Buying a home in Raleigh? These down payment assistance programs can help you save thousands
Buying a home is one of the biggest financial milestones most people will ever hit — and in North Carolina, it takes nearly 15 years of saving to get there, according to data shared by Consumer Affairs.
That timeline ranks 34th in the nation, but for buyers ready to act now, it’s still 15 years too long.
For Raleigh buyers who don’t want to spend the next decade and a half on the sidelines, North Carolina down payment assistance programs can help you get through the front door far sooner than saving alone.
Some of the most notable options in the city include:
- Raleigh’s Homebuyer Assistance Program
- Raleigh’s Enhanced Homebuyer Assistance Program
- NC Home Advantage Mortgage
- NC 1st Home Advantage Down Payment
Considering how expensive down payments are, DPA programs make buying a home in Raleigh a reality.
After all, a standard 20% down payment on a $440,000 home — the median sold price in Raleigh for May 2026, per Realtor — runs about $88,000 before closing fees, renovations and other unexpected costs.
Here are a few ways you can cut down that cost and get your family in the door sooner than anticipated.
Raleigh’s Homebuyer Assistance Program
The Homebuyer Assistance Program, offered through the city’s Housing and Community Development department, provides assistance of up to $45,000 with a maximum home purchase of $384,750.
The program covers any single-family home within Raleigh city limits within that purchase range.
It offers zero-interest, deferred loans — meaning no payments are due until the home is sold or the owner no longer uses the home as their primary residence — to qualified first-time homebuyers.
The household income must fall at or below 80% of the HUD-defined Area Median Income, which is:
- $72,950 for a family of one
- $83,400 for a family of two
- $93,800 for a family of three
- $104,200 for a family of four
- $112,550 for a family of five
- $120,900 for a family of six
- $129,250 for a family of seven
- $137,550 for a family of eight
Loans under the Homebuyer Assistance Program are deferred for the first 20 years and can be forgiven if the owner stays in the home an additional 10 years. Speak with an approved lender to learn more.
Raleigh’s Enhanced Homebuyer Assistance Program
The Enhanced Homebuyer Assistance Program, funded through the 2020 Affordable Housing Bond, offers up to $60,000 in down payment assistance with a maximum home purchase price of $450,000.
It’s available for any single-family home within targeted geographic areas in the city of Raleigh.
Eligibility requirements are the same as above, but homes purchased through this program are subject to a 10-year deed restriction limiting the sales proceeds that go to the owner if sold within a 10-year period.
Loans are deferred and no payments are due for 30 years, unless the home is sold or no longer used as a primary residence. Half of the loan is forgiven after 10 years and the remainder is due after 30 years.
NC Home Advantage Mortgage
Administered by the North Carolina Housing Finance Agency (NCHFA), the NC Home Advantage Mortgage provides mortgages and down payment assistance to move-up and first-time homebuyers.
Buyers can get down payment assistance up to 3% of the loan amount. Eligibility requirements include:
- You are purchasing a home in North Carolina
- You occupy the home as your principal residence within 60 days of closing
- Your annual income doesn’t exceed $152,000
- Your credit score is 640 or higher
- You are applying for an FHA, USDA, VA or conventional loan through a participating lender and meet the sales price limits of the loan type
- You are a legal resident of the United States
Repayment is only required if you sell, refinance or transfer your home within 15 years. Down payment assistance is forgiven at 20% per year at years 11-15, and completely forgiven at the end of year 15.
NC 1st Home Advantage Down Payment
Also offered by the NCHFA, the 1st Home Advantage Down Payment program provides up to $15,000 in down payment assistance through a 0% deferred second mortgage to first-time buyers and veterans.
This program is available to homebuyers who qualify for an NC Home Advantage Mortgage.
The eligibility requirements are the same and it works the same way: a 0%, deferred second mortgage forgiven at 20% per year at the end of years 11-15, with complete forgiveness at the end of year 15.
Buyers can also save up to $2,000 per year in federal taxes with the NC Home Advantage Tax Credit.
Can You Stack Down Payment Assistance Programs?
Yes — and in many cases, you should. In fact, Raleigh’s housing office encourages buyers to combine city and state first-time home buyer down payment assistance programs whenever possible.
If you qualify for the Homebuyer Assistance Program or the Enhanced Homebuyer Assistance Program, you will likely also qualify for NCHFA programs like the NC 1st Home Advantage Down Payment.
An approved lender can help you layer multiple programs together to maximize your assistance and minimize what you bring to the table at closing. The city has a list of approved lenders on its website.
For more information on the City of Raleigh’s programs, contact the Housing and Community Development department at 919-996-4330 or housing@raleighnc.gov.
This article was created by content specialists using various tools, including AI.
