NC Home Advantage Mortgage
“NC Home Advantage is the first mortgage product from North Carolina Housing Finance Agency (NCHFA),” James McDuffie, former mid-Atlantic mortgage area manager for U.S. Bank in North Carolina, told us. “It’s [a] 30-year fixed mortgage with down payment assistance up to 3% of the purchase price for customers under the income limit.”
The assistance becomes forgivable over time, with the state reducing your obligation by 20% per year from years 11 through 15 until you owe nothing after 15 years. “[You can use] the funds for down payment or closing costs,” McDuffie said. “This reduces the monthly payment or cash to close, allowing [you] to get into the home with little money down.”
You may qualify for this program if you:
- Plan to purchase a home in North Carolina
- Have a credit score of at least 640 (or 660 for a new manufactured home)
- Earn an annual income under $158,000
- Buy an eligible property type, which includes single-family homes, town houses, condos, duplexes or manufactured homes
- Occupy the home as your primary residence within 60 days of the closing date
- Be a legal U.S. resident
- Meet the sales price limits of the loan type you are applying for
The NC Home Advantage Mortgage program is open to first-time and repeat buyers. It works with multiple loan types, including Federal Housing Administration (FHA), VA, U.S. Department of Agriculture and conventional loans, but buyers must use an NCHFA-approved lender.
» COMPARE: Best mortgage lenders for first-time buyers
NC 1st Home Advantage Down Payment program
“[The NC 1st Home Advantage Down Payment program] supports first-time buyers and veterans with up to $15,000 in down payment assistance,” said Marinus Leach, principal broker at Landhuis Residential in Raleigh. “The key benefit [is] the assistance is forgivable after 15 years, as long as you stay in the home.”
Offered through NCHFA, this program has similar requirements to the NC Home Advantage Mortgage program. Applicants must also be first-time homebuyers, veterans or planning to buy a home in specific targeted census tracts.
Pay attention to repayment triggers and occupancy rules. With many NCHFA programs, you become liable for the remaining balance of your mortgage if you sell, refinance or move out of your house within 15 years. Additionally, you must occupy the property as your principal residence within 60 days of closing. Waiting too long to move in can also trigger a repayment obligation.
» MORE: First-time homebuyer benefits
Community Partners Loan Pool
The Community Partners Loan Pool (CPLP), available through NCHFA, provides valuable assistance to low- and moderate-income buyers. Buyers can qualify for up to 25% of a home’s purchase price when paired with an NC Home Advantage Mortgage by applying through a CPLP partner organization.
Apply to CPLP programs early. The approval process takes at least 60 days.
The assistance comes as a zero-interest, deferred second mortgage with no required monthly payments. However, the repayment structure differs from other NCHFA programs: You repay the full amount when you sell your home or at the end of the loan term, unlike other state programs that offer forgiveness over time.
“With home prices outpacing income increases, affordability is a big issue across the state,” McDuffie told us. “These funds allow [you] to reduce [your] loan amounts to something [your] income can accommodate.”
City-specific homebuyer assistance programs
“Many NC cities offer their own programs that can go above and beyond what the state offers — but with more specific eligibility requirements,” Leach said. These local programs often provide higher assistance amounts than state programs, which typically max out at $15,000. Additionally, you can combine city programs with state programs to get more assistance.
While specifics vary by city, you may qualify if you:
- Earn less than the income limit — often 80% of the local Area Median Income (AMI)
- Complete a homebuyer education course
- Secure preapproval for your primary mortgage first
- Work with a city-approved lender
- Meet specific home price limits
North Carolina homebuyer assistance by city
| City | Name of program(s) | Max assistance | Income limit | Key restriction |
|---|---|---|---|---|
| Raleigh | Homebuyer Assistance Program and Enhanced Homebuyer Assistance Program | $45,000 to $60,000 | 80% of AMI | Must complete specific homeownership education course |
| Durham | City of Durham Down Payment Assistance Program | $80,000 | 80% of AMI | First-time buyers only |
| Charlotte | House Charlotte | $80,000 | 110% of AMI | Must stay under $365,000 purchase price limit |
Local homebuyer assistance programs are also offered in other North Carolina cities and counties. Contact your local housing authority to find out what’s available in your area.
Homeownership Assistance Program
The Homeownership Assistance Program is no longer accepting applications as of publishing. While it was active, it provided up to $30,000 in down payment assistance, plus closing cost help of up to 5% of the sales price for buyers in counties that were designated as hurricane-affected areas.
FAQ
Does North Carolina offer a first-time homebuyer program?
Yes, North Carolina offers several programs for first-time homebuyers at the state and local levels. For example, Raleigh, Charlotte and Durham offer local assistance programs that can work alongside state options.
What is the $15,000 NC 1st Home Advantage Down Payment program?
The $15,000 NC 1st Home Advantage Down Payment program is for first-time buyers and military veterans who qualify for an NC Home Advantage Mortgage. It is also open to buyers in designated census tracts. This assistance comes in the form of a zero-interest loan with no required monthly payments.
The state forgives the loan gradually from years 11 through 15, with complete forgiveness after 15 years if you keep the home as your primary residence.
What is the minimum credit score to buy a house in North Carolina?
FHA loans in North Carolina accept credit scores as low as 500, though lenders require a 10% down payment with scores between 500 and 579. A credit score of 580 or higher qualifies you for the standard 3.5% down payment option. Most state programs, such as NC Home Advantage, require a minimum credit score of 640 for participation.
How does the NC Home Advantage Tax Credit work?
The NC Home Advantage Tax Credit allowed homeowners to claim 30% of mortgage interest paid on existing homes or 50% on new construction, with an annual maximum of $2,000. However, as of June 2025, this benefit is no longer available due to exhausted funding.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- City of Durham, “Down Payment Assistance Program.” Accessed June 11, 2026.
- North Carolina Housing Finance Agency, “Buying a Home in North Carolina?” Accessed June 11, 2026.
- North Carolina Housing Finance Agency, “Community Partners Loan Pool.” Accessed June 11, 2026.
- North Carolina Housing Finance Agency, “NC 1st Home Advantage Down Payment.” Accessed June 11, 2026.
- North Carolina Housing Finance Agency, “NC Home Advantage Mortgage.” Accessed June 11, 2026.
- Raleigh, “Homebuyer Assistance.” Accessed June 11, 2026.
- DreamKey Partners, Inc, “House Charlotte: Down Payment Assistance for First-Time Buyers.” Accessed June 11, 2026.
- North Carolina Office of Recovery & Resiliency, “Homeownership Assistance Program.” Accessed June 11, 2026.
