Down Payment Assistance
Down Payment Assistance in North Carolina (2026)
North Carolina homebuyers can access up to $9,900 in down payment assistance through the North Carolina Housing Finance Agency (NCHFA). On the state's $337,813 median home price, that covers roughly 15% of a standard 20% down payment. North Carolina has 2 state DPA programs total.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The NC Home Advantage Mortgage DPA caps the home purchase price at $481,176 — check that cap against homes you're considering, and the county income limit below.
Primary Program: NC Home Advantage Mortgage DPA
maximum assistance
Forgiven after 15 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
- Administering Agency
- North Carolina Housing Finance Agency (NCHFA)
- Purchase Price Cap
- $481,176
- Forgiveness Term
- 15 years
Additional North Carolina DPA Programs
NC 1st Home Advantage Down Payment
Forgivable Loan$15,000
Forgiven over time if you remain in the home as your primary residence (the home you actually live in, not a rental or second home).
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
North Carolina median pre-loaded
Your Savings Plan
Timeline
11.3 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →The First Mortgage and Closing Taxes This Assistance Has to Cover in North Carolina
Excise tax on instruments conveying real property (often called excise tax or revenue stamps)
North Carolina levies an excise tax of $1 per $500 of the sale price (0.2%) on deeds, paid by the seller (transferor) to the county register of deeds before the deed is recorded. (N.C. Gen. Stat. § 105-228.30). (North Carolina General Assembly, retrieved 2026-09-14) Under that schedule a $337,813 sale owes $676, which the statute puts on the seller.
Recording fees
Uniform statewide register of deeds fees: instruments in general (e.g., deeds) $26 for the first 15 pages plus $4 for each additional page; deeds of trust and mortgages $64 for the first 35 pages plus $4 for each additional page; no fee to record satisfaction/cancellation of a deed of trust; $25 extra for nonstandard documents. (North Carolina General Assembly, retrieved 2026-09-14)
North Carolina Housing Finance Agency (NCHFA): NC Home Advantage Mortgage
NC Home Advantage Mortgage is the first-mortgage programme run by North Carolina Housing Finance Agency (NCHFA). (North Carolina Housing Finance Agency, retrieved 2026-09-14) The income limit is $158,000 (NC Home Advantage Mortgage, statewide, based on borrower income only; NC 1st Home Advantage Down Payment uses separate household income limits by county and family size (not extracted)). (North Carolina Housing Finance Agency, retrieved 2026-09-14) Down payment help comes through NC Home Advantage Mortgage down payment assistance; NC 1st Home Advantage Down Payment: Up to 3% of the loan amount (NC Home Advantage, first-time and move-up buyers); $15,000 (NC 1st Home Advantage Down Payment, first-time buyers and military veterans). Forgiven 20% per year at the end of years 11-15; repayment only if sold, refinanced or transferred before year 15.. (North Carolina Housing Finance Agency, retrieved 2026-09-14) Minimum credit score: 640. (North Carolina Housing Finance Agency, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in North Carolina?
North Carolina's primary DPA program is the NC Home Advantage Mortgage DPA, administered by the North Carolina Housing Finance Agency (NCHFA). It provides up to $9,900 as a forgivable loan. Forgiven after 15 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back. Additional programs include NC 1st Home Advantage Down Payment.
How much down payment do I need in North Carolina after using DPA?
On a $337,813 home (North Carolina median), a 20% down payment is $67,563. With the NC Home Advantage Mortgage DPA covering $9,900, your remaining gap would be $57,663. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay North Carolina down payment assistance?
Forgiven after 15 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
Can I combine North Carolina DPA with other assistance programs?
Yes — North Carolina's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for North Carolina down payment assistance?
The NC Home Advantage Mortgage DPA does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the North Carolina Housing Finance Agency (NCHFA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in North Carolina
PMI Calculator
Estimate private mortgage insurance on lower down payments
North Carolina First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in North Carolina, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the North Carolina Housing Finance Agency (NCHFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in North Carolina for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about NC Home Advantage Mortgage DPA when you apply.