Release No. 052815-9
Press Contact Only:
Connie Helmlinger, NCHFA, 919-877-5607 [email protected]
Brian Rapp, NCHFA, 919-877-5655 [email protected]
For North Carolinians aspiring to own a home of their own, this June’s National Homeownership Month offers a unique window of opportunity.
New housing starts, despite an up-and down-market in recent months, are at their highest levels since the beginning of the Great Recession in 2008 while interest rates remain near all-time lows. Even better, North Carolina has resources to make home ownership attainable for moderate- and lower-income buyers.
But market conditions are already beginning to shift. A shortage of existing homes for sale has sparked a rise in median home prices to levels not seen since 2006, according to the National Association of Realtors. Interest rates are also expected to begin to inch up sometime late this year or next.
These important trends – coupled with great mortgage and down payment resources – make the next few months an exceptionally good time to buy a home in North Carolina for people who are ready – financially and mentally – to take the big step.
The North Carolina Housing Finance Agency’s NC Home Advantage Mortgage™ paves an affordable route to home ownership for moderate- and lower-income buyers with down payment help, up to 5 percent of the loan, and a 30-year, fixed-rate mortgage.
The down payment assistance is a zero-interest deferred loan that is forgivable if the homeowner keeps the home for 15 years. It is available for first-time and move-up buyers with incomes up to $85,000 and reduces their up-front costs and monthly payments.
First-time buyers (defined as those who have not owned a home for the past three years) and veterans can also qualify for a Mortgage Credit Certificate (MCC) that reduces their federal income tax liability, providing additional take-home pay for the monthly mortgage bill.
Qualifying buyers will be able to claim up to 50 percent of the interest for a new home (never occupied) – up to $2,000 for every year lived in the home – as a tax credit on their federal income taxes. Buyers must meet certain income limits (ranging from $60,000 to $85,000, depending on county and size of family) and can only use an MCC for homes valued up to $240,000.
MCCs can be combined with the NC Home Advantage Mortgage™ – increasing the savings on a new home – as well as with any other qualifying lender mortgage program, including some adjustable rate mortgages.
For a list of lenders offering the NC Home Advantage Mortgage™ and income limits by county, go to http://www.nchfa.com/home-buyers/find-lender.
For more information about the NC Home Advantage Mortgage™, click here or call 866-257-6397.
The NC Housing Finance Agency, a self-supporting public agency, has financed more than 231,000 affordable homes and apartments statewide since its creation in 1973. Learn more about the NC Housing Finance Agency at www.nchfa.com.
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Reporters/editors: Agency spokespeople are available to discuss details about the Home Advantage Mortgage™. Please contact Brian Rapp or Connie Helmlinger at the numbers or email addresses listed above to arrange interviews or obtain additional information.
