Buying your first home in Raleigh can feel exciting and a little overwhelming, especially when you start comparing down payment help and loan options. You might be wondering which programs you qualify for, how they actually work, and who can guide you through the process. This guide breaks down the major first-time buyer programs available in Raleigh and Wake County, what to expect for eligibility, a realistic timeline, and the documents you’ll need to move forward. You’ll also find trusted local links to verify details and take your next step with confidence. Let’s dive in.
What first-time buyer programs are in Raleigh?
Statewide help through NCHFA
The North Carolina Housing Finance Agency (NCHFA) is the main statewide resource for affordable first mortgages, down payment assistance, and the Mortgage Credit Certificate (MCC). Programs typically include a 30-year fixed-rate first mortgage paired with assistance that can reduce your cash to close, plus buyer education. Most products set county-level income and purchase price limits and require you to occupy the home as your primary residence. Learn more and verify current limits directly with the North Carolina Housing Finance Agency.
The MCC is a separate NCHFA tool that can reduce your federal income tax liability by letting you claim a percentage of your mortgage interest as a tax credit. It has specific income, price, and occupancy rules and is often used alongside an eligible first mortgage.
Federal loan options that pair with assistance
Many buyers use a federal-backed loan and layer assistance when allowed by program rules. Here are the most common options:
- FHA loans: Backed by the Federal Housing Administration. FHA commonly allows a low down payment for buyers who meet HUD credit guidelines, along with upfront and annual mortgage insurance. See FHA basics from the U.S. Department of Housing and Urban Development.
- VA loans: Available to eligible service members, veterans, and certain surviving spouses. VA financing typically allows 0 percent down and no private mortgage insurance, though a funding fee usually applies. Explore eligibility and the Certificate of Eligibility on the U.S. Department of Veterans Affairs.
- USDA loans: Offer 100 percent financing for eligible rural properties and income-qualified buyers in approved areas, with a guarantee fee and annual fee in place of traditional PMI. Check property and income eligibility on USDA Rural Development.
Ask your lender whether your chosen assistance program can be combined with the FHA, VA, or USDA loan you plan to use, since rules vary.
City of Raleigh and Wake County programs
The City of Raleigh and Wake County periodically list local homeownership or down payment programs on their housing pages. These options can change, may be limited to properties inside city limits, and sometimes layer with NCHFA or lender-based assistance. Start with the City’s Office of Housing and Neighborhoods at the City of Raleigh and the housing pages on Wake County to see current offerings.
Nonprofit and lender-based assistance
Nonprofits and some local lenders provide targeted down payment help, education, or soft-second loans. Many programs require you to complete homebuyer education with a HUD-approved agency, which can also help you compare your options and budget. You can learn more about counseling and education through HUD’s resources and then confirm the classes accepted by your chosen program.
Who qualifies and what to expect
First-time buyer definition
Most programs define a first-time buyer as someone who has not owned a primary residence in the last three years. Some exceptions exist, including certain veterans, buyers in targeted areas, or displaced homemakers. If you are relocating to Raleigh and have not owned recently, you may still qualify.
Income limits and AMI
State and local programs commonly use Area Median Income (AMI) thresholds by household size to decide who qualifies. Limits vary by county and program and change periodically. Wake County buyers should verify current tables on the relevant program’s website before applying.
Purchase price and property rules
Many programs set maximum purchase prices by county and sometimes by property type. Homes must be your primary residence. Investment properties and second homes are typically ineligible. Some products restrict property types, such as certain condominiums or manufactured homes, so check eligibility early.
Credit and underwriting basics
Minimum credit scores and debt-to-income ratios differ by product. FHA tends to be more flexible on credit than conventional loans. VA and USDA follow their own underwriting standards, and individual lenders may add extra requirements. Stable employment history and the ability to document income and assets are standard across programs.
Homebuyer education and occupancy
Most assistance programs require a homebuyer education course or counseling from an approved provider, usually completed before closing. You will also be required to occupy the property as your primary residence within a set time after closing and for a program-defined period to keep any forgivable assistance in good standing.
Comparing loan types for first-time buyers
Conventional loans
- Typical down payment: 3 to 5 percent for some first-time buyer products.
- Mortgage insurance: Private mortgage insurance applies with less than 20 percent down and can be removed when you reach enough equity.
- Good fit: Buyers with stronger credit who want the option to remove PMI later.
FHA loans
- Typical down payment: Commonly 3.5 percent for qualifying credit.
- Mortgage insurance: Upfront and annual mortgage insurance required.
- Good fit: Buyers who need more flexible credit standards.
VA loans
- Typical down payment: Often 0 percent for eligible borrowers.
- Fees: VA funding fee applies in most cases but no PMI.
- Good fit: Eligible service members, veterans, and certain surviving spouses seeking zero-down options.
USDA loans
- Typical down payment: Often 0 percent on eligible rural properties for income-qualified buyers.
- Fees: Guarantee fee upfront and annually instead of PMI.
- Good fit: Buyers who meet income limits and are purchasing in an eligible area.
Down payment assistance and MCC
- DPA can reduce your cash to close and may be a second lien or forgivable loan. Check if your DPA is compatible with your chosen first mortgage.
- The Mortgage Credit Certificate can provide a federal tax credit for a portion of your mortgage interest, which may lower your tax liability if you owe federal income taxes.
Your step-by-step timeline in Wake County
1) Pre-application and education: 1 to 4 weeks
- Take a required homebuyer education class or counseling session if your program needs it. Some courses are available online and can be completed in a few hours.
- Get pre-approved with a lender that participates in your chosen program. If you plan to use NCHFA or a local DPA, confirm your lender is approved for that product.
2) Home search and offer: variable
- Work with your agent to find homes that meet both your goals and your program’s property rules.
- Submit a strong offer with your pre-approval and proof of funds for any required earnest money and due diligence fees.
3) Program approval and underwriting: 2 to 4 plus weeks
- Your lender underwrites your first mortgage while coordinating any DPA or MCC approvals.
- Assistance programs sometimes add extra documentation and a second approval, which can extend timelines by days or weeks.
4) Inspection, appraisal, and contingencies: 1 to 3 weeks
- Schedule inspections quickly and negotiate repairs as needed.
- Your appraisal must meet your loan and program standards to proceed.
5) Closing: typically 30 to 60 days from contract
- Once lender and assistance approvals are complete, you will receive final figures and schedule closing.
- If your DPA is a second lien, the closing attorney will prepare and record the extra documents.
6) After closing
- Move in within the required time and keep any occupancy commitments.
- If you obtained an MCC, follow IRS filing steps each year to claim your credit.
Documents to prepare early
- Government-issued ID and Social Security number.
- Income documents: recent pay stubs, W-2s for two years, 1099s if applicable, and full tax returns if self-employed.
- Asset documents: bank statements for the last 2 to 3 months and statements for retirement or investment accounts.
- Gift funds: a signed gift letter and proof of transfer if someone is helping with your down payment.
- Employment history and employer contact information.
- Credit details: permission to pull credit and explanations for any recent credit events.
- Residence history and student loan documentation if applicable.
- Homebuyer education certificate if your program requires it.
Local resources and links
- Statewide programs and MCC information: North Carolina Housing Finance Agency
- FHA basics and housing counseling resources: U.S. Department of Housing and Urban Development
- VA home loan eligibility and COE: U.S. Department of Veterans Affairs
- USDA property eligibility and income limits: USDA Rural Development
- City-led homeownership initiatives: City of Raleigh
- County housing programs and updates: Wake County
- Mortgage shopping and closing cost guides: Consumer Financial Protection Bureau
How Alluvium Elite Realty can help
You do not have to navigate this alone. Billy Gonzalez and our boutique team offer hands-on guidance tailored to first-time and relocating buyers across Raleigh and Wake County. We help you compare program pathways, confirm eligibility with NCHFA-approved lenders and HUD-approved counselors, and keep your timeline on track from offer to closing.
Prefer Spanish or need bilingual support for your family? Billy provides accessible, bilingual communication so everyone stays informed and comfortable throughout the process. If you want a clear plan and a responsive team that coordinates the moving parts, let’s talk.
Ready to get started or want a quick consult about your options? Reach out to Alluvium Elite Realty for personalized guidance.
FAQs
What is considered a first-time buyer in Raleigh?
- Most programs define first-time as no ownership of a primary residence in the past three years, with limited exceptions like certain veterans or targeted areas.
Can I combine down payment assistance with FHA, VA, or USDA loans?
- Often yes, but it depends on the specific assistance program’s rules and whether it allows pairing with your chosen first mortgage product.
Do income and purchase price limits apply in Wake County?
- Yes, many programs set county-level limits tied to Area Median Income and update them periodically, so verify current tables before applying.
How long does a first-time buyer purchase with assistance take?
- Many transactions close in 30 to 60 days from contract, and adding assistance can add 1 to 3 weeks for extra approvals and documentation.
Do I have to live in the home to keep my assistance?
- Yes, most programs require you to occupy the property as your primary residence for a set period, which helps you maintain any forgivable benefits.
Are condos or manufactured homes eligible for assistance?
- Eligibility varies by program and loan type, and some products have extra requirements for condos or manufactured homes, so confirm property eligibility early.
