North Carolina First-time Home Buyer

First-time home buyer North Carolina

Currently, the average home value for a first-time home buyer in North Carolina is $178,000 and the appreciation rate is 7%. With an average rent payment of $1,100 per month, you can purchase a $178,000 home using the HomeReady 3% Down Payment Program for a mortgage payment of about $1,119* per month. That is about the same amount as the average rent. Read on to know everything about the first-time home buying process in North Carolina.

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What is a first-time homebuyer?

First-time homebuyers are those who buy a principal residence for the very first time. State and federal governments often provide special benefits to first-time homebuyers, such as low down payments, special grants, and assistance with closing costs. Additionally, many lenders provide incentives and special loans for first-time homebuyers.

One who buys a home for the very first time is generally referred to as a first-time homebuyer. The home is deemed the homebuyer’s primary residence because it is the place where the person resides.

Additionally, they may refer to it as their primary residence or main residence. 


How to qualify for a first-time homebuyer grant in North Carolina?

You may be able to buy a house sooner if you live in North Carolina because NCHFA programs offer unique benefits. To qualify for a first-time homebuyer grant in North Carolina, you must follow the below-mentioned eligibility criteria:

  • This loan requires a credit score of at least 640.
  • Sales price and borrower income must be within the program’s limits.
  • An overall debt-to-income ratio of 43% or less is required.
  • Educating homebuyers may be necessary.
  • When the down payment is less than 20%, mortgage insurance is required.


Who is considered a first-time home buyer in North Carolina?

NCHFA’s NC Home Advantage Mortgage is available to both first-time home buyers and existing homeowners. A first-time homebuyer in North Carolina is someone who hasn’t owned a home in three years.

A fixed-rate mortgage is available – either conventional, FHA, VA, or USDA – and up to 5 percent of the down payment can be repaid. The assistance comes in the form of a no-interest second mortgage that doesn’t need to be repaid unless you sell your home or refinance or pay off your first mortgage within the first 15 years.

To qualify as a first-time home buyer in North Carolina, you must meet the following requirements:

  • You earn less than $92,000 per year.
  • The credit score of your account is 640 or higher.
  • You have a debt-to-income ratio of no more than 43 percent.
  • The purchase is either a single-family home, a townhouse, condo, duplex (FHA loan only), or a new manufactured home (FHA, VA, or USDA loan, with a minimum credit score of 660).


How to apply as a first-time home buyer in North Carolina

No matter where you buy your first home, it’s a nerve-wracking experience. It’s a good thing that you aren’t alone in this.

First–time home buyers in North Carolina have plenty of assistance and education available. Also, the Old North State offers a wide range of financial assistance programs for down payments and (sometimes) closing costs.

As a first-time buyer in North Carolina with at least a 20% down payment, you can qualify for a conventional loan with a low-interest rate. Plus, you will never be required to pay private mortgage insurance (PMI). Usually, first-time buyers do not have enough cash to make a down payment of 20%. Fortunately, you don’t have to put down that much. To apply as a first-time home buyer in North Carolina, you need to qualify for the following eligibility criteria:

  • At least a 640 credit score is required.
  • The borrower’s income and sales price must be within program limits.
  • Generally, the debt-to-income ratio should be 43% or less.
  •  It may be necessary for homebuyers to receive an education.
  • In the case of a down payment of less than 20%, mortgage insurance is required.

However, there are many other programs that are more flexible if you don’t meet these requirements.


How much down payment for a first-time home buyer in North Carolina?

The “minimum” down payment for a conventional loan requires a 3% down payment with a minimum score of at least 620. However, an approval with that score and down payment is unlikely.  The Federal Government may not require you to make a down payment if you qualify for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the United States Department of Agriculture).

Zillow reports that the average home price in North Carolina was $248,950 in June 2021. The average price was 15.4% higher than one year earlier.


North Carolina First Time Home Buyer Overview 

Average Home Sale Price in NC $248,950
Minimum Down Payment in NC (3%) $7,470
20% Down Payment in NC $49,790
Average Credit Score in NC1 703
Maximum NC Home Buyer Grant2 Up to 5% of the loan amount


How much house can I afford first-time homebuyers in North Carolina?

An individual’s ability to qualify for a mortgage is determined by how much house he or she can afford. During the homebuying process, it is important to know how much you can comfortably spend on a new mortgage while still meeting your existing obligations.

Homebuying is a major investment that will impact your finances for the next 15 to 30 years. In order to avoid incurring a mortgage you can’t afford in the long run, you need to be realistic about your income and expenses.

There are several factors that will determine how much house you can afford:

  • The amount of your loan and the length of your mortgage
  • How much you earn monthly and annually
  • The amount you owe each month, including credit card debt, student loans, car payments, child support, and other bills
  • Property taxes, which vary by state and are paid yearly or bi-annually
  • The current mortgage rates and closing costs based on your location
  • Condo fees and homeowners associations (HOAs).


To get more information or get Prequalified click Cain Mortgage Team or contact us today at 803 261 9267!

North Carolina Geographic Info
North Carolina is a state in the United States’ southeastern region. The state is the 28th largest in the country and the 9th most populous. It is surrounded on the north by Virginia, on the east by the Atlantic Ocean, on the south by Georgia and South Carolina, and on the west by Tennessee. The state’s capital is Raleigh, while Charlotte is its largest city. With a population of 2,569,213 people in 2018, the Charlotte metropolitan area is the most populous in North Carolina, the 23rd most populated in the United States, and the second-largest financial hub in the country after New York City. With an anticipated population of 2,079,687 in 2019, the Raleigh-Durham-Cary combined statistical area is the state’s second-biggest metropolitan region, and it is home to Research Triangle Park, the country’s largest research park.
North Carolina’s population was 10,439,388 at the time of the 2020 census, according to the US Census Bureau.

According to 2012 statistics, 58.5 percent of persons living in North Carolina were born there; 33.1 percent were born in another state; 1.0 percent were born in Puerto Rico, U.S. island regions, or born overseas to American parent(s); and 7.4% were foreign-born.

According to the 2010 U.S. census, North Carolina’s racial makeup was as follows: White: 68.5 percent (65.3 percent non-Hispanic white, 3.2 percent White Hispanic), Black or African American: 21.5 percent, Latin and Hispanic American of any race: 8.4%, some other race: 4.3 percent, Multiracial American: 2.2 percent, Asian American: 2.2 percent, and Native Hawaiian and Pacific Islander: 1%. Non-Hispanic whites accounted for 62.2 percent of the population in 2020, compared to 20.5 percent for Blacks or African Americans, 1.2 percent for American Indian and Alaska Natives, 3.3 percent for Asians, 0.1 percent for Native Hawaiian and other Pacific Islanders, 5.9 percent for people of other races, and 6.8 percent for multiracial Americans.