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Buying your first home in North Carolina can be an exciting yet challenging journey, especially when it comes to financing. Fortunately, the state offers several first-time homebuyer loan programs and assistance options that make the process more affordable. Whether you’re looking for a low down payment, lower interest rates, or special incentives, this guide will walk you through the best options available in 2025.
Key First-Time Homebuyer Loan Programs in North Carolina
1. North Carolina Housing Finance Agency (NCHFA) Programs
The North Carolina Housing Finance Agency (NCHFA) offers a variety of programs designed to make homeownership more accessible to first-time buyers:
- NC Home Advantage Mortgage – Provides up to 3% down payment assistance for qualified buyers.
- NC 1st Home Advantage Down Payment – Offers up to $15,000 in down payment assistance for eligible first-time buyers and military veterans.
- NC Home Advantage Tax Credit – Offers a mortgage credit certificate (MCC) to reduce your federal tax burden, potentially saving thousands over the life of the loan.
Learn more about buying your first home in North Carolina
2. FHA Loans
FHA loans are a popular choice for first-time homebuyers due to their flexible credit requirements and low down payment options:
- Minimum down payment as low as 3.5%
- Lower credit score requirements (typically 580+)
- Potentially lower interest rates than conventional loans
3. USDA Loans
For buyers looking to purchase a home in rural parts of North Carolina, USDA loans offer a zero-down payment option:
- No down payment required
- Competitive interest rates
- Available to moderate-income borrowers
Learn more about USDA loan requirements
4. VA Loans
Veterans, active-duty military, and eligible spouses may qualify for a VA loan, offering benefits like:
- Zero down payment
- No private mortgage insurance (PMI)
- Competitive interest rates
Find out if you qualify for a VA loan
Additional Financial Assistance for First-Time Buyers
- Down Payment Assistance (DPA) – Many counties and cities in North Carolina offer their own DPA programs to help cover upfront costs.
- First-Time Homebuyer Grants – Local nonprofits and government agencies often provide grants that do not need to be repaid.
- Employer Homebuyer Assistance Programs – Some employers offer financial support to help employees buy their first home.
FAQs
What is the minimum credit score to qualify for a first-time homebuyer program in North Carolina?
Most programs require a minimum credit score of 580, though some may have higher requirements.
Can I use multiple down payment assistance programs?
Yes, in many cases, you can combine local, state, and federal programs to maximize your savings.
Are there income limits for first-time homebuyer programs in North Carolina?
Yes, most programs have income limits based on the area median income (AMI) and family size.
Ready to Get Started?
Find the perfect loan for your first home. Use our Loan Comparison Calculator to see which option works best for you. You can also check your affordability with our Mortgage Affordability Calculator and get started on your homebuying journey today.
Read Next
- Conventional vs. FHA Loans – Which is Best for You?
- What Credit Score Do You Need to Buy a House?
- Top 5 Loan Programs for First-Time Buyers
For more expert tips, check out our complete guide on Buying Your First Home.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
