What is the North Carolina NC 1st Home Advantage Down Payment Program?
The NC 1st Home Advantage Down Payment Program provides up to $15,000 in down payment assistance for eligible first-time homebuyers and military veterans purchasing a home in North Carolina.
Who qualifies for the NC 1st Home Advantage Down Payment Program?
Eligibility is open to first-time homebuyers, military veterans, and individuals buying in targeted areas. Applicants must meet income, credit, and property requirements and plan to use the home as their primary residence.
How much assistance does the program provide?
The program offers up to $15,000 in down payment and closing cost assistance, significantly reducing upfront expenses for eligible buyers.
Is the assistance provided as a loan or a grant?
The assistance is provided as a forgivable loan, which is forgiven after 15 years as long as the buyer lives in the home and meets program requirements.
What is the minimum credit score required for the program?
A minimum credit score of 640 is typically required, although higher scores may improve eligibility and loan terms.
Are there income limits for the program?
Yes, income limits apply and vary by household size and location. These limits are updated annually to reflect current economic conditions.
What types of properties are eligible for the program?
Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they meet program guidelines and are permanently affixed to a foundation.
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Get Started NowCan the program be used for newly constructed homes?
Yes, newly built homes are eligible as long as they meet program requirements and will serve as the buyer’s primary residence.
Is homebuyer education required for the program?
Yes, completing a homebuyer education course is mandatory to ensure buyers are prepared for the responsibilities of homeownership.
What is the maximum purchase price allowed under the program?
The maximum purchase price varies by location but is generally capped at $400,000 in most areas.
Can the NC 1st Home Advantage Down Payment Program be combined with other assistance programs?
Yes, eligible buyers can combine this program with other state and local programs, such as the NC Home Advantage Mortgage, for additional financial benefits.
Are there debt-to-income (DTI) ratio limits for the program?
Yes, the program typically allows a maximum DTI ratio of 45%, although exceptions may apply depending on other qualifying factors.
What fees are associated with the NC 1st Home Advantage Down Payment Program?
Standard loan-related fees, such as origination, appraisal, and closing costs, may apply. Borrowers should confirm these costs with their lender.
What happens if I sell or refinance my home before the loan is forgiven?
If you sell or refinance the home before the 15-year forgiveness period ends, you may need to repay a prorated portion of the assistance.
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Get Started NowCan the program be used to refinance an existing home?
No, the NC 1st Home Advantage Down Payment Program is designed to assist with purchasing a primary residence and does not apply to refinancing.
Are there reserve requirements for the program?
No specific reserve requirements are imposed, but having financial reserves may improve an applicant’s overall loan profile.
Are there location restrictions for the program?
Yes, the property must be located in North Carolina, and additional guidelines may apply depending on whether the home is in a targeted or non-targeted area.
What are the benefits of the NC 1st Home Advantage Down Payment Program?
The program reduces upfront costs through significant down payment assistance, offers forgivable loans, and supports first-time homebuyers and veterans in achieving homeownership.
How do I apply for the NC 1st Home Advantage Down Payment Program?
Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application process.
What is the loan term for the assistance provided?
The assistance is structured as a forgivable loan with a term of 15 years, provided all program conditions are met.