First Time Home Buyer Programs Mooresville, NC

Beth Sterner
Beth Sterner
Published on January 10, 2017

First Time Home Buyer Grants and Programs


Buying your first home is a big decision. Being prepared to buy your first home in 2017 does not mean you will need to have a downpayment of 20%. Actually, there are first time homebuyer programs allowing you to buy a home with as little as 0% down, if qualified.

As a first time home buyer, you will want to research as much as you can about buying a home, BEFORE you start your search for homes for sale. The market in Mooresville, NC has demonstrated an significant rise in millennial buyers.

When buying a house you may be surprised at the many costs and fees associated with purchasing your first home. It is common for first time home buyers to lack sufficient funds for a 20% downpayment in addition to the closing costs. If you spend some time searching mortgages online you will find some great and not so great information. The best recommendation I can make is to talk to a mortgage lender. They will be able find the best mortgage program for you. All the lenders I refer are wonderful and I have used them personally for my own home purchases as well as closing on multiple home loans together.

Firstly, you should spend some time researching the difference between local and state first time home buyer programs. You may also find a few national first time home buyer programs while searching near Mooresville, NC. Many of the national grants are designed to assist first time buyers with closing costs and other financing. You can save hours of research by contacting me with any questions for first time home buyer tips.

What kind of First Time Home Buyer Programs are there?

mortgage pre-approval

National First Time Home Buyer Programs

Mortgage Credit Certificate

According to the NCHFA Website, the mortgage credit certificate program is not currently offered locally in Mooresville, NC. This program would allow first time home buyers a yearly tax savings of $2,000. There is specific criteria you must meet in order to qualify for the Mortgage Credit Certificate. The criteria includes income and sales price limits on your new home. This program, if qualified, can provide a first time home buyer with a $2,000 tax credit each year you live in the house.

The mortgage credit certificate can be used with some adjustable rate mortgages, most loans and several other mortgage lender programs for a first time home buyer.

U.S. Department of Veterans Affairs (also known as VA Loan)

The U.S. Dept of Veteran Affairs offers 0% downpayment financing for VA loans for all buyers with military veteran status. This program is great for veterans, especially those who are first time home buyers. The VA loan is not as strict as a USDA loan, which also offers 0% down financing.

USDA Rural Development Program (USDA loan)

The U.S. Dept of Agriculture offers individuals, who are in the low to moderate income range, to purchase a new home with 100% financing. Yes, this means 0% downpayment financing to all individuals who qualify for eligible homes within the USDA loan program.

Are you eligible? Find out here!

Your ability to qualify for a USDA loan can be more strict than other loan programs. The qualifying criteria for a USDA loan has lower debit to income requirements but they are not available in all areas. USDA loans are channeled for Rural areas; in other words most of Mecklenburg county will not qualify. Although, most of Mooresville still has the opportunity to be covered. Home repairs and home improvements can be forced into the loan eligibility. Contact me for more information as this can be very confusing.

State and Local Programs

Regardless of your location, whether that is Mooresville, North Carolina, or anywhere in the world, there is a good probability you will find a program, grant or benefit as a first time home buyer, You may need to consult with a realtor or mortgage lender to find out what you qualify for.

Will you Need Help with a Downpayment?

The NC Home Advantage Program has many ways of helping you with your first time home buying experience. This may be in the way of downpayment assistance, interest-free, closing costs, deferment and forgivable second mortgage with as much as 5%  for the first loan amount.

NC Home Advantage Mortgage

Again another NCHFA program offers first time home buyers a downpayment assistant of up to 5%. These government-insured or Fannie Mae-incurred mortgage can make a FHA and VA loans 100% financing.  They can also offer up to 3% down payment assistance on conventional 97% LTV loans, minimizing the upfront cost of closing. This program is a great loan option for buyers who are looking for safety, affordability, and competitive mortgage rates through lenders participating in the program. Currently, more than 700 offices are participating in the NC Home Advantage Program.

What is the best part of the NC Home Advantage Mortgage?

If you sell or refinance the home before 15 years of the loan duration, you are required a repayment of up to 5% second mortgages.The downpayment assistance loan comes with a 20% per year forgiveness once you have lived in the home for a duration of 10 years, and will be completely forgiven after 15 years.

Do I Qualify for the NC Home Advantage Mortgage?

As a buyer, you may qualify if for the NC Home Advantage Mortgage if you are:

  • planning on buying a new or existing home
  • a first time or move up buyer
  • buying a home in North Carolina and will occupy the home within 60 days of closing
  • under the annual income cap of $87,500
  • applying for a USDA, FHA, VA or conventional loan with a lender participating in the program and are within the sales price limit of the loan program
  • a legal US resident
  • currently a 640 or higher credit score

As with any loans, a mortgage officer will be able to qualify and suggest the best mortgage loans for you. Contact me for my referrals.

What Properties Qualify?

  • new and existing single family homes
  • townhomes
  • condos
  • duplexes, only available through USDA, FHA and VA loans (not conventional loans)
  • manufactured homes, only new and never occupied doublewide or larger manufactured homes with permanent foundations

Click here to contact me for participating LOCAL mortgage lenders!

How Does My Credit Score Affect Obtaining a Mortgage?

Your current credit score, along with your credit report, can affect your ability to qualify for a mortgage. If you have a low credit score it will increase the interest rate on your mortgage. Even when you have a high credit score, you can still be denied for a home loan depending on your credit report. Your credit score and credit report can show two different things.

Your credit score can vary depending on the credit organization reporting it. You can see your credit score online at numerous websites like this one. The majority of mortgage lenders will use the FICO score, you can read more about it here. The three top credit score reports agencies include Experian, Equifax and TransUnion.

mortgage lender mooresville nc

How do I keep a good credit score?

  1. Use websites like Credit Karma to track your credit score
  2. Do NOT apply for new credit lines unless you HAVE to
  3. Do NOT max out your credit lines and pay them off ASAP
  4. Dispute any and all credit report errors you may find
  5. Seek assistance from a professional if you need help raising your credit score

Which Mortgage is Best for Me?

Most people do not know how affordable real estate is in Mooresville, NC. This is even more true with the days of 20% down payments behind us. If you are looking for the best mortgage in your situation, I can help connect you with the top mortgage lenders near Mooresville, NC.

If you are a first time home buyer, you will want to avoid common pitfalls and prepare yourself before buying home with my detailed home buying guide. You can download it for FREE by visiting this page. As a real estate professional I always recommend having the best realtor on your side. If are ready to buy a new home in Mooresville or the surrounding area, give me a call to discuss your home buying needs. I help many clients find the home of their dreams, and pride myself in making the process fun and easy for all home buyers.


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