Unlocking Generational Wealth? The Path to Homeownership in 2025 begins with knowing the Down Payment requirements on a NC Home. Too many potential first time home buyers in NC have no idea that there are programs that require ZERO down payment to purchase a house.
As we get further into 2025, buying your first home in North Carolina is looking better than ever. Owning a home is a great way to build wealth that lasts for generations, and it’s getting easier for first time home buyers like you because you don’t need a lot of money up front to get started. Also? More Sellers (depending on the area obviously) are willing to help with part of the closing costs!
What You Really Need for a Down Payment for a Home in NC
You might have heard that you need to save up 20% of a home’s price to buy it, but that’s not true anymore! These days, you can buy a home with NO DOWN PAYMENT, or as little as 3% down. That means you don’t need a huge amount of cash to get your own place. There are even special programs from the State of NC that help first-time buyers with their down payments, making it possible for some people to buy a home in Holly Springs with no down payment at all.
FHA Loans: A Friend to Your Credit
If your credit isn’t perfect, don’t worry—FHA loans are here to help. These loans are designed for people who might not have the best credit scores. Sometimes that because of screw ups, but honestly, most people we see have lower scores just becuase they are young, and dont have a ton of credit history. With an FHA loan, you only need a down payment of 3.5%, and the requirements are more flexible than some other loans. This makes it easier for more people to buy their first home, even if they’ve had some financial hiccups in the past. Credit scroes of 640 are generally needed, but we’ve certainly seen lower scores approved! FHA also allows family to help you qualify for a home.
Special Loans Just for Veterans and Folks Buying in Rurals Parts of NC
If you or your spouse served in the military, you might qualify for a VA home loan. These loans are awesome because they don’t require any down payment at all, and they have really low rates to help you save money each month (nobody wants to have to eat PBJ everyday!). USDA home loans are another great choice if you’re looking to buy in a more rural or suburban areas. Like VA loans, they don’t need a down payment, so you can get into a home without a big pile of cash.
Other Programs available for First Time Home Buyers
Not a veteran or buying in a rural area? No problem! We offer Conventional Loans on some NC properties that cover up to $5000 in closing costs! These Community Lending programs are available to thousands of homes across the state, and we can identify them for you on a case by case basis. Some of these only need a 3% down payment, and the costs you have to pay every month can be really low.
In addition to these programs, there are Down Payment Assistance programs available through the State of NC that can help you with a downpayment. The Down Payment requirements for these NC Housing Finance Programs vary per County – but are available from a limited number of Lenders.
Current down payment requirements for the program in Wake County include: Sales Price limits of $490,000. Income limit for one person for the 3% down payment program is $140,000 and for the $15,000 program a household of one has an income limit of $122,000.
Current down payment requirements for the program in Mecklenburg County include: Sales Price limits of $490,000. Income limit for one person for the 3% down payment program is $140,000 and for the $15,000 program a household of one has an income limit of $106,000.
Current down payment requirements for the program in Guilford County include: Sales Price limits of $490,000. Income limit for one person for the 3% down payment program is $140,000 and for the $15,000 program a household of one has an income limit of $98,000.
Planning for Extra Costs
No matter which kind of loan you choose, you’ll need a little money ready for closing costs, which are the fees and charges you pay when you buy a home. Usually, this is about 2.5% of the price of the home. This might sound like a lot, but there are ways to make it easier, like getting help from family or saving a bit at a time. You can also shop for many of these costs, and with Homeowner’s Insurance, in particular, you might be able to save some additional money.
Dealing with Student Loans
One big thing that stops a lot of people from buying a home is student loan debt. But there’s good news! Some programs are okay if your student loan payment is really low or even $0, as long as you can show the right paperwork. *For ALL loan types, if we can provide supporting documentation from the creditor to show future estimated monthly payments, we can use that figure instead of the “normal” .5% of the balance guideline, with the exception of IBR loans . This is another reason to really look into guidelines and Down Payment requirements for each of the programs you might qualify for!
Start Getting Ready Now
With home loan rates possibly going down later this year, now is the perfect time to start getting ready to buy a home. Check your credit score, figure out your budget, and look into different loans to see what fits you best. Owning a home is not just about having a place to live; it’s also a great way to build up money for your family’s future.
If you need help or have questions about down payment requirements, and buying your first home, give us a call. Helping first time home buyers like you is what we do best. Call Steve and Eleanor Thorne at 919 649 5058 – connect with us on Instagram! Feel free to share this with anyone who might find it helpful. Let’s help more people make their dream of owning a home come true this year!
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