Down payment assistance in North Carolina

Up to 3% of the first mortgage total loan amount

A 0% deferred second mortgage paired with the NC Home Advantage Mortgage (FHA, VA, USDA or conventional 30-year fixed). Nothing is due for the first 10 years; it is then forgiven 20% per year at the end of years 11 through 15. Any unforgiven balance is due if the home is sold or refinanced, or the first mortgage is paid off, before year 15. NCHFA says the 3% option may be unavailable at times when rates are high.

Who qualifies: First-time and move-up buyers both eligible. Income limit $158,000 statewide (not adjusted for household size or county). Minimum credit score 640 (660 for manufactured homes), at least two scores per borrower. Maximum DTI 45%. No NCHFA sales price limit and no minimum borrower investment. Homebuyer education required if all borrowers are first-time buyers. Must occupy within 60 days.

North Carolina Housing Finance Agency · Agency website → · Checked 2026-09-30

$15,000

A 0% deferred second mortgage paired with the NC 1st Home Advantage Mortgage (tax-exempt bond financing). Same forgiveness as the 3% option: nothing due for 10 years, then forgiven 20% per year at the end of years 11 through 15. Cannot be combined with the 3% DPA; can be combined with NCHFA's Community Partners Loan Pool.

Who qualifies: First-time homebuyers (no principal residence owned in the past three years), qualifying military veterans, or buyers in qualified census tracts. Must meet IRS/HUD income and sales price limits. Minimum credit score 640 (660 for manufactured homes). Homebuyer education required for first-time buyers. Federal recapture tax may apply.

North Carolina Housing Finance Agency (NCHFA) · Agency website → · Checked 2026-09-30