North Carolina - Government Backed Loans

The North Carolina Housing Finance Agency offers programs to assist first-time home buyers; helps governments, nonprofit groups, and private developers create affordable homes, apartments and supportive housing; and provides funding for rehab and repair assistance for homeowners through local groups.

Refinance Programs

Home Protection Pilot Program

The Home Protection Pilot Program provides funding for homeowners who are facing missed mortgage payments and possible foreclosure due to involuntary job loss. In the case of job loss due to economic conditions, homeowners may qualify for an interest-free loan in the amount of either $20, 000, 18 months worth of mortgage payments or the minimum amount required to bring all missed payments up to date, whichever is less. Funds are first used to bring all payments up to date, with all remaining funds to go toward upcoming payments until all proceeds are spent. Repayment is deferred for 15 years.

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Reverse Mortgage

The Reverse Mortgage is available to qualifying senior citizens who are unable to meet monthly mortgage payments. Assistance is provided in the form of a mortgage loan which slowly depletes the home's equity over time, thus enabling homeowners to remain in the home. This loan does not need to be repaid until the end of the term, the homeowner moves or is deceased. Homeownership counseling is required of homeowners in order to qualify for a Reverse Mortgage.

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Purchase Programs

FirstHome Mortgage

The FirstHome Mortgage offers first-time homebuyers 30-year, fixed-rate, low-interest home loans. Downpayments with this program range from zero to 3% of the home's sales price, and VA and USDA loans offer 100% financing to eligible homebuyers, while others such as FHA and other conventional loans offer up to 97% financing. These mortgages are funded through Mortgage Revenue Bonds, and your local lender may refer to these loans as such.

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Downpayment Assistance

The Downpayment Assistance program offers first-time homebuyers who qualify for a conventional mortgage assistance with a downpayment and closing costs in the form of deferred-payment, interest-free loans up to $7, 000 in amount. This loan has a 30-year term, but must be repaid sooner if the home is sold or if the borrower refinances the loan.

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Second Mortgage

The Second Mortgage program offers first-time homebuyers another option for affording a downpayment and closing costs. This a deferred-payment loan to be used in conjunction with a conventional first mortgage, and provides assistance of up to $20, 000, or 20% of the home's sales price, whichever is less.. The Second Mortgage program is offered by select nonprofit and government agencies, and is to be used to purchase a designated newly constructed home.

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Mortgage Credit Certificate - MCC

The Mortgage Credit Certificate offers low- to moderate-income homebuyers who do not qualify for a FirstHome Mortgage a Federal income tax credit. This credit reduces the homebuyer's tax liability by a percentage of the mortgage interest paid. 20% of the interest paid may be claimed on the homebuyer's Federal income taxes, thus saving up to $2, 000 annually and freeing up funds which can be used toward a mortgage payment.

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