Bootcamp For Buyers

North Carolina NC Home Advantage Mortgage

The North Carolina NC Home Advantage Mortgage, offered by the North Carolina Housing Finance Agency (NCHFA), is designed to assist homebuyers in achieving affordable homeownership. By providing fixed-rate mortgages and financial assistance for down payments, the program reduces financial barriers and promotes long-term housing stability for eligible residents.

Benefits

  • Offers 30-year fixed-rate mortgages with competitive interest rates, ensuring predictable and manageable monthly payments.
  • Provides up to 3% of the loan amount in down payment assistance, reducing upfront costs for buyers.
  • Available to both first-time and repeat homebuyers who meet eligibility requirements.
  • Assistance is structured as a forgivable loan if the home remains the buyer’s primary residence for at least 10 years.
  • Can be combined with additional North Carolina Housing programs for enhanced financial support.

Eligibility Requirements

  • Applicants must meet income limits, which vary based on household size and property location within North Carolina.
  • The property must be located in North Carolina and used as the buyer’s primary residence.
  • A minimum credit score of 640 is required, with lender-specific underwriting criteria also applicable.
  • Debt-to-income ratios must comply with program guidelines to ensure financial stability and affordability.
  • Participants must work with an NCHFA-approved lender to access the program benefits.

Additional Information

The North Carolina NC Home Advantage Mortgage is a valuable resource for homebuyers seeking to minimize upfront costs and secure stable housing. By offering financial assistance and competitive mortgage options, the program empowers eligible buyers to achieve homeownership and build long-term equity. Administered by the North Carolina Housing Finance Agency, this initiative supports sustainable homeownership and strengthens communities across the state.

Frequently Asked Questions About Our Program

What is the North Carolina NC Home Advantage Mortgage?

The NC Home Advantage Mortgage provides affordable, fixed-rate mortgage options with down payment assistance to help eligible homebuyers purchase a home in North Carolina.

Who qualifies for the NC Home Advantage Mortgage?

Eligibility is open to first-time and repeat homebuyers who meet income, credit, and property requirements. Buyers must plan to use the home as their primary residence.

Does the program include down payment assistance?

Yes, the program offers up to 3% of the loan amount as down payment assistance, helping to reduce upfront costs for eligible buyers.

Is the down payment assistance a loan or a grant?

The assistance is structured as a forgivable loan, which is forgiven after 15 years as long as the homeowner meets program requirements and remains in the home.

What is the minimum credit score required for the NC Home Advantage Mortgage?

A minimum credit score of 640 is typically required, though higher scores may improve eligibility and loan terms.

Are there income limits for the NC Home Advantage Mortgage?

Yes, income limits apply and vary by household size and location. These limits are updated annually to reflect market conditions.

What types of properties are eligible for the program?

Eligible properties include single-family homes, condominiums, and townhouses. Manufactured homes may also qualify if they meet program requirements and are permanently affixed to a foundation.

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Can the NC Home Advantage Mortgage be used for newly constructed homes?

Yes, newly built homes are eligible as long as they meet program guidelines and will serve as the buyer’s primary residence.

Is homebuyer education required for the program?

Yes, completing a homebuyer education course is mandatory for first-time buyers to ensure they 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 typically capped at $400,000 in most areas.

Can the NC Home Advantage Mortgage be combined with other assistance programs?

Yes, the program can be combined with other state or local assistance programs, such as the NC 1st Home Advantage Down Payment program, for additional financial benefits.

Are there debt-to-income (DTI) ratio limits for the program?

Yes, the program generally allows a maximum DTI ratio of 45%, though exceptions may apply based on other qualifying factors.

What fees are associated with the NC Home Advantage Mortgage?

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 before the 15-year forgiveness period is complete, you may be required to repay a prorated portion of the down payment assistance.

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Can the program be used to refinance an existing home?

No, the NC Home Advantage Mortgage is designed to assist with purchasing a primary residence and does not apply to refinancing.

Are there location restrictions for the program?

Yes, the property must be located in North Carolina, and additional guidelines may apply depending on the home’s location and eligibility criteria.

What are the benefits of the NC Home Advantage Mortgage?

The program offers competitive interest rates, forgivable down payment assistance, and access to homebuyer education, making homeownership more affordable and sustainable.

How do I apply for the NC Home Advantage Mortgage?

Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application and approval process.

What is the loan term for the NC Home Advantage Mortgage?

The program provides a 30-year fixed-rate mortgage, ensuring predictable monthly payments and long-term stability for homebuyers.

Does the program have a first-time homebuyer requirement?

No, the NC Home Advantage Mortgage is available to both first-time and repeat homebuyers who meet all other eligibility criteria.

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