Are you ready to purchase a home in Asheville but need help with your down payment or the closing costs? No need to fret. There are a variety of assistance programs available to you specifically intended for these purposes. Select the program that best meets your needs, and check your eligibility right here from our page.
Federal Programs for First-time Homebuyers
United States Department of Agriculture (USDA) Single Family Direct Loan Program The USDA Single Family Direct Loan Program is in place to make safe, sanitary housing available to everyone in rural areas. This loan program is intended to assist lower income borrowers by providing up to 100 percent financing with no down payment requirement. Additionally, the interest rates are lower than average and the repayment terms can extend to up to 38 years to make payments as affordable as possible for even extreme cases. USDA Single Family Guaranteed Loan Program Buyers looking to purchase an existing home, build a new home or remodel a home they are purchasing have the opportunity to apply for the USDA Single Family Guaranteed Loan Program. This program targets low- and moderate-income families that are purchasing a principal residence in a rural area. Qualified borrowers for the program can receive up to 100 percent financing for their transaction. VHDA Fixed Rate Loans The most versatile of the federal loan assistance programs is the VHDA Fixed Rate Loan Program. Borrowers utilizing this program have the choice of three loan types, which allows for a broader spectrum of customers to be helped.
- RHA Loans – Financing is available at 100 percent of the purchase price or appraised value of the home, whichever is lower.
- VA Loans – Up to 97 percent of the purchase price of the home is covered by VA Loans, and no down payment is required.
- FHA Loans – In addition to offering up to 97 percent financing, these loans allow buyers to roll their closing costs and premiums into the loan amount.
Union Mortgage Group STAR Portfolio Loan Program Offering 30-year, fixed-rate loans to prospective borrowers, the Union Mortgage Group Steps Toward Achieving Results (STAR) Loan Program is another federal assistance option for first-time home buyers. Qualified borrowers in this program can enjoy up to $300,000 worth of financing at up to 100 percent of the purchase price. The amount of loan-to-value financing amount is determined by the borrower’s credit score – the higher the score, the more financing that is available.
Borrower Assistance Programs in North Carolina
NC Home Advantage Mortgage A program intended for first-time and repeat home buyers, the NC Home Advantage Mortgage Down Payment Assistance Program offers down payment assistance at up to 5 percent of the purchase price. Additionally, veterans and first-time home buyers who meet certain eligibility requirements may qualify for up $8,000 worth of assistance. These monies are treated as a deferred second mortgage; however, the interest rate is at 0 percent, and the loan is forgiven after 15 years.
Tax Credits for First-time Homebuyers
NC Home Advantage Tax Credit First-time home buyers and veterans of the military may be eligible to claim a federal tax credit of 30 percent with the NC Home Advantage Tax Credit. This program allows borrowers to save 30 percent a year on their federal taxes for existing homes, or 50 percent a year for home that are new construction. This credit offers up to $2,000 of year assistance, freeing up more of the borrower’s income for house payments. Buyers must apply for this credit through the NC Housing Finance Agency at the same time they apply for their mortgage. Regionally Specific Assistance Programs In addition to the state-wide home buying assistance programs in North Carolina, there are also a number of programs that are specific to the Asheville and Buncombe, Haywood, Henderson and Madison Counties. These programs are offered by Mountain Housing Opportunities and include: MHO Turn-Key Homeownership Program Borrowers utilizing the MHO Turn-Key Homeownership Program have the opportunity to purchase new, energy-efficient homes. With these homes, financing is not only built in, it is also deferred at up to 30 percent and free of interest. These loans are meant to work as a second mortgage to fill the gap between the purchase price of the property and the first mortgage amount. MHO Down Payment Assistance Whether you need help with your down payment, your closing costs or bridging the gap between your purchase price and your maximum affordable mortgage, the MHO Down Payment Assistance program can help. This program offers up to $30,000 worth of funds to borrowers in Asheville, $25,000 to borrowers in Buncombe, Henderson and Madison Counties and $20,000 to borrowers in Haywood County. MHO Self-Help Homeownership Perhaps the most unique of MHO’s assistance programs, the MHO Self-Help Homeownership program gives borrowers the opportunity to purchase a home at a lower cost by putting “sweat equity” into the property and building their own house. Borrowers work with a group of five to eight other applicants and their families to construct each other’s homes. Once all of the homes in the group are complete, everyone can move in. There is no down payment required for these homes, and out-of-pocket costs are kept to a minimum. Further, by completing the construction themselves, borrowers can earn between $15,000 and $25,000 in equity on their homes. When it comes time to close on the loan, buyers will appreciate the long loan terms – 33 to 38 years – and the low monthly payments that are based on annual income. With a variety of programs to choose from and eligibility requirements that allow borrowers of all walks of life to get some assistance, it has never been easier to achieve the American dream of homeownership in North Carolina.
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