Overview
North Carolina's fast-growing metros have pushed the statewide median home price to around $340,000, but the state offsets that with low property taxes and a flat income tax, plus some of the most generous down payment assistance in the Southeast. The North Carolina Housing Finance Agency (NCHFA) anchors the state's help, and its forgivable down payment program is unusually large.
NCHFA's NC Home Advantage Mortgage pairs a competitive 30-year fixed rate with down payment assistance of up to 5% of the loan amount. First-time buyers and military veterans can do better still with the NC 1st Home Advantage Down Payment, which provides a flat $15,000 as a zero-interest, deferred second mortgage. That balance isn't forgiven right away — it stays in place with no payments until years 11 through 15, when it's forgiven 20% a year, disappearing entirely once you've owned the home for 15 years. Both programs carry income limits (up to $125,000) and require a homebuyer education course.
State Programs
NC Home Advantage Mortgage
Below-market rate mortgage with DPANC 1st Home Advantage Down Payment
Deferred, forgivable down payment assistanceFederal Programs Available in North Carolina
These nationwide programs can be combined with North Carolina state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in North Carolina
Several North Carolina cities run their own assistance on top of state help. Charlotte's House Charlotte program and similar funds in Raleigh, Durham, and Greensboro offer additional down payment dollars for income-eligible buyers within city limits, and these can sometimes be layered with NCHFA assistance. Because the $15,000 NC 1st Home Advantage benefit is already substantial, many first-time buyers can cover most or all of a down payment by combining it with a low-down-payment FHA loan.
North Carolina's tax structure is favorable for homeowners. The state moved to a flat income tax that continues to step down — about 3.99% for 2026 — so higher earners aren't penalized with graduated brackets. Property taxes are among the lower in the country, averaging roughly 0.80% of home value, which keeps the monthly carrying cost of a North Carolina home manageable relative to its price. Rates are set by county and municipality, so confirm the specific bill for any home you're considering.
North Carolina's military communities are significant: veterans and active-duty buyers near Fort Bragg, Camp Lejeune, or Seymour Johnson Air Force Base should weigh a zero-down VA loan against the state programs, and the NC 1st Home Advantage Down Payment is open to veterans even if they've owned before. Rural buyers across much of the state may qualify for zero-down USDA loans. A HUD-approved housing counselor can map which city and county programs stack with NCHFA assistance for your price range.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.