JAG Blog

North Carolina’s equitable housing efforts explained

The JAG Team

September 12, 2022

As housing prices increased across the country during the past two years, the Triangle has experienced massive changes in what people are willing to spend on a home. At the end of 2019, the median price of a home in the Triangle was $276,817. Today, that price is $420,000.

What does that price increase mean for some Triangle residents? According to information from the National Association of Realtors, it means many residents aren’t able to buy homes in the area. In fact, U.S. Census data from the region shows there’s a gap in income as housing prices have increased. In Raleigh, the median household income is $69,720 while Durham’s median household income is $61,962. These are the Triangle residents who would benefit greatly from new programs that are now in place to help get them into a home.

In fact, a government study explored how to increase homeownership. The study showed helping 1st time homebuyers with $10,000 grants alone can increase homeownership by as much as 34 percent. Fortunately, Congress introduced 8 new programs in 2021 and 2022, which may start to help create more equitable homeownership opportunities.

The following 5 programs can currently be used for potential buyers in North Carolina.

Downpayment Toward Equity Program

The Downpayment Toward Equity Program, which was introduced in Congress in 2021 but hasn’t yet made its way into law, provides a grant for up to $25,000 for first time home buyers. The money can be used in a number of ways, including toward a down payment or closing costs. To see if you qualify, you must apply for the grant. To receive the grant, you will need to meet certain requirements:

Income limitations – You must have an income that doesn’t exceed 120 percent of the median income for the Triangle area.
Be a first-time homebuyer – If you’ve purchased a home in the past but more than three years have passed, you can still qualify.
Be a first-generation homebuyer – If your parents or spouse have never owned a home, you will likely qualify.
The home should be your primary residence – It should not be an investment property.
You must use a federally-backed mortgage – This includes Fannie Mae, Freddie Mac, VA, USDA, and FHA loans.

Keep watching for updates to see when the program becomes available.

National Homebuyers Fund

The National Homebuyers Fund provides funds to help cover down payment or closing costs for a mortgage. The fund provides up to 5 percent of the mortgage loan amount. First-time homebuyers can apply for the program and it can be used with a conventional, FHA, VA, or USDA loan. In addition, the loan is forgiven 5 years after closing. It’s available through participating lenders. You can call (916) 444-2615 to request the list of lenders. Note that pre-approval is needed.

NC 1st Home Advantage Down Payment

The NC 1st Home Advantage Down Payment provides $8,000 in down payment assistance to first time homebuyers and military veterans. In addition to being a first-time buyer, you may qualify if you meet the following criteria:

You meet certain income and sales price limits outlined by the NC Housing Finance Agency.
You are purchasing a home within the state.
You occupy the residence within 60 days of closing.
Your credit score is 640 or above.
You are a legal resident of the United States.

Talk to a lender to request more information about the program.

NCHFA NC Home Advantage Mortgage

The NC Home Advantage Mortgage is a great option for both first-time and move-up buyers and it provides fixed-rate mortgages and down payment assistance up to 3 percent of the amount of your loan. The great thing is it can also be used alongside the NC 1st Advantage Down Payment.

Repayment is only required if you sell, refinance, or transfer your home before 15 years. Loan forgiveness happens at the end of that 15th year.

Eligibility occurs when:

You purchase a home in North Carolina.
You occupy the home as your main residence within 60 days of closing.
Your annual income is under $126,000.
Your credit score is 640 or above.
You are applying for an FHA, USDA, VA or conventional loan through a participating lender and meet the sales price limits of the loan type.
You are a legal resident of the United States.

These products are available through participating lenders in North Carolina. .

NC Home Advantage Tax Credit

The NC Home Advantage Tax Credit allows first-time buyers and military veterans to take advantage of a tax credit that helps save money to use toward a mortgage payment. Those who qualify can claim anywhere from 30 to 50 percent of the interest you pay on your home every year you live in it.

This credit follows many of the same stipulations as the NC Home Advantage Mortgage and the NC 1st Home Advantage Down Payment. You may also be eligible to combine it with the NC Home Advantage Mortgage.

Final notes

If you think you may be eligible for any of these programs, get in touch with any of our Realtors for assistance. We can help you make your dream a reality.

The Jim Allen Group provides access to information on this blog/website as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all of the information made available is current, accurate, and complete…[read more]