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Am I Eligible for a NC Housing Finance Agency Low-Interest Mortgage? You may be eligible if: • You buy a home in North Carolina. • You are a first-time homebuyer, or you have not owned a home as your principal residence during the past 3 years. • Your annual household income doesn’t exceed the county’s allowable maximum income limits. • You are a reasonable credit risk.

What are the Terms of the Loan?
The NC Housing Finance Agency’s fixed rate, 30-year term loans have a below market fixed interest rate and lower private mortgage insurance and closing costs.
• Mortgages can be FHA, VA, USDA or conventional.
• Down-payments are usually 0% to 3% of the sales price. VA, USDA and conventional loans are available at 100% financing.
• NC Housing Finance Agency offers up to $7,000 in down-payment assistance at 0% interest to qualified buyers.
• Buyers who do not use North Carolina Housing Finance Agency down-payment assistance may use gift funds from a family member to pay down-payment and closing costs.
• Closing costs may be paid by either the buyer or the seller.
• The buyer must occupy the home as a primary residence within 60 days of closing.
What Kinds of Property Qualify?
• New and previously-owned detached homes
• Townhouses and Planned Urban Developments
• Condominiums

The maximum allowable sales price is $200,000 for new construction and $190,000 for existing homes.

Do I Qualify for Down-Payment Assistance?
The North Carolina Housing Finance Agency can provide a second mortgage loan for your down-payment and closing costs. You must pay $750 from your own funds. The loan pays all or a substantial part of the balance.

The second mortgage is deferred and interest-free. You repay only the principal amount of the loan. Payment is due 30 years from the date of the loan, or when one of the following occurs: you sell, transfer, or refinance your home; your loan goes into default; or the home ceases to be your principal residence. To qualify, you must be eligible for a NCHFA loan and your income must fall within certain limits, which are lower than the limits for a first mortgage without down-payment assistance. The sales price cannot exceed $190,000, whether you purchase a new or existing home.

What Happens if I Sell My Home?
Assumptions. The new buyers may be able to assume your First Home Mortgage or Mortgage Credit Certificate. Conventional loans, however, are not assumable. In addition, the price limits for existing homes apply for resales. Recapture. No recapture is due if you sell your home after nine years, if your household income does not rise significantly over the life of your loan (generally more than 5% per year), or if you sell your home within nine years but there is no gain. All three of these criteria must be met. The recapture tax will never exceed one-half of the gain on the sale of the home, or 6.25% of the original mortgage, whichever is less. Recapture taxes are figured on a scale based on the number of years you have lived in the house, with sales in fifth year being the most likely to require the tax. For more detailed information go to http://www.nchfa.com/Homebuyers/HBsell.aspx.

Where Can I Get a North Carolina Housing Finance Agency Mortgage?
You can apply for a mortgage at any lending institution that participates in the Agency’s program.

How do I begin?
1. Contact Granite Mortgage to determine the maximum mortgage you can afford.
2. Find a home that suits your needs and that meets the program’s requirements.
3. Get a signed purchase agreement for the home. A real estate agent will help you find a home and negotiate the contract.
4. Apply for the mortgage with Granite Mortgage.
5. Granite Mortgage, and other lenders, customarily charge a fee for an appraisal and credit report when you apply. In qualifying you as a homebuyer, you are required to provide copies of your federal income tax returns for the past three years. Granite Mortgage will also ask for information about your employment, bank and credit card accounts, prior rental accounts, and financial obligations.

This information taken directly from www.nchfa.com.