NC 1st Home Advantage gives eligible first‑time buyers and veterans up to $15,000 in down‑payment help—0 % interest and forgivable after 15 years. Pair it with the House Charlotte grant and most borrowers close with < $5K out of pocket.
What Is NC 1st Home Advantage?
A statewide program from the North Carolina Housing Finance Agency (NCHFA) that offers a subordinate, 0 % interest loan—capped at $15,000—to cover down payment and/or closing costs.
- Forgiveness schedule: Stays intact for years 1‑10, then 20 % of the balance is forgiven every year years 11‑15; fully forgiven at month 180.
- No monthly payment—repay only if you sell, refi, or move before it fully forgives.
What this means for you — You can buy with as little as 1 % of the purchase price in true cash when you combine NC 1st with a 3 % down conventional loan.2025 Eligibility at a Glance
Requirement | 2025 Rule | Notes |
|---|---|---|
First‑time buyer? | Yes —no ownership in past 3 years | Veterans exempt |
Credit score | 640 min (660 for manufactured) | Higher scores get better rate on first mortgage |
Income limit | $126,000 (Mecklenburg, Cabarrus, Union) | Household, not individual |
Purchase price | $480,000 cap (1‑unit) | Covers 95 % of current listings |
Occupancy | Must be primary residence | Move‑in within 60 days |
Home buyer education | Free 6‑hr e‑class + 1‑hr counseling | Certificate good for 12 months |
Source: NCHFA program matrix, April 2025.
What this means for you — Most Charlotte buyers under ~$120K household income clear the bar with room to spare.
How to Stack NC 1st with House Charlotte
Scenario | NC 1st | House Charlotte | Out‑of‑pocket* |
$350 K townhome, 3 % down | $10,500 | $25,000 | ~$4,300 |
$300 K condo, 0 % down USDA | — | $20,000 | <$2,000 |
$425 K resale, 5 % down Conv. | $15,000 | $40,000 | ~$7,600 |
*Includes inspection, appraisal, prepaids. Assumes seller pays 2 % closing credit (typical 2025).
Rules for layering:
- Apply for NC 1st through an NCHFA‑approved lender.
- Apply for House Charlotte with city once under contract.
- Lender underwrites both; funds disburse at closing.
What this means for you — Two programs ≠ two payments. Both are silent, zero‑pay loans that simply fade away if you stay 15 years.Step‑by‑Step Application Timeline
- Get pre‑approved with an NCHFA lender (we can intro you).
- Complete Home Buyer Education online (about 6 hrs).
- Shop + offer on eligible property.
- Lock the rate on the NC Home Advantage first mortgage.
- Submit House Charlotte packet (if stacking).
- Close—both assistance loans fund automatically.
Processing times
- Pre‑approval: 24‑48 hrs
- Education certificate: Same day
- Underwriting to clear‑to‑close: ~30 days
FAQs
Can I use NC 1st with FHA or VA?
Yes—works with FHA, USDA, VA, and conventional.
What happens if I refinance?
Balance must be repaid or subordinated unless you’re past month 180.
Is there a recapture tax?
No—the old NC bond recapture has been eliminated.
Next Steps
Schedule a 15‑min Funding Strategy Call—we’ll pull rates, confirm eligibility, and map your total cash needed.
Need more grant ideas? Read Save Up a Down Payment in Charlotte.
