The $15,000 Question: Is NC's Down Payment Assistance Right for You?

For many first-time buyers in Southeastern North Carolina, the monthly mortgage payment isn't the hurdle—it's the cash to close. Enter the NC 1st Home Advantage Down Payment program. In 2026, this state-backed initiative is offering $15,000 in down payment assistance, which sounds like a dream come true. But in the fast-moving markets of Wilmington, Leland, and Hampstead, "free money" always comes with fine print.

If you are currently renting in New Hanover or Onslow County and looking to buy, here is the deep dive into whether this program is your golden ticket or a golden handcuff.

The "What": It’s Not a Gift, It’s a Silent Loan

The program offers $15,000 in assistance that can be used for your down payment and closing costs.

• The Good News: It is a 0% interest, deferred second mortgage. You do not make monthly payments on this $15,000.
• The Structure: The loan sits silently in the background. It is fully forgiven strictly after Year 15.
• The Forgiveness Schedule: Nothing is forgiven for the first 10 years. Starting in Years 11–15, the loan is forgiven at 20% per year.

The "Who": strict Eligibility Gates

To qualify for the $15k boost, you must clear specific hurdles. This isn't just for anyone with a Zillow habit.

• First-Time Status: You must be a first-time buyer, a military veteran, or buying in a targeted census tract. "First-time" is defined as not having owned a principal residence in the last three years.
• Credit Score: A minimum middle credit score of 640 is required (660 for manufactured homes).
• Income Limits: This is where many Wilmington professionals get capped. In New Hanover County, income limits for 2025/2026 hover around the $114,000 mark (depending on household size). If you have a dual-income household earning $130k, you likely won't qualify for the full $15k product, though other "3% assistance" options might still apply.

The "Where": The Price Limit Reality Check

Here is the hardest reality for New Hanover County buyers. The program comes with strict Sales Price Limits—often capped near $340,000 (verify current county-specific charts as they update annually).

In 2026, finding a move-in ready single-family home in Wilmington (28403 or 28409) under $340k is extremely difficult. This effectively pushes many program recipients toward:

• Leland & Brunswick County: Where new construction in the low $300s is still viable.
• Townhomes: A smart play for staying in Wilmington proper while staying under the price cap.
• Fixer-Uppers: Older inventory in North Wilmington that needs work (but requires cash reserves for repairs).

The "Catch": The 15-Year Commitment

This program is designed for retention. If you sell, refinance, or move out (turning the home into a rental) before Year 15, you must repay the unforgiven portion of the $15,000.

Strategic Warning for Military Buyers: If you are stationed at Camp Lejeune or near Wilmington but expect to PCS in 3 years, this loan will likely come due when you sell. You need to calculate if the $15k upfront is worth the repayment hassle later.

Partner with Aspyre Realty Group

Navigating the intersection of "Income Limits" and "Sales Price Limits" requires a precision strategy. You don't want to fall in love with a house in Porters Neck only to find out it disqualifies your down payment funding. At Aspyre Realty Group, we work directly with preferred local lenders who specialize in NC Housing Finance Agency products. We help you find the homes that fit both your lifestyle and the strict program guidelines.