Loan Products

North Carolina Down Payment Assistance 

NCHFA First-Time Home Buyer Down Payment Assistance in North Carolina

Buying your first home is a big deal—and in today’s market, it can also feel like a big mountain to climb. That’s where the North Carolina Housing Finance Agency (NCHFA) comes in. Their down payment assistance programs are designed to help people just like you take the first step into homeownership with confidence and clarity.

What is NCHFA?

A Brief Introduction to the North Carolina Housing Finance Agency

NCHFA is a state-chartered agency that works to make housing more affordable across North Carolina. Since 1973, they've helped thousands of residents overcome financial barriers and achieve homeownership.

NCHFA's Mission and Role in Affordable Housing

The goal? Simple but powerful: to provide affordable home financing solutions that empower first-time homebuyers and support stable communities.

Why Down Payment Assistance Matters

The First-Time Home Buyer Struggle

Let’s be real—saving tens of thousands for a down payment isn’t easy. With student loans, rent, and everyday expenses, many first-time buyers just can’t get there on their own.

How Assistance Can Change the Game

That’s why NCHFA’s help is a game-changer. It opens the door to homeownership sooner and makes buying less stressful financially.

NCHFA’s Core Programs for First-Time Buyers

NC Home Advantage Mortgage™

What It Offers

This program provides eligible buyers with up to 3% of the loan amount in down payment assistance, paired with a competitive fixed-rate mortgage.

Who Qualifies?

Buyers must be purchasing a home in NC, meet income limits (generally under $126,000), and have a credit score of 640+.

NC 1st Home Advantage Down Payment

$15,000 for Eligible First-Time Buyers and Veterans

If you're a first-time buyer or military veteran, you could qualify for $15,000 in assistance—no joke. This is a second mortgage, but the best kind: no payments unless you sell or refinance within 15 years.

Repayment Terms and Forgiveness Explained

The loan is forgiven at 20% per year starting in year 11—fully forgiven by year 15 if you stay put.

Community Partners Loan Pool (CPLP)

Deeper Subsidy for Buyers with Additional Needs

CPLP offers up to $50,000 in down payment assistance in conjunction with a partner loan. It’s ideal for buyers needing extra help.

Partnering with Local Agencies

To access CPLP, buyers work with approved Community Partners across NC, including nonprofits and local governments.

Eligibility Requirements at a Glance

Income Limits

Income caps vary by county and household size but usually top out around $126,000. CPLP may have lower limits.

Credit Score Minimums

A 640 FICO score is required for most programs. Exceptions apply with manual underwriting.

Property and Occupancy Criteria

Properties must be primary residences, located in NC, and meet purchase price limits. Manufactured homes may qualify under certain rules.

The Application Process: Step-by-Step

Find a Participating Lender

Use NCHFA’s lender search tool to find a trained loan officer who knows the programs inside out.

Get Pre-Approved and Complete Education

Pre-approval helps define your budget. Then, you’ll complete a homebuyer education course—required but totally worth it.

Submit Application and Close

Once approved, your lender will help finalize documents, submit your application, and guide you through closing.

Benefits of NCHFA Down Payment Assistance

Affordability and Lower Upfront Costs

Programs drastically reduce your upfront out-of-pocket expenses—making buying a home more realistic and less stressful.

Fixed-Rate Mortgages and Stability

You’re locking in a fixed rate, so your monthly payment stays consistent even when the economy doesn’t.

No Need for Perfect Credit or Huge Savings

You don’t need an 800-credit score or a six-figure savings account to qualify. That’s what makes NCHFA so accessible.

Real Stories: How It Helped First-Time Buyers

Case Study: Young Couple in Charlotte

A newlywed couple used the NC 1st Home Advantage to get $15,000 in assistance and purchase a starter home they thought was out of reach.

Veteran Gets a Fresh Start in Raleigh

After serving in the military, a veteran returned home and used CPLP funds to buy a house near his children—without draining his savings.

Tips for Success When Applying

Work with a Knowledgeable Loan Officer

Find someone who knows the NCHFA system and can coach you through each step with clarity.

Take Your Time with Education Courses

Don’t rush the training—it gives you practical insights into homeownership responsibilities.

Plan for Future Financial Milestones

Even with help, it’s smart to prepare for repairs, taxes, and other costs that come with owning a home.

Final Thoughts

Homeownership is still within reach—and NCHFA proves it. Whether you’re dreaming of a backyard, a cozy porch, or just a place that’s truly yours, down payment assistance can help you get there faster and smarter. If you're a first-time homebuyer in North Carolina, don’t leave these programs on the table.

FAQs

  • Is NCHFA assistance only for first-time homebuyers? No, some programs like the NC Home Advantage Mortgage™ are available to repeat buyers, too. But the $15,000 assistance is reserved for first-time buyers and veterans.
  • Can I combine NCHFA assistance with other grants or programs? Yes! CPLP, for example, can be layered with the NC 1st Home Advantage and other eligible resources.
  • Do I have to pay back the down payment help? In most cases, repayment is only required if you sell or refinance early. Many loans are forgiven over time.
  • Are manufactured homes eligible for NCHFA programs? Yes—if they meet specific criteria such as being on a permanent foundation and titled as real property.
  • How do I get started with NCHFA programs? Click the get started button and a Novus Home Mortgage Loan Officer will walk you through your options.
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