Guide · North Carolina

NCHFA's 3% or $15,000 down payment help: how to choose and stack it

Pick between NCHFA's 3% NC Home Advantage assistance and the $15,000 NC 1st Home Advantage Down Payment, see what you'd owe if you sell early, and stack city help.

Quick answer:

You get one or the other, not both. The 3% option is open to first-time and move-up buyers with income up to $158,000 and has no NCHFA price cap. The $15,000 option is for first-time buyers, qualifying veterans and targeted census tracts, with county income limits and a $525,000 price cap. Below a $500,000 loan, $15,000 is the bigger number. Both are 0% deferred second mortgages forgiven in years 11 through 15.

The decision in one table

The North Carolina Housing Finance Agency (NCHFA) pairs its NC Home Advantage Mortgage, a 30-year fixed loan, with one of two kinds of help. Here is how they line up:

	3% assistance	$15,000 NC 1st Home Advantage
Amount	Up to 3% of the first-mortgage loan	$15,000 (you must use all of it)
Who	First-time and move-up buyers	First-time buyers, qualifying veterans, buyers in targeted census tracts
Income limit	$158,000 statewide, borrower qualifying income	By county and family size, total family income
Price limit	No NCHFA cap (loan limits apply)	$525,000 price and loan amount
Credit and debt	640 score, 45% debt-to-income	Same

Step 1: Check whether you can get the $15,000

Answer three questions:

Have you owned a principal residence in the past 3 years? If not, you're a first-time buyer. If you have, you may still qualify as a veteran (one time) or by buying in a targeted census tract, as long as you own no other property at closing.
Is your total family income under your county's limit? This counts all titleholders plus a spouse. Examples from NCHFA's county lookup: Wake and Johnston $132,000 for 1 to 2 people and $152,000 for 3 or more; Mecklenburg $117,000 and $135,000; Brunswick $101,000 and $116,000.
Is the price $525,000 or less?

Three yeses and the $15,000 is on the table. Any no, and the 3% option is your NCHFA route.

Step 2: Do the math

3% of a loan equals $15,000 only when the loan is $500,000. Below that, $15,000 is more money. A few examples:

Loan amount	3% option	$15,000 option
$200,000	$6,000	$15,000
$300,000	$9,000	$15,000
$400,000	$12,000	$15,000
$500,000	$15,000	$15,000

So most buyers who qualify for both pick the $15,000. The 3% option wins when you can't use the $15,000: you owned a home recently, your income is over the county limit but under $158,000, or the price is over $525,000.

One more check. NCHFA posts daily rates, and the 3% assistance can show as "n/a" on the rate sheet when rates are high. Ask your lender what's available the week you lock.

Step 3: Know what you'd owe if you move

Both options are 0% interest, deferred second mortgages with no monthly payment. They are forgiven 20% a year at the end of years 11 through 15. If you sell or refinance before year 15, the unforgiven part is due. With the $15,000 option, the balance is also due if the home stops being your primary residence.

You sell or refinance...	Share still owed	On $15,000
Before the end of year 11	100%	$15,000
After year 11	80%	$12,000
After year 12	60%	$9,000
After year 13	40%	$6,000
After year 14	20%	$3,000
After year 15	0%	$0

Plan for this if you might transfer for work. A teacher or deputy who expects to stay a decade or more gets the most from it.

Step 4: Stack local help on top

NCHFA's help can sit under a city or nonprofit program. Check each one's rules before you count on it:

Community Partners Loan Pool (CPLP): up to 25% of the price, capped at $50,000, for households at or below 80% of area median income. You reach it only through a CPLP member group. NCHFA's CPLP page says it can combine with NC 1st Home Advantage.
House Charlotte: up to $80,000 at or below 80% AMI, or $30,000 up to 110% AMI, for first-time buyers inside Charlotte city limits, with a $365,000 price cap. It can often combine with CPLP.
Raleigh: up to $45,000, or up to $60,000 in the City's target areas, for first-time buyers at or below 80% AMI.
Durham: up to 25% of the price, capped at $80,000, for buyers at or below 80% AMI. Its guidelines set no subsidy-layering limit.
Greensboro and Concord: forgivable help from $10,000 to $30,000 depending on the program and area.

Every layer has its own lender list, class rule and timeline. Ask your lender to map them out before you make an offer.

Step 5: Take the class once, the right way

If every borrower is a first-time buyer, one of you must finish an approved homebuyer course. NCHFA accepts HUD-, FHA- and Freddie Mac-approved courses, HomeView and CreditSmart Homebuyer U. The certificate is good for one year.

If you're also using a city program, pick a class that meets its rule too. House Charlotte, Durham, Greensboro and Concord each ask for 8 hours, and some want part of it in person. One well-chosen class can cover them all.

Step 6: Ask about recapture

NCHFA's July 2026 guide calls the Mortgage Credit Certificate "no longer an active program." Separately, the $15,000 option is funded with tax-exempt mortgage revenue bonds. Federal recapture tax applies only to buyers with a below-market loan from a qualified mortgage bond or an MCC, and only if they sell within 9 years at a gain with income above the limit in their notice. Ask your lender whether your loan comes with a recapture notice. If it does, keep it with your tax records.

Ready to see which option fits? Check your eligibility and a participating lender can run both side by side.

Reader questions

Can I use NCHFA's 3% assistance and the $15,000 together?

No. NCHFA lets you pick one. You can, however, pair either one with local programs such as CPLP or a city program, if those programs allow it.

Which is better, 3% or $15,000?

If you qualify for both and your loan is under $500,000, the $15,000 is more money. The 3% option is the route when you owned a home recently, earn over the county limit but under $158,000, or buy above $525,000.

Do I have to repay NCHFA's down payment assistance?

Only if you sell or refinance before year 15, or, with the $15,000 option, stop living in the home. It is forgiven 20% a year at the end of years 11 through 15.

What credit score does NCHFA need?

At least 640, or 660 for a manufactured home. The maximum debt-to-income ratio is 45%.

Is there a price limit on the NC Home Advantage Mortgage?

Not from NCHFA for the 3% option. Normal FHA, VA, USDA or conventional loan limits apply. The $15,000 option has a $525,000 sales price and loan limit.

Print it out: our North Carolina readiness checklist puts the rules, papers, steps and lender questions on one sheet with boxes to tick. Get the PDF