Thinking about buying your first home in North Carolina? Between rising home prices and higher rates, saving for a down payment can feel like the hardest part. The good news: the state and several of its cities offer real help getting there. We put together this guide to walk you through the major programs, so you know what’s out there before you start house hunting.
NC Housing Finance Agency (NCHFA) Programs
The North Carolina Housing Finance Agency (NCHFA) is the state’s main resource for homebuyer assistance. NCHFA works through approved participating lenders to pair affordable, fixed-rate mortgages with down payment help. Here’s what’s available.
NC Home Advantage Mortgage
The NC Home Advantage Mortgage is a 30-year, fixed-rate loan open to both first-time and “move-up” buyers, and it can be structured as a conventional, FHA, VA, or USDA loan.
To qualify:
- First-time buyer status applies if you haven’t owned a home as your principal residence in the past three years
- Household income within NCHFA’s published limits for your county
- Minimum credit score of 640
- Debt-to-income ratio under 43%
- Home purchased as your primary residence
NC 1st Home Advantage Down Payment
Paired with the NC Home Advantage Mortgage, this program adds a dedicated layer of down payment help for eligible buyers.
To qualify:
- Must be a first-time buyer or eligible military veteran
- Household income within program limits for your county
- Provides $15,000 toward your down payment, structured as a 0% interest, deferred second mortgage
NC Home Advantage Tax Credit
Eligible first-time buyers, veterans, and buyers purchasing in a targeted census tract can also apply for a Mortgage Credit Certificate (MCC), which lets you claim a portion of your annual mortgage interest as a federal tax credit. This is separate from the standard mortgage interest deduction: a credit reduces the tax you owe dollar for dollar. You apply for the MCC alongside your NCHFA loan, and it must be approved before you close.
Veteran Homebuyer Benefits
Veterans and active-duty service members have additional mortgage options worth exploring, including loans that require no down payment in most cases. Rather than walk through the details here, visit our VA Loan page for the full picture of eligibility, benefits, and how to get started with your Certificate of Eligibility.
City & County Assistance Programs
Beyond NCHFA’s statewide programs, several North Carolina cities run their own down payment assistance, and many can be layered on top of state help.
| City | Program | What It Offers |
| Charlotte | House Charlotte (via DreamKey Partners) | Up to $30,000 for buyers at or below 80% Area Median Income, with potential to reach $80,000 when combined with other assistance; 0% interest, forgiven over 30 years |
| Durham | Durham Down Payment Assistance Program | Up to $80,000 in 0% interest loans for eligible first-time buyers |
| Greensboro | Housing Connect GSO | $20,000–$30,000 depending on income tier and eligibility |
| Raleigh | Raleigh Homebuyer Assistance Program | Down payment and closing cost assistance for income-qualified first-time buyers |
To qualify for most city programs:
- You’re a first-time buyer, or haven’t owned a home in the past three years
- Household income falls within local limits (often tied to area median income)
- You complete a HUD-approved homebuyer education course
- You’re purchasing within the program’s city limits and under its sales price cap
Funding and terms for these programs can shift throughout the year, so we always recommend confirming current details with the local housing agency before you get too far into the process.
Where to Start
Ready to see what you qualify for? The best first step is a conversation with a lender who knows these programs inside and out. We’ll help you sort through your options, from your NCHFA loan type to any local down payment assistance you might be eligible for, so you can move forward with confidence.
Give us a call at 1-800-800-0450 or reach out online, and let’s talk about what homeownership in North Carolina can look like for you.