The most common thing first-time buyers tell us is that they assumed they couldn’t afford to buy yet. Very often, that’s because they didn’t know how much help is available.
Between statewide programs and local assistance, a first-time buyer in Durham or Orange County may be able to get thousands of dollars toward a down payment, and in some cases much more. Some of that help is forgivable, meaning you never pay it back if you stay in the home long enough.
Here’s a plain-English rundown of the main programs, who qualifies, and how to actually use them.
First, What Counts as a “First-Time Buyer”?
You may qualify even if you’ve owned a home before. Most programs define a first-time buyer as someone who hasn’t owned a primary residence in the past three years. Several statewide programs also open eligibility to military veterans, whether or not they’ve owned before.
So if you sold a home five years ago and have been renting since, you’re likely a first-time buyer for program purposes.
Statewide Programs: NC Housing Finance Agency
The NC Housing Finance Agency (NCHFA) offers the programs most buyers in our area use. You don’t apply to NCHFA directly. You apply through a participating lender, usually at the pre-approval stage, so it’s important to ask about these programs up front.
NC 1st Home Advantage Down Payment
This is the one we get asked about most.
- Amount: $15,000 toward your down payment
- Terms: A second mortgage at 0% interest, with no monthly payments
- Forgiveness: If you stay in the home, the loan is forgiven gradually. You owe the full amount if you sell or move out in the first 10 years. In years 11 through 15, 20% is forgiven each year. After year 15, the balance is gone.
- Who qualifies: First-time buyers (no home owned in the last three years) and military veterans
- Credit: Minimum score of 640
- Loan type: Must be paired with a 30-year fixed mortgage (FHA, VA, USDA, or conventional)
- Price limit: Generally around $495,000
- Income limits: Vary by county and household size
That price limit is worth noting. In Durham County, where monthly median sale prices have been running in the low $400,000s, the cap leaves room for a lot of homes. In Orange County, where medians are higher, you’ll likely be looking at townhomes, condos, or homes in Hillsborough and the northern part of the county.
NC Home Advantage Mortgage
This program provides up to 3% of the loan amount in down payment assistance. Unlike the $15,000 program, it isn’t limited to first-time buyers, so it’s an option for repeat buyers too. Credit score minimums and income limits apply.
NC Home Advantage Tax Credit
This is a Mortgage Credit Certificate, and it works differently from down payment help. Instead of money at closing, it gives you a federal tax credit worth 30% to 50% of your annual mortgage interest, up to $2,000 a year, for as long as you live in the home and keep the loan.
Over the life of a mortgage, that can add up to a significant amount. One important catch: you have to apply before closing. You can’t add it later.
Community Partners Loan Pool
For low- to moderate-income households, this program can provide subordinate financing of up to 25% of the sales price, capped at $50,000. It runs through local nonprofit housing partners, so availability depends on which organizations are active in your area at the time.
Durham: City of Durham Down Payment Assistance
If you’re buying inside Durham city limits, this program is a big one.
- Amount: Up to $80,000 per eligible buyer
- Income limit: At or below 80% of area median income. For 2026, that’s $71,200 for a one-person household, $91,550 for a household of three, and $101,700 for a household of four.
- Eligibility: You can’t have owned a home in the last three years, and the home must be your primary residence
- Location: The home must be inside Durham city limits. Homes in the county outside city limits don’t qualify.
- How to apply: Through one of the City’s approved participating lenders
- Funding: First-come, first-served until the program’s $3.2 million fund runs out
That last point matters. When funds run low, the program can pause until the next funding cycle. If you think you might qualify, talk to an approved lender sooner rather than later.
Orange County: Affordable Homeownership Options
Orange County’s programs look a little different. There’s less in the way of large cash grants and more focus on permanently affordable homes.
Community Home Trust is the main affordable homeownership organization serving Chapel Hill, Carrboro, and Hillsborough. It sells homes at below-market prices to income-qualified buyers. In exchange, the home stays affordable for the next buyer when you sell, and your share of appreciation is limited. It’s not the right fit for everyone, but for many local workers, it’s the most realistic path to owning in Chapel Hill or Carrboro.
Town of Chapel Hill employees may qualify for a grant through the Town’s Employee Housing Program: up to $12,500 for a home inside town limits, or up to $7,500 for a home within five miles. The program has an income limit of 115% of area median income and requires homebuyer counseling.
Habitat for Humanity of Orange County also builds and sells homes to qualifying buyers who partner with them through their program.
If you work for a large local employer, it’s also worth asking HR whether they offer any homebuying assistance. Some do, and it’s easy to miss.
Can You Combine Programs?
Sometimes. Statewide NCHFA programs and local assistance like the City of Durham’s can occasionally be layered together, but it depends on the specific programs, your lender, and your income. Lenders who regularly work with these programs will know what can be stacked and how.
A few tips from experience:
- Choose a lender who knows these programs well. Not every lender participates, and some participate but rarely use them. Ask how many assistance loans they closed last year.
- Expect homebuyer education. Many programs require a short homebuyer education course. It’s usually online and worth doing anyway.
- Build in a little extra time. Assistance programs can add paperwork. A slightly longer closing timeline, often around 45 days instead of 30, keeps everyone comfortable.
- Write a clean offer anyway. Sellers don’t need to know how you’re funding your down payment, and a well-prepared buyer with assistance can compete with anyone.
What If You Don’t Qualify?
If your income is above the limits or the home you want is above the price cap, you still have options:
- Low down payment loans. FHA loans allow as little as 3.5% down, and some conventional loans allow 3% down.
- Seller-paid closing costs. In today’s market, with more inventory and longer days on market, sellers are often open to helping with closing costs.
- Looking a little farther out. Hillsborough, Mebane, and Burlington can stretch a budget meaningfully compared to Durham or Chapel Hill. Our guide for buyers who feel priced out of Durham or Chapel Hill walks through those options.
Start With the Ultimate Guide to Buying a Home
If you’re buying for the first time, our free Ultimate Guide to Buying a Home walks through the full process, from getting pre-approved to closing day, in one place.
And if you’d like help figuring out which programs you might qualify for, reach out. We work with first-time buyers all the time, and we can connect you with lenders who know these programs inside and out.
Brooks
