NC Homebuyer Resource Guide (2025)

1. Statewide Mortgage & Down Payment Assistance via NCHFA

a) NC Home Advantage Mortgage™
Offers a fixed-rate mortgage (conventional, FHA, VA, or USDA) with up to 3–5% down payment assistance, structured as a 0% deferred second mortgage. The assistance is forgiven after 15 years, provided you stay in the home — with forgiveness beginning in year 11 (20% per year). Eligibility includes income and county-based limits, credit score minimums (typically 640), and occupancy and residency requirements.Bankrate+4nationalhomecorp.com+4On the Lake NC+4

b) NC 1st Home Advantage Down Payment
Designed for first-time buyers, military veterans, or those purchasing in targeted census tracts. Provides up to $15,000 in down payment assistance, also a 0% deferred second mortgage forgiven over 15 years. Requires an NC Home Advantage Mortgage to qualify.The Sun+7NCHFA+7On the Lake NC+7

c) NC Home Advantage Tax Credit (Mortgage Credit Certificate, MCC)
Offers federal tax savings by allowing you to claim 30% of your mortgage interest paid (up to $2,000 annually) as a credit — while still deducting remaining interest. This credit can be combined with the NC Home Advantage Mortgage.Bankrate+4LendingTree+4On the Lake NC+4

d) Community Partners Loan Pool
If your income is ≤ 80% of your county's AMI, you may access up to 25% of your home’s sale price (max $50,000) as zero-interest down payment assistance — to be used with the NC Home Advantage Mortgage or USDA Section 502.fha.com+8NCHFA+8Bankrate+8

2. Local City & County Homebuyer Programs

a) Raleigh

• Homebuyer Assistance Program: Up to $45,000 in zero-interest, deferred loans for down payment and closing costs — available to first-time buyers earning ≤ 80% of AMI.

• Enhanced Program: Up to $60,000 if purchasing in designated areas; includes a 10-year deed restriction limiting proceeds on early sale.

• No current waitlist; on track to help ~75 families in 2025.fha.com+12Raleigh NC+12Bankrate+12The Sun+1

b) Durham

• Offers up to $80,000 (0% interest, forgivable after 15 years) for down payment and closing cost assistance to eligible homebuyers (≤ 80% AMI, first-time buyers). Funding is on a first‑come, first‑served basis; total program cap: $5.7 million.Durham NC

c) Greensboro

• Through the Housing Connect GSO program, first-time or recent buyers may qualify for aid via:

  • Public Service Heroes

  • #100Homes initiative

  • Reinvestment Area bonuses (in select neighborhoods)
    Eligibility: within Greensboro city limits, not owned a home in past 3 years, income ≤ 80% AMI or within higher tier for certain programs.Greensboro NC+1

d) Charlotte

• Offers homeownership education and various kinds of down payment assistance programs. Details are available via the City’s housing resources.Charlotte NC Government+1

3. Federal & Nonprofit Assistance Options

a) USDA Section 502 Direct Loan Program
For low- and very low-income borrowers in rural areas:

• No down payment required

• Interest rate as of July 1, 2025: ~5%, potentially reducible to 1% with payment assistance

• Up to 38-year repayment terms

• Applications accepted year-round through local offices

b) Federal Home Loan Bank of Atlanta (FHLBA) Grants (via SECU)

• Up to $17,500 for first-time buyers

• Up to $20,000 for public sector workers (e.g. teachers, police, health care, veterans)

• "Workforce Housing Plus+" provides up to $15,000 for moderate-income buyers

• Requires $1,000 personal contribution; forgivable if you remain in the home at least 5 years

c) The Support Center (Raleigh-based CDFI)
Offers mortgage lending, training, and grants tailored to underserved communities and first-time homebuyers, through credit union networks.

4. Current Snapshot: Which Programs Are Available in 2025

5. Why These Programs Matter Now

• Rising home prices and tight rental markets make upfront costs a significant barrier for many potential buyers.

• NC offers a powerful mix of deferred-payment assistance, tax credits, and grants to reduce out-of-pocket expenses.

• Local city programs (Raleigh, Durham, Greensboro, Charlotte) provide significant boosts — sometimes exceeding $50,000.

• Federal and nonprofit options (USDA loans, FHLBA grants, Support Center) further expand access, especially for rural or underserved communities.

6. Next Steps for Prospective NC Homebuyers

1. Check eligibility – Income limits and credit score thresholds vary; start by working with NCHFA-approved lenders.

2. Combine programs – You can often layer state and local assistance (e.g. NCHFA + Raleigh or Durham).

3. Attend required education – First-time programs generally require a homeownership class (e.g. Raleigh).

4. Work with approved lenders – Especially for city programs like Raleigh or Durham that require lenders trained on their guidelines. Set up applications early.

5. Plan long-term – Deferred loans often require staying in the home for 15 years to be fully forgiven. Know your timeline.

6. Explore additional aid – If buying in rural areas, investigate USDA loans; for eligible professions, FHLBA grants; for low-income neighborhoods or underserved groups, consider nonprofit resources like The Support Center.

In Summary

North Carolina offers a strong and evolving landscape of homebuyer support in 2025 — from state-level loans and assistance up to $50,000, to city-level DPA programs providing tens of thousands more in select areas, and federal and nonprofit options tailored toward specific groups. By combining these programs wisely, buyers—including first-timers, veterans, and moderate-income households—can overcome the upfront cost hurdles and build long-term equity.

Let me know if you'd like personalized help — such as identifying county-specific income limits, connecting with NCHFA-approved lenders in Burlington, or finding the best combination of programs for your situation! Book your free 30-minute consultation HERE.