If you’re a first-time homebuyer or military veteran who qualifies for the NC Home Advantage Mortgage and you’re looking to purchase a home in North Carolina, you may be eligible for the NC 1st Home Advantage Down Payment made available by the NC Housing Finance Agency. This program provides up to $15,000 in down payment assistance to qualified applicants.
To be eligible for the NC 1st Home Advantage Down Payment, you must meet the following requirements:
- First-time home buyer: You must not have owned a home as your principal residence in the past three years. Alternatively, you can be a military veteran or buying in a targeted census tract.
- Income and sales price limits: Your income and sales price must meet certain limits. These limits vary depending on the county in which you are purchasing a home.
- North Carolina home purchase: The property you are purchasing must be located in North Carolina.
- Principal residence: You must occupy the home as your principal residence within 60 days of closing.
- Credit score: Your credit score must be 640 or higher.
- Legal resident: You must be a legal resident of the United States.
The NC 1st Home Advantage Down Payment is available for the purchase of the following types of properties:
- Single-family homes
- New manufactured homes (660 credit score required)
How it Works:
The NC 1st Home Advantage Down Payment is a 0%, deferred second mortgage. This means that you won’t have to make any payments on the loan until it becomes due at the end of the loan term. The loan is forgiven at a rate of 20% per year starting at the end of year 11, with complete forgiveness at the end of year 15.
For example, if you receive $15,000 in down payment assistance, the loan will be forgiven at a rate of $3,000 per year starting at the end of year 11. After 15 years, the entire loan will be forgiven, and you won’t owe anything.
In conclusion, the NC 1st Home Advantage Down Payment is an excellent opportunity for first-time homebuyers or military veterans to receive down payment assistance when purchasing a home in North Carolina. If you meet the eligibility requirements, you could receive up to $15,000 in assistance that will be forgiven over time, making homeownership more affordable and accessible.
Want to learn more? Reach out to us at 919-887-5114 to learn more and be connected with a knowledgeable lender. We have home-buying specialists and a fantastic network of professionals ready to help you make your dream of homeownership come true!