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Help For First Time Home Buyers

Buying your first home is a scary proposition for many in North Carolina.  Concerns over credit qualifications and lack of a down payment have kept many Greensboro renters from pulling the trigger and buying their own home.

North Carolina has a unique program that offers low-interest mortgages and down payment assistance to first time home buyers by selling tax-exempt Mortgage Revenue Bonds and issuing Mortgage Credit Certificates (MCC) under federal authority.

As with any program, there are minimum qualifications which include:

    • You are a first-time home buyer or have not owned a principal residence during the past three years.  You must occupy the home 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.
    • 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 .
    • Minimum credit score of 600 is required. A higher score may be required for other programs, such as down payment assistance.

Generally speaking, there is qualifying with incomes up to $89,900 based on family size and the county in which the property resides. The program offers (1) competitive interest rates, sometimes one-half to one percentage point below market on 30-year fixed-rate loans (2) down payment/closing cost assistance up to $8,000 for buyers with 650 or higher credit scores, and (3) Mortgage Credit Certificates (MCCs) that can reduce homeowners’ tax liability by as much as $2,000 per year.

To determine if you qualify, drop us a note so that we can quickly connect you with a lender who will review your credit and help determine if this program is right for you.  Once you are prequalified, we can provide you with the tools to get started down the path toward finding the perfect new home!

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