Down Payment Assistance in North Carolina

What is down payment assistance in North Carolina?

North Carolina’s fast-growing cities like Charlotte and Raleigh have pushed home prices up in recent years, but the right down payment assistance can still make homeownership a realistic goal across the state.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Blue Ridge Mountains to the Outer Banks, North Carolina homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in North Carolina or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in North Carolina

The North Carolina Housing Finance Agency (NCHFA) is the state’s housing finance agency and the central source for statewide DPA programs. NCHFA doesn’t lend directly to buyers. Homebuyers apply through an NCHFA-approved participating lender who will combine the assistance with the mortgage.

NCHFA Home Advantage Mortgage

The NC Home Advantage Mortgage provides qualified homebuyers with a fixed-rate mortgage and down payment assistance of up to 3% of the loan amount. The assistance is structured as a 0% interest, deferred second mortgage that is forgiven at 20% per year at the end of years 11 through 15, with complete forgiveness at the end of year 15.

Program details include:

• Repayment of the assistance is required only if the property is sold, refinanced, or transferred before year 15
• Home must be occupied as a primary residence within 60 days of closing
• Annual household income cannot exceed $158,000
• Minimum credit score of 640
• Must meet maximum sales price limit
• Legal residents of the United States only
• Conventional, FHA, VA, or USDA loans through a participating lender

NCHFA 1^st Home Advantage Down Payment

The NC 1st Home Advantage Down Payment provides eligible first-time homebuyers and military veterans with $15,000 in down payment assistance. The assistance is structured as a 0% interest, deferred second mortgage that is forgiven at 20% per year at the end of years 11 through 15, with complete forgiveness at the end of year 15.

Program details include:

• Must be first-time homebuyer
• Must meet income and sales price limits based on county
• Buyer must be using an NC Home Advantage Mortgage
• Home must be occupied as a primary residence within 60 days of closing
• FHA, USDA, VA, and conventional loans
• Minimum credit score of 640
• Legal residents of the United States only

Beyond NCHFA’s statewide programs, several North Carolina cities and counties have established their own DPA programs. Many of these can be stacked with NCHFA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Charlotte down payment assistance program

Charlotte is North Carolina’s largest metropolitan area, with a growing food, brewery, and arts scene. Its mix of established neighborhoods and fast-growing suburbs, paired with a lower cost of living than many East Coast financial centers, makes it a strong choice for buyers balancing career opportunities with affordability. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Charlotte down payment assistance programs include:

House Charlotte: This down payment assistance program provides up to $80,000 to low- and moderate-income families. The assistance is offered as deferred and forgivable loan options at 0% interest and no monthly payments. It may be used to cover closing costs, down payment, and an interest rate buydown.

House Charlotte requirements include:

• Must be first-time homebuyers
• Income limits apply, but households earning up to 110% of area median income (AMI) may be eligible. AMI is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development
• Must purchase a home within the city of Charlotte
• Property must be used as a primary residence
• Maximum purchase limit of $365,000
• Completion of a homeownership education course

Funding is limited and available on a first-come, first-served basis for House Charlotte.

Community Partners Loan Pool (CPLP): In partnership with the NCHFA’s Community Partners Loan Pool (CPLP), this program provides up to $50,000 or 25% of the purchase price of the home (whichever is less). The funds are offered as 0% interest rate, deferred mortgage financing.

CPLP requirements include:

• Total household income must be at or below 80% AMI
• Minimum credit score of 640
• Completion of a homeownership education course
• Must qualify for an approved mortgage
• Must meet sales price limit for your county

Doorway to Prosperity: In partnership with True Homes, this program offers up to $95,000 to eligible homebuyers in the Dukes Ridge, Clark Village, or Hoovertown neighborhoods of Charlotte. 

Doorway to Prosperity requirements include:

• Must work with an approved lender to participate in the program
• Household income must be less than 110% of AMI, with a priority focus on households at or below 80% AMI
• Attend an Affordable Homebuyer Seminar
• Completion of a homebuyer education course

Raleigh down payment assistance programs

Raleigh anchors North Carolina's Research Triangle alongside Durham and Chapel Hill, offering a mix of college-town energy and Southern charm shaped by nearby universities like NC State, Duke, and UNC. A growing downtown food and brewery scene, plenty of green space, and a manageable size make it a solid choice for buyers wanting a lower-key lifestyle without sacrificing city amenities.

Raleigh offers two down payment assistance programs:

Homebuyer Assistance Program: The program offers up to $45,000 in down payment assistance. The assistance is provided as a 0% interest, deferred second mortgage loan with no monthly payments for the first 20 years.

Requirements for Homebuyer Assistance Program include:

• Must be first-time homebuyer
• Household income must be at or below 80% AMI
• Completion of homebuyer education course
• Funds can be used for down payment assistance, closing costs, or financing gaps
• Owner must occupy the home as a primary residence for the first 20 years
• After the 20-year deferral period, the loan is forgiven over the following 10 years
• Maximum purchase price of $384,750
• First mortgage must be obtained through approved lender
• Repayment of the assistance is due if the property is sold, or no longer used as a primary residence

Enhanced Homebuyer Assistance Program: The program offers up to $60,000 in down payment assistance for homebuyers purchasing a home in designated geographic areas. The assistance is provided as a 0% interest, deferred second mortgage loan with no monthly payments during the 30-year loan term.

Requirements for Homebuyer Assistance Program include:

• Must be first-time homebuyer
• Household income must be at or below 80% AMI
• Funds may be used for down payment, closing costs, or financing gaps
• 50% if the original principal balance is forgiven after 10 years
• The remaining 50% is due at the 30-year maturity date
• Maximum purchase price is $450,000
• Completion of a homebuyer education course
• Must use approved lender for the first mortgage
• Repayment is due if the property is sold or the property is no longer used as a primary residence

Durham down payment assistance program

Durham sits just northwest of Raleigh in North Carolina’s Research Triangle, home to Duke University and a revitalized downtown built around old tobacco warehouses turned restaurants and shops. It offers a smaller, more laid-back alternative to Raleigh with easy access to the same Triangle amenities, making it a solid pick for buyers wanting culture and character at a more manageable size.

Durham down payment assistance program includes:

Down Payment Assistance Program: The program provides up to $80,000 in down payment and closing cost assistance for income-eligible first-time buyers within Durham city limits. The assistance is offered as a 0% interest, 15-year forgivable second mortgage. The loan is forgiven at a rate of 1/15 each year the buyer remains in the home.

Program requirements include:

• Must be a first-time homebuyer
• If buyer sells, transfers, or no longer occupies the home as a primary residence before the 15-year term ends, the remaining unforgiven balance is due
• Household income must be at or below 8% of the Durham-Chapel Hill AMI
• Must be a U.S. citizen, non-citizen national, or qualified alien
• Completion of homebuyer education course
• Applicants should work 32 hours a week
• Must apply through a city-approved participating lender
• VA, FHA, conventional loans eligible

These are some of the main down payment assistance programs available across North Carolina. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for North Carolina down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at nchfa.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. NCHFA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying North Carolina property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

North Carolina down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}