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First Time Homebuyer Programs in North Carolina

By Tiffany Raiford

Buying your first home is an exciting choice to make in your life. Unfortunately, many first time buyers are turned off by the when they see the potential amount of closing charges and other fees associated with buying a home. For this purpose, some North Carolina homebuyers and residents may qualify for a number of first time homebuyer programs designed to make home ownership affordable for all.

North Carolina Home Advantage Mortgage

The North Carolina Home Advantage Mortgage program is designed to help first time homebuyers with down payment assistance. Since many of the first time homebuyers in North Carolina are unable to save up the money needed for closing costs, this type of mortgage helps you purchase a home with financial assistance. The interest rates are competitive and the program offers first time buyers as much as three percent of the total mortgage amount to use as a down payment. If you continue to live in the house you purchase for 15 years, you will be fully forgiven that amount of money; meaning you will not have to pay it back.

Mortgage Credit Certificate

First time homebuyers using this program are eligible to receive a financial break on the taxes associated with homeownership. The program will save homeowners as much as $2,000 per year on the amount you pay for your federal income taxes. This program is available to all first time homebuyers. The best news about this program is that it is available in conjunction with the North Carolina Home Advantage Mortgage program, which means even more savings. Even better, if the home you purchase is a new construction (never been occupied), you will save 50 percent on your taxes rather than the standard 30 percent.

Stipulations

North Carolina's specific first time homebuyers programs are great for residents. In addition to the state-offered programs discussed above, buyers in North Carolina are also eligible for government financed homebuyer assistance including both USDA and FHA loans. The catch in North Carolina is that you must qualify for either FHA or USDA in order to qualify for the North Carolina Home Advantage Mortgage program and the Mortgage Credit Certificate. Your lender will be able to provide you with the information you need about applying for these loans.

Homebuyer assistance is a great way to get into your first home. Many first time homebuyers are young, they have families and they are just starting out. While they can afford to pay for their mortgage and purchase a home, the additional costs are too much. For that reason, these programs are designed.

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