NC 1st Home Advantage Down Payment

What is NC 1st Home Advantage Down Payment?

NC 1st Home Advantage Down Payment is a deferred second loan for homebuyers in Statewide, North Carolina.

• NC 1st Home Advantage Down Payment is NCHFA's enhanced DPA option for first-time homebuyers (and military veterans), providing a flat $15,000 in down payment and closing-cost assistance. It is structured as a 0%-interest deferred second mortgage that is forgiven 20% per year in years 11-15, so borrowers who stay in the home for 15 years owe nothing. The program is funded with tax-exempt mortgage revenue bonds and must be paired with the NC Home Advantage Mortgage (NCHFA's bond-funded first mortgage).
• NC 1st Home Advantage Down Payment provides $15,000 in down payment assistance exclusively for first-time homebuyers (and military veterans, regardless of prior homeownership) using the NC Home Advantage Mortgage. The DPA is structured as a 0% interest, deferred second mortgage with no monthly payments. The lien is forgiven 20% per year starting in year 11, so a borrower who remains in the home through year 15 owes nothing. The full balance becomes due only if the borrower sells, refinances (without subordination), transfers title, or stops occupying the home as a principal residence during the first 15 years.
• Funding comes from Tax-exempt Mortgage Revenue Bonds issued by NCHFA.

How much assistance does it provide?

NC 1st Home Advantage Down Payment offers up to $15,000 in assistance.

• Buyer contribution: No NCHFA-imposed minimum borrower contribution; loan-product overlays (FHA/VA/USDA/Fannie HFA Preferred) apply.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

NC 1st Home Advantage Down Payment is forgiven after 15 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Full balance due if the home is sold, refinanced (without subordination), title transferred, or no longer occupied as principal residence within first 10 years and lien forgiven 20% per year in years 11-15 and fully forgiven at end of year 15.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

NC 1st Home Advantage Down Payment is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

NC 1st Home Advantage Down Payment limits household income to $152,000.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

NC 1st Home Advantage Down Payment caps the purchase price at $495,000.

• Eligible property types include Single-family detached, townhomes, condos (must meet agency project approval), 1-unit owner-occupied and new and existing homes.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

NC 1st Home Advantage Down Payment names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

NC 1st Home Advantage Down Payment serves buyers purchasing in Statewide, North Carolina.

• The program targets specific areas: IRS-designated qualified census tracts (targeted areas) in North Carolina. In targeted areas, the first-time-homebuyer requirement is waived. Use NCHFA's targeted areas lookup to verify a property's status.

How do you apply?

Applications for NC 1st Home Advantage Down Payment go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer education or counseling required (online or in person); list of approved providers available through NCHFA and participating lenders.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender reserves rate, first-mortgage funds, and DPA via NCHFA's online lender portal on a first-come, first-served basis, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.