HOME BUYER PROGRAMS
HOME BUYER PROGRAMS
Purchasing a home for the first time is the American Dream. Attaining this goal requires some determination and planning. You will need to have your credit rating in good standing and money saved for your down payment and closing costs. Luckily there are many loan programs designed to help potential home buyers like you. Some of these programs are specific to North Carolina, while others are available nationwide.
HOMEBUYER PROGRAMS SPECIFIC TO NORTH CAROLINA
NC HOME ADVANTAGE MORTGAGE
The NC Home Advantage Mortgage is available to first-time and move-up homebuyers. Under this program, qualified homebuyers are provided with stable, fixed-rate mortgages and down payment assistance of up to 5% of the loan amount. The nice part of this program is that the repayment of your down payment option is only required if you sell, refinance, or transfer the home within 15 years of purchase. Otherwise, the down payment assistance that you receive is forgiven at 20% per year at the end of years 11 through 15, and then fully forgiven at the end of year 15.
NC FIRST HOME ADVANTAGE DOWN PAYMENT
Homebuyers who qualify for the NC Home Advantage Mortgage and are either first-time homebuyers or military veterans may also qualify for the NC First Home Advantage Down Payment. With this program, the buyer receives up to $8,000 in down payment assistance. This down payment assistance is a 0%, deferred second mortgage, which is forgiven at 20% per year at the end of years 11 through 15, and then fully forgiven at the end of year 15, unless the homebuyer sells, refinances, or transfers the home within 15 years of the purchase.
NATIONWIDE HOMEBUYER PROGRAMS
With a conventional home loan, first-time homebuyers that meet the requirements of Fannie Mae and Freddie Mac can qualify for a down payment as low as 3%. However, if you have a down payment of at least 20% you will not have to pay mortgage insurance.
A USDA loan is issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. The goal is to make rural suburban housing more affordable. This type of loan has been increasing in popularity because it offers a zero down payment option for eligible rural and suburban properties. The potential homebuyers do have to meet the income limitations that vary by area.
An FHA loan is a good option for first-time homebuyers with lower credit scores. It allows for down payments as low as 3.5% for homebuyers with credit scores of at least 580. Homebuyers with credit scores as low as 500 can be approved for an FHA loan, however, at this level, it will require a down payment of at least 10%.
A VA loan is guaranteed by the U.S. Department of Veterans Affairs. The program is available not only to military members and veterans, but also to surviving spouses. Some benefits of a VA loan are no minimum credit score, no down payment, and no mortgage insurance. However, a VA funding fee is often required.
If you are interested in more information about these programs or other programs that may be available to you, Matt Myatt and Team are here to help!