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Home Builders

The North Carolina Housing Finance Agency offers down payment assistance and competitive rates for first- time and move-up buyers that can widen your market for new home sales. The Agency also offers a Mortgage Credit Certificate that allows first-time borrowers and qualified military veterans to claim up to 50% of the interest they pay on a newly built home (30% on existing construction) as a tax credit—up to $2,000 per year for each year they live in the home. We also provide a 60-day interest-rate lock period so that you and your buyers don’t need to worry about market fluctuations while the home is being completed.

  • NC Home Advantage Mortgage™

    Our NC Home Advantage Mortgage™ offers down payment assistance up to 5% of the loan amount! First-time and move up buyers with incomes up to $87,500 are eligible, and 100% financing is available on certain loan types.

  • Mortgage Credit Certificate (MCC)

    First-time buyers (or eligible military veterans) who qualify for an MCC can deduct up to 50% of their mortgage interest as a federal tax credit, saving up to $2,000 on their income taxes every year!

  • Q:

    How does the Mortgage Credit Certificate help my customer?

    A:

    If the borrower qualifies for the maximum credit allowed of $2,000 a year then they may save as much as $166 a month in federal taxes.  They can access that money every time they are paid by amending their W-4 withholding allowance with their employer. Lower taxes taken from their paycheck means the borrower has more take home pay and that money can be used to make their new house payment.  It also may help them qualify to buy more house—the lender may take the amount of credit into consideration when qualifying the borrower, resulting in eligibility for a higher purchase price.  

  • Q:

    How much money will my customer need if they use your down payment assistance (DPA)?

    A:

    That depends on the loan type and seller contribution. The NC Home Advantage Mortgage™ offers 3% to 5% down payment help for conventional, FHA, VA and USDA financing.  Our maximum Loan-to-Value conventional loan is 97%, so with DPA of 3% of the loan amount, your borrower would need very little of their own money.  On a sales price of $100,000, they would need about $90, which can come from their own funds, a gift, or another DPA source. In addition, the seller is allowed to contribute the maximum the loan program will allow.

  • Q:

    Are there any exceptions to the first-time home buyer rule?

    A:

    Yes. Military veterans have a one-time exemption from the requirement, and borrowers who own a mobile home that is not on a permanent foundation are also eligible. In addition, borrowers purchasing in a Targeted Census Tract do not have to be first-time buyers. All borrowers must still meet other eligibility requirements.

  • Q:

    Does my customer have to be a first-time buyer to be eligible for the Agency’s mortgage products?

    A:

    Only the Mortgage Credit Certificate has a first-time buyer requirement. The NC Home Advantage Mortgage™, with or without down payment assistance is available to both first-time and repeat buyers. 

  • Q:

    What is the definition of first-time home buyer?

    A:

    A first-time home buyer is one who has not owned a home as a primary residence within three years of closing on the home they wish to buy now. That means that they may still own other property (a previous residence they have been unable to sell, for example) as long as they have not lived in it within the last three years. Military veterans are also considered first-time home buyers.