If you’re a first-time buyer (or haven’t owned a home in 3+ years) or a veteran in North Carolina, you could qualify for thousands in down payment assistance (DPA) and low-cost mortgage options. The North Carolina Housing Finance Agency (NCHFA) offers programs that provide low-rate mortgages and up to $50,000 in down payment assistance (DPA). This guide covers the major programs, how to qualify, and how Federal Hill Mortgage can help streamline your application.
What is the North Carolina Housing Finance Agency (NCHFA)?
The North Carolina Housing Finance Agency (NCHFA) is a state agency that supports affordable homeownership through partnerships with approved lenders.
Through NCHFA, qualified individuals access:
- Low‑interest mortgages such as NC Home Advantage Mortgage
- Down payment grants and loans — including the NC 1st Home Advantage and CPLP
- Mortgage Credit Certificates (MCCs) that reduce federal tax liability
NCHFA partners with approved lenders (like Federal Hill Mortgage) to deliver these programs statewide. Understanding NCHFA is key to unlocking funds and competitive loan options.
What First-Time Homebuyer Programs Are Available in North Carolina?
NC Home Advantage Mortgage
Overview
A 30-year fixed-rate conventional loan available to first-time buyers and veterans through NCHFA-approved lenders.
Key Benefits
- Competitive mortgage rate
- Optional down payment assistance (up to 3% of loan)
Eligibility Requirements
- 640+ credit score
- First-time buyer or veteran
- Income and purchase price limits apply by county
Application Steps
- Get pre-approved with an NCHFA lender
- Complete a homebuyer education course
- Submit full mortgage application with NCHFA DPA included
NC 1st Home Advantage Down Payment
Overview
Provides $15,000 in forgivable down payment assistance to eligible buyers.
Key Benefits
- $3,000 forgiven per year for 5 years
- Can be layered with NC Home Advantage Mortgage
Eligibility Requirements
- First-time buyer or veteran
- Completion of homebuyer education
- Income and home price limits apply
Application Steps
- Complete homebuyer education
- Apply through your lender alongside your mortgage
- Funds are issued at closing
Learn more on our VA Loans or USDA Loans pages if eligible.
Community Partners Loan Pool (CPLP)
Overview
Offers up to $50,000 in down payment help as a second mortgage.
Key Benefits
- Forgivable or deferred-payment options
- Larger assistance than standard programs
- Ideal for buyers with tighter affordability or higher purchase prices
Eligibility Requirements
- First-time buyer or veteran
- Credit score ≥ 640
- County-specific income limits
- Completion of education course
Application Steps
- Work with an NCHFA lender (e.g., Federal Hill Mortgage)
- Submit CPLP documentation, including purchase agreement and income info.
- Once approved, funds are available at closing. Approval typically issued within 2 weeks of submission
Who is eligible for North Carolina first‑time homebuyer programs?
Eligibility is generally based on:
- Buyer status: First-time homebuyer (no homeownership in past 3 years) or veteran
- Credit score: Minimum 640
- Income limits: Based on county—ranges from ~$95k–$120k for 1–4 person households
- Purchase price limits: Varies by county
- Homebuyer education: Required for all NCHFA programs
- Primary residence: Must live in the home full‑time
Program Eligibility Comparison
program | buyer type | max income | purchase price cap |
|---|---|---|---|
NC Home Advantage Mortgage | First-time / Veteran | County-specific | County-specific |
NC 1st Home Advantage DPA | First-time / Veteran | County-specific | 95% of area median price |
CPLP | First-time / Veteran | County-specific | Typically up to $400,000 |
Note: Actual limits are updated annually and verified by your lender.
How Do You Apply for NC Homebuyer Programs?
Follow these steps:
- Get pre-approved
Submit financial documents and let your lender determine program eligibility. - Complete education course
Take an NCHFA-approved homebuyer education program (often online). - Find a home within NCHFA limits
Ensure home purchase price fits your qualifying program. - Submit your loan + DPA application
Your lender handles the NCHFA submission process. - Wait for approval
Typically within 7–14 days of submission. - Close on your new home
Funds are disbursed at closing and DPA repayment terms begin (if any).
NC First-Time Buyer Program Comparison
Feature | NC Home Advantage | nc 1st home advantage | cplp (community partners loan pool) |
|---|---|---|---|
Loan Type | 30-year fixed | Forgivable 2nd mortgage | 2nd mortgage, forgivable / deferred |
DPA Amount | Up to ~$8,000 | $15,000 | Up to $50,000 |
Forgiveness Terms | N/A | Forgiven in 5 years | Often forgiven in 20 years |
Tax Credit Available (MCC) | Yes | Yes | Yes |
Minimum Credit Score | 640 | 640 | 640 |
Eligible Buyers | First-time/Veteran | First-time/Veteran | First-time/Veteran |
Frequently Asked Questions
-
What qualifies as a “first-time homebuyer” in NC?
Anyone who hasn’t owned a home in the past three years—or a qualified veteran.
-
Can I combine multiple NCHFA programs?
Yes. NC 1st Home Advantage and CPLP can often be layered for enhanced assistance.
-
Are these programs available statewide?
Yes, but income and purchase limits vary by county.
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What is the Mortgage Credit Certificate (MCC)?
It lets you claim up to 20% of your annual mortgage interest as a tax credit.
-
Can DPA be used for closing costs too?
Yes, funds can typically cover down payment and/or closing costs.
-
Is the DPA a grant or a loan?
Some are forgivable loans (e.g., $3K/year), others are deferred second mortgages.
-
How do I know how much assistance I’ll receive?
Your lender confirms your exact amount when submitting to NCHFA.
Why work with Federal Hill Mortgage for NC homebuyer programs?
- Skilled in combining NC 1st Home + CPLP for maximum benefit
- In-house processing for faster approval
- Offers FHA, VA, USDA, ITIN loans alongside conventional
Next Steps
- Start your pre-approval process online
- Schedule a consult to explore eligible programs
- Enroll in your education course
- Begin home shopping with county limits in mind
