North Carolina first-time homebuyer grants and down payment assistance (2026)

Two NCHFA mortgages, and which buyers get the $15,000 option

The NC Home Advantage Mortgage is open to first-time and move-up buyers. Its down payment assistance is up to 3% of the first mortgage, calculated on the loan amount rather than the price, and it works with FHA, VA, USDA and conventional HFA Preferred or HFA Advantage loans ⁠¹. The guide warns that NCHFA may switch off the 3% option when interest rates are high. When it does, the rate sheet shows “n/a” ⁠¹.

The NC 1st Home Advantage Down Payment is a flat $15,000, and you must take the full amount whatever your loan size. It is funded by tax-exempt mortgage revenue bonds, so federal bond rules apply ⁠²:

• First-time buyer: every borrower, spouse and titleholder must have had no ownership interest in a principal residence for three years ⁠².
• Veterans exception: a veteran with 181 consecutive days of active duty and a discharge other than dishonorable can use it once. You must apply before the 25th anniversary of leaving service, show a DD-214 and own no other home at closing ⁠².
• Targeted census tracts: buyers in listed tracts do not have to be first-time buyers but cannot own other property at closing ⁠². NCHFA’s tract list includes 15 tracts in Cumberland County, 22 in Guilford, 19 in Mecklenburg and 6 in Wake ⁠⁸.

You cannot combine the $15,000 with the 3% option. Co-signers and non-occupant borrowers are not allowed in either program ⁠¹⁠².

NCHFA’s July 2026 guide describes the Mortgage Credit Certificate (the NC Home Advantage Tax Credit) as no longer active. Its June 15, 2026 revision removed other references to it ⁠¹. An older NCHFA flier still mentions the tax credit, but no current guide offers it ⁠⁷.

How NCHFA’s down payment loans are forgiven, and when you repay

Both NCHFA options use the same 15-year schedule. The second mortgage carries 0% interest and no monthly payment. Nothing is forgiven in years 1-10. At the end of each of years 11 through 15, 20% is forgiven, and the lien is released after year 15 ⁠¹⁠². Forgiveness happens once a year, not monthly ⁠².

If you sell, refinance or stop living in the home before year 15, you owe whatever has not yet been forgiven ⁠². NCHFA will not subordinate its loan for a refinance during the first seven years. After that, it allows a no-cash-out, fixed-rate refinance that lowers the payment, for a $250 processing fee ⁠¹.

The $15,000 option has a second cost if you sell early. Federal recapture tax can apply if you sell within nine years at a gain and your income has risen above set thresholds. The maximum is 6.25% of the original loan amount ⁠². NCHFA reimburses recapture tax paid on $15,000 loans if you ask in writing within two years of paying it and you have not refinanced ⁠².

Income and price limits: one statewide cap, one county lookup, one HOME table

Scroll the table sideways to see every column.

Sources: ⁠¹⁠²⁠³⁠⁵. The $158,000 figure took effect with the June 15, 2026 guide revision ⁠¹.

NCHFA publishes the $15,000 option’s county family-income limits only through the county selector on its Income Limits page ⁠³. When we checked on Oct. 20, 2026, that tool returned no figures to automated requests, so this guide does not list them. Select your county there, or ask a participating loan officer to run it.

The CPLP limits are published as a table, effective June 1, 2026 for income. For a household of four they range from $62,650 in most rural counties to $105,850 in Wake, Johnston and Franklin. Price caps run from $247,000 to $466,000 (Dare County) ⁠⁵.

Scroll the table sideways to see every column.

The 640 score, the 45% DTI cap and what the lender checks

Every borrower needs at least two credit scores. The lower of two scores, or the middle of three, must be 640 or higher, and the lowest borrower’s score counts for the loan. Manufactured homes need 660, must be double-wide for the $15,000 option and cannot have conventional financing ⁠¹⁠². NCHFA rejects one-score or no-score files and non-traditional credit ⁠¹.

Debt-to-income can be no higher than 45%, regardless of what the automated system approves. The loan must receive an Approve/Eligible or Accept finding, and manually underwritten loans are not eligible ⁠¹⁠². Cash back at closing is limited to $2,500 of your own verified money. Lender fees are capped at a 1% origination fee plus $1,300 ⁠¹⁠².

Community Partners Loan Pool: up to $50,000 through a local nonprofit

CPLP is NCHFA’s largest assistance. It pays up to 25% of the sales price, capped at $50,000, alongside an NC Home Advantage Mortgage. With a USDA Section 502 Direct loan, it pays up to 10% ⁠⁴⁠⁷. You apply through a CPLP member, which is a nonprofit or local government housing agency, not through NCHFA ⁠⁴⁠⁶.

CPLP is a deferred loan, not a forgivable one. It carries no interest and no payments for its 30-year term, and the full amount is due at the end of that term. You repay it earlier if you sell, refinance with cash out or move out ⁠⁶. When combined with NCHFA’s down payment assistance, NCHFA’s loan takes second lien position and CPLP takes third ⁠¹.

Homebuyer education: one course for NCHFA loans, eight hours for CPLP

For NCHFA loans, first-time buyers need a pre-purchase course approved by FHA, HUD, Fannie Mae or Freddie Mac, online or in person. Only one borrower has to take it. The certificate is valid for one year, and the lender uploads it before NCHFA issues its commitment ⁠¹⁠². NCHFA names Fannie Mae HomeView and Freddie Mac CreditSmart Homebuyer U as acceptable ⁠². On an NC Home Advantage loan where any borrower is a repeat buyer, no certificate is required ⁠¹.

CPLP requires more. Every CPLP borrower must complete six hours of homebuyer education and two hours of one-on-one, in-person pre-purchase counseling from a HUD-approved provider ⁠⁴. The CPLP member helping you apply arranges or refers you to that counseling, and NCHFA suggests taking the class before you seek lender pre-approval ⁠⁴⁠⁶.

City programs in Charlotte, Raleigh, Durham and Greensboro

• Charlotte, HouseCharlotte. First-time buyers at or below 80% AMI ($93,900 on the city’s page) get up to $30,000, plus a match of up to $50,000 when combined with other assistance. Buyers from 80.01% to 110% AMI get up to $10,000 plus a $20,000 match. The loan has a 30-year term and is forgiven at year 31. The home must cost no more than $365,000. You need an eight-hour homebuyer course. DreamKey Partners answers questions at 704.705.3999 ⁠¹⁰.
• Raleigh. The Homebuyer Assistance Program lends up to $45,000 for homes up to $389,500. The Enhanced program, funded by the 2020 housing bond, lends up to $60,000 in targeted areas for homes up to $450,000 and adds a 10-year resale restriction. Both are 0% loans, deferred until you sell or move out. The income limit is $105,850 for four people, and you must work with a city-approved lender and take a DHIC class ⁠¹¹.
• Durham. The city lends up to $80,000 to buyers at or below 80% AMI ($101,700 for four people in FY2026) who have not owned a home in three years. It runs first come, first served until its $3.2 million is used. You apply through a lender on the city’s list, which was last updated May 8, 2026 ⁠¹².
• Greensboro, Housing Connect GSO. Current Greensboro residents at or below 80% AMI can get up to $25,000, plus $5,000 in reinvestment areas. Public Service Heroes (city, county and school employees, military and veterans) and #100Homes buyers at 80%-120% AMI can get up to $20,000. You apply through an approved lender, and Housing Consultants Group answers questions at 336-553-0946 ⁠¹³.

None of these four city pages showed a closed or waitlist notice when last checked ⁠¹⁰⁠¹¹⁠¹²⁠¹³.

Applying through an NCHFA participating lender, step by step

1. Pick your NCHFA option

   If you are a first-time buyer, a veteran or buying in a targeted tract, compare the $15,000 option with 3% of your expected loan. Otherwise, use the 3% option ⁠¹⁠².

2. Find a trained loan officer

   Use NCHFA’s lender search or call 1-800-393-0988. Participating lenders need a North Carolina office, and their loan officers must complete NCHFA’s three-hour Let’s Make Home Happen class ⁠¹⁠⁹.

3. Check limits and education early

   Run your county’s income limit, finish the homebuyer course and, if your income is at or below 80% AMI, contact a CPLP member or your city program ⁠³⁠⁴.

4. Gather documents

   For the $15,000 option, gather last year’s IRS transcript or signed return, prior-year W-2s and 1099s, pay stubs dated within 45 days of submission, and a DD-214 if you are a veteran. If you have been living rent-free, you also need a signed letter from whoever you live with ⁠².

5. Lock and wait for commitment

   The lender locks your rate for 60 days and uploads your file. NCHFA aims to review it within 48 hours, and no loan may close before NCHFA issues its commitment ⁠¹⁠².

6. Close, then keep the papers

   At closing you sign NCHFA’s Form 405 deed of trust and Form 406 promissory note. Keep these, plus any recapture notice, for a future sale or refinance ⁠¹⁠².

If a lender turns you down, another participating lender can review your file. Note that a withdrawn lock blocks a new lock on the same property for 60 days ⁠¹. To compare other states, see the first-time homebuyer grants page. Other North Carolina guides are on the North Carolina page.