Are you looking for a 100% loan? The North Carolina Down Payment Assistance Program may be for you then.
I recently sat down with Cheryl Ellington of TowneBank Mortgage, a lender in our office, to talk about this loan program. She identified, as you will see in this video, that it can provide up to $8000 in down payment assistance to qualified buyers. The loan is a silent second loan and requires no monthly payments. It does not increase your original payment either but is required to be repaid when you sell the property. If your down payment is less than $8000 then you can choose to use the rest towards your closing costs.
It is a great program and can be quite helpful in getting buyers into their dream home. Below is a list that highlights the program that I got from their website www.ncfha.com
Am I Eligible?
You may be eligible for a FirstHome Mortgage if:
You are a first-time home buyer or have not owned a principal residence during the past three years. Even if you are not a first-time buyer, you may be able to use the FirstHome Mortgage if you are buying in a targeted area.
You buy a home in North Carolina and occupy it within 60 days of closing.
Your annual household income does not exceed the allowed limits.
The home’s sale price does not exceed maximum allowed limits. The allowable sales price varies depending on local housing costs and whether you buy a new or existing home.
Example: The maximum home sales price for a Wake County home is $225,000.
You must be able to prove legal residency. United States citizenship is not required for eligibility. The N.C. Housing Finance Agency will offer loans to eligible persons who are U.S. citizens or non-citizens who have lawful permanent residency in the United States . Non-citizens who cannot demonstrate legal residency are not eligible for Agency mortgages.
Minimum credit score of 600 is required. A higher score may be required for other programs, such as down payment assistance (DAP).
Most types of homes qualify for the FirstHome Mortgage or the MCC.
Eligible properties include:
New and Resale detached homes
Townhouses and Planned Unit Developments
New doublewide manufactured homes on permanent foundations, purchased through land-home transactions.
Existing manufactured homes on permanent foundations, purchased through land-home transactions. (These qualify for the MCC tax credit only.)
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