NC Home Advantage Mortgage: What You Need to Know

For both first-time homebuyers and move-up buyers in North Carolina, the North Carolina Housing Finance Agency (NCHFA) is a fantastic option that offers stable, fixed-rate mortgage options with fantastic benefits. Qualified buyers may be eligible to take advantage of the NCHFA down payment assistance, or the mortgage credit certificate tax credit – each making homeownership more accessible.

What is the NC Home Advantage Mortgage?

The NCHFA is a public agency whose mission is to create affordable housing opportunities solely for North Carolinians. In fact, the NCHFA has financed nearly 269,000 affordable homes and apartments.

The NC Home Advantage Mortgage program provides both first-time and repeat homebuyers with stable, fixed-rate mortgages and down payment assistance up to 5% of the loan amount. As an added bonus, if you are a first-time homebuyer or military veteran, you may also be able to combine the NC Home Advantage Mortgage with the NC Home Advantage Tax Credit.

How Can I Benefit?

The NC Home Advantage Mortgage has several benefits, including:

• Fixed-rate mortgages with predictable monthly payments
• Down payment assistance up to 5% of the loan amount
• Mortgage Credit Certificate (MCC) to help eligible buyers reduce federal taxes up to $2,000 a year
• Have the option of a variety of loan programs including Conventional, FHA, VA, and USDA

The MCC enables first-time and veteran buyers to save up to $2,000 a year to put towards their mortgage payments. This tax credit is eligible throughout the life of your loan as long as you live in your home. On top of that, you may also be eligible for up to $8,000 in down payment assistance. Repayment of all the down payment assistance is required only if you sell, refinance, or transfer your home before year 15 in your home.

How Do I Know If I Qualify?

You can benefit from an NC Home Advantage Mortgage if you meet the below criteria:

• You are purchasing a home in North Carolina
• Your annual income does not exceed $89,500
• Your credit score is 640 or higher
• You are applying for an FHA, USDA, VA, or Conventional loan through and meet the sales price limits of the loan type
• You are a legal resident of the U.S.

In addition to the above requirements, eligible properties include single-family homes, townhouses, condominiums, duplexes, and newly manufactured homes (660 credit score is required).

How Do I Get Started with an NC Home Advantage Credit?

If you are thinking about purchasing a home and would like to know if you qualify for an NC Home Advantage Mortgage, or have any other questions regarding the home buying process, feel free to reach out to one of our loan experts today.