Mortgage

North Carolina Dwelling Patrons: Packages and Grants for 2021

What You Should Know About Buying a Home in North Carolina

Buying your first home is a nerve-wracking experience anywhere. But the good news is you don't have to go it alone.

A variety of advice and educational support is available for first time North Carolina home buyers. And The Old North State has several programs that can help you financially with your down payment and (sometimes) closing costs. How to start.

Check Your Eligibility to Buy a Home in North Carolina. Start here (08/24/2021)

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North Carolina Home Buyer Summary

According to Zillow, the typical North Carolina home price was $ 248,950 in June 2021. That was 15.4% more than at the same time last year.

North Carolina Home Buyer Summary

Average home sale price in NC
$ 248,950

Minimum deposit in NC (3%)
$ 7,470

20% deposit in NC
$ 49,790

Average credit score in NC1
703

Maximum grant for NC home buyers2
Up to 5% of the loan amount (NCHFA, below)

Down payment amounts are based on the last available average home sale price in the state. A “minimum” down payment is assumed to be 3% less than a conventional mortgage with a minimum credit rating of 620.

If you are eligible for a VA loan (supported by the Department of Veterans Affairs) or a USDA loan (supported by the U.S. Department of Agriculture), you may not require a down payment at all.

Check Your Eligibility to Buy a Home in North Carolina. Start here (08/24/2021)

Initial Loans For Home Buyers In North Carolina

If this is your first time buying a North Carolina home with a 20% down payment, you can get a conventional loan with a low interest rate. And you never have to pay for personal mortgage insurance (PMI).

Of course, only a few first-time buyers have saved enough for 20 percent. But the good news is you don't need that much. By far not.

Borrowers can often move into a new home as little as 3% or even 0% with one of these low down payment loan programs:

Conventional 97 – From Freddie Mac or Fannie Mae. 3% down payment and at least 620 credits. You can usually stop paying mortgage insurance after a few yearsFHA loans – Supported by the Federal Housing Administration. Down 3.5% and a credit score of at least 580. But you're looking for mortgage insurance until you refinance, move, or pay off your loan on a different type of mortgageVA loan – For military veterans and service members only. A zero deposit is required. The minimum credit score varies by lender, but is often 620. No ongoing mortgage insurance upon completion. These are arguably the best mortgages available. So apply when you are eligibleUSDA loan – For low to middle income people who shop in designated rural areas. Zero deposit required. The creditworthiness requirements vary depending on the lender, but often 640. Low mortgage insurance ratesNorth Carolina real estate finance agency – May include competitive interest rates and deposit assistance. More information below

Depending on the mortgage loan you choose, you may be able to get into your new home with minimal cash out of your pocket.

With these programs, you can even use free cash or Down Payment Assistance (DPA) to help cover down payment and closing costs.

If you are unsure which program to choose for your first mortgage loan, your lender can help you find the right deal based on your finances and your home purchase goals.

Find the First Time Buyer Loan that is Best for You (Aug 24, 2021)

NC programs for first-time home buyers

The North Carolina Housing Finance Agency (NCHFA) ​​encourages first-time home buyers to use a US Department of Housing and Urban Development (HUD) -approved housing advisor. And it emphasizes that "many mortgage programs require their buyers to seek advice from a HUD-approved housing consultant prior to purchasing."

Yes, this homebuyer training comes at a modest cost. But the benefits of having an independent expert during the process can be considerable.

To help you get started, the agency is offering a free download of a Pocket Guide to Home Ownership in English and Spanish.

NC grants for first time home buyers

The North Carolina Housing Finance Agency also provides generous down payment assistance loans to eligible first time buyers across the state.

For example:

The NCHFA does not set the terms for its mortgage product.

However, it explains that the Down Payment Assistance program is an interest-free loan with no monthly payments that is waived in full after you have owned and lived in the home for 15 years.

If you sell or move within the first 10 years, you must repay the entire loan amount, 20 percent of the loan amount will be waived at the end of each year in years 11-15. After that, you owe nothing more

To be eligible for homebuyer assistance, your household income cannot exceed $ 99,000 per year. And you need a credit rating of 640 or higher. There are other terms as well which you can find on the NCHFA website.

In the meantime, some first-time buyers may receive an NC Home Advantage tax credit.

This will give you a Mortgage Loan Certificate (MCC) that can save you up to $ 2,000 in federal taxes each year. However, MCCs are only available with an NC Home Advantage mortgage, not an NC 1st Home Advantage down payment.

Check Your Eligibility to Buy a Home in North Carolina. Start here (08/24/2021)

Buy a home in major North Carolina cities

As is so often the case, home prices are high in affluent cities. And that certainly applies to Charlotte and Raleigh. But Greensboro prices tend to be lower than the state average. And they rise more slowly.

Charlotte first time home buyer

The average purchase price for homes in Charlotte was $ 359,900 in June 2021, according to the National Association of Realtors. That was 10.7% more than in the previous year.

If you want to buy a home at this average price, your down payment options can be between the following options:

$ 10,800 for 3% deposit$ 71,980 for 20% deposit

If it's your first time buying a home in Charlotte, check out the HouseCharlotte program. This is a Charlotte City initiative managed by a private company.

It has five different programs for low and middle income people. These are interest-free loans with no monthly payments. These are all forgivable after a certain period of time: five, 10 or 15 years. Visit the website for eligibility information and more details.

Raleigh First Time Home Buyers

In June 2021, the average sales price of homes in Raleigh was $ 354,900, according to the National Association of Realtors. That was 14.5% more than in the previous year.

If you want to buy a home at this average price, your down payment options can be between the following options:

$ 10,650 for 3% deposit$ 70,980 for 20% deposit

The City of Raleigh requires you to take a home ownership course and obtain a certification prior to entering the Down Payment Support Program.

Once you have that, it says, “Our homebuyer program offers low interest loans of up to $ 20,000 to help with down payments and closing costs or a funding gap. The main balance is reduced according to a set schedule and expires when the owner lives in the apartment for 20 years. Please note that conditions may apply. "

First time home buyer in Greensboro

In June 2021, the average list price for homes in Greensboro was $ 228,000, according to the National Association of Realtors. That was 1.6% more than in the previous year.

If you want to buy a home at this average price, your down payment options can be between the following options:

$ 6,840 for 3% deposit$ 45,600 for 20% deposit

The Greensboro City Housing Connect Down Payment and Closing Grant Program can provide up to $ 10,000 to eligible first-time buyers.

It does this in the form of an interest-free loan with no monthly payments, which is granted after just five years of owning the property and remaining in your place of residence. And you can borrow up to $ 15,000 in down payment assistance on the same terms when you buy in any of the city's redevelopment areas.

Various eligibility and conditions apply, which can be found on the website. However, these are less strict than many others, especially when it comes to income limits.

Where can I find help buying a home in North Carolina

All of the organizations listed above should provide free advice to any first-time home buyer in or near the state of North Carolina.

Your real estate agent and loan officer can also help you find down payment help and select a loan program.

In addition to our selections, the US Department of Housing and Urban Development (HUD) offers some lists for statewide, regional, and local resources:

State and regional programs for first time home buyers in NC

Local programs for first time home buyers in NC

GRÜNSBORO
The Greensboro Housing Coalition
More Than Just a Mortgage Program will help you make your home dream come true
Call today to reserve your spot!
(336) 691-9521

ROCKY MOUNT
Community development company in southeast North Carolina
1006 Aycock Street
Rocky bracket, NC 27803
Contact: Larry Russell
(252) 977-3141

What are the current mortgage rates in North Carolina?

View the latest live North Carolina mortgage rates here.

When you're ready to start buying your home, make sure you get personalized interest rate quotes from at least three mortgage lenders.

Don't just look at the advertised prices online; Indeed, apply for pre-approval and compare the interest rates and fees that are offered to you. This is the only way you can be sure that you are getting the best possible offer for your new home loan.

Confirm your new price (August 24, 2021)

1 Source: Experian.com 2021 study on 2020 data

2Based on a review of available state DPA grants at the time of this writing

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