Buying your first home in Raleigh can feel out of reach when the down payment and closing costs stack up. If you are feeling stuck, you are not alone. The good news is that several first-time buyer programs can lower your upfront costs and make ownership possible sooner. In this guide, you will learn how the major programs in Wake County work, who typically qualifies, what benefits to expect, and the steps to get started. Let’s dive in.
First-time buyer basics in Wake County
Before you look at programs, it helps to know how eligibility usually works. Many programs use the same core rules, even if details differ.
- First-time buyer definition: Often means you have not owned a principal residence in the past 3 years. Some exceptions may apply for veterans or buyers in targeted areas.
- Income limits: Most programs tie eligibility to area median income by household size. Limits vary and are updated annually.
- Purchase price caps: Some programs set maximum purchase prices or loan amounts by county or metro area.
- Primary residence only: Assistance is intended for homes you will live in, not second homes or investment properties.
- Occupancy rules: You usually must move in within a set time and live in the home for a minimum period to avoid repayment or recapture.
- Property types: Single-family homes, many condos, and some modular homes are common. Manufactured homes may have special rules.
- Credit and underwriting: Minimum credit scores and debt-to-income limits depend on the first mortgage type. Requirements differ for conventional, FHA, VA, and USDA loans.
- Education: Many programs require a HUD-approved homebuyer education course or counseling before closing.
The four program types you will see
Statewide NCHFA programs
The North Carolina Housing Finance Agency is a primary source of down payment and closing cost help for Wake County buyers. You will often see:
- Home Advantage Mortgage, a fixed-rate first mortgage for moderate-income buyers.
- Down payment assistance paired with an NCHFA first mortgage. This is commonly a deferred second mortgage with 0 percent interest that is forgiven over time or repaid when you sell or refinance, depending on terms.
- A Mortgage Credit Certificate through participating lenders in some areas. An MCC gives you a federal tax credit for a percentage of the mortgage interest you pay each year, which can improve monthly affordability.
Why it matters: Many Raleigh-area lenders participate, which makes NCHFA one of the most common pathways to assistance here.
Federal mortgage options
Federal loan programs are not grants, but they reduce the down payment you need and can be combined with assistance in many cases.
- FHA loans: 3.5 percent down for many buyers, with the option to layer certain down payment assistance.
- VA loans: 0 percent down for eligible veterans and qualifying spouses, with no monthly mortgage insurance.
- USDA Rural Development loans: 100 percent financing for eligible properties in approved rural areas. Some parts of Wake County’s outskirts may qualify.
These loans have their own underwriting rules and property standards. A participating lender can advise you on pairing them with assistance.
Local city and county programs, plus nonprofits
The City of Raleigh and Wake County may offer homebuyer assistance funded by HOME or CDBG programs. These are usually designed for low to moderate incomes and may include:
- Down payment or closing cost grants or deferred loans.
- Required homebuyer education.
- Resale or income restrictions for assisted properties.
Nonprofits, including regional Habitat for Humanity affiliates and community land trusts, also support ownership through affordable models with different eligibility requirements.
Lender and employer assistance
Some local lenders offer access to national or state down payment assistance options. A few employers provide homebuyer benefits as part of relocation or retention programs. Terms vary, so confirm details directly with the provider.
How much help can you expect?
Benefit amounts change over time, but the ranges below are typical for Wake County.
- Percentage-based help: Many programs offer about 2 to 5 percent of the purchase price for down payment and closing costs.
- Fixed-dollar assistance: Local grants often range from about $5,000 to $20,000 depending on the program and your income.
- Deferred second mortgage: Commonly 0 percent interest with forgiveness over time or repayment at sale or refinance.
- Mortgage Credit Certificate: Often credits 20 to 30 percent of your annual mortgage interest against your federal tax liability, within program limits. This is not cash at closing, but it can lower your after-tax housing cost each year.
How assistance affects closing: You can use funds to cover your minimum down payment and part of your closing costs. If assistance does not cover everything, you bring the remainder or use permissible financing strategies allowed by your loan type. If you put less than 20 percent down on a conventional loan, expect private mortgage insurance until you meet the equity threshold.
Illustrative scenarios for Raleigh buyers
These are examples to help you visualize how assistance can work. Amounts and terms are illustrative only.
Example A: Moderate-price Raleigh condo
- Purchase price: $350,000
- Assistance: 3 percent of price, or $10,500 as a deferred second mortgage
- Buyer cash to close: You may still cover prepaids, inspections, and any remaining closing costs, often several thousand dollars depending on the loan
- Result: Your required down payment is covered or reduced, and your first-mortgage amount is lower by the assistance amount
Example B: Single-family home with a grant
- Purchase price: $425,000
- Grant: $15,000, with no repayment if you meet program terms
- Buyer contribution: $10,000 toward closing costs and prepaids
- Result: You meet down payment rules, reduce out-of-pocket costs, and keep some cash in reserve for move-in needs
Example C: Veteran using a VA loan
- Purchase price: $375,000
- VA loan: 0 percent down with no monthly mortgage insurance
- Layered help: Some local assistance can be used for closing costs if allowed by program rules
- Result: Depending on closing costs and any seller concessions, you may need little to no cash upfront
Step-by-step plan to use assistance in Raleigh
Use this checklist to keep your process smooth and on time.
- Confirm eligibility ranges
- Check income and purchase price limits, first-time buyer definitions, and property rules with the relevant program administrators.
- Complete homebuyer education
- If your program requires it, finish a HUD-approved course early to avoid delays.
- Contact participating lenders
- Ask about NCHFA options, Mortgage Credit Certificates, and any local grants they can pair with your first mortgage.
- Get pre-approved
- Share pay stubs, W-2s, bank statements, IDs, and tax returns so your lender can specify the loan type and assistance you can use.
- Work with an agent who knows DPA
- An experienced local agent helps you target properties that meet price and program rules, and negotiate timing and seller credits where appropriate.
- Verify property eligibility
- Condo approvals, USDA maps, and housing type rules can affect your options. Confirm before you go under contract.
- Submit program paperwork early
- Turn in applications and documents as soon as possible to fit within a typical 30 to 60 day closing window.
- Keep your records
- After closing, save all program documents and understand any occupancy or resale conditions.
Key caveats to keep in mind
- Availability changes: Program rules, income limits, and dollar amounts can change each year. Always verify current details.
- Not everyone qualifies: Income and purchase price limits can exclude some buyers, especially at higher price points.
- Layering rules: You cannot combine every program. Your lender and program administrator must approve any combination.
- Repayment triggers: Some assistance is forgiven over time. Selling or refinancing early can trigger repayment.
- Total monthly cost: Assistance reduces upfront cash, but your monthly payment can still include mortgage insurance or other costs based on your loan type.
How a local agent helps you win
The right agent saves you time and stress by aligning your home search with program rules from day one. You get help identifying properties that fit purchase price caps and property standards, coordinating lender and counseling timelines, and negotiating credits that reduce cash to close when possible. You also get a clear roadmap from pre-approval to keys, which keeps your closing on track.
If you want a smooth, well-coordinated first purchase in Raleigh or the surrounding Wake County communities, connect with a team that understands the process, communicates clearly, and knows how to navigate assistance without surprises. When you are ready, reach out to Jami Amidon for local guidance and a stress-less plan from search to closing.
FAQs
What is a first-time buyer in Wake County programs?
- Many programs define first-time buyer as someone who has not owned a principal residence in the last 3 years, with some exceptions for veterans or targeted areas.
How do North Carolina Housing Finance Agency options work?
- NCHFA assistance often pairs with a fixed-rate first mortgage and is delivered as a deferred second mortgage or similar, with possible forgiveness or repayment at sale or refinance depending on the terms.
Can I combine down payment assistance with FHA, VA, or USDA loans?
- Often yes, but it depends on specific program rules and lender approval. Some combinations are allowed while others are not.
How much down payment help can I get in Raleigh?
- Typical ranges include 2 to 5 percent of the purchase price or fixed-dollar aid around $5,000 to $20,000, though amounts and limits vary by program.
Do I have to pay back the assistance I receive?
- Grants are generally not repaid if you meet program terms. Deferred second mortgages may be forgiven over time or become due at sale or refinance.
Will using assistance increase my monthly payment?
- If your assistance is deferred without monthly payments, it may not change your monthly cost directly, but a smaller down payment can mean mortgage insurance on conventional loans.
How long does it take to close with assistance in Wake County?
- Many buyers close in 30 to 60 days once under contract. Education, local approvals, and paperwork can add time, so start early.
