The Low-Down on Down Payments:
Financing Programs for Triangle First-Time Buyers

Kevin J Darby, Realtor®, eXp Realty in Triangle Region of NC

Making the leap into homeownership can be daunting, especially when it comes to making a down payment. For first-time buyers in the Triangle, understanding your options is crucial. Let’s break down what you need to know about down payments and highlight financing programs that can help ease the burden.

Understanding Down Payments
Typically, a down payment is a percentage of the home’s purchase price... It represents your initial equity in the property and can vary widely depending on the loan type and lender requirements.

The Standard 20% Myth
It's commonly believed you need 20% down to buy a home... However, many programs allow first-time buyers to put down much less, sometimes as low as 3%.

Government-Backed Loan Options
FHA loans, backed by the Federal Housing Administration, are popular among first-time buyers... They require lower down payments and are more forgiving of lower credit scores.

USDA Loans for Rural Areas
If you're looking in rural parts of the Triangle, USDA loans offer zero-down financing... These loans are designed to promote homeownership in less densely populated areas.

NC Home Advantage Mortgage™
North Carolina offers the NC Home Advantage Mortgage™ program... It provides competitive rates and down payment assistance up to 5% of the loan amount for qualified first-time and move-up buyers.

First-Time Home Buyer Programs
Look for local programs tailored to first-time buyers... Many offer financial assistance or grants to help cover down payment costs, making homeownership more attainable.

Good Neighbor Next Door Program
If you’re a teacher, firefighter, law enforcement officer, or emergency medical technician... This HUD program offers substantial discounts on homes in revitalization areas.

Credit Union Advantages
Local credit unions may provide favorable terms for their members... They often have unique products aimed at helping first-time buyers finance their homes with lower down payments.

Home Buyer Classes
Taking advantage of homebuyer education classes can prepare you for ownership... Some programs even offer financial perks upon completion.

When it comes to down payments and purchasing your first home in the Triangle, knowledge truly is power. By researching these financing programs and taking advantage of available resources, you can set yourself up for a smoother and more affordable home buying process. Keep an eye on our blog for further updates on navigating the real estate landscape and achieving your homeownership goals.
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Additional Resources

1. North Carolina First-Time Home Buyer Programs of 2023: NerdWallet provides an overview of loan programs and down payment assistance available to first-time and repeat home buyers in North Carolina​​.
   https://www.nerdwallet.com/article/mortgages/north-carolina-first-time-home-buyer-programs#:~:text=%23%20%E3%80%900%E2%80%A0North%20Carolina%20First,The%20North

2. North Carolina First-Time Home Buyer | Programs & Grants: This resource from The Mortgage Reports details the programs and grants offered by the North Carolina Housing Finance Agency (NCHFA), including advice on using a housing counselor approved by the US Department of Housing and Urban Development​​.
   https://themortgagereports.com/80073/nc-first-time-home-buyer-programs-grants

3. North Carolina's First-Time Homebuyer Assistance Programs: Realtor.com discusses the North Carolina Home Advantage Mortgage, which offers a 30-year fixed-rate mortgage to qualified first-time homebuyers and current homeowners looking to move​​.
   https://www.realtor.com/advice/finance/north-carolinas-first-time-homebuyer-assistance-programs/#:~:text=%23%20%E3%80%902%E2%80%A0North%20Carolina%27s%20First,The%20loans%20can%20be

4. Market Trends in Triangle MLS: Triangle MLS provides statistical reports on the residential housing market in the Triangle region, covering local market trends and updates for Durham, Orange, Johnston, and Wake counties​​.
   https://www.trianglemls.com/tmls/market-trends/?link=MarketTrends#:~:text=Triangle%20MLS%20provides%20statistical%20reports,Durham%2C%20Orange%2C%20Johnston%2C%20and%20Wake