The North Carolina median home price reached approximately $380,000 in late 2025 — and with average down payments running around 14% statewide, the typical first-time buyer faces an upfront cash requirement of over $50,000 before closing costs. The North Carolina Housing Finance Agency (NCHFA) has invested decades in solving exactly this problem, building one of the most accessible and flexible statewide Down Payment Assistance ecosystems in the South.
The Bookspan Baker Team at Keepsake Loans is an approved NCHFA participating lender with experience helping North Carolina buyers identify and combine every available program.
NCHFA’s cornerstone program — a fixed-rate mortgage paired with down payment assistance for both first-time and move-up buyers.
Key features:
DPA Amount: Up to 5% of the loan amount
Structure: 0% deferred second mortgage — no monthly payment required
Forgiveness: Forgiven 20% per year at the end of years 11 through 15. Fully forgiven at end of year 15. Due in full if sold, refinanced, or transferred before year 15.
Compatible Loan Types: FHA, VA, USDA, and Conventional
Income Limit: $152,000 statewide (updated June 2025)
Sales Price Limit: $495,000
Minimum Credit Score: 640
Eligible Buyers: Both first-time and move-up buyers
Homebuyer Education: Required for first-time buyers
On a $300,000 purchase, this provides up to $15,000 — enough to cover an FHA 3.5% down payment of $10,500 with approximately $4,500 remaining toward closing costs.
A flat $15,000 in down payment assistance specifically for first-time buyers and military veterans.
$15,000 flat
0% deferred second mortgage — no monthly payment required
Forgiven 20% per year at the end of years 11 through 15. Fully forgiven at end of year 15.
First-time homebuyers OR active-duty military veterans — veterans qualify regardless of prior homeownership history
640
Military Veteran Note: Active-duty military veterans qualify for this program regardless of prior homeownership history. This is
particularly relevant to the large veteran population near Fort Bragg, Camp Lejeune, Cherry Point, and Seymour Johnson AFB who may have previously owned homes and PCS’d.
A federal income tax credit of up to $2,000 per year for qualifying first-time buyers and military veterans through a Mortgage Credit Certificate.
Annual Credit: 30% of mortgage interest on existing homes; 50% on new construction — up to $2,000 maximum per year
Structure: Federal income tax credit — reduces taxes owed dollar-for-dollar
Eligible Buyers: First-time homebuyers and military veterans
Can Be Combined: With the NC Home Advantage Mortgage (but not with the NC 1st Home Advantage Down Payment)
Benefit Duration: Applies every year for the full loan term
Over a 30-year loan, the MCC can deliver as much as $60,000 in cumulative federal tax savings — one of the most underutilized first-time buyer benefits in North Carolina.
For lower-income buyers who need larger assistance amounts:
DPA Amount: Up to 25% of the sales price, not to exceed $50,000
Structure: 0% deferred second mortgage
Income Limit: Household income below 80% of Area Median Income
Can Be Stacked: With the NC 1st Home Advantage Down Payment for combined maximum of $65,000
Charlotte — House Charlotte: The City of Charlotte provides
$10,000–$30,000 in down payment and closing cost assistance for eligible first-time buyers. Can be combined with NCHFA programs for significant total assistance.
Raleigh: Raleigh DPA programs for income-qualifying buyers can be combined with NCHFA assistance.
Durham: Durham’s Community Home Trust and other local initiatives offer assistance for buyers in targeted areas and income bands.
FHA + NC Home Advantage: The most common combination. FHA’s 3.5% down can be fully covered by 5% DPA on most purchases under $300,000, with funds remaining for closing costs.
Conventional + NC Home Advantage: For buyers with 640+ credit, pairing conventional with DPA allows PMI removal as equity builds.
VA + NC 1st Home Advantage: VA already requires no down payment. For eligible first-time veteran buyers, the $15,000 can fully cover closing costs — resulting in zero cash to close in many scenarios.
USDA + NC Home Advantage: USDA loans require no down payment in eligible rural areas. NCHFA DPA can cover closing costs for USDA buyers in qualifying NC counties.
NCHFA’s primary DPA program providing up to 5% of the loan amount as a 0% deferred second mortgage, forgiven 20% per year from years 11–15. Available to both first-time and move-up buyers with income up to $152,000 and purchase price up to $495,000. Minimum 640 credit score required.
A flat $15,000 in 0% deferred down payment assistance for eligible first-time buyers and military veterans — forgiven 20% per year from years 11–15. Must be combined with the NC Home Advantage Mortgage.
Yes. The NC 1st Home Advantage Down Payment is open to active-duty military veterans regardless of prior homeownership history. This is a significant benefit for the veteran communities near Fort Bragg, Camp Lejeune, and other NC installations.
An MCC provides a federal income tax credit of up to $2,000 per year for qualifying first-time buyers and veterans — 30% of mortgage interest on existing homes, 50% on new construction. Can be combined with the NC Home Advantage Mortgage.
In many cases, yes. House Charlotte and certain Durham programs can be layered with NCHFA assistance, subject to income, purchase price, and property requirements.
