Buying your first house is a cornerstone of living the “American Dream.” While the home-buying process can feel overwhelming, it doesn’t have to be. In North Carolina, tons of state-specific grants, incentives, and resources are available for you. On top of this, NHC's affordable home prices make it easier than ever to find the right space for you and your family.

If you’re looking to buy your first home in North Carolina, this blog will break down the programs that can help you afford a great home.

Why You Should Become a First-Time Home Buyer in NC

Combining affordable living expenses with a thriving job market and scenic beauty, North Carolina is a great place to live. With exceptional school districts throughout, you can see why the state is an awesome place for families to settle into their first homes.

Compared to renting, there are many benefits to buying a home, even in today’s crazy market. Pros include equity, stability, and the freedom to change whatever you want, whenever you want. Also, if you love a home, you can marry the house now and date the rate, meaning you can refinance at a lower rate later. Furthermore, as a first-time home buyer, you may be eligible for many different types of assistance in North Carolina.

The North Carolina Home Advantage Mortgage

The North Carolina Housing Finance Agency (NCHFA) offers multiple types of assistance for North Carolina home buyers. The most comprehensive and flexible mortgage program they offer is called the NC Home Advantage Mortgage.

The NC Home Advantage Mortgage is a fixed-rate, 30-year mortgage for multiple types of home loans — including conventional, FHA, VA, or USDA. The mortgage comes with optional down payment assistance of up to 3% of the loan amount.

To be eligible, you must fall under a certain income threshold for your NC county (usually a percentage of the median income). The minimum credit score for the program is 640, and the desired debt-to-income ratio is less than 43%. Additionally, the loan has to be used for your primary residence.

More Help for North Carolina First-Time Home Buyers

On top of the North Carolina Home Advantage Mortgage, the NCHFA, North Carolina Department of Housing and Urban Development (HUD), and local nonprofits offer several options to make home buying more affordable. Some of the available first-time home buyer programs in NC include:

Down Payment Assistance Programs

The NCHFA offers up to $15,000 in down payment assistance through their NC 1st Home Advantage Down Payment program. First-time home buyers and military veterans are eligible for this assistance, which acts as a 0% interest, deferred second mortgage. Essentially, this means you don’t have to pay any of the loan amount back right away. Also, no interest will build over time. After 15 years, the loan can be completely forgiven.

Tax Incentives

The NCHFA also grants eligible buyers an NC Home Advantage Tax Credit. This gives first-time buyers and veterans a Mortgage Credit Certificate (MCC) for up to $2,000 a year off of their federal taxes. You can apply for the MCC at the same time as your NCHFA loan, and you must be approved before purchasing a home.

First-Time Home Buyer Grants in NC

Several federal, state, and local nonprofits offer first-time home buyer grants. To find a grant that works for you, search through HUD’s nonprofit database.

Through grants, you can get assistance with down payments and closing costs, discounts on interest rates, forgiveness on your loans, and tax credits. Grant options for first-time home buyers include:

• HUD’s Good Neighbor Next Door program for law enforcement officers, teachers, firefighters, and first responders.
• The Federal Housing Finance Agency (FHFA) first-time home buyer rate discount on conventional loans.
• Grants from a national or local bank or credit union.

Hurricane Relief Home Buying Programs

ReBuild NC offers a Homeownership Assistance Program to help first-time home buyers in the 16 counties identified as the “Most Impacted and Distressed” (MID) after Hurricanes Florence and Matthew. While applications are currently paused (as of January 2025), the program uses federal long-term disaster relief funds to incentivize home-ready renters to become homeowners in storm-impacted areas.

3 Tips for First-Time NC Home Buyers

Here are a few tips for first-time home buyers from National Home Corp’s (NHC’s) affordable home experts.

Finding Cost-Efficient Houses

As America’s Affordable Builder, NHC offers spacious North Carolina homes for the lowest price per square foot on the market. NHC’s available homes in Roxboro, NC will help you get the most bang for your buck as a first-time home buyer. Floor plans currently start at JUST $239,990.

Navigating Mortgage Rates

Mortgage rates can differ depending on multiple factors, like the type of loan, the assistance you receive, the current market, and your eligibility. National Home Corp partners with NHC Mortgage to offer flexible, affordable mortgages to our home buyers. Estimate your potential rate with our mortgage calculator.

Saving for Your Down Payment

Minimum down payment requirements for first-time NC buyers can be as low as 3%. However, higher down payments equal lower rates. Seek aid to make your monthly mortgage payments more affordable.

NHC: Putting Affordable Homes Back on the Market

As the price leader per square foot, NHC can get you into an affordable NC house that gives your family the space you deserve to live and grow. View our available homes or contact us with questions. We’d be happy to help you live your American dream in North Carolina!

FAQs

What are today’s mortgage rates in North Carolina?

As of January 2025, 15- to 30-year fixed rates for loans around $250,000 average 3%, though rates constantly change. Mortgage News Daily provides live updated information on North Carolina mortgage rates.

How much do first-time home buyers have to put down in NC?

NC buyers can put down anywhere from 3–20% on a home purchase. Multiple options for down payment assistance are available to first-time home buyers to help them put more down and lower their rates.

What do you need to be a first-time home buyer in NC?

First-time home buyers in NC are those who haven’t owned a home in the past three years.

What is the $15,000 NC home advantage program?

Offered by the North Carolina Housing Finance Agency (NCHFA), NC home advantage programs offer fixed-rate loans for first-time home buyers and up to $15,000 toward your down payment.

What is the income limit for down payment assistance in North Carolina?

Income limits are different depending on your county and the size of your family. The NCHFA provides information on home buyer income limits by county.