North Carolina has a reasonable cost of living, but you might be looking for a little extra assistance when it comes to buying a home. One of the best programs to help you get those keys is the NC Home Advantage Mortgage. This program is a wonderful resource both for first-time home buyers and move-up home buyers.
What is the NC Home Advantage Mortgage?
The NC Home Advantage Mortgage is offered by the North Carolina Housing Finance Agency (NCHFA). This program provides homebuyers with fixed-rate mortgages as well as down payment assistance that can total up to 5 percent of the loan amount.
NCHFA also offers other programs that may be used in combination with the NC Home Advantage Mortgage. First-time home buyers or military veterans may also qualify for the NC Home Advantage Tax Credit, which can save recipients up to $2,000 per year on their federal taxes. Additionally, military veterans and first-time home buyers could qualify for the NC 1st Home Advantage Down Payment, which could grant an extra $8,000 in down payment assistance.
Down payments only have to be repaid if the homeowner sells, transfers, or refinances the property before year 15. You can receive forgiveness for your down payment assistance during years 11-15 at 20 percent per year, so your down payment will be fully forgiven at the end of year 15.
How Do I Know If I’m Eligible?
To be eligible for this incredible Home Advantage Mortgage, you must be buying a home in North Carolina. You also must have an income not over $92,000 and a credit score of at least 640. Additionally, you have to be a U.S. legal resident and occupy the home as your main residence within 60 days of closing. Finally, you must be applying for a conventional, VA, USDA, or FHA loan through a participating lender and meet the loan type’s sales price limits.
A few different types of properties are eligible to receive the NC Home Advantage Mortgage. Single-family homes are the most popular, but you can also use the mortgage for the purchase of townhouses, condominiums, and duplexes. For those with a credit score of 660 or higher, new manufactured homes can also qualify for the Home Advantage Mortgage.
How Do I Apply?
For home buyers in North Carolina, it’s easy to apply for the NC Home Advantage Mortgage. First, look through the eligibility guidelines we’ve offered and determine whether you are eligible. If you are, you can download the home buyer certificate available on the NCHFA website. You can also check the website to discover participating lenders you can work with. Take your home buyer certificate to a participating lender who can walk you through the rest of the process!
With the NC Home Advantage Mortgage, it’s never been easier or more affordable to buy a home in North Carolina! You’re now well on your way to owning your own home and beginning a new chapter of life!