Here’s How the NC Home Advantage Program Actually Works
If you make under $152,000 a year, you may qualify for a 3% down payment assistance program that helps buyers purchase a home in Charlotte with far less cash than most people expect.
This program is called the NC Home Advantage Mortgage™, offered through the North Carolina Housing Finance Agency. I walk through this daily with buyers, and it’s one of the most misunderstood programs out there — mostly because of how income is calculated and how the assistance is structured.
The NC Home Advantage Mortgage™ is offered through the North Carolina Housing Finance Agency. You can view the official program details here:
https://www.nchfa.com/home-buyers/buy-home/nc-home-advantage-mortgage/
Let’s break it down in plain English.
What Is the NC Home Advantage 3% Down Payment Program?
The NC Home Advantage Mortgage™ provides 3% of the purchase price toward your down payment. That money is offered as a deferred second mortgage, sometimes called a “silent second.”
Here’s what that means:
No monthly payment
The loan is deferred
It’s typically forgiven over time
If you sell or refinance early, it’s paid back from your proceeds
This program works with conventional and FHA loans. It does not work with USDA loans (USDA is already a zero-down loan and has its own rules).
The down payment assistance is forgiven over 15 years, with forgiveness occurring at 20% per year during years 11–15, and full forgiveness at the end of year 15 if you remain in the home.
The Income Rule That Matters Most
This is where buyers either qualify — or get knocked out.
The NC Home Advantage program uses qualifying income only.
That means only the income of the people on the loan.
It does not include:
a non-borrowing spouse
other household members
adult children who live at home
For Mecklenburg County:
Income limit: $152,000
Household size does not change that cap
This is very different from the $15,000 program, which uses total family income. I cover that one in a separate post.
Is There a Purchase Price Limit?
No — and this is why this program works well in Charlotte.
The NC Home Advantage Mortgage™ does not have a sales price limit.
You still have to meet standard loan guidelines, but there’s no artificial cap like there is with some other assistance programs.
What limits you instead?
your debt-to-income ratio
your credit profile
and your monthly comfort level
This is why online calculators can be misleading.
What Does Cash to Close Really Look Like?
Let’s use a realistic example.
$450,000 purchase price
3% down = $13,500
That entire amount can be covered by the program.
What buyers still need to plan for:
closing costs (usually 2–3%)
prepaid taxes and insurance
inspections and appraisal
Here’s the part people are surprised by:
Many sellers in the Charlotte market are contributing toward closing costs right now.
Between seller credits and lender credits, I’m often seeing buyers bring far less cash to closing than they expected, sometimes under $10,000 depending on the deal.
How Long Do You Need to Stay in the Home?
This program works best if you plan to stay in the home at least 3–5 years.
That gives time for:
appreciation
loan forgiveness
and normal market movement
If you think you’ll move again in a year or two, this may not be the right fit. But for buyers planning to stay put, it can be a smart way to get into a home without draining savings.
Why the Right Lender Matters
This is not a DIY program.
I’ve seen buyers get bad information because:
income was calculated incorrectly
the wrong program was applied
or the lender wasn’t experienced with NC Housing rules
These programs are very specific, and mistakes usually show up late — which is the worst time to find out.
Want the Full Breakdown?
I explain this program step-by-step in the video below, including real numbers and examples specific to Charlotte buyers.
If you’re under a lower income cap and want more flexibility with closing costs, there’s also a $15,000 NC down payment assistance program, which I explain in a separate post.
If you’re thinking about buying in Charlotte or anywhere in North Carolina, you can also start with my Ultimate Buyer Guide, which walks through the full process from financing to closing:
👉 https://sellyourhomecharlotte.com/ultimate-buyer-guide/
Or, if you’d rather talk it through, you can reach me directly at 704-621-3066.
I’m Maureen Mahood, broker-owner of SellYourHomeCharlotte.com.
I’ve been helping people buy and sell real estate in the Charlotte market since 2015.
Your financing options matter — and choosing the right one can change what buying a home actually looks like.
NC Home Advantage 3% Down Payment Assistance FAQs
What is the NC Home Advantage 3% down payment assistance program?
The NC Home Advantage Mortgage™ is a North Carolina program that provides 3% of the purchase price toward a buyer’s down payment. It’s offered through the North Carolina Housing Finance Agency and works with conventional and FHA loans.
How is income calculated for the NC Home Advantage program?
This program uses qualifying income only, meaning only the income of the borrower(s) on the loan. It does not include non-borrowing spouses or other household members.
What is the income limit for NC Home Advantage in Mecklenburg County?
The income limit is $152,000, regardless of household size.
Is there a home price limit for the 3% NC Home Advantage program?
No. The NC Home Advantage Mortgage™ does not have a sales price limit. Buyers still must qualify based on loan guidelines, credit, and debt-to-income ratios.
Can I use this program with FHA or USDA loans?
This program works with conventional and FHA loans. It does not work with USDA loans, since USDA is already a zero-down program and has different eligibility rules.
Can sellers help with closing costs if I use this program?
Yes. Buyers using the NC Home Advantage program can still negotiate seller-paid closing costs, which is common in the Charlotte market right now.
Is the 3% down payment assistance free money?
No. The assistance is a 0% deferred second mortgage. There is no monthly payment, but repayment is required if you sell, refinance, or transfer the home before the forgiveness period is complete.
What is the forgiveness period for the NC Home Advantage down payment assistance?
The assistance is forgiven over 15 years. Forgiveness occurs at 20% per year during years 11 through 15, with full forgiveness at the end of year 15 if you remain in the home.
Where can I find the official rules for this program?
You can view the full, official program details directly on the North Carolina Housing Finance Agency website here:
👉 https://www.nchfa.com/home-buyers/buy-home/nc-home-advantage-mortgage/
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