Mortgage in North Carolina
North Carolina has recently seen a surge of interest, thanks to its relatively high quality of life and low living cost. Indeed, the state's population growth has outpaced that of the nation and the rest of the South . Naturally, this has pushed housing costs up. The median sales price in Charlotte, for example, is above $285,000 . If you're looking to move to this beautiful state, use our North Carolina mortgage calculator to make sure a move will work for your budget!
North Carolina Mortgage Calculator: NC Residents Typically Have One of Three Mortgages
If you're considering a move to North Carolina, there are typically three mortgage types that residents can have.
- North Carolina conventional mortgage: While property prices are on the rise in North Carolina, many homes will fall under the conforming limits (about $585,000 in most places). The minimum requirements for that loan type are 3% down and a credit score of 620. However, most banks like to see both a higher score and a higher down payment.
- North Carolina FHA mortgage: FHA loans are possible in some parts of North Carolina. If you can get one, these mortgages require as little as 3.5% down and a credit score of 580+.
- North Carolina VA mortgage: Does the prospect of a 0% down loan with no private mortgage insurance sound appealing to you? If so, a VA loan is the best option for you! The VA makes these loans available to veterans and current service members of the military.
Except for a VA mortgage, all the above options require a down payment. Fortunately, the state of North Carolina has some opportunities for first-time homebuyers here!
First-Time Homebuyers in North Carolina
The North Carolina Housing Finance Agency is responsible for administering the programs that help first-time homebuyers. They have three programs that you should know.
This program offers a fixed-rate mortgage with down payment assistance of up to 5% of the loan's amount.
Eligibility Criteria: Income and purchase price limitations apply. You must have a credit score exceeding 640 and occupy the home as your primary residence within 60 days of closing.
The second program offered by the NCHFA is a standalone down payment assistance loan of up to $8,000. The state will forgive the entirety of the loan after 15 years.
Eligibility Criteria: Purchase price and income limitations apply. You must intend to live in the home as your primary residence, and you must have a credit score exceeding 640.
This tax credit allows eligible homeowners to claim 30% of the interest they pay on their homes as a non-refundable tax credit. The maximum amount that you can claim per year is $2,000.
Eligibility Criteria: You must apply and receive approval for this before you purchase your home. Income and purchase price limitations apply.
North Carolina Mortgage Calculator: How Much Will a Home Cost You?
With our intuitive North Carolina mortgage calculator, you can see how much a home will cost you before you move. Use realistic estimates so that way, you'll have no surprises!