The North Carolina Housing Finance Agency (NCHFA), a self-supporting public agency that offers home financing through 100 banks and mortgage companies statewide, is serving the moderate-income and first-time home buyer market by offering residents a 30-year, fixed-rate loan at a competitive interest rate, plus down-payment assistance for up to 3% of the mortgage amount, interest-free.
The product, called N.C. Home Advantage, is unique in that the down payment loan is repaid only if the borrower sells, refinances or moves out of the home before the 15th year. The debt is reduced by 20% a year beginning in the 11th year, until it is fully forgiven after the 15th.
Buyers with annual incomes up to $85,000 are eligible. In addition, they must use the home as their principal residence, be a legal resident, and have a credit score of 640 or higher.
‘N.C. Home Advantage offers a great opportunity for a moderate-income home buyers -move-up buyers as well as first-timers,’ says A. Robert Kucab, executive director of the North Carolina Housing Finance Agency, in a release. ‘If a household is ready for home ownership, we believe that now is a great time to buy, and the N.C. Home Advantage Mortgage can make it happen.’
