North Carolina runs one of the most generous state-level down payment assistance programs in the Southeast, with the NC Housing Finance Agency offering $15,000 in forgivable assistance through the NC 1st Home Advantage program. Raleigh layers city-specific programs on top that can provide up to $65,000 in additional assistance for buyers in targeted areas, and Wake County adds its own $50,000 program for buyers in surrounding municipalities. The total available assistance for a first-time buyer in the Raleigh metro can be staggering — if you know where to look and how to stack.
NCHFA State Programs
NC 1st Home Advantage Down Payment
The NC 1st Home Advantage program provides $15,000 as a zero-interest, deferred second mortgage. No monthly payments are required, and the loan forgives on a schedule — 20% annually during years 11 through 15, with the full balance forgiven at the 15-year mark. If you sell or refinance before year 15, the remaining unforgiven balance becomes due.
Eligibility requires first-time homebuyer status (no ownership of a primary residence in the past three years) or military veteran status — veterans are exempt from the first-time buyer requirement. The minimum credit score is 640 (660 for manufactured homes), income limits reach $152,000 as of the 2025 update, and the home must be occupied within 60 days of closing.
The $15,000 flat amount is unusually generous compared to percentage-based programs in other states. On a $300,000 home, $15,000 covers a 5% down payment entirely — more than enough for conventional financing and well above the 3.5% required for FHA.
NC Home Advantage Mortgage
The NC Home Advantage Mortgage pairs a 30-year fixed-rate first mortgage (FHA, VA, USDA, or conventional) with up to 3% of the loan amount in down payment assistance. The assistance comes as a zero-interest, deferred second mortgage with the same forgiveness schedule as the NC 1st Home Advantage — 20% annually during years 11 through 15, fully forgiven at year 15.
Income limits are $152,000, and the maximum purchase price is $495,000 as of the 2025 update. The program is available to both first-time and repeat homebuyers, making it accessible to buyers who already own a home and are looking to move up or relocate within North Carolina.
Community Partners Loan Pool (CPLP)
The Community Partners Loan Pool, administered by DreamKey Partners in collaboration with NCHFA, provides up to 25% of the home’s purchase price — maximum $50,000 — as a zero-interest, deferred second mortgage. This is the most aggressive assistance program at the state level, but eligibility is limited to households with income below 80% of the Area Median Income.
For qualifying buyers in the Raleigh market, CPLP can cover down payment, closing costs, and a significant portion of the purchase price. The program represents a meaningful pathway for lower-income buyers who have been priced out of neighborhoods that were affordable just a few years ago.
Raleigh City Programs
Traditional Homebuyer Assistance
The City of Raleigh’s Traditional Homebuyer Assistance Program provides up to $45,000 as a zero-interest, deferred loan with no monthly payments. The loan is due upon sale or when the home is no longer the buyer’s primary residence. Eligibility requires household income at or below 80% of the Area Median Income, a maximum purchase price of $384,750, and completion of a homeownership class to receive a certificate.
Applications are handled through [email protected], and the homeownership class can be completed through DHIC at 919-832-4345.
Enhanced Homebuyer Assistance
The Enhanced program provides up to $60,000 to $65,000 as a zero-interest, deferred loan for buyers purchasing in targeted areas within Raleigh. The structure mirrors the Traditional program — no monthly payments, due upon sale — but the geographic restriction to targeted areas and the higher maximum purchase price of $450,000 reflect an intentional strategy to support homeownership in neighborhoods undergoing revitalization.
Income requirements are the same 80% AMI threshold, and the homeownership class certificate is required. For eligible buyers, the Enhanced program represents one of the largest city-level down payment assistance packages available in any mid-size Southern city.
Wake County Affordable Home Ownership Program
Wake County provides up to $50,000 in down payment and closing cost assistance for first-time buyers purchasing in specific municipalities: Apex, Fuquay-Varina, Garner, Holly Springs, Knightdale, Morrisville, Rolesville, Wake Forest, Wendell, and Zebulon. The program is administered through the same office as the Raleigh programs — contact [email protected] for application details.
The Wake County program addresses a reality of the Raleigh market: much of the growth and new construction has shifted to surrounding towns, and first-time buyers increasingly find their price range in places like Holly Springs, Fuquay-Varina, and Knightdale rather than Raleigh proper. The $50,000 maximum ensures these suburban buyers have access to meaningful assistance.
Federal Loan Programs in North Carolina
FHA Loans
FHA loans require a minimum 3.5% down payment with a credit score of 580 or above (640 through NCHFA programs). The lower federal minimum allows buyers who don’t meet NCHFA’s 640 threshold to still access FHA financing through traditional lenders, though without the state’s down payment assistance.
VA Loans
VA loans provide zero-down financing for veterans and active-duty military with no mortgage insurance required. Military veterans in North Carolina have a unique advantage: they can access the NC 1st Home Advantage $15,000 without the first-time buyer requirement, combining VA’s zero-down benefit with the state’s $15,000 in forgivable assistance.
USDA Loans
USDA loans offer 100% financing in designated rural and suburban areas. Portions of Wake County’s outer ring and surrounding counties — Johnston, Harnett, Franklin, and Granville — include USDA-eligible areas within commuting distance of Raleigh’s job centers.
Programs for Specific Professions
Teacher Next Door
North Carolina teachers, nurses, law enforcement officers, first responders, government employees, and military members can access up to $9,000 in forgivable down payment assistance through the Teacher Next Door program. The assistance can be combined with state and local programs.
Good Neighbor Next Door (Federal)
The federal Good Neighbor Next Door program offers a 50% discount on the purchase price of HUD-owned homes for teachers, law enforcement officers, firefighters, and EMTs who commit to living in the home for at least three years. Available properties rotate and are listed on the HUD website.
SECU Community Partners Program
The State Employees’ Credit Union Community Partners program provides up to $20,000 in assistance for first responders, healthcare workers, teachers, and veterans. SECU’s extensive North Carolina branch network makes this program particularly accessible for Triangle-area buyers.
How to Apply
NCHFA programs require working with a participating lender from the NCHomeAdvantage.com network. The lender handles the application process and submits to NCHFA on your behalf. Raleigh and Wake County programs are accessed separately through [email protected], and most require completion of a homeownership class before application.
The optimal sequence: complete the homeownership class first (it’s required for multiple programs), then connect with an NCHFA-approved lender who can assess eligibility across state programs, and simultaneously contact the Raleigh/Wake County office to determine local program availability.
Stacking for Maximum Benefit
The Raleigh market allows aggressive program stacking. A first-time buyer purchasing in a Raleigh targeted area could potentially combine NC 1st Home Advantage ($15,000), the Enhanced Homebuyer Assistance (up to $65,000), and Teacher Next Door grants ($9,000) — totaling nearly $90,000 in assistance on a single home purchase. Even the more common stack of NC 1st Home Advantage plus the Traditional program provides $60,000 in combined assistance.
The income thresholds create a natural segmentation: buyers earning above 80% AMI but below $152,000 access the state programs, while buyers below 80% AMI can layer state and local programs together. Working with a lender who understands both the NCHFA and Raleigh/Wake County systems is essential for maximizing the total package.
For more on the Raleigh housing market, explore our housing market update and how much house you can afford in Raleigh guide.