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North Carolina
First Time Home Buyer Grants

Searching for North Carolina first time home buyer grants to purchase that home? Find the best grants or programs for buying a home in North Carolina and other home mortgage grants and programs available below.

Buying a home can be a very daunting adventure. However, don't let yourself become overwhelmed with the process.

I want to give you some helpful information about grants or programs that will make this project doable.

Before you obtain a grant and apply for a mortgage, you really need to understand how your credit profile looks.

You want to know your credit score and determine if you need credit repair before proceeding.

Unfortunately, without a minimum credit score of 640, you'll not qualify for these low down payment programs. The FHA 203b loan works well with the various grant options. The higher your credit score is the lower your interest rate.

If you need help estimating your mortgage closing costs, check out this FREE closing costs calculator by clicking here.

North Carolina First Time Home Buyer Grants

North Carolina Grants for Home Buying

To begin with, North Carolina does not offer a North Carolina first time home buyer grant program for its residents; however, there are a couple of programs that come close.

This is good news because not all states are able to offer assistance to first time home buyers. The state agency which maintains this program is the “North Carolina Housing Finance Agency”.

What this agency offers is a great program, especially if you plan to stay in your home for 15 years.  

If you need help with your closing costs and down payment, they offer an interest-free second mortgage that is deferred (for 15 years) and can be forgivable so you owe nothing. So it's a grant if you stay in the home for 15 years. 

Repayment of the down payment is required only if you sell, refinance or transfer your home before year 15—the down payment assistance is forgiven at 20% per year starting at the end of year 11.

There are some limitations, the maximum amount of this second mortgage is 5% of your first mortgage amount. So for example, if the house you wanted to purchase has a $150,000 first mortgage amount, the max amount available under this down payment assistance program would be $7,500. 

This can be very useful if you’re unable to get much help in seller concessions when negotiating your purchase contract.

Now if you move, sell or even refinance before the 15 years is up, you will have to repay this second mortgage loan. 

So it’s not a grant but it’s a loan program that helps you finance your down payment and closing costs so you can buy that dream home.

Another program I suggest you look into is called the “Mortgage Credit Certificate” (MCC) for first time home buyers. This can be worth up to $2,000 a year in tax savings to you. Since this is a way to lower your income taxes dollar for dollar each year you live in the home, it leaves you more money to pay towards your mortgage.

Last and certainly not least is a $15,000 Special down payment assistance. If you're buying a home in Cabarrus, Cumberland, Guilford, Johnston or Mecklenburg Counties? That home purchase might be more affordable than you thought!

If you meet certain criteria, you may qualify for $15,000 in down payment help in the form of a deferred, forgivable, five-year loan at zero interest. This loan is forgiven at a rate of 20% per year each year that you stay in the home, and fully forgiven after year 5. 

All of these assistance products have restrictions and limitations you will have to meet. You should visit this website to determine your eligibility for any North Carolina first time home buyer grants.


Federal Home Mortgage Grants

In addition, the federal government offers grant assistance for first time home buyers in North Carolina. This program is maintained by the United States Department of Housing and Urban Development and is called the Homes and Communities program.

Their website contains useful information and applications. The website for the grant program maintained by the United States Department of Housing and Urban Development can be visited by using this link, HUD Grant Information.

Additional Home Buying Grants

Another website I would recommend that you view is Visit the Government Grants. This website offers a list of all federal government grant programs. It would be a good idea to take some time and browse through this site to see what it offers and the qualifications for application.

Whenever you use a grant or opt for other assistance programs, you should prepare yourself that these will take some time. I had a client who was using a nonprofit organization to help them and it took close to 90 days for them to close.

Sometimes sellers get impatient and don't want to wait. So you will need a real estate agent who is willing and understands how to work with these products. You will also need a lender who is familiar with them too.

Generally, the FHA loan product is the best to use with the various assistance out there. Why? They are designed for those buying their first home. So they have arranged flexibility with their products to help you.

North Carolina First Time Home Buyer Grants Support

Thank you for visiting our website for first time home buyers. Below you'll find more information to help you with grants for housing.

Click her for additional information on North Carolina First Time Home Buyer Grants.

This link will take you to the HUD website and you will see a map of the USA. Click on your state and then you'll find a list of the local counseling agencies in your own area.

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