Mortgage Programs & First-Time Homebuyer Assistance in North Carolina: What’s Available & How to Qualify

What First-Time Homebuyer Assistance Means in NC

In North Carolina, first-time homebuyer programs are designed to help individuals who haven’t owned a home as their primary residence in the last three years. These programs provide financial support through down payment assistance, closing cost help, below-market mortgage rates, and even tax credits. LBC Capital specializes in guiding North Carolina homebuyers through these options, helping clients make smart, confident decisions about their mortgages.

Many of these programs come from the North Carolina Housing Finance Agency (NCHFA) and require applicants to meet credit, income, and home price limits. If you’re a veteran or buying in a targeted census tract, you may qualify even if you’ve owned a home recently.

Statewide Mortgage Programs in North Carolina

NC Home Advantage Mortgage

This fixed-rate mortgage option from the NCHFA supports buyers using conventional, FHA, VA, or USDA loans. LBC Capital offers access to this program through our lender network.

It includes up to 3 percent down payment assistance, structured as a second mortgage with 0% interest. The assistance is fully forgiven after 15 years, as long as the borrower does not sell, refinance, or move out of the home before then. Credit score requirements typically start at 640, and homebuyers must meet income and sales price limits set by county.

NC 1st Home Advantage Down Payment

This program is for true first-time buyers or military veterans. It provides $15,000 in down payment assistance as a deferred second mortgage. Like the NC Home Advantage Mortgage, this loan is forgivable. Forgiveness begins in year 11 and completes by year 15, assuming the borrower remains in the home.

To qualify, buyers must use the NC Home Advantage Mortgage and meet specific income and sales price limits. LBC Capital ensures our clients meet these requirements before applying.

Community Partners Loan Pool (CPLP)

CPLP provides additional financial support for low- and moderate-income homebuyers who need more than what the NC Home Advantage Mortgage offers. Buyers can receive up to 25 percent of the home’s sales price (often up to $50,000) as a second mortgage.

This program is typically paired with homebuyer education and counseling. Borrowers must earn 80 percent or less of the area median income (AMI). CPLP loans may be zero-interest and often come with deferred payments. LBC Capital helps buyers combine CPLP with other programs when eligible.

Self-Help Loan Pool

Designed for buyers working with organizations like Habitat for Humanity or local nonprofits, the Self-Help Loan Pool allows shared mortgage financing or subordinate zero-interest loans. It focuses on creating long-term affordability for low-income homebuyers.

These loans are ideal for buyers building or purchasing homes through community-based self-help housing models. LBC Capital partners with nonprofit agencies to ensure clients are aware of and ready for these opportunities.

NC Home Advantage Tax Credit (MCC)

The Mortgage Credit Certificate (MCC) allows eligible first-time buyers to claim a federal tax credit based on the interest they pay on their mortgage. This tax credit can be worth up to $2,000 per year and reduces the buyer’s federal tax bill.

Buyers must apply before purchasing a home and use an NC Home Advantage Mortgage. The credit remains in effect for the life of the mortgage, as long as the home remains the buyer’s primary residence. LBC Capital educates buyers on how to apply this credit and maximize their yearly tax savings.

How to Qualify for First-Time Buyer Programs in North Carolina

To qualify for first-time homebuyer programs in North Carolina, you must meet specific requirements related to income, credit, and property type. These requirements vary by program but share some common features.

First-Time Buyer Definition

Most programs require you not to have owned a home as your primary residence in the last three years. However, veterans and buyers in targeted census tracts may still qualify.

Credit Score

A credit score of at least 640 is typically required. For new manufactured homes, the requirement may rise to 660. LBC Capital reviews credit reports with buyers and helps them improve their scores if needed.

Income Limits

Programs usually require your household income to be below a certain percentage of the local AMI. Limits vary by county and household size. For example, in Wake County, limits for a two-person household may range from $70,000 to $90,000 depending on the program.

Purchase Price Limits

Homes must fall under price caps set by the program, which vary by location and loan type. These limits ensure the assistance reaches buyers targeting affordable housing.

Occupancy Requirement

You must occupy the home as your primary residence. Most programs require you to move in within 60 days of closing and remain in the home for a minimum number of years to benefit from forgiveness.

Homebuyer Education

Completion of a HUD-approved homebuyer education course is usually mandatory. These courses cover budgeting, the mortgage process, and maintaining a home. LBC Capital connects buyers to certified education providers.

Benefits and Considerations

These programs make homeownership more affordable by reducing upfront costs and lowering long-term expenses. Benefits include reduced down payment requirements, below-market mortgage rates, and tax savings.

However, some forms of assistance are structured as second mortgages. If you sell, move, or refinance before the forgiveness period ends, repayment may be required. LBC Capital ensures our clients understand these terms before proceeding.

Another consideration is funding availability. Local programs often have limited budgets and may operate on a first-come, first-served basis. LBC Capital helps buyers apply early and avoid missing opportunities.

How LBC Capital Helps First-Time Buyers in North Carolina

LBC Capital works closely with first-time buyers to simplify the mortgage process. We identify the programs you qualify for, explain the terms clearly, and handle the application paperwork. Our team knows how to combine state and local assistance for maximum benefit.

Whether you’re using a VA loan, FHA loan, or conventional mortgage, LBC Capital ensures you get the best terms available. We guide you through homebuyer education, connect you with approved lenders, and manage the details to keep the process stress-free.