a home near Fort Bragg, but needed Down Payment Assistance in Raeford NC. Several of them talked to Rocket Mortgage, but had a difficult time coming up with closing costs and a down payment… Not everyone living in that area, after all, has access to Military Benefits!
The best news for folks who want to purchase in this community outside of Fayetteville, NC is that there are several options for down payment assistance! As you will see in the images below, the entire area qualifies for USDA Home Loans. Down Payment Assistance in Raeford NC can also be available with the First Time Home Buyer DPAs** offered through the NC Housing Finance Agency.
Down Payment Assistance In Raeford NC – USDA Home Loans
The USDA Home Loan Program is a zero down payment required home loan program for those looking for a home in a small town or rural setting. This is the “go to” mortgage program for folks who want to live outside Fayetteville in Raeford or Aberdeen. We also get lots of calls from folks who want to take advantage of the program in areas around Raleigh, like Clayton and Angier. The best news is that you don’t have to be a Veteran or a First Time Home Buyer to qualify for a USDA Home Loan.
USDA Home Loans have eligibility areas. The Map above shows that the “yellowing” area (which is Fayetteville) is too densely populated to qualify for the program. The Grey Area is actually Fort Bragg, and obviously, that doesn’t qualify either. All of Raeford, NC is in a qualifying area, and so is Aberdeen. There are nice, affordable homes in this area, and it doesn’t surprise us at all that there’s demand in that area from First Time Home Buyers.
USDA Loans near Fayetteville are under income restrictions. These are household income limits, and for a family of 1-4 people the limit is $103,500 and for families of 5 to 8 people the limit is $136,600. With USDA Home Loans we look at income from two different perspectives. On the one hand, if you are an 18-year-old student living in the home, and you make $8000 a year, that income will be counted towards the household income limits. If a grandparent is living in the home, their income (even if they are not on the loan) will be counted towards the household income limit.
On the other hand… If your grandfather is living with you, and he’s receiving social security – but for whatever reason, he will not be on the loan… his inome will not be used to QUALIFY your family for the home. Qualifying with debt on a USDA loan is a little stricter, because it’s a 100% loan, and if you have a ton of debt – let’s talk about that first. I’ve seen many people who had $750 in car payments who had to make some tough decisions so they could buy a house. When your priorities change, and you want to buy a house, your debt will likely change too. But it’s something we’ve definitely worked with before – and we can help you find the right balance too.
Down Payment Assistance In Raeford NC – Mortgage DPAs
There’s a $15,000 down payment **mortgage DPA available for folks in the Raeford, Aberdeen, Angier areas of NC that carries no payment, and accrues no interest. The rates for this first time home buyer program are determined by the NC Housing Finance Agency. We are thankful that we are one of the Lenders in the State that can offer this program. There are household income restrictions associated by County for this down payment assistance, however there are no “address” associated restrictions like there are with USDA. For a family with 1-2 people in Cumberland County NC the household income limit is $96,000 and for a family of 3 or more it’s $112,000. The maximum sales price for a qualifying home is currently $385,000.
There are two other Mortgage Down Payment Assistance programs available near Fayetteville NC. These programs are not just limited to first time home buyers. The current 3% and 5% down payment assistance programs are available to anyone who has not owned a primary residence in the past 3 years. There are income caps for the programs based upon the area you are buying in.
We’ve had folks come to us who got qualified online through a Rocket type mortgage lender – and then wanted us to help them with down payment assistance. That’s not how it works. The down payment assistance in Raeford is a “silent” forgivable loan, but it’s done at the SAME TIME the first mortgage is done. So, you will get the first mortgage and the down payment from us at the same time. You can’t get part of the mortgage from Rocket and the Assistance from us. The State only allows certain Lenders to offer the program. They set the interest rates for these loans, so it’s the same rate no matter who offers you the program.
**A Quick Note – Disclaimer
Consumers often refer to these programs as “grants.” Many furst time home buyers are familiar with Pell Grants, and other forms of Student Loan Forgiveness. These are not like those student loan programs.
Down payment Assistance programs have no payments to be made, there is no interest charge, and there’s no expectation that you will have to repay ANY of the money you receive for down payment… unless you move out of the property or refinance prior to the dates assigned by your specific down payment assistance program.
The literal term for this down payment assistance in Raeford is a “forgivable loan.” Under the terms of the program that best suits you, a portion of this down payment assistance will be forgiven on a schedule that we will share with you when you make loan application. These funds are available to us through NC Housing (NCHFA) and are available through other lenders in the state as well. The interest rates for these programs, however, will not vary from lender to lender as that is set by NC Housing Finance Agency.
If you have questions about down payment assistance in Raeford, and you’d like to know more about which program will work best for you – please give Steve and Eleanor Thorne a call at 919 649 5058. You can also apply on line through our secure portal, and we will get right back to you. There’s no cost or obligation in speaking with us! You can also currently use this program with the Mortgage Credit Certificate to purchase a home in NC!
I try and answer all questions :)