Need help buying a house? An obstacle for many eligible borrowers is coming up with enough cash for the down payment or closing costs. The North Carolina Housing and Finance Administration is offering certain NC Families cash to help you afford that house! There is a $15,000 Down Payment Assistance Program available to the first 3,000 qualified borrowers in select counties in North Carolina.
There are no monthly payments or interest, and most borrowers will not need to pay a penny back.
Because of the unique components of the program, we regularly refer to them as Mortgage Grants. They are NOT grants, the money comes in the form of a “silent second” mortgage.$15,000 Down Payment Assistance NC Program Highlights
The $15,000 Down Payment Assistance NC Program is a subordinate loan attached to your primary mortgage loan. This is essentially a “Mortgage Grant” and does not need to be paid back if the borrower follows the terms of the agreement.
This “Mortgage Grant” is interest free and there are no payments to be made on it. The Down Payment Assistance (DPA) is forgiven in 20% increments over five years until it is completely forgiven in the fifth year.
For example: If you live in a home for one year and sell it, 20% of your $15,000 Down Payment Assistance Program will be forgiven and you will owe $12,000. If you sell after four years, 80% is forgiven and you owe $3,000. If you do not sell within five years, you owe nothing going forward.
No matter when you sell, you will never pay interest on the $15,000 Down Payment Assistance NC Program after you’ve lived in the home for 5 years making your payments.
Who is eligible? $15,000 Down Payment Assistance NC Program
This program is designed for First Time Home Buyers (people who have not owned a primary residence in the last 36 months), non-active duty Veterans, and some people who live in targeted census tracts across the state.
While this assistance program cannot be combined with other programs, like the Mortgage Tax Credit, it can be applied to FHA, Conventional, USDA, and VA Loans. Because it is NOT allowed to be used with the Mortgage Tax Credit it hurts your qualifying power. If you are interested in a slightly larger home than we can qualify you for, there are other Mortgage Grant programs available that might work. Just call us at 919 649 5058.
This is Fannie Mae serviced loan, and this means that if you have Student Loan Debt you will be qualified using 1% of the student loan balance if you are not already on a fixed rate payment plan. THE EXCEPTION being if you are a Veteran Borrower. Those applying for a VA Loan will not be required to take student loan debt payments out of IBR or deferred status.
This program is available in just five NC counties: Cabarrus, Cumberland, Guilford, Johnston and Mecklenburg; and only 3,000 borrowers will receive this amazing benefit. This offer may only be used for houses with a sale price of $245,000 or less. New construction homes are not eligible for the $15,000 Down Payment Assistance meaning that it may only be applied to existing, previously occupied homes.
Credit score requirements for this program state that at least 2 of your 3 credit scores must be over 640. The maximum debt to income ratio requirements are 45.00000%.
Household Income $15,000 Down Payment Assistance NC
With other Mortgage Grant programs we offer – we are strictly looking at the QUALIFYING income. If we are qualifying a borrower on just the base income, with no overtime, then they might be under the limit. If the spouse is not going to be on the mortgage loan – we don’t count them in the determination of maximum income.
OK – READ: If you are over these Household Income limits, there might be other Mortgage Programs that are similar to this that you WILL qualify for, so call us!
Like the USDA Home Loan Program, this particular Mortgage Grant program has a Household income qualifying limits. This means that even if someone is not on the mortgage, we will be required to use the income that they bring into the house to see if everybody’s income lumped together will be over the County limit.
In Cabarrus County the maximum household income cap for a family with one to two people is $67,000. For a family with three people or more, it’s $77,000.
In Cumberland County the maximum household income cap for a family with one to two people is $65,000. For a family with three people or more, it’s $77,000.
In Guilford County the maximum household income cap for a family with one to two people is $59,000. For a family with three people or more, it’s $67,000.
In Johnston County the maximum household income cap for a family with one to two people is $76,000. For a family with three people or more, it’s $87,500.
In Mecklenburg County the maximum household income cap for a family with one to two people is $67,000. For a family with three people or more, it’s $77,000.
The Interest rate for the mortgage programs associated with the Mortgage Grants vary daily – but the rate is actually set by the NCHFA. Every lender in the state is offering the very same interest rate, you can’t get a better rate by calling 15 people.
The rates ARE slightly higher than those for “regular” loans with a down payment – BUT you are getting $15,000 with no interest and no payments. As long as you live in the home for at least 5 years, you don’t have to pay a cent of that $15,000 back… we think that equals FREE MONEY.
If you are a First Time Home Buyer – there’s more than just a Rate that you need to ask questions about, what about those First Time Home Buyer Programs that you could be missing?! Have questions about the new $15,000 Down Payment Assistance NC Program?? We want to help you! Call Steve and Eleanor Thorne at 919-649-5058 and get pre-qualified right now! There are ONLY 3000 of these mortgage loans available, and they are NOT available from all lenders… so don’t wait, or they could be G-O-N-E!