First time home buyer loans in North Carolina are special mortgage and financial assistance programs designed to make buying your first home more affordable and accessible. While many homebuyers struggle with saving for a down payment or qualifying for financing, these programs help reduce upfront costs, lower interest expenses, and provide favorable loan terms for eligible buyers. Most of these programs are administered through the North Carolina Housing Finance Agency (NCHFA) or through local government initiatives.

In most NC programs, a first time home buyer is defined as   first time home buyer loans NC  someone who has not owned a home as their primary residence within the past three years. There are important exceptions:

Military veterans are often considered first-time buyers even if they have previously owned a home.

Buyers purchasing in certain designated or “targeted” areas may also qualify regardless of past ownership.

Understanding this definition is key because eligibility for the most beneficial programs often depends on it.

Key First Time Home Buyer Loan Programs in North Carolina
1. NC Home Advantage Mortgage™

The cornerstone of first time buyer assistance in NC is the NC Home Advantage Mortgage™. This program provides:

Competitive, fixed-rate mortgage options for buyers.

Down payment assistance up to 3% of the loan amount.

The ability to pair with FHA, USDA, VA, or a conventional loan.
It is available to both first-time and repeat buyers, but first-time buyers typically qualify for the most benefits.

Down payment assistance through this program is structured as a zero-interest, deferred second mortgage. That means you don’t make monthly payments on it — and if you stay in your home long enough (typically 11–15 years), the assistance can be forgiven over time.