If you’re renting in Wilmington, Leland, or Hampstead and wondering whether owning is finally within reach, there’s one resource worth knowing about before you start touring homes: North Carolina’s state-backed down payment assistance. The NC Housing Finance Agency raised its income limits this summer, which means more first-time buyers across Brunswick, New Hanover, and Pender counties may now qualify for help. Here’s how the programs work, how they fit our local market, and the steps we recommend before you make an offer.
What Changed in 2026
On June 23, 2026, the NC Housing Finance Agency (NCHFA) announced higher income and sales price limits for its home buyer programs. According to that release, eligible first-time and move-up buyers with qualifying income up to $158,000 can now use the NC Home Advantage Mortgage with down payment assistance of up to 3% of the loan amount. The agency also raised income limits for its larger first-time buyer option, the NC 1st Home Advantage Down Payment, which provides $15,000.
For the Cape Fear region, where many buyers have solid incomes but are still catching up on savings for a down payment and closing costs, that change matters. It opens the door for households who may have assumed they earned too much to qualify.
The Two Main NCHFA Options
NC Home Advantage Mortgage with up to 3% assistance
This is a fixed-rate mortgage offered through participating lenders across the state. Per the NCHFA program page, it’s available to both first-time and move-up buyers. Key requirements include buying a home in North Carolina that you’ll live in as your primary residence within 60 days of closing, qualifying income that doesn’t exceed $158,000, a credit score of 640 or higher, and an FHA, USDA, VA, or conventional loan through a participating lender.
NC 1st Home Advantage Down Payment ($15,000)
This option is for first-time buyers, which NCHFA defines as someone who hasn’t owned a principal residence in the past three years, as well as military veterans and buyers purchasing in certain targeted census tracts. According to the agency’s program page, the $15,000 is a 0% deferred second mortgage. Income limits for this option vary by county and family size, and NCHFA lists a $525,000 sales price limit. You can use one assistance option or the other, but the $15,000 can’t be combined with the 3% option.
How the forgiveness works
Both types of assistance are structured as a deferred second loan rather than a grant you never think about again. NCHFA says the assistance is forgiven at 20% per year at the end of years 11 through 15 and is fully forgiven after year 15. If you sell, refinance, or stop living in the home before then, the unforgiven portion is due. That’s worth weighing honestly: if you expect a military move or a job change in a few years, talk through the numbers with your lender first.
How This Fits the Wilmington-Area Market
Our three counties offer very different price points, and that affects how far assistance goes.
- New Hanover County: Wilmington has the most job and commute options, but entry-level inventory is tighter. Townhomes and condos are often where first-time buyers find the best fit, and NCHFA programs can be used for both.
- Brunswick County: Leland, Belville, Navassa, Bolivia, and Shallotte have seen a lot of new construction. Ask builders early whether their preferred lender participates in NCHFA programs, since not every lender does.
- Pender County: Burgaw, Rocky Point, and parts of Hampstead can offer more space for the money. Some areas outside town centers may also be eligible for USDA loans, which can be paired with NCHFA assistance. Check any specific address on the USDA eligibility map with your lender.
Because sales price and income limits apply, the right program depends on the home you’re targeting. We help buyers line up their search with what they’re approved for so there are no surprises after the offer is accepted.
Don’t Skip the Coastal Costs
Down payment help covers the upfront hurdle, but owning on the coast comes with ongoing costs that first-time buyers sometimes underestimate. Before you commit to a home, get real quotes for homeowners insurance, wind and hail coverage, and flood insurance if the property is in or near a flood zone. Check the property’s flood zone on the FEMA Flood Map Service Center, and ask the seller about any past water issues. Those monthly costs affect your debt-to-income ratio and your comfort level, so build them into your budget early.
Steps to Take Before You Shop
- Find a participating lender. NCHFA programs are offered only through approved lenders. Ask directly whether they originate NC Home Advantage loans.
- Check your credit. The minimum is 640, so pull your report a few months ahead and clean up any errors.
- Confirm your income limit. For the $15,000 option, limits depend on your county and household size. Your lender can confirm where you fall.
- Get pre-approved with the program built in. Sellers want to see a strong pre-approval, and it tells you exactly how much home the assistance supports.
- Plan for inspections and appraisals. Assistance can help with down payment and some closing costs, but you’ll still want cash set aside for inspections and moving.
Frequently Asked Questions
Do I have to be a true first-time buyer to get help?
Not for the 3% option, which is open to move-up buyers too. For the $15,000 option, you generally need to be a first-time buyer (no principal residence owned in the past three years), a military veteran, or buying in a targeted census tract.
Can I use NCHFA assistance on new construction?
The programs cover single-family homes, townhomes, and condominiums, including new homes, as long as the loan and property meet program guidelines. Confirm with your lender and the builder before signing a contract.
Is the assistance free money?
It’s a 0% deferred second loan that’s forgiven over years 11 through 15. If you sell or refinance before year 15, the remaining balance is repaid.
Can I combine the 3% and the $15,000?
No. NCHFA says the $15,000 option can’t be combined with the 3% assistance, so your lender will help you compare which one works better for your purchase.
Ready to Buy Your First Home on the Cape Fear Coast?
Buying your first home here is very doable with the right plan. We’ll connect you with lenders who know these programs, help you target homes that fit your approval, and walk you through flood, insurance, and neighborhood questions along the way. Contact Aspyre Collective to start your first-time buyer plan.
