A first-time home buyer is one who has not owned a home as a primary residence within three years of closing on the home they wish to buy now. That means that they may still own other property (a previous residence they have been unable to sell, for example) as long as they have not lived in it within the last three years. Military veterans are also considered first-time home buyers.

The NC Home Advantage Mortgage™, with or without down payment assistance is available to both first-time and repeat buyers. 

Yes. Military veterans have a one-time exemption from the requirement, and borrowers who own a mobile home that is not on a permanent foundation are also eligible. In addition, borrowers purchasing in a Targeted Census Tract do not have to be first-time buyers. All borrowers must still meet other eligibility requirements.

That depends on the loan type and seller contribution. The NC Home Advantage Mortgage™ offers up to 3% down payment help for conventional, FHA, VA and USDA financing.  Our maximum Loan-to-Value conventional loan is 97%, so with DPA of 3% of the loan amount, your borrower would need very little of their own money.  On a sales price of $100,000, they would need about $90, which can come from their own funds, a gift, or another DPA source. In addition, the seller is allowed to contribute the maximum the loan program will allow. In the case of a 97% conventional, that amount is 3% of the sales price to put toward closing expenses.  There is no minimum contribution required by the borrower when using the NC Home Advantage Mortgage™.

No, if new construction, the contract price should include the construction cost, excluding the value of any labor form the borrower and/or the borrower’s family, plus the value of the land. The appraised value of the land should be used if the land was a gift.  If the land has been owned by the borrower for more than two years before construction begins, the cost of the land is not included.  If the land has been owned for less than two years, include the actual cost of the land to calculate acquisition cost.