If you’re renting in Cary, Apex, or Raleigh and wondering how anyone saves a down payment in this market, you’re not alone. The good news: NC first-time homebuyer programs can cover a real chunk of your down payment, and some of that help is forgiven entirely if you stay in the home long enough. Below is a plain-English guide to the main state and local options, who qualifies, and how they fit together, from a Cary broker who also teaches the NC real estate pre-licensing course.
The Big Picture: Who Runs NC First-Time Homebuyer Programs?
Most statewide assistance comes from the North Carolina Housing Finance Agency (NCHFA), a self-supporting public agency. You don’t apply to NCHFA directly. Instead, you work with a participating lender (or, for some programs, a nonprofit partner), and the assistance is layered on top of your first mortgage. On top of the state programs, some cities and counties run their own down payment help, though, as you’ll see, where the home sits matters a lot here in Wake County.
NC 1st Home Advantage Down Payment: $15,000 for First-Time Buyers
The NC 1st Home Advantage Down Payment is the program most people mean when they talk about NC first-time homebuyer programs. Here’s how NCHFA describes it:
- Amount: $15,000 in down payment assistance.
- Structure: a 0%, deferred second mortgage with no monthly payment. It’s forgiven 20% per year at the end of years 11 through 15, and fully forgiven at the end of year 15.
- Who qualifies: first-time buyers (no ownership of a principal residence in the past three years), military veterans, or buyers purchasing in targeted census tracts.
- Credit: a minimum 640 credit score (660 for manufactured homes).
- Limits: household income and sales price limits apply and vary by county and family size, so confirm the current Wake County numbers with NCHFA or your lender.
- Occupancy: you must live in the home as your primary residence within 60 days of closing.
Eligible property types include single-family homes, townhomes, condos, and manufactured homes.
NC Home Advantage Mortgage: Up to 3% Down Payment Help
The NC Home Advantage Mortgage™ is NCHFA’s main mortgage product, and it’s open to both first-time and move-up buyers. Key points:
- Down payment assistance of up to 3% of the loan amount, forgiven on the same year 11–15 schedule as above if you don’t sell, refinance, or transfer the home first.
- Works with FHA, VA, USDA, and conventional loans through participating lenders.
- Minimum 640 credit score (660 for manufactured homes).
- NCHFA currently lists an annual income cap of $158,000 for this product.
Because it isn’t limited to first-time buyers, this can be a good fit if you owned a home years ago or are moving up, but still want help with cash to close.
NC Home Advantage Tax Credit (Mortgage Credit Certificate)
The NC Home Advantage Tax Credit is a Mortgage Credit Certificate (MCC). Instead of helping with the down payment, it lowers your federal income taxes every year you live in the home: up to 30% of the mortgage interest you pay on an existing home (up to 50% on a newly built home), capped at $2,000 per year. It’s available to first-time buyers, veterans, and buyers in targeted areas who meet income and sales price limits. One catch: NCHFA notes it can’t be combined with the NC 1st Home Advantage Down Payment, so you and your lender will want to compare the two side by side.
Community Partners Loan Pool: Larger Help for Lower-Income Buyers
For buyers earning up to 80% of the area median income, NCHFA’s Community Partners Loan Pool (CPLP) can provide up to 25% of the sales price, not to exceed $50,000, as a 0% deferred second mortgage paired with the NC Home Advantage Mortgage. You access CPLP through a member nonprofit or local government partner, not a lender alone, and you’ll need a 640+ credit score, homebuyer education, and at least two hours of in-person housing counseling.
Local Programs in Wake County (and a Cary Caveat)
Local help depends heavily on which town the home is in:
- Wake County Affordable Homeownership Program: administered with DHIC, it offers forgivable, no-payment loans of up to $50,000 for first-time buyers at or below 80% AMI. It covers Wake County towns such as Apex, Holly Springs, Fuquay-Varina, Morrisville, Garner, and Wake Forest, but homes inside Raleigh and Cary are excluded because of its federal funding sources.
- City of Raleigh Homebuyer Assistance: Raleigh’s homebuyer assistance program offers up to $45,000 (up to $60,000 in targeted areas) as a 0%, deferred loan for first-time buyers at or below 80% AMI, for homes inside Raleigh city limits, with purchase price caps.
- Town of Cary: Cary’s 2026–2027 federal housing plan directs its homeownership funding to a community land trust partner rather than a broad Raleigh-style down payment program. If you’re income-eligible and set on Cary, it’s worth asking the Town of Cary housing team what’s currently available.
Translation: if you’re flexible on location, a home in Apex or Holly Springs could open up local assistance that a similar home in Cary wouldn’t. If you’re still deciding where to look, our guide to the best Cary neighborhoods for first-time homebuyers is a good starting point.
How to Use NC First-Time Homebuyer Programs: Step by Step
- Check your credit. Nearly every program here requires at least a 640 score.
- Talk to an NCHFA participating lender early. They’ll confirm current income and price limits and tell you which programs you can stack.
- Take a homebuyer education course if your program requires it (CPLP and the Wake County program do), and do it before you’re under contract so it doesn’t delay closing.
- Get pre-approved with the assistance built in, so your offer shows the right loan type and cash to close.
- Shop with an agent who knows the programs. Sales price caps, property types, and town boundaries all affect which homes qualify.
Rates matter too. Freddie Mac’s weekly survey put the average 30-year fixed rate at 6.95% as of September 17, 2026 (Freddie Mac PMMS), so assistance that reduces your loan amount or your tax bill can make a meaningful difference in affordability. For a local read on prices and inventory, see our Cary housing market update for fall 2026, or zoom out with our Raleigh housing market report.
NC First-Time Homebuyer FAQ
Who counts as a first-time homebuyer in North Carolina?
For NCHFA’s NC 1st Home Advantage Down Payment, it’s someone who hasn’t owned a home as their principal residence in the past three years. Military veterans and buyers in targeted census tracts can also qualify.
How much down payment help can I get in NC?
Statewide, $15,000 through the NC 1st Home Advantage Down Payment, or up to 3% of the loan amount through the NC Home Advantage Mortgage. Lower-income buyers may qualify for larger help through the Community Partners Loan Pool or a local program, depending on where the home is.
Do I have to pay the assistance back?
Usually not if you stay. The NCHFA assistance described above is a 0% deferred second mortgage forgiven 20% per year at the end of years 11 through 15. If you sell, refinance or transfer the home before then, the remaining balance is generally due.
What credit score do I need?
At least 640 for most NCHFA programs (660 for manufactured homes). Check your credit before you talk to a participating lender.
Can I use these programs to buy in Cary?
Yes, the statewide NCHFA programs work in Cary if you meet their income and price limits. The Wake County Affordable Homeownership Program, however, excludes homes inside Cary and Raleigh. See our Cary, NC real estate guide and how much house you can afford in Cary.
Ready to Explore NC First-Time Homebuyer Programs?
Program rules, income limits, and funding change, sometimes mid-year, so treat this as a starting point and confirm the details with a participating lender before you make an offer. The right mix of NC first-time homebuyer programs can turn “someday” into a realistic plan. If you’d like help finding homes that fit both your budget and your program’s rules, here’s how to choose the right Cary real estate broker, or reach out to First Flight Realty and we’ll walk you through it.
