Buying your first home can feel overwhelming, but North Carolina first time home buyer programs are designed to make it easier and more affordable. Whether you’re dreaming of a cozy bungalow in Asheville or a modern townhouse in Raleigh, there are financial assistance programs, grants, and low-interest loans tailored specifically for first-time buyers in the Tar Heel State.
In this guide, we’ll walk you through the best North Carolina first time home buyer programs available in 2025, explain how they work, and show you how to qualify. By the end, you’ll have a clear understanding of your options — from down payment help to mortgage tax credits — so you can confidently take your first step onto the property ladder.
What Are First Time Home Buyer Programs?
First time home buyer programs are designed to help new buyers overcome common financial hurdles, such as:
- Saving for a down payment
- Covering closing costs
- Qualifying for affordable mortgage rates
- Reducing overall borrowing costs
In North Carolina, these programs are often run by the North Carolina Housing Finance Agency (NCHFA) and work in combination with private lenders and federal programs.
Main North Carolina First Time Home Buyer Programs
1️⃣ NC Home Advantage Mortgage™
This flagship program from NCHFA offers:
- Competitive, fixed-rate 30-year mortgages
- Available for FHA, USDA, VA, or conventional loans
- Up to $15,000 in down payment assistance for eligible buyers
Who qualifies?
✅ First-time and move-up buyers purchasing a home in North Carolina
✅ Income limits (usually under $134,000, depending on household size and county)
✅ Minimum credit score of 640
2️⃣ NC 1st Home Advantage Down Payment
Specifically for first-time buyers and military veterans, this program offers:
- Up to $15,000 in down payment assistance
- 0% interest, deferred second mortgage (forgiven after 15 years if you stay in the home)
Who qualifies?
✅ First-time buyers or eligible veterans
✅ Use with the NC Home Advantage Mortgage™
3️⃣ NC Home Advantage Tax Credit
This Mortgage Credit Certificate (MCC) program reduces your federal tax bill by:
- Allowing you to claim 30–50% of your annual mortgage interest (up to $2,000 per year)
- Usable alongside the NC Home Advantage Mortgage™
Who qualifies?
✅ First-time buyers, veterans, or buyers in targeted areas
✅ Household income and home price limits apply
How Do I Qualify for NC First Time Home Buyer Programs?
To be eligible, you generally need to meet:
✅ First-time buyer status (or not have owned a home in the last three years)
✅ Income limits (varies by county and household size)
✅ Credit score minimum (usually 640)
✅ Primary residence requirement — you must live in the home, not rent it out
✅ Property limits — home must fall under program price caps
Step-by-Step: How to Apply
1️⃣ Check your eligibility using the NCHFA website or through an approved lender.
2️⃣ Get pre-approved with a participating mortgage lender.
3️⃣ Complete homebuyer education (often required for down payment assistance).
4️⃣ Find your home and make an offer.
5️⃣ Secure your mortgage and apply for assistance or tax credits.
6️⃣ Close and move in!
Other First-Time Buyer Resources in NC
- USDA Rural Development Loans — No down payment, for eligible rural areas.
- VA Loans — Zero-down loans for veterans, service members, and eligible spouses.
- Federal Housing Administration (FHA) Loans — Low down payments, flexible credit requirements.
Common Questions (FAQs)
Q: Can I combine North Carolina programs with federal assistance?
A: Yes! Many buyers combine NC’s down payment help with federal FHA, USDA, or VA loans for maximum benefit.
Q: Do I have to repay down payment assistance?
A: The NC Home Advantage down payment help is forgiven after 15 years, as long as you remain in the home.
Q: Are these programs only for single-family homes?
A: No, you can often use them for townhomes, condos, and some manufactured homes — check with your lender.
Real-Life Example
In 2024, Jasmine, a teacher in Durham, used the NC 1st Home Advantage program to secure $15,000 in down payment help. With a purchase price of $225,000, she combined this with an FHA loan, reducing her upfront costs dramatically. Jasmine also qualified for the NC Home Advantage Tax Credit, saving her an extra $1,800 annually on her taxes — making homeownership affordable on her salary.
Expert Tips for First-Time Buyers
✅ Start early — Get pre-approved and complete homebuyer education before house hunting.
✅ Research local grants — Some cities like Charlotte, Raleigh, and Greensboro offer additional municipal grants.
✅ Work with experienced agents — Look for real estate agents familiar with first-time buyer programs.
✅ Understand all costs — Beyond the down payment, budget for closing costs, inspections, and moving expenses.
Conclusion
North Carolina first time home buyer programs can significantly reduce the financial barriers to homeownership, offering down payment assistance, affordable mortgages, and valuable tax credits. Whether you’re purchasing your first home in Charlotte, Greensboro, Wilmington, or a small rural town, these programs provide a strong foundation for a successful and affordable purchase.
