Are you ready to purchase a home but lack down payment? The newly revisedNC Bond Program, now called the NC Home Advantage Mortgage Program can give you the boost you need to buy your first home or move up to the next one.
If you qualify, the down payment not only assists you with your home purchase, but it also enables you to build equity more quickly.
How the down payment assistance works:
The NC Home Advantage Mortgage offers down payment assistance to all homebuyers who qualify for an NC Home Advantage Mortgagethrough any North Carolina Housing Finance Agency participating lender. *NOTE: Not all lenders participate in the NCHFA homebuyer program so be sure to ask your lender if they are a participant.
Eligible borrowers can borrow 5% of the loan amount on a 30 year fixedFHA, VA and USDA loans and 3% of the first mortgage loan amount on conventional loans.at 0% interest.
The down payment assistance (DPA) is provided as a 15 year deffered or forgiven subordinate lien. The DPA is deferred for the first 10 years and forgiven by 20% each year at the end of years 11-15.
After 15 years, the loan is FULLY forgiven. Repayment of the DPA (any portion not forgiven yet) has to be repaid in the event you sell, refinance, or if there is a breach of the Promissory Note. NCHFA does not offer stand-alone subordinate liens nor is the DPA assumable.
Another form of North Carolina Housing Finance Agency down payment assistance is the $15,000 option. The $15k is also a 0% interest forgivable, deffered subordinate lien. The unique thing about this program is that its FULLY forgiven after 5 years and forgiven at 20% a year in years 1-5.
As Homebuyer Program Specialists, we're asked all the time if there are any programs out there that offers down payment assistance for non first time homebuyers, and the good news is YES there is!
One of the great things about the NC Home Advantage Mortgage down payment assistance program is that you DON'T have to be a first time home buyer to qualify. Down payment assistance (DPA) is available to all homebuyers who meet the eligibility guidelines for the NC Home Advantage Mortgage.