NC Down Payment Help: What First-Time Buyers Really Need to Know

When you're buying your first home in North Carolina, a state with rising home prices and competitive markets, coming up with a down payment can feel impossible. But down payment assistance, programs designed to help low-to-moderate income buyers cover part of their upfront costs is real—and it’s more accessible than most people think. These aren’t just grants or gifts; they’re structured loans, deferred payment options, or forgivable loans tied to specific neighborhoods or occupations. And they’re not just for people with perfect credit—you don’t need to be rich to qualify.

Many buyers assume they need 20% down, but in North Carolina, the state’s housing finance agency offers FHA and conventional loans with as little as 3% down. The NC Home Advantage Mortgage, a state-backed program that pairs low interest rates with down payment help, is one of the most popular options. It’s available to first-time buyers and some repeat buyers, especially if you’re purchasing in a targeted area. There’s also the NC Home Advantage Tax Credit, a federal tax credit that can reduce your mortgage interest rate, which works alongside down payment grants. You can combine these with local city programs in Raleigh, Charlotte, or Greensboro—each has its own rules, income caps, and home price limits.

But here’s what no one tells you: down payment help isn’t free money. Some programs require you to live in the home for 5–10 years. Others charge a small fee or require homebuyer education courses. And while closing costs in North Carolina average 2% to 5% of the home price, many assistance programs cover both the down payment and closing costs together. That’s a huge win if you’re short on cash but have a steady income. You don’t need to wait until you’ve saved $20,000—there are paths that let you start with $5,000 or less.

What you’ll find below isn’t a list of generic tips. These are real posts from people who’ve been through the process—whether they used state grants, got help from employers, or found hidden local programs. Some struggled with credit scores. Others didn’t know they could qualify even if they’d bought a home before. One person used down payment help to buy a house in Durham while working as a teacher. Another got approved with a 620 credit score. These aren’t success stories from a brochure—they’re the messy, practical details that actually matter when you’re standing in front of a closing table with a binder full of paperwork and your heart racing.