If you’ve never owned a home before, it’s worth researching first time home buyer programs in Charlotte, NC. Charlotte is an incredible place to live in North Carolina, especially if it’s your first time purchasing a home. You’ll find tons of entertainment, affordable home prices, low unemployment rates, and incredible schools.
While the journey might seem overwhelming and expensive, North Carolina does have several first-time home buyer programs that can help you achieve that ultimate dream of homeownership. The North Carolina Housing Finance Agency, or NCHFA, has multiple programs that can help you get your first home in Charlotte, NC.
NC Home Advantage Mortgage
With the NC Home Advantage Mortgage, home buyers may qualify for down payment assistance of up to 5% of the total loan amount. Other perks to this program include competitive interest rates, up to 100% financing on VA, USDA, and FHA loans, and 3% down payment assistance on conventional 97% LTV loans.
To qualify, you must buy a home in North Carolina and be a legal resident of the U.S. You have to occupy your home as your main residence within 60 days of closing, maintain a credit score of 640 or above, and have an income of $92,000 or below. This mortgage program can be used for single-family homes, newly manufactured homes, townhouses, and more.
NC 1st Home Advantage Down Payment
If you’re researching home buyer programs and discover you qualify for the NC Home Advantage Mortgage, you may also be eligible for the NC 1st Home Advantage Down Payment, which offers $8,000 in down payment assistance. This home buyer program is a 0% deferred second mortgage. 20% is forgiven per year at the end of years 11-15 of the mortgage, meaning the entire amount will be forgiven at the end of year 15.
To qualify, you have to be either a first-time home buyer (meaning you haven’t owned a house as your main residence in the last three years) or a military veteran. You must also meet income and sales price limits outlined on the NCHFA website. As with the Home Advantage Mortgage, you must be a legal U.S. resident, have a credit score of 640 or higher, and move into the home as your primary residence within 60 days after closing. This program can be used toward the purchase of single-family homes, townhouses, condos, and new manufactured homes (if you have a credit score of 660 or higher).
NC Home Advantage Tax Credit
Finally, NCHFA also offers a Home Advantage Tax Credit as one of their most popular first time home buyer programs. Within this program, newly built homes can receive a tax credit of up to 50% of the annual interest, which can save first-time home buyers up to $2,000 on federal income taxes for each year in the home as the primary residence.
This program requires you to be approved for a Mortgage Credit Certificate, or MCC, before you purchase the home. Your MCC is used along with a 30-year fixed rate mortgage and may be combined with the NC Home Advantage Mortgage, though it cannot be used with the NC 1st Home Advantage Down Payment program. To qualify for a Tax Credit, many of the standard guidelines apply: U.S. legal residency, income and sales price requirements, and occupation of the home as your principal residence within 60 days of closing. Your MCC can be used toward a single-family home, townhouse, condo, or new or used manufactured home.
If you’re searching for first-time home buyer programs in Charlotte, NC, this list is a good place to start. These programs can drastically help cut costs for a North Carolina home and help move you on your way to owning your dream house. Good luck in your homebuying journey!
