First Home Buyers, North Carolina has a variety of lenders and programs to help the first time home buyer…
here are the best ones!
#1. USDA Rural Housing Loans- No Money Down
I can hear you now, “Isn’t USDA supposed to be checking my steaks?” That is correct, the US Department of Agriculture does inspect meat but they also have a housing division! USDA offers two main programs, “Direct” and “Guaranteed”. Most people that have heard about these programs have dealt with the “Direct” program which has a lot of restrictions. We offer the “Guaranteed” program that is very simple, and offers the best first time buyer program in North Carolina. How does no money down and no PMI sound? How about a low fixed rate and relaxed credit requirements? This program does have a couple drawbacks, it is only offered in certain areas and it has income limits.
#2. Good old FHA-Low Money Down
Tried and true, FHA remains the widely used program for first time buyers in North Carolina. FHA insured mortgages only require 3.5% down and typically offers reduced mortgage insurance when compared to conventional loans. The FHA loan limits in Mecklenburg County is $303,750. FHA also allows a non-occupant co-borrower on the loan… that means mommy, daddy or uncle Joe can be put on the mortgage to help qualify! The best thing about FHA is all the other programs it can work with, like…
#3. House Charlotte Program
One of my favorite local programs to pair with an FHA loan is House Charlotte. This program is administered by the City of Charlotte and offers down payment assistance up to $10,000, depending on the neighborhood. Most people have an initial reaction of concern about what neighborhoods you have to buy a house in to work with this program. The good news is that there are over 80 neighborhoods eligible and many are very nice. The last one I did was near SouthPark Mall!!
#4. NCHFA (North Carolina Housing Finance Agency)
North Carolina Housing offers some fantastic programs for the entire state! My favorite is MCC or Mortgage Credit Certificate. This program provides a Federal Tax Credit of up to $2,000 per year for a first time homebuyer. As a lender, I can use this credit with an FHA or USDA loan to reduce the borrower’s monthly house payment (on paper) to help them qualify for more house. EXAMPLE: Buyer qualifies for $90,000 without the MCC credit and qualifies for $105,500 with the credit! NCHFA also offers down payment assistance of up to $14,900 depending on the area and home. $14,900 is only available for foreclosures.
#5. Veteran Affairs or VA loans- No Money Down
This is one of my personal favorites because my dad was a Marine, and I am always honored to serve a US Veteran! The VA offers 100% financing to eligible veterans and no monthly PMI! It is easy to qualify for and allows a veteran with low non-housing debt to actually qualify for more house than any other program!! It offers a low fixed rate and is typically priced very similar to an FHA loan. Many veterans think that they lose their eligiblity once they use it and that is not true at all. It can be used many times as long as they sold the prior home.
Don’t forget the $8,000 Tax Credit expires Dec.1 st! Stay tuned as these coming blogs could save you thousands on your first home! Please feel free to call me anytime at 980-721-7478 or check out my website at www.LoansByOlan.com.
Olan Carder
Sales Manager / Sr. Loan Officer
WR Starkey Mortgage, LLP
980-721-7478 Mobile
www.LoansbyOlan.com
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In an earlier post on first home buyers, I said you need two quality professionals… a lender and a Buyer Agent. The lender is above. The McDonald Team is your Buyer Agent… we work for our Buyer Clients as Exclusive Buyer Agents- our Agents won’t show you a house with their name on it, so there is never a conflict of interest and we’ve got your back covered every step of the way, A -Z.
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