NC Home Advantage Mortgage

What is NC Home Advantage Mortgage?

NC Home Advantage Mortgage is a forgivable loan for homebuyers in Statewide, North Carolina.

• NC Home Advantage Mortgage is NCHFA's primary first-mortgage product, providing a 30-year fixed-rate loan (FHA, VA, USDA, or Fannie Mae HFA Preferred conventional) with competitive HFA rates and an optional 3% down payment assistance grant. Available to first-time and repeat buyers statewide who meet income (≤$152,000) and credit (640/660 FICO) requirements. The 3% DPA option, when not paired with NC 1st Home Advantage, is offered as a true grant (no lien, no repayment).
• NC Home Advantage Mortgage is NCHFA's flagship first-mortgage product: a 30-year fixed-rate FHA, VA, USDA, or Fannie Mae HFA Preferred conventional loan with competitive interest rates available to first-time and move-up buyers statewide. Borrowers may optionally elect down payment assistance equal to 3% of the loan amount, structured as a true grant (no lien, no repayment) when not paired with the $15K NC 1st Home Advantage DPA. Borrowers who pair with the $15K NC 1st Home Advantage DPA receive that flat amount instead of the 3% grant.
• Funding comes from NCHFA non-bond / TBA capital markets execution for the 3% DPA grant tier; tax-exempt Mortgage Revenue Bonds when paired with NC 1st Home Advantage $15K DPA.

How much assistance does it provide?

NC Home Advantage Mortgage provides assistance worth 3% of the purchase price, as set by the program.

• Buyer contribution: No NCHFA-imposed minimum borrower contribution; loan-product overlays apply.
• The program can be combined with other assistance, subject to the rules of each.
• 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 Home Advantage Mortgage is forgiven after 15 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by None - 3% DPA grant is non-repayable when not paired with NC 1st Home Advantage and no lien recorded against the property for the grant component.
• The assistance is recorded in 1st 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 Home Advantage Mortgage is open to buyers who will live in the home as their primary residence.

What are the income limits?

NC Home Advantage Mortgage 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 Home Advantage Mortgage caps the purchase price as follows: No NCHFA sales-price cap on the standard NC Home Advantage Mortgage with 3% DPA grant; subject to FHA/VA/USDA county loan limits and Fannie Mae HFA Preferred conforming limits.

• 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 Home Advantage Mortgage 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 Home Advantage Mortgage serves buyers purchasing in Statewide, North Carolina.

How do you apply?

Applications for NC Home Advantage Mortgage 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 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.