Below is a list of commonly asked questions about the North Carolina Housing Finance Agency and its programs. You can also use the search function to locate information on our website. If you have additional questions not covered here, please contact us.
What are my responsibilities for reasonable accommodations?
Fair housing laws include important mandates to expand housing choices and opportunities for persons with disabilities. The 2008 Updated Edition of the Reasonable Accommodations and Modifications Guide addresses the issues involved in meeting these mandates and includes examples of what is reasonable, summaries of statutory requirements, specific suggestions on management practices and a statewide resource list.
How do I prepare my property for an inspection by the NC Housing Finance Agency?
How do I schedule a site visit for my proposed supportive housing development?
What are the income limits for my proposed development?
The housing must serve individuals and families who earn below 50% of area median income. Please note that rent and utilities cannot exceed 30% of targeted household income for residents.
What organizations are eligible to apply for supportive housing funds?
Nonprofit organizations must have had their 501(c)3 designation for at least three years to apply and must be able to provide two years of audited financial statements. Organizations which have not completed a successful real estate development project within the last seven years must work with a qualified consultant or partner with a more experienced nonprofit organization.
How does SystemVision ™ benefit my borrower?
Homes built With SystemVision™ are better than most other homes in terms of health and safety, durability, comfort, energy efficiency and environmental impacts. Homes built with SystemVision™ provide homeowners with a two-year comfort guarantee and a heating/cooling bill guarantee (typically less than $35 per month).
Can my client combine the CPLP with the NC Home Advantage Mortgage™ with the down payment assistance? If they’re a first-time buyer, can they also get a Mortgage Credit Certificate?
CPLP financing can be used independently or with and NC Home Advantage Mortgage™, including down payment assistance. Eligible first-time buyers can also apply for an MCC. After your client is approved for a CPLP loan, he or she can contact one of our participating lenders to apply for the NC Home Advantage Mortgage™ and/or an MCC.
Why does my seller have to complete the Seller Affidavit for the buyer to get help from the Agency?
If my customer has owned his building lot for more than 2 years, does it have to be considered in Acquisition Cost for the Mortgage Credit Certificate?
No, if new construction, the contract price should include the construction cost, excluding the value of any labor form the borrower and/or the borrower’s family, plus the value of the land. The appraised value of the land should be used if the land was a gift. If the land has been owned by the borrower for more than two years before construction begins, the cost of the land is not included. If the land has been owned for less than two years, include the actual cost of the land to calculate acquisition cost.
How much money will my customer need if they use your down payment assistance (DPA)?
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. In the case of a 97% conventional, that amount is 3% of the sales price to put toward closing expenses. There is no minimum contribution required by the borrower when using the NC Home Advantage Mortgage™.
Are there any exceptions to the first-time home buyer rule?
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.
Does my customer have to be a first-time buyer to be eligible for the Agency’s mortgage products?
What is the definition of first-time home buyer?
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.
Do your mortgage products have income and sales price limits?
The NC Home Advantage Mortgage™ has an income limit of $87,500 statewide but no sales price limit. However, the home price does need to adhere to any limits dictated by the loan type (FHA, VA, USDA, conventional).
How does my customer get an NC Home Advantage Mortgage™ if there aren’t any preferred loan officers or participating lenders in my county?
Where can I find a complete list of participating lenders?
We will not be able to have the loan purchased by the Master Servicer by the Lock-In Expiration Date. What do I do?
All loans must be closed, delivered and purchased by the Master Servicer by the Lock-In Expiration Date. If the loan is not able to be purchased by the Master Servicer by the Lock-In Expiration Date, the lender may request an extension via OLS, and the loan will be subject to extension fees. See Section 9 of Program Manual for details.
For a conventional loan, what MI coverages are required under the Fannie Mae HFA Preferred program used by NC Home Advantage Mortgage™?
The required coverage for Fannie Mae’s HFA Preferred product used for NC Home Advantage Mortgage™ conventional loans are as follows based on Loan to Value. 18% (95.01%-97%), 16% (90.01-95%), 12% (85.01% - 90%), 6% (80.01 -85%).
My borrower is using the NC Home Advantage Mortgage™. How do I calculate the down payment assistance (DPA) loan amount?
Once you determine the loan amount for your borrower, calculate the DPA by multiplying the first mortgage loan amount by 3% if it is a conventional loan or by either 3% or 5% if it is an FHA, VA or USDA loan, depending on which DPA option is selected. For example, if your sales price is $135,000, and your first mortgage amount is $130,000 for a conventional loan, eligible for a 3% DPA, then your DPA amount is $3,900 (3% of $130,000). If your loan amount changes, your DPA will be adjusted accordingly so that it does not exceed 3% of the loan amount for a conventional loan or either 3% or 5% of the loan amount for a government loan (FHA, VA or USDA) depending on the original DPA option selected.
My borrower is currently locked in for an NC Home Advantage Mortgage™ loan using an FHA-insured loan but wants to change the loan type to USDA. Can I do that and keep the same interest rate and expiration date?
If borrowers change loan program types between FHA, USDA, VA and conventional loans, the original lock-in interest rate and expiration date still applies.
If borrowers decide not to buy a property for which a rate has been locked, can they retain their old interest rate lock and lock-in expiration date for a different property?
Borrowers may be allowed to re-lock at their original rate if the original property has changed and verification of changed property is provided. If market rates have changed since the initial lock-in, it is possible that they may be expected to lock-in a new rate for their new property.
What happens if my borrower is locked into a rate, and the market rates decline?
Rates are locked upon receipt of the lock confirmation. Borrowers may not withdraw and re-lock at a lower rate. A borrower must wait 60 days after the withdrawal, cancellation or expiration of a lock before they may re-lock under the NC Home Advantage Mortgage™ program.
The original lock-in data included two borrowers. Now, one of the borrowers will not be on the loan after all and the loan amount has changed. How do I correct OLS?
You must contact the Agency for all changes to locked loans. Please note that loan amounts may not change from the original lock by more than 10%.
If a borrow decides not to buy a property for which a rate has already been locked-in, and market rates have changed, can they retain the old interest rate lock for a different property?
Borrowers may be allowed to re-lock if the original property has changed and verification of changed property is provided.
When should I lock in the interest rate?
We recommend lenders only lock their loans after a full underwrite has occurred by their internal underwriting staff. At a minimum, loans should be locked only after an appraisal, credit and AUS Findings are completed.