Down payment assistance in North Carolina
North Carolina's primary statewide down payment assistance program, run by North Carolina Housing Finance Agency. Numbers and eligibility reflect the program's published 2025 guidelines.
NC 1st Home Advantage Down Payment
Forgivable second- Maximum assistance
- $15,000 forgivable down payment for first-time buyers
- Income limit
- Up to $134,000
- Home price limit
- Up to $382,000
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •0% interest, 0 payment, forgiven over 15 years.
- •Repeat buyers can use NC Home Advantage Mortgage with 3% DPA grant.
How North Carolina DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. North Carolina's NC 1st Home Advantage Down Payment pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
North Carolina's primary statewide DPA is NC 1st Home Advantage Down Payment from North Carolina Housing Finance Agency. $15,000 forgivable down payment for first-time buyers. Many North Carolina cities and counties also run additional DPA layered on top.
Yes. The NC 1st Home Advantage Down Payment requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. NC 1st Home Advantage Down Payment works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
If you sell or refinance before the forgiveness period ends, you typically have to repay the unforgiven portion.