Top North Carolina First Time Home Buyer Programs

Buying your first first home in North Carolina can be an intimidating yet exciting milestone, especially given the state’s diverse housing market and rising home prices. In 2024, the median home sale price in North Carolina was $355,000, with first-time buyers facing an average down payment of $37,412. Fortunately, North Carolina offers a variety of first-time home buyer programs designed to ease the financial burden through down payment assistance, competitive mortgage rates, and tax credits.

We published this guide so first time home buyers in North Carolina could explore the top state and local programs available in 2025, with a focus on down payment assistance, eligibility requirements, and real-world case studies to illustrate their impact.

Overview of First-Time Home Buyer Programs in North Carolina

First-time home buyers in North Carolina, defined as individuals who haven’t owned a principal residence in the past three years, have access to several programs administered by the North Carolina Housing Finance Agency (NCHFA) and local governments.

These programs aim to make homeownership more accessible for low- to moderate-income households, veterans, and those purchasing in targeted areas. Most offer zero-interest or forgivable loans, competitive mortgage rates, or tax credits to reduce the upfront and ongoing costs of buying a home.

Below are the top programs available in 2025, with detailed eligibility criteria and links to official resources.

Statewide North Carolina Down Payment Assistance Programs

1. NC Home Advantage Mortgage

The NC Home Advantage Mortgage, offered by the NCHFA, is a cornerstone program for first-time and move-up buyers. It provides fixed-rate mortgages (conventional, FHA, VA, or USDA) with up to 3% of the loan amount in down payment assistance. This assistance is structured as a zero-interest, deferred second mortgage, forgiven at 20% per year from years 11 to 15 if the buyer remains in the home. The program is available for single-family homes, townhomes, condos, and some manufactured homes (with a minimum credit score of 660 for manufactured homes, 640 for others).

Eligibility:

• Must be a first-time home buyer, military veteran, or purchasing in a targeted census tract.

• Income must not exceed county-specific limits (varies by household size and location).

• Home purchase price must meet loan-specific limits.

• Minimum credit score of 640 (660 for manufactured homes).

• Must complete a homebuyer education course.

Link: NC Home Advantage Mortgage

2. NC 1st Home Advantage Down Payment

This program, also administered by the NCHFA, offers up to $15,000 in down payment assistance for first-time home buyers or military veterans who qualify for the NC Home Advantage Mortgage. The assistance is a zero-interest, deferred second mortgage, forgiven at 20% per year from years 11 to 15. It cannot be combined with the NC Home Advantage Tax Credit but is ideal for those needing a larger boost to cover down payment costs.

Eligibility:

• Must be a first-time home buyer or military veteran.

• Must qualify for the NC Home Advantage Mortgage.

• Income and purchase price limits apply (varies by county).

• Minimum credit score of 640.

• Home must be a primary residence in North Carolina.

3. Community Partners Loan Pool (CPLP)

The Community Partners Loan Pool, managed by the NCHFA in collaboration with local nonprofits and government agencies, provides up to 25% of the home’s sales price (maximum $50,000) in down payment assistance for low-income buyers (household income below 80% of the area median income). The assistance is a zero-interest second mortgage, repaid when the home is sold or at the end of the loan term. It can be combined with the NC Home Advantage Mortgage or a USDA Section 502 Direct Loan (up to 10% of the sales price).

Eligibility:

• Income below 80% of the county’s median income.

• Must purchase a primary residence in North Carolina.

• Must meet lender-specific credit and loan requirements.

• Homebuyer education may be required.

4. Homeownership Assistance Program (HAP)

The Homeownership Assistance Program, managed by the North Carolina Office of Recovery and Resiliency (NCORR), targets first-time and first-generation home buyers in 16 eastern North Carolina counties impacted by Hurricanes Florence and Matthew. It offers up to $30,000 in down payment assistance and up to 5% of the sales price for closing costs. The program, funded by HUD Community Development Block Grant–Mitigation funds, paused applications in September 2024 but may reopen in 2025 based on funding availability.

Eligibility:

• Must be a first-time home buyer (no home ownership in the past three years) or first-generation home buyer (parents never owned a home or lost it to foreclosure/short sale).

• Must purchase a home in designated counties (e.g., Brunswick, Carteret, Craven, etc.).

• Income must meet low- to moderate-income (LMI) thresholds.

• Homebuyer education and counseling required.

Local Down Payment Assistance Programs in North Carolina

In addition to statewide programs, many North Carolina cities offer localized assistance to first-time home buyers, often with more generous funding for low- to moderate-income households.

1. City of Raleigh Homebuyer Assistance Program

Raleigh provides up to $45,000 in down payment and closing cost assistance through its traditional Homebuyer Assistance Program, and up to $60,000 for its Enhanced Homebuyer Assistance Program (for targeted areas). Both are zero-interest, deferred loans, repayable only if the home is sold or the buyer moves before the loan term ends (15–30 years, depending on the program).

Eligibility:

• Must be a first-time home buyer.

• Household income must be at or below 80% of the area median income (AMI).

• Home must be within Raleigh city limits.

• Sales price limits: $348,750 (traditional) or $450,000 (enhanced).

• Homebuyer education required.

2. City of Durham Down Payment Assistance Program

Durham’s program offers up to $80,000 in down payment and closing cost assistance as a zero-interest, forgivable loan, fully forgiven after 15 years. The program, relaunched in July 2023, targets first-time buyers with incomes at or below 80% of the AMI.

Eligibility:

• Must be a first-time home buyer.

• Income at or below 80% of Durham’s AMI.

• Home must be a primary residence within Durham city limits.

• Homebuyer education course required.

3. House Charlotte Program

Administered by DreamKey Partners, the House Charlotte program offers down payment assistance ranging from $10,000 to $80,000, depending on income and buyer status (e.g., city employees or Community Heroes like teachers and firefighters). The assistance is a zero-interest, forgivable loan, forgiven after 15–30 years.

Eligibility:

• Must be a first-time home buyer or Community Hero.

• Income limits: 80%–110% of Charlotte’s AMI.

• Home price limits: $300,000 ($315,000 for new construction).

• Homebuyer education course required.

4. Unifour Consortium HOME Program

Serving Alexander, Burke, Caldwell, and Catawba counties, this program provides up to 20% of the purchase price (capped at $30,000) in down payment assistance as a zero-interest, forgivable loan. The City of Lenoir acts as the lead entity.

Eligibility:

• Must be a first-time home buyer.

• Minimum credit score of 620.

• Must contribute $500 toward the purchase.

• Home must be a primary residence in the consortium counties.

National Home Loan Programs for North Carolina Buyers

NC First-time home buyers can also explore national programs, which can be combined with state or local assistance in some cases:

• FHA Home Loans: Require a 3.5% down payment with a credit score as low as a 580 fico.

• VA Loan Programs: $0 down home loans are available to for eligible veterans and active-duty military.

• USDA Home Loans: No down payment for home buyers in eligible rural areas with income at or below 115% of the AMI.

• Good Neighbor Next Door: Offers a 50% discount on select homes for teachers, law enforcement, firefighters, and EMTs.

Link: HUD Good Neighbor Next Door

Case Studies: Real-Life Success Stories

Case Study 1: Clifton Owens II, Fayetteville

Clifton Owens II, a 32-year-old single father in Fayetteville, became a first-generation homeowner through the Homeownership Assistance Program (HAP). With a modest income as a retail manager, Clifton struggled to save for a down payment while renting in a hurricane-prone area. In 2024, he applied for HAP, which provided $25,000 in down payment assistance and $7,500 for closing costs to purchase a $180,000 home in Cumberland County. The program’s homebuyer education course helped him understand mortgage terms and budgeting, ensuring he was prepared for homeownership. Clifton now enjoys a stable home for his daughter and plans to stay long-term, leveraging the program’s forgivable loan structure.

Source: ReBuild NC Case Study

Case Study 2: Maria Gonzalez, Durham

Maria Gonzalez, a 28-year-old teacher in Durham, used the City of Durham Down Payment Assistance Program to buy her first home in 2024. Earning 75% of Durham’s AMI, Maria qualified for $60,000 in assistance, which covered her down payment and closing costs for a $250,000 townhome. The zero-interest, forgivable loan, combined with an FHA loan, made homeownership feasible despite her student loan debt. Maria completed a HUD-approved homebuyer education course, which she credits for helping her navigate the process. She now lives closer to her school, saving on commuting costs, and plans to stay in the home to benefit from the loan forgiveness after 15 years.

Source: Durham DPA Program

How to Apply for 1st Time Home Buyer Loans in North Carolina and Maximize Benefits

To take advantage of these programs:

1. Check Eligibility: Review income, credit, and location requirements for each program. Use tools like the USDA eligibility map for rural areas.

2. Contact a Participating Lender: Work with an NCHFA-approved lender or local program administrator to apply.

3. Complete Homebuyer Education: Most programs require a HUD-approved course, available online or in-person.

4. Layer Programs: Combine state and local assistance where allowed (e.g., NC Home Advantage Mortgage with CPLP).

5. Consult a Housing Counselor: HUD-approved counselors can guide you through the process and identify additional resources.

Challenges and Considerations

While these programs are transformative, they come with limitations. Funding is often limited, as seen with HAP’s pause in 2024. Income and sales price caps may exclude some buyers, especially in high-cost areas like Charlotte, where home prices rose 4.07% in 2024. Of course home buyers should also be aware of repayment obligations if they sell or refinance early, though many loans are forgivable after a set period. Comparing program terms and consulting with lenders can help mitigate these challenges.

North Carolina’s first-time home buyer programs offer a lifeline for those navigating a competitive housing market. From the NC Home Advantage Mortgage’s 3% assistance to Durham’s $80,000 forgivable loans, these programs make homeownership achievable for low- to moderate-income buyers, veterans, and first-generation homeowners. By leveraging these resources, completing required education, and working with approved North Carolina lenders, first-time buyers can turn their homeownership dreams into reality. For more information, visit the linked program websites and contact local housing authorities to start the journey.

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