New VERY Low Money Down Program for North Carolina Home Buyers
The downpayment has always been an obstacle to home ownership, and the state of North Carolina has announced a new “down Payment Assistance” program from the North Carolina Housing Finance Agency. (NCHFA)
The down payment assistance is setup as a 2nd mortgage but requires no monthly payments and there is no interest charged. There are no fees from NCHFA to obtain it. The only repayment involved is if you sell or refinance before year 15, you will have to repay all or a portion of the 3%… but with no fees or interest charged! (think: WORST case is Interest Free loan)
There are 2 interest rates offered with this program. You can visit NCHFA.COM and see their daily rates, at this writing, 4/16/13, the FHA and VA loans with DP assistance were 3.75, without 3.25%, a lower rate for people who don’t need the down payment assistance. Both rates are very competitive! check on the website for daily rates.
The requirements for this program are as follows:
The property must be located in North Carolina, and the borrower must occupy the property within 60 days of closing
The qualifying income cannot exceed $85,000 per year
The borrower must be a legal resident of the U.S.
Credit score must be 640 or higher
You must apply for an FHA, USDA or VA loan through a “participating lender”
Note the very reasonable FICO of 640!
There could be other requirements and programs are subject to change, so if you would like to learn more or get “Pre-Qualified”, you can call one of our preferred lenders, Olan Carder with Fairway Independent Mortgage, 980-721-7478. Fairway is one of the participating lenders with NCHFA and Olan has over 15 years of experience with using FHA, USDA and VA mortgages in the Charlotte area.