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.

NC Home Advantage Mortgage is forgiven after 15 years, so a homebuyer 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.

NC Home Advantage Mortgage is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum FICO for government loans (FHA/VA/USDA); 660 minimum FICO for conventional (Fannie HFA Preferred). A homebuyer education course is required, through HUD-approved homebuyer education or counseling required (online or in person); list of approved providers available through NCHFA and participating lenders. Residency requirement: Property must be in North Carolina and occupied as principal residence. Citizenship or immigration status: U.S. citizen or qualified non-citizen per agency loan-product guidelines. No first-time-homebuyer requirement (any qualifying buyer eligible). Must occupy as principal residence. Maximum qualifying income $152,000 (household income including all borrowers and non-borrower spouse on title). No NCHFA sales-price cap when using the 3% DPA path (subject only to agency conforming/county limits); the $495,000 sales price cap only applies if pairing with the $15K NC 1st Home Advantage DPA (bond-funded). 3% DPA grant tier requires non-bond execution; recapture tax does not apply when the 3% DPA grant path is used.

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.

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.

NC Home Advantage Mortgage names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native homebuyers, educators, law enforcement officers, firefighters, healthcare workers, and homebuyers 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.

NC Home Advantage Mortgage serves homebuyers purchasing in Statewide, North Carolina.

Applications for NC Home Advantage Mortgage go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Lender reserves rate and DPA via NCHFA's online lender portal on a first-come, first-served basis. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.