First time buyers in North Carolina (NC) have the enviable choice of whether to live near the waterfront, along the coast or in a mountainous region. Each location has its unique attractions and the interest level will depend on the sensibilities of each home buyer. Some people just love being near the water, whether it’s an ocean or a man-make lake with NC being ideal for that. Staying near the mountainous parts of North Carolina brings with it the opportunity to go walking or jogging on many different mountain trails and truly getting a workout using the natural incline to push the body more than ever before.

Some of the most popular cities within North Carolina for buyers include Cary, Fayetteville, High Point, Wilmington, Raleigh, Winston-Salem, Charlotte, Durham, and Greensboro. Each city also has a number of neighborhoods with distinct characteristics that are worth checking out before deciding on the purchase of a first home.

One of the key attractions of North Carolina for first-time buyers is the affordable living conditions and the scenery which has been featured in many films due to its natural beauty. Home prices are still reasonable when compared to real estate prices in other more expensive states.

NC First Time Buyers: Current Loan Programs & Pre Approval in 2017

Loan Program Name
Loan Program Requirements
Downpayment Requirements
Program Limiations
Loan Program Benefits
USDAProperty must be located in an eligible area. Check property eligibility.100% financing and 0% down paymentIncome restrictions do apply. These are determined by county.100% financing and 0% down payment
HomeReady Program - Purchase or Limited cash-out rate and term refinance.1.) Home Ownership education is required and certificate must be retained in the mortgage file.
2.) Occupancy is 1-4 units Principal Residence.
1.) Standard debt to income is 45%, in certain cases up to 50%.
2.) Occupant may not have an ownership interest in any other property at the time of closing.
1.) Non -Occupant borrowers are permitted at max 95% LTV,income can be considered as part of qualifying income. No property limitation on ownership of other property for the non-occupant borrower.
2.) Loan to Value up to 97%.
1.) NO First Time home-buyer requirement.
2.) Adjustable rate and Fixed rate options available.
3.) No Income Limits in low-income census tracts.
4.) 100% AMI (area medium income) census tracts or designated disaster areas
5.) 80% of AMI in other tracts. Use this link to see your eligible AMI. -
100% GIFT FOR DOWN PAYMENTCan be Conventional or FHA LoanGift can come from a family member, church, employer, etc..
FHA - The most common loan for a first time home buyer. FHA Requires a minumum 3.5% down payment1.) Minimum FICO score of 620. 2.) 640 plus credit score is ideal. If you are below 640 then additional terms must be met and are considered on a case by case basis.3.5% down payment required
Check single family, condo, and 2-4 unit property loan limits1.) Flexible underwriting guidelines
2.) The whole down payment can be from a gift
3.) The seller can pay your closing costs up to 6%
4.) Non Occupant Co signers are allowed