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First Time Home Buyers in North Carolina-Get Help with Your Down Payment

First time home buyers in North Carolina, take heart!  You may be able to purchase your first home without a down payment.  You may also be able to use a federal tax credit program to help you qualify for a loan.  And you may be able to get payment assistance if you lose your job during the first two years of the mortgage.First Time Home Buyers

Who offers these first time home buyer programs in North Carolina?

The North Carolina Housing Finance Agency (NCHFA) is the state agency that offers these programs for qualified first time home buyers.  The NCHFA's mission is to create affordable housing opportunities for home buyers who cannot meet their housing needs in the regular marketplace.  The agency provides financing through the sale of tax-exempt bonds and the management of federal tax credit programs.

Who is eligible for these first time home buyer programs?

  • You are either a first time home buyer or have not owned a principal residence within the last three years.
  • Your credit and income qualify you for a loan.
  • You buy a home in North Carolina and occupy it within 60 days of closing.
  • Your annual household income does not exceed the limits allowed under the program.
  • The purchase price of the home does not exceed the maximum allowed price.

What type of home can you buy under these programs?

  • Single family homes, new or resale
  • Condominiums or townhouses
  • Doublewide manufactured homes

What are the income limits for first time home buyers in Mecklenburg and Union Counties?

The income limits vary depending on annual household income and whether you have a down payment or whether you receive down payment assistance.  Household income is defined as the gross annual income of the Mortgagor (those who sign the Deed of Trust) and any other person living in the home over the age of 18.  Income limits for one or two people in the household are $64,000 with a down payment and $36,050 to $41,200 for mortgages with down payment assistance.  The sales price limits of the home are $220,000 for a new home with a down payment and $210,000 for existing homes with or without a down payment from the buyer.

What programs are available for the first time home buyer in North Carolina?

  • FirstHome Mortgage.  These are conventional, FHA or VA mortgages with interest rates at or below market rate.  Down payments can be as low as 3.5% of the purchase price for an FHA mortgage or nothing for a VA mortgage.
  • Down Payment Assistance.  Down payment assistance of up to $8,000 may be available to you.  You pay $1,000 and the rest of the down payment is paid by this program.  The assistance is in the form of a no interest, deferred second mortgage on the home.  Repayment of the second mortgage is due when you sell the loan or after thirty years.
  • Job Loss Protection.  If you lose your job within the first two years after you purchase, the NCHFA will pay up to four months of principal and interest to your lender.  This becomes a second mortgage like the down payment assistance program.
  • Mortgage Credit Certificate.  This is a federal tax credit program that allows you to claim 20% of your mortgage interest on your federal tax return. 

Learn about the recent $8000 Federal Tax Credit, which may be combined with some of the North Carolina programs.

Want to know more?  Click here for assistance in buying your first home.

About the author:  Carol Fox of Allen Tate Realtors has been helping buyers find their first home for over twenty years.

Copyright 2009.  Carol Fox.  *First Time Home Buyers in North Carolina-Get Help with Your Down Payment*



Posted: Sunday, March 15, 2009 3:06 PM by Carol Fox


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