NC Home Advantage Mortgage

The NC Home Advantage Mortgage is the flagship NCHFA program, providing: • A 30-year fixed-rate FHA, VA, USDA, or conventional mortgage at a competitive interest rate • Down payment assistance of 3–5% of the loan amount as a 0% deferred second mortgage • The DPA second mortgage has no monthly payment and is forgiven at 20% per year beginning in year 11 (fully forgiven after 15 years) Eligibility requirements: • First-time homebuyer OR not owned a primary residence in the past 3 years (veterans: no first-time buyer requirement) • Credit score: 640+ (640–679 may have additional restrictions) • Income limits: vary by county; approximately $90,000–$130,000 for most NC markets • Purchase price limits: approximately $350,000–$450,000 depending on county • Homebuyer education course required • Must use an NCHFA-approved participating lender

NC 1st Home Advantage Down Payment

An enhanced DPA option for first-time buyers in NC, the NC 1st Home Advantage Down Payment provides $15,000 in down payment assistance as a 0% deferred second mortgage. Key terms: • $15,000 (fixed amount, not a percentage of loan) • 0% interest, no monthly payment • Deferred until sale, refinance, or payoff of first mortgage • NOT forgiven over time (must be repaid at sale or refinance) This product is separate from the NC Home Advantage Mortgage DPA (which is forgiven over time). The $15,000 must be repaid when the property is eventually sold or refinanced — it is not a grant. When it makes sense: buyers who need maximum upfront assistance and plan to stay in the home long enough that the eventual repayment at sale is manageable. The $15,000 at 0% interest is effectively an interest-free bridge loan against the equity built.

MCC (Mortgage Credit Certificate)

NC also offers a Mortgage Credit Certificate program through NCHFA: • An MCC allows first-time homebuyers to claim a federal tax CREDIT (not deduction) of up to 30% of annual mortgage interest paid, up to $2,000/year • Example: $20,000 in annual mortgage interest × 30% = $6,000 MCC credit; capped at $2,000 • The MCC runs for the life of the loan and continues even after the DPA is forgiven • The MCC can be combined with the NC Home Advantage Mortgage and DPA The MCC provides meaningful annual tax savings that accumulate over the loan life. A buyer who pays $20,000/year in mortgage interest saves $2,000/year in federal taxes for as long as they own the home.

“NC's homebuyer programs are genuinely competitive with Georgia and Texas programs. The $15,000 DPA product is one of the larger flat-dollar assistance products in the Southeast. The most important variable: buyers must use a participating NCHFA lender, and not all lenders offer these products. I make sure every NC buyer who might qualify is matched with a participating lender as part of the pre-purchase process.”

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®

• NC Homebuying Guide (Hub)
• The NC Due Diligence Fee
• NC Closing Costs
• NC Attorney Close Requirement
• NC Property Taxes
• NC Homestead Exclusion
• Best NC Markets to Buy

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