NC Home Advantage Mortgage down payment assistance program

How much financial assistance can you expect to receive from the NC Home Advantage Mortgage program?

Please note that as of January 2023, the 5% down payment assistance program is no longer available until further notice. Qualified home buyers can receive 3% of the loan amount they qualify for in financial assistance. The 3% down payment assistance can be combined with a conventional, FHA, USDA or VA loan.  Those funds can be applied towards the down payment and/or closing costs associated with the purchase of a home.

An FHA loan requires a 3.5% down payment or 96.5% loan to value (LTV). A conventional loan through this program only requires a 3% down payment. For example, if the price of the home you want to purchase is $350,000 and you want to qualify to finance the purchase with a conventional loan combined with the NC Home Advantage program, you could qualify to receive up to $10,500 in assistance. 

The interest rate for the 3% down payment assistance program fluctuates on a daily basis. For the most up to date rate information, call us at (704) 837-4672.

Free funds to help you own a home

If you purchase a home in the Charlotte NC area using the NCHFA down payment assistance program, you will only be required to repay the assistance if you sell, refinance or transfer the home before you have owned it for 15 years or more. With the Home Advantage Program, the down payment assistance is forgiven at a rate of 20% per year starting at year 11 of ownership through year 15. After you have owned the home after 15 years, the assistance basically turns into a grant that does not have to be repaid if you sell the property. Essentially, if you own the home you purchased with the help of the NC Home Advantage Program for 15 years or more, the assistance you received is 1oo% FREE money!

Benefits of the Home Advantage Mortgage program

The Home Advantage Mortgage program has many advantages over other down payment assistance programs available in the Charlotte area. Selecting a down payment assistance program that best fits your real estate and financial needs can be overwhelming. A solid understanding of those programs is key to make them work to your advantage. You shouldn’t solely rely on your lender to guide you through the process and should hire the assistance of a qualified Realtor® to help you. The Realtors® at Cornerstone Realty Carolinas have extensive experience working with first time home buyers and move up buyers, as well as with down payment assistance programs. Our experience will help you avoid common and not so common pitfalls non-experienced home buyers and agents make when using down payment assistance programs.

Some of the major advantages of the FHA Home Advantage Mortgage program include:

• Works with FHA loans which offer more flexible qualifying terms that conventional lending;
• Generous DTI (debt to income ratio) that allows home buyers to borrow more than other programs. The maximum allowable DTI is 43%.
• Can be used anywhere in North Carolina. Most down payment assistance programs are limited to either certain neighborhoods, location, city limits or number of homes that qualify. With the NC Home Advantage Mortgage program, most homes currently listed for sale qualify.
• The funds can be used towards closing costs and combined with 100% financing loans such as USDA and VA loans. Call our office at (704) 837-4672 for details.

Eligibility for the NC Home Advantage Mortgage

In order to qualify for the NC Home Advantage Mortgage program, home buyers and the property to be financed must meet certain requirements and guidelines. Below are the main requirements:

• You must be buying a new or existing home in North Carolina
• You are a first-time or move-up buyer
• You occupy the property within 60 days of purchasing it
• Your annual gross income does not exceed $126,000
• You are applying for a government insured loan like FHA, USDA or VA loan through a Participating Lender, or a conventional loan, and meet the sales price limits of the loan type. That limit for Mecklenburg and surround counties is $472,000 for a FHA loan and conventional loan limits are based on the current loan amount limit for conforming conventional loans.
• You are a legal resident of the United States
• Your credit score is 640 or higher (660 score for manufactured homes).

What Properties Are Eligible?

• New and previously owned single family homes
• Townhouses
• Condominiums
• Duplexes
• Manufactured Homes (new, never occupied