One of the most popular questions we hear is what kind of programs are there with 100% financing and the answer has been VA and USDA. But now, NC Housing Finance Agency has announced that the Down Payment Assistance amounts available for buyers have increased to give first time or move up buyers 100% or more financing when purchasing a primary residence in North Carolina. The Down Payment Assistance is a zero interest, zero payment loan that is forgiven after 15 years!
NC Home Advantage with Down Payment Assistance Details:
- For VA, USDA, and FHA government loans, the Down Payment Assistance is allowed to be up to 5% of the first mortgage amount!
- Especially helpful on FHA loans where the Down Payment Assistance can cover the down payment and even go towards closing costs
- For conventional loans at 97%, the Down Payment Assistance is allowed up to 3% which gives the buyer right at 100% financing
- The monthly PMI is much lower than normal conventional PMI
- Down payment assistance could be used towards paying the PMI at once
- Great option for conventional buyers that have a credit score between 640 & 700 with normally a lower rate than regular conventional rates
- Applicants can make up to $85,000 (not based on household income like USDA)
- Does not have territorial restraints such as USDA (except the property must be in NC)
Examples of allowed Down Payment Assistance:
- FHA loan of 96.5% financing and Down Payment Assistance of 5% to cover the 3.5% down payment and the remaining 1.5% towards closing costs
- Conventional loan of 97% and Down Payment Assistance of 3% of the first mortgage amount, gives the buyer right at 100% financing. Then the seller can pay up to 3% of the price in closing costs for the buyer
- VA or USDA loan which will finance 100% of the sales price and the Down Payment Assistance can go towards paying closing costs