First-Time Home Buyer NC: Programs, Grants And Resources

If you’re a first-time home buyer in North Carolina, there are resources available through state and local programs. Keep reading to learn about what’s available to a first-time home buyer in NC.

Purchasing A House In North Carolina As A First-Time Home Buyer

Many home buyers choose to move to North Carolina for its excellent quality of life and beautiful scenery. The state is a great place to live for people from all walks of life.

Whether you want to pursue greater professional opportunities or just enjoy more time outdoors, North Carolina has something to offer everything. That’s why it’s consistently listed as one of the best states to live in the U.S.

North Carolina’s job market is thriving, and the state is enjoying a record low unemployment rate of 3.6%, according to the Bureau of Labor and Statistics September 2022 report. And it’s well-suited for anyone working in information technology, pharmaceuticals, and food processing and manufacturing industries.

If you have young kids and education is a priority, you’ll be happy to know that 42% of North Carolina is college-educated. And U.S. News and World Report ranks the state #7 in higher education and #15 for pre-K through 12th grade education in the U.S.

Finally, North Carolina has a relatively low cost of living compared to other states. This means you can still enjoy a high standard of living, but your paycheck will go farther each month.

NC First-Time Home Buyer Loans

If you’re a North Carolina first-time home buyer, there are a number of loan options available to you. You may want to apply for a conventional loan if you can make a 20% down payment and have a strong credit history.

If you’re service member, veteran or eligible surviving spouse, you can take advantage of the low rates and low down payment requirements that come with a VA loan. With backing from the U.S. Department of Veterans Affairs (VA), these loans can have more lenient qualifying factors. Other loans backed by other government entities include, FHA loans and USDA loans, can also help make homeownership more affordable for low- and median-income borrowers.

Programs, Grants And Other Resources For First-Time Home Buyers In NC

Obtaining homeownership in North Carolina can be possible through assistance programs, grants and other resources. Let’s look at a few.

First-Time Home Buyer Programs And Grants In NC

If you’re having a hard time finding affordable housing opportunities, you may want to check out the North Carolina Housing Finance Agency (NCHFA). This self-supporting public agency has programs that help residents with closing costs and down payment assistance.

Here are some of the programs it offers:

• NC Home Advantage Mortgage: This program provides qualified home buyers with fixed-rate mortgages and down payment assistance of up to 3% of the total mortgage amount.
• NC 1st Home Advantage Down Payment: First-time home buyers and veterans could receive up to $8,000 in down payment assistance through this program. You must meet the income and sales price limits to qualify.
• NC Home Advantage Tax Credit: As an NC first-time home buyer or veteran, you could save up to $2,000 a year on your federal taxes if you qualify for a Mortgage Credit Certificate (MCC). You’ll apply for the MCC when you fill out your mortgage application.
• Community Partners Loan Pool: This program provides down payment assistance for up to 25% of the sales price when combined with an NC Home Advantage Mortgage. The maximum amount of down payment assistance is $50,000.

Keep in mind, there are several requirements you must meet to be eligible for these programs, which may include household income limits, minimum credit scores, sales price limits and restrictions on property type.

Other Resources Available To First-Time Home Buyers In NC

Here are some other resources that are available to North Carolina homebuyers:

• Habitat for Humanity
• USDA Rural Development
• Greensboro Housing Coalition
• Financial Pathways of the Piedmont
• Downtown Housing Improvement Corporation (DHIC) in Raleigh
• Durham Affordable Housing Coalition
• The Center for HomeOwnership

Tips For First-Time Home Buyers In NC

Buying a home for the first time can be overwhelming, so it helps to go into the process prepared. Here are some tips for buying your first home in North Carolina:

• Compare your options: When you’re applying for a mortgage, it’s a good idea to receive quotes and compare offers from several different lenders. Doing this will help you find the lowest rates and best repayment terms on your mortgage.
• Work with a real estate agent: It’s not recommended to try to buy a house on your own — especially when it’s your first time. Working with a qualified real estate agent can make the process much easier. The right real estate agent can help you find better listings, negotiate for a lower price and walk you through the closing process.
• Explore different locations: When you buy a home, you’re not just investing in the property, you’re also investing in the community you live in. Spend some time thinking about what you’re looking for in a city. Checking out our list of the best places to live in North Carolina could help you narrow down your list.
• View multiple homes: It’s also a good idea to spend some time thinking about what you want in a home. Are you looking for a newer home in the suburbs, or are you willing to compromise on square footage to find a location in the city? You can browse North Carolina homes for sale to get some ideas.

The Bottom Line

While buying a home is a big financial decision, many resources are available to help North Carolina residents. There are programs that can provide down payment assistance and help you qualify for an affordable, fixed-rate mortgage. If you’re ready to start the mortgage approval process, apply online with our friends at Rocket Mortgage® today.