What it is
The NC Home Advantage Mortgage, run through the NC Housing Finance Agency, is a first mortgage program available to both first-time and some move-up buyers, paired with down payment assistance and eligible for the mortgage tax credit. It's one of the most commonly used entry points into NC's broader first-time buyer support system.
How the pieces fit together
The program itself is the mortgage. Layered on top, eligible buyers can access down payment assistance of up to 3% of the loan amount, and the Mortgage Credit Certificate for an annual tax credit on mortgage interest.1 First-time buyers and military veterans who meet additional criteria may instead qualify for the NC 1st Home Advantage Down Payment, a larger $15,000 assistance option.1 Not every buyer qualifies for every layer, and the layers don't all stack: the tax credit can pair with the standard down payment assistance, but not with the $15,000 option.2
Who it's for
Unlike some assistance programs, the NC Home Advantage Mortgage income limit is a single statewide figure rather than a county-by-county one: your annual income must not exceed $152,000, and your credit score must be 640 or higher, rising to 660 for manufactured homes.1 There is no separate NCHFA purchase price cap on this program either. Instead you have to meet the sales price limits of whichever loan type you're using, whether that's FHA, USDA, VA or conventional.1
The county-level variation people often expect here applies to the other products rather than this one. The $15,000 NC 1st Home Advantage Down Payment is based on household income and varies by county and family size, and the tax credit carries its own income and sales price limits.3
What the assistance actually costs you
The down payment assistance is not a grant you simply keep, but it isn't a conventional second mortgage either. Repayment is required only if you sell, refinance or transfer the home before year 15. It is forgiven at 20% per year across years 11 through 15, so it is fully forgiven once you have been in the home 15 years.1 If you expect to move sooner than that, it's worth running the numbers on what you would owe back.
How to actually apply
You apply through a participating lender, not directly through the state agency, and the lender walks you through which layers (down payment assistance, tax credit) you qualify for based on your specific financial picture. This is worth doing early in your home search, not after you've found a house.
For the specific credit and income numbers that drive eligibility, see credit score and income requirements for NC first-time buyer programs.
Frequently asked questions
- Income limit of $152,000: More North Carolinians Now Eligible for Affordable Mortgages and $15K Down Payment Assistance, NC Housing Finance Agency.
- Credit score minimums, down payment assistance percentage, the $15,000 option and forgiveness terms: NC Home Advantage Mortgage, NC Housing Finance Agency.
- Tax credit pairing rules, including the exclusion of the $15,000 down payment option: NC Home Advantage Tax Credit, NC Housing Finance Agency.
- County and family size variation on the $15,000 down payment option: Home Buyer Income Limits, NC Housing Finance Agency.