Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in North Carolina
DHA Homeownership Program
The Durham Housing Authority (DHA) offers free services for first-time homebuyers. These free services help them get a mortgage ready, find a house, select a lender and access special financing options.
DHA Homeownership Program offers a variety of services for first-time homebuyers to help them purchase their first home. There are Private Counseling Sessions, where professionals assess applicants’ credit, income, assets, and other factors to identify potential obstacles. Counselors can help you create and follow a sensible plan if there is a need for corrective action.
To qualify for many loan products, they hold mandatory 8-hour Homebuyer workshops. DHA assists with loan prequalification and application. They also identify special financing programs and refer borrowers directly to lenders who are knowledgeable about the market for first-time homebuyers. DHA also assists with finding a home by maintaining a list of preferred realtors who are familiar with the needs of first-time buyers.
Clients who are struggling to keep their household budgets in order or have unexpected circumstances that impact their ability to repay their mortgage can benefit from Post-Purchase counseling. DHA can assist first-time homeowners with many issues such as expensive maintenance, refinancing or foreclosure.
To be eligible for the DHA Homeownership Program, applicants need to have been employed at least one year and have earned an annual income of at least $18,600 (without an HPV Voucher). The applicants must not have owned a home in the last three years. They must also have completed a lease term and have good standing with their landlord. The applicant must enroll in homeownership counseling, provide $500 or 1% towards the purchase transaction, and submit all necessary documentation.
Greensboro Homebuyer Down Payment Assistance
Homebuyer down payment assistance and closing cost assistance (DPA) are financial aid for first-time homebuyers who purchase homes within Greensboro’s city limits
DPA offers up to $10,000 in closing costs assistance and down payment assistance as a five year, forgivable loan at zero interest. Then, the loan can be forgiven at 20% for every year that you reside in the home, provided you don’t repay it within five years.
A $5,000 additional down payment assistance is available to homebuyers who purchase homes in the City’s redevelopment areas. Additionally, you no longer have to be a first-time homebuyer because the program allows any homebuyers to apply.
For the DPA Program to be eligible, applicants must either be first-time homebuyers (or have never owned a home in the past three years). Additionally, there are no requirements for past homeownership if the property is located in one the City’s redevelopment zones. The program requires applicants to invest at least $500 in cash and that their household income be within the set limits.
- For households with two or less people, the area median income can reach up to 120%
- For households of three or more, the area median income can reach up to 140%
This is similar to the Down Payment Assistance that is one of the first-time homebuyer assistance programs in New York.
DreamKey Partners manages the HouseCharlotte Program for the City of Charlotte.
You can use the HouseCharlotte Program assistance to pay any combination of: closing cost, down payment (that may also include credit counseling/ repair), and interest rate purchase-down. The City provides these funds in the form deferred, forgiveable loans of 5, 10, and 15 years.
This program provides down payment assistance to Charlotte Community Heroes, which includes law enforcement officers, charter school employees, paraprofessionals and firefighters.
The amount of assistance funds that an applicant receives depends on their income and profession.
- Purchases within Charlotte City limits up to $10,000 for residents with incomes below 80%
- Public Service Employees with a minimum of 80% AMI can purchase within Charlotte City limits up to $10,000
- For those with a minimum of 80% AMI and purchasing within Charlotte City limits, you can get up to $7,500
- Purchases in high-cost areas can be up to $17,000 for individuals with a minimum of 80% AMI.
HouseCharlotte Programs offer loan options to households with incomes below 80%. However, families with household incomes that are 110% or lower than the HUD Area Median income may be eligible. All applicants must complete counseling and education through a HUD approved Housing Counseling Agency before they can purchase a home.
The house must be the borrower’s primary house. Maximum purchase price for new construction properties is $300,000. Meanwhile, the maximum purchase price for existing properties are $245,000.
NC Home Advantage Mortgage Program
This program offers a stable, fixed-rate mortgage with down payment assistance up to 5% of the loan amount. The down payment does not have to be repaid unless the property is sold or refinanced within 15 years.
The program offers qualified homebuyers fixed-rate mortgages and down payment assistance up to 5% of the loan amount. The down payment is not due to the borrower unless the property is sold, refinanced or transferred within the next 15 years. Then after 10 years, the down payment assistance will be forgiven at 20% per annum.
First-time buyers and military veterans may be eligible for the NC Home Advantage Mortgage program in combination with a Mortgage Credit Card (MCC), to increase their savings.
All applicants must meet the following requirements to be eligible for the NC Home Advantage mortgage program. Although there is no requirement for a first homebuyer, all applicants must be legal U.S. citizens. However, they must have a minimum credit score of 640 and an annual household income below the maximum program limit, $87,000. The homebuyer must also apply for an FHA or USDA loan through a participating lender. They also need to meet the sales price limit of the loan type.
The applicant must move into the property as their primary residence within 60 days after closing. The property type eligible is single-family homes, townhouses and condominiums as well as new or previously owned duplexes and manufactured homes.
Raleigh Homebuyer Program
The City of Raleigh offers assistance to qualified individuals through its Homebuyer Program to ensure that more Raleigh residents have access to affordable and safe housing.
Raleigh North Carolina offers low-interest loans up to $20,000 to eligible applicants to cover closing costs, down payments and gaps in financing. If the owner lives in the home for more than 20 years, the principal balance will be reduced according to a schedule. You can also combine the funds from this program with other assistance programs.
The City requires applicants to attend a Homeownership class in order to be eligible for the Homebuyer Program. They will then receive a certificate that allows them to participate in the program. The income limit for the program also applies to applicants.
- 1-person household: $53,600
- 2-person household: $61,250
- 3-person household: $68,900
- 4-person household: $76,550
- 5-person household: $82,700
- 6-person household: $88,800
- 7-person household: $94,950
- 8-person household: $101,050
Winston-Salem Home Ownership AssistanceProgram
The City of Winston-Salem Homebuyer Assistance Program offers financial and technical assistance for first-time homebuyers whose income is less than 80% of that of the area median.
Maximum assistance of $14,800, or 20% of the purchase cost, depending on the program. However, the assistance amount is determined by an underwriting analysis of income, assets and contract. The assistance provided is limited to the amount, and not absolute. The City reduces the assistance if a borrower has multiple sources of closing costs.
Income must be below 80% AMI (see chart) and assets cannot exceed $10,000. After 10 years of homeowner-occupation, assistance in the form of a second mortgage is available. Fixed-rate mortgages are not allowed. Homebuyers must contribute $1,000 of their own money towards the purchase. The Center for Homeownership requires that homebuyers undergo counseling before closing. The property must meet all requirements and not contain lead-based paint hazards.
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