North Carolina Buying Home for the First Time

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What you need to know about buying a home in North Carolina

Buying your first home is a nervous experience wherever you buy. But the good news is, you don’t have to go alone.

For first-time home buyers in North Carolina, there is always a wealth of advice and educational services available. And in the state of Old North, there are various programs that can provide financial assistance in the form of your down payment and (sometimes) closure. Here’s how to get started.

Make sure you are eligible to buy a home in North Carolina. Start Here (23 Aug 2021)


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North Carolina Home Buyers Review

According to Zillow, the typical price for a North Carolina home in June 2021 was $ 248,950, up 15.4% from the same time a year earlier.

North Carolina Home Buyer Review
Average selling price of a home in North Carolina USD 248,950
Minimum down payment to NC (3%) USD 7,470
20% down payment in NC USD 49,790
Average credit score in North Carolina1 703
North Carolina Home Buyer Maximum Grant2 Up to 5% of the loan amount (below NCHFA)

Down payment amounts are based on the latest available average home sales price. The “minimum” down payment assumes a 3% discount on regular mortgages with a minimum credit rating of 620.

If you are eligible for a VA Loan (sponsored by the Department of Veterans Affairs) or a USDA Loan (sponsored by the USDA), you may not need any upfront payment at all.

Make sure you are eligible to buy a home in North Carolina. Start Here (23 Aug 2021)

Loans for the first home buyer in North Carolina

If this is your first time buying a home in North Carolina with a 20% down payment, you can get a regular loan with a low interest rate. And you never have to pay for private mortgage insurance (PMI).

Of course, few newbie shoppers have saved up enough for 20% savings. But the good news is, you don’t need this. Not at all.

Borrowers can often get into a new home with as little as 3% or even 0% using one of these low down payment loan programs:

  • Normal 97 – From Freddie Mac or Fannie Mae. The down payment is 3% and the minimum credit rating is 620. You can usually stop paying mortgage insurance after a few years.
  • FHA loan – Supported by the Federal Housing Administration. 3.5% down and a minimum credit rating of 580. But you’re on the hook for mortgage insurance until you refinance another type of mortgage, move home, or pay off the loan.
  • VA credit – For veterans and military personnel only. Zero down payment required. The minimum credit rating varies depending on the lender, but is often 620 points. After closing, mortgage insurance does not exist. These are arguably the best mortgages available, so apply if you are eligible.
  • USDA Loan – For people with low or moderate income who shop in certain rural areas. Zero down payment required. Credit rating requirements differ depending on the lender, but often 640. Low mortgage insurance rates
  • North Carolina Housing Finance Agency – May include competitive interest rates and down payment assistance. More details below

Depending on the mortgage loan you choose, you can potentially get into your new home with a minimum of out of pocket money.

These programs even allow you to use donated money or assistance in paying a Down Payment (DPA) to cover the down payment and closing costs.

If you are not sure which program to choose for your first mortgage loan, your lender can help you find the right program based on your finances and home buying goals.

Find The Best Home Purchase Loan For Your First Purchase (23 Aug 2021)

Home buying programs for the first time in North Carolina

V North Carolina Housing Finance Agency (NCHFA) ​​recommends first-time home buyers in the state to use the services of a HUD-approved housing consultant. It emphasizes that “many mortgage programs require their buyers to consult before buying from a HUD-approved housing consultant.”

Yes, this education for a home buyer is worth moderate. But the benefits of having an independent expert holding your hand in the process can be significant.

And to help you get started, the agency provides a free download of a pocket guide to home ownership in Russian. English and Spanish

North Carolina First Home Buyer Grants

The North Carolina Housing Finance Agency also provides generous down payment assistance loans to eligible new buyers across the state.

For example:

NCHFA does not clarify the terms of its mortgage product.

However, he explains that his down payment assistance program is an interest-free loan with no monthly payments that is completely forgiven after you have owned and lived a home for 15 years.

  • If you sell or move within the first 10 years, you will have to repay the full loan amount.
  • 20 percent of the loan amount is forgiven at the end of each year from 11 to 15 years.
  • After that you don’t owe anything

To be eligible for Homebuyer Assistance, your household income cannot exceed $ 99,000 per year. And you need a credit rating of 640 or higher. There are other terms and conditions that you will find on the NCHFA website.

Meanwhile, some newbie buyers may receive NC Home Advantage Tax Credit

When you do this, you get a Mortgage Credit Certificate (MCC), which can save you up to $ 2,000 each year in your federal taxes. But MCCs are only available with an NC Home Advantage mortgage, not an NC 1st Home Advantage down payment.

Make sure you are eligible to buy a home in North Carolina. Start Here (23 Aug 2021)

Buying a home in major North Carolina cities

As is often the case, housing prices are high in large, prosperous cities. And this is certainly true for Charlotte and Raleigh. But prices in Greensboro tend to be lower than the state average. And they grow more slowly.

Charlotte buys a house for the first time

According to the National Association of Realtors, the average purchase price for homes in Charlotte in June 2021 was $ 359,900. This is 10.7% more than a year earlier.

If you are looking to buy a home at this average price, the down payment options can be as follows:

  • USD 10,800 with an initial payment of 3%
  • USD 71,980 with an initial payment of 20%

If this is your first time buying a home in Charlotte, pay attention to HouseCharlotte Program… This is a Charlotte initiative run by a private company.

It has five different programs for low and middle income people. They take the form of interest-free loans with no monthly payments. All of them are forgivable after a set period of five, 10 or 15 years. Please visit the website for eligibility information and more information.

Raleigh buys home for the first time

According to the National Association of Realtors, the median selling price of homes in Raleigh was $ 354,900 in June 2021. This is 14.5% more than a year earlier.

If you are looking to buy a home at this average price, the down payment options can be as follows:

  • USD 10,650 with an initial payment of 3%
  • USD 70,980 with an initial payment of 20%

The City of Raleigh requires you to take home ownership lessons and get certified before you can enroll. prepaid assistance program

Once you receive it, it says, “Our Home Buyer Program offers low interest loans up to $ 20,000 to help with down payment and closing expenses or funding gaps. The main balance is reduced according to the established schedule and is forgiven if the owner continues to live in the house for 20 years. Please note that terms and conditions may apply. “

Greensboro buys home for the first time

According to the National Association of Realtors, in June 2021, the median list price of homes in Greensboro was $ 228,000. This is 1.6% more than last year.

If you are looking to buy a home at this average price, the down payment options can be as follows:

  • USD 6840 with an initial payment of 3%
  • USD 45,600 with an initial payment of 20%

Greensboro Housing Project Home Buyer Down Payment and Closing Assistance Program can provide up to US $ 10,000 to eligible first-time buyers.

This takes the form of an interest-free loan with no monthly payments that is forgiven just five years after you retain ownership of the home and stay in the residence. And you can borrow on the same terms up to $ 15,000 in total down payment if you buy a property in one of the city’s remodeling districts.

Various rights and conditions apply and you can find them on the website. But they are less strict than many others, especially when it comes to income restrictions.

Where to find help buying a home in North Carolina

All of the organizations we have listed above are required to advise free of charge anyone who purchases a home for the first time in North Carolina or their area.

Your real estate agent and loan officer can also help when it comes to getting help with your down payment and choosing a loan program.

In addition to our selection, the United States Department of Housing and Urban Development (HUD) provides several listings of state, region, and local government resources:

State and regional first-time home buying programs in North Carolina

Local programs for home buying for the first time in North Carolina

Greensboro
Greensboro Housing Coalition
More than just a mortgage program Help you realize your dream of home ownership.
Call today to reserve your seat!
(336) 691-9521

STONE INSTALLATION
Southeastern North Carolina Community Development Corporation
1006 Aycock Street
Rocky Mount, NC 27803
Contact Person: Larry Russell
(252) 977-3141

What are the mortgage rates in North Carolina today?

You can see today’s real-time mortgage rates in North Carolina. here

When you’re ready to begin the home buying process, make sure you get personalized rate quotes from at least three mortgage lenders.

Don’t just look at advertised rates on the Internet; actually apply for pre-approval and compare the interest rates and fees offered to you. This is the only way to know that you are getting the best deal on your new home loan.

Confirm New Bid (23 Aug 2021)

1Source: Experian.com, 2021 survey, data for 2020.

2Based on a review of available state DPA grants at the time of writing

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