NC Home Advantage Mortgage
Buying a home in North Carolina can be more affordable than many expect—thanks to a range of mortgage and homebuyer assistance programs. Whether you’re a first-time homebuyer or looking to move up, understanding these options can help reduce upfront costs and secure a better mortgage. From statewide resources to local programs, North Carolina offers practical solutions to make homeownership more accessible.
LBC Capital helps North Carolina residents take advantage of these programs by providing expert guidance, personalized service, and competitive mortgage solutions.
Affordable Loans With Built-In Assistance
The NC Home Advantage Mortgage is a 30-year fixed-rate mortgage program offered through the North Carolina Housing Finance Agency (NCHFA). It’s designed for both first-time and move-up buyers and can be paired with additional down payment support.
One key benefit is the opportunity to receive up to 3% of the loan amount as down payment assistance. This comes as a second mortgage, but it carries no interest and is deferred, meaning you don’t have to make payments on it while you live in the home. Even better—it is fully forgiven after 15 years, as long as the buyer doesn’t sell, refinance, or move.
LBC Capital works closely with approved lenders and clients to determine eligibility and secure these funds quickly and efficiently.
Program Requirements
To qualify, homebuyers must:
- Use the home as a primary residence
- Have a credit score of at least 640
- Meet income and purchase price limits, which vary by county
- Use an NCHFA-approved lender
Borrowers can pair this mortgage with other programs like the NC 1st Home Advantage Down Payment or Mortgage Credit Certificate to reduce both upfront and long-term costs.
NC 1st Home Advantage Down Payment
Up to $15,000 for First-Time Buyers and Veterans
This program offers up to $15,000 in down payment assistance for eligible first-time buyers and qualified military veterans. It is specifically designed to complement the NC Home Advantage Mortgage and provides much-needed support to those with limited savings.
The funds are provided as a zero-interest, deferred second mortgage that is forgiven after 15 years. No monthly payments are required, and there is no repayment if the homeowner stays in the home for the full forgiveness period.
LBC Capital ensures buyers understand how to combine this assistance with their primary mortgage to significantly lower the cash needed at closing.
Who Qualifies
To qualify, applicants must:
- Be first-time homebuyers or eligible veterans
- Meet income and purchase price limits
- Apply through an approved lender offering NC Home Advantage Mortgages
This program is an excellent opportunity for buyers who are financially stable but need a boost to meet down payment requirements.
NC Home Advantage Tax Credit (Mortgage Credit Certificate)
Reduce Tax Liability While Paying a Mortgage
The NC Home Advantage Tax Credit, also known as a Mortgage Credit Certificate (MCC), helps eligible buyers save money every year by turning a portion of their mortgage interest into a federal tax credit.
Qualified buyers can claim up to $2,000 in annual tax credits, directly reducing their federal tax bill. Unlike a deduction, which lowers taxable income, a tax credit lowers what you owe—dollar for dollar.
LBC Capital encourages eligible buyers to apply for this credit during the home purchase process. It’s especially useful for those with stable income and long-term plans to stay in the home.
Eligibility Details
To access this credit:
- Buyers must not have owned a home in the past three years (exceptions apply in targeted areas)
- The home must be the primary residence
- Buyers must meet income and purchase price limits
- Application must be made before closing on the home
This tax credit can be used with an NC Home Advantage Mortgage but not alongside the NC 1st Home Advantage Down Payment program.
Community Partners Loan Pool (CPLP)
Up to $50,000 in Additional Down Payment Help
The Community Partners Loan Pool provides up to $50,000 in down payment assistance through a zero-interest, deferred second mortgage. This program is geared toward buyers with low to moderate income and can be paired with an NC Home Advantage Mortgage or a USDA Section 502 Direct loan.
Unlike other assistance that is forgiven, CPLP funds are repaid only when the home is sold, refinanced, or the first mortgage is paid off.
LBC Capital helps clients navigate the more involved application process for CPLP and coordinates with community agencies that manage the program.
Requirements
Applicants must:
- Complete homebuyer education and counseling
- Work with a participating community organization
- Pair CPLP with an eligible primary mortgage
- Meet income and property guidelines
The CPLP program can significantly reduce borrowing needs and monthly payments, making homeownership more manageable over time.
Local City and County Assistance Programs
Raleigh, Charlotte, Durham, and More
Several North Carolina cities offer their own homebuyer assistance options. These programs often work in tandem with state or federal loans, and LBC Capital regularly assists clients in layering these benefits for maximum impact.
For example, the City of Raleigh provides homebuyer assistance to first-time buyers with incomes at or below 80% of the area median income. Assistance comes in the form of forgivable loans or grants for down payment and closing costs.
Charlotte and Durham also offer local support programs with varying eligibility rules. These often include required housing counseling, income caps, and purchase price limits.
LBC Capital’s local knowledge ensures buyers are matched with every available source of funding.
Federal Loan Programs Available in North Carolina
FHA, VA, and USDA Loans
In addition to state and local assistance, buyers in North Carolina can benefit from widely available federal loan programs that reduce barriers to homeownership.
FHA Loans are insured by the Federal Housing Administration and allow buyers with lower credit scores (as low as 580) to purchase with just 3.5% down. These loans are ideal for those with limited savings or credit history.
VA Loans are available to active-duty service members, veterans, and surviving spouses. These loans require no down payment, no private mortgage insurance, and offer competitive interest rates.
USDA Loans offer zero-down financing to buyers in eligible rural areas of North Carolina. The loans are backed by the U.S. Department of Agriculture and come with favorable terms for income-eligible borrowers.
LBC Capital works with all three loan types and ensures clients understand which programs they qualify for and how to maximize benefits.
Partnering With LBC Capital
LBC Capital provides expert mortgage guidance and unmatched access to North Carolina’s most valuable homebuyer assistance programs. We help clients understand eligibility, compare loan options, and stack benefits like down payment aid, tax credits, and competitive mortgage rates.
Whether you’re buying in Raleigh, Charlotte, Durham, or a rural part of the state, LBC Capital ensures you get the support and clarity needed to buy with confidence.