Wednesday, March 14, 2018 / by Admin Prostead
Saving enough money for a down payment and closing costs is a common challenge for first-time home buyers. Fortunately for Charlotte-area residents, there are many home buyer assistance programs available. These assistance programs are available from both state and local agencies.
Thanks to Derek Dawson, owner of Dawson Property Management, for sharing this list of programs and what is required:
NC Home Advantage Mortgage Program
If you are qualified for this program, you can receive up to 5% of the amount you qualify for. You can use the funds towards the down payment and closing costs.
Benefits of the NC Home Advantage Mortgage Program
· It has a generous debt to income ratio (DTI). The maximum allowable DTI is 41%. This allows home buyers to borrow more than other programs.
· Works with FHA loans, which offer more flexible qualifying terms than conventional lending.
· Your credit score must be 640 or higher
· Be a legal resident of the United States
· Apply for a government-insured loan like VA, USDA or FHA loan through a participating lender, or a conventional loan, and meet the sales price limits of the loan type
· Your annual gross income cannot exceed $87,500
· Be a first-time or move-up buyer
· Purchase a new or existing home in North Carolina
If you meet these requirements, you can apply for funding for duplexes, condominiums, townhouses, and new- and previously owned single family homes.
HouseCharlotte is another Charlotte down-payment-assistance program. It provides qualified first-time home buyers the financial assistance to purchase a home within the city or in designated Neighborhood Profile Areas (NPAs).
The City of Charlotte and the Charlotte-Mecklenburg sponsor and administer the program.
· Individuals or families with a combined income between 80% and 110% of their Area Medium Income for their household size could qualify for $5,000 in assistance if they are buying a home in a designated Neighborhoods Profile Areas (NPAs).
· Individuals or families with a combined household income of 80% of the AMI for the household size and work as a public service employee could qualify for up to $10,000 in assistance. Qualifying employees include: Mecklenburg County Medical, CATS (Charlotte Transit System), Charlotte-Mecklenburg County Sheriff Department, Charlotte-Mecklenburg Schools and the City of Charlotte.
· Individuals or families with a combined household income of 80% of the Area Median Income or below for their household size could qualify for up to $8,500 in assistance if they purchase a home within Charlotte city limits.
$15,000 Down Payment Assistance Program
If you are in the market to purchase a home in Mecklenburg, Johnston, Guilford, Cumberland or counties, you could get up to $15,000 of free money to help you with your down payment and closing costs when purchasing a home.
· The maximum home purchase price with this program is $245,000.
· Your credit score needs to be at least 640.
· Get pre-approved for a mortgage by a participating lender.
House Concord Program
The City of Concord’s Business and Neighborhood Services Division offers several housing programs, including the House Concord Program, where you can receive a loan of up to $5,000 to use for your down payment and closing costs when purchasing a home
· Have an annual income that doesn’t exceed 80% of the median income for the Concord area.
· Be a first-time home buyer.
HomePath Program and Homes for Sale
For home buyers interested in purchasing a Fannie Mae REO, HomePath bundles many incentives. To take advantage of the program, home buyers must purchase a Fannie Mae foreclosure and occupy the property as their primary residence for a period of at least one year.
If you qualify, HomePath offers to contribute to a home buyer’s closing costs up to 3.5% of the purchase price.
HUD Home Program $100 Down Program
If you’ve been searching through Charlotte-area real estate, chances are you’ve come across a listing for a HUD home. The condition of HUD homes in the Charlotte area varies. Some are in move-in condition while others aren’t.
· Your credit score must be higher than 580.
· Pre-qualify for financing through an approved lender
Good Neighbor Next Door Program
The Good Neighbor Next Door program is sponsored by the U.S. Department of Housing and Urban Development. With this program, emergency medical technicians, pre-kindergarten through 12th-grade teachers, firefighters and full-time law enforcement officers can become homeowners.
All properties through the GNND program are sold “as is,” since HUD doesn’t make repairs. In making an offer on a qualifying property, a home buyer must agree to the listing price. For example, if a home is listed for $130,000, you must make an offer for the same price. The GNND will then give you the appropriate discount, which might bring the actual purchase price to as low as $70,000.
Neighborhood Stabilization Program
With the Neighborhood Stabilization Program, you can get as much as $14,900 if you are a first-time home buyer. The program is part of the Housing and Economic Recovery Act of 2008. The monetary assistance comes in form of a five-year deferred loan with zero interest.
· Only townhomes, condominiums, and single-family homes qualify.
· Homes must be foreclosed properties.
· Sales price cannot exceed $210,000.
· You must contribute $1,000 of your own funds.
If you don’t have enough money saved to pay for a large down payment and closing costs but you want to purchase a home in the greater Charlotte real estate market, a down payment assistance program might just be what you need to make your house ownership dream come true. Charlotte is an amazing place to live, with the help of one of these programs you can be on your way to owning your dream home in no time!
Ready to buy? Contact Scott Peters at Movement Mortgage today to see if you qualify for any of these programs!
This article was contributed by Derek Dawson, owner of Dawson Property Management. Dawson Property Management provides property management services in Charlotte and surrounding areas.