Think buying your first home in Raleigh is out of reach? Many first-time buyers are surprised to learn how much help is available in Wake County if you know where to look. You want a clear path, not confusing jargon or fine print. In this guide, you’ll learn what programs exist, who qualifies, and how to take smart next steps with confidence.
Let’s dive in.
First-time buyer help in Raleigh
Raleigh-area buyers can tap several types of support:
- State programs from the North Carolina Housing Finance Agency (NCHFA) that often combine a mortgage with down payment assistance.
- Federal loan options like FHA, VA, and USDA that lower the down payment hurdle.
- Local City of Raleigh and Wake County initiatives that offer targeted assistance when funding is available.
- Nonprofits and housing counselors that provide education, coaching, and in some cases affordable home opportunities.
Each path has different rules, limits, and timelines. The right fit depends on your income, credit, property location, and how much cash you have saved.
NCHFA: Statewide programs Raleigh buyers use
The North Carolina Housing Finance Agency partners with participating lenders to offer below-market mortgages and down payment assistance to eligible buyers. Benefits and rules change over time, so always verify current details on the NCHFA website.
What to know:
- Assistance may be a second mortgage that is deferred, forgivable over time, or a grant, depending on the program. Terms vary and can affect repayment when you sell or refinance.
- Most options include income and purchase-price limits and require owner-occupancy. Some also require homebuyer education with an approved provider.
- NCHFA loans are delivered through approved lenders, so you’ll apply with a participating lender who understands program overlays and timelines.
Tip: Ask your lender to walk you through total cost, not just the rate. That includes mortgage insurance, any second-mortgage terms, and closing costs.
Federal and conventional low-down-payment options
Several well-known mortgage options can make buying more attainable. Verify program basics through official sites listed below.
FHA loans. Backed by the Federal Housing Administration, FHA loans allow low down payments and are more flexible on credit history. They require mortgage insurance. Learn program basics on HUD’s site.
VA loans. If you are an eligible veteran, active-duty service member, or qualifying surviving spouse, VA loans can offer zero down and no private mortgage insurance. Review benefits at the VA home loan page.
USDA Rural Development loans. Zero-down financing for eligible buyers and eligible property locations. Not every Wake County address qualifies. Check program info and eligibility resources through USDA Rural Development, then confirm specific addresses with your lender.
Conventional 3% down options. Fannie Mae’s HomeReady and Freddie Mac’s Home Possible serve lower-income borrowers with flexible underwriting. Read about these programs at Fannie Mae and Freddie Mac. Income limits and other rules apply.
Mortgage Credit Certificates (MCCs). Some state or local partners administer a federal tax credit that can reduce your federal tax liability by converting part of your mortgage interest into a tax credit. Check availability with NCHFA and consult a tax professional for personal guidance.
Many of these loans can be paired with down payment assistance, but pairing rules vary. Your lender will confirm which combinations are allowed.
City of Raleigh and Wake County assistance
Local government programs can add valuable help, often in the form of deferred or forgivable loans for down payment and closing costs. Funding and rules change with budgets, so check the City of Raleigh and Wake County pages for current offerings:
- Explore current initiatives on the City of Raleigh housing pages by searching for “housing” or “homebuyer assistance.”
- Review county-level resources on Wake County’s website by searching for “housing” or “community development.”
Local programs typically require income limits, owner-occupancy, and completion of homebuyer education. Some target specific neighborhoods or price ranges. If you see a program that fits, ask your lender and agent to verify how it integrates with your primary mortgage.
Nonprofits and housing counseling
Nonprofits play a supportive role in making ownership attainable:
Homebuyer education and counseling. Many assistance programs require an approved course or one-on-one counseling. You can find approved providers through the HUD housing counseling locator. NCHFA also maintains lists of approved counseling agencies.
Habitat for Humanity of Wake County. Habitat builds and rehabs homes that are sold to qualified households with affordable terms and a sweat-equity commitment. Inventory is limited and timelines can be longer, but it’s a meaningful path for some buyers. Check the local affiliate’s site to learn about qualifications and application windows.
Eligibility basics and what to expect
Here are common rules Raleigh buyers will encounter. Always confirm the details for your exact program.
First-time buyer definition. Many programs define “first-time” as not having owned a home in the past three years. Some options waive this for targeted areas or for veterans.
Income and purchase-price limits. Assistance is usually intended for income-qualified buyers and capped by purchase price. Limits vary by household size and by county.
Credit and underwriting. FHA is generally more flexible on credit scores. Conventional programs may require stronger credit but can allow compensating factors. NCHFA loans follow lender underwriting plus any program overlays.
Down payment assistance structure. DPA can be a 0% deferred second mortgage, a forgivable loan that reduces over time, or a grant. Understand how forgiveness works, and when repayment is due.
Homebuyer education. Many programs require a class or counseling certificate before closing. Plan ahead so this does not delay your timeline.
Property eligibility. You must occupy the home as your primary residence. Most single-family homes, townhomes, and condos can be eligible. Condos often need project approval for programs like FHA or VA, so verify early. Manufactured homes may be allowed under some programs with specific rules.
USDA location rules. Only properties in USDA-eligible areas qualify for USDA loans. Some areas of Wake County may qualify while others may not. Confirm the address on USDA eligibility maps and with your lender.
Step-by-step plan for Raleigh buyers
Follow this simple path to find and use the right program:
Get pre-qualified or pre-approved with a participating lender. Ask which NCHFA, FHA, VA, USDA, or conventional options you qualify for and why.
Review whether you meet first-time buyer rules plus income and purchase-price limits for state or local programs.
Complete any required homebuyer education or counseling with an approved provider. Use the HUD counseling locator if you need a starting point.
Confirm that your target properties are eligible. For example, check USDA location rules, condo project approvals, and property type requirements.
Compare the total monthly and lifetime cost. Consider the interest rate, mortgage insurance, down payment assistance terms, and potential repayment at sale or refinance.
Plan your timeline. Assistance programs can add documentation and processing steps. Build in time to meet education and underwriting requirements before closing.
Pitfalls to avoid
- Chasing the lowest advertised rate without factoring in mortgage insurance, DPA repayment terms, and closing costs.
- Assuming every Wake County address is USDA-eligible. Eligibility is location-specific and must be verified.
- Treating DPA like free money. Many assistance options are second mortgages that are deferred or forgivable over time, not grants.
- Working with inexperienced partners. Choose a lender familiar with NCHFA and local assistance programs, and an agent who knows how to align property choices with program rules.
How a local agent helps you win
Choosing the right program is only part of the journey. You still need to find the right home, align the contract with program timelines, and keep your financing on track. A responsive local team helps you:
- Match your budget and program with neighborhoods and property types that fit.
- Coordinate early with a participating lender to lock in the right product and timeline.
- Verify condo approvals, property eligibility, and required inspections or appraisals.
- Present a competitive offer while staying within program guidelines.
Buying your first home should feel doable and well-organized. If you want a clear plan tailored to Wake County, reach out to Hendren Realty Group for local guidance and a calm, step-by-step path from pre-approval to closing.
FAQs
Do I have to be a first-time buyer to get help in Raleigh?
- Many programs use the three-year rule for “first-time” status, but some waive it for veterans or targeted areas; verify specifics with NCHFA and your lender.
What credit score do I need for first-time buyer loans?
- FHA options are generally more flexible on credit, while conventional programs favor higher scores; lenders apply underwriting plus any program overlays found via HUD and investor guidelines.
Will down payment assistance raise my monthly payment?
- It depends on the structure; a deferred 0% second may not add a monthly payment now, but repayment can be due at sale or refinance, while forgivable options reduce over time.
Are condos in Raleigh eligible for first-time buyer programs?
- Often yes, but many programs and lenders require condo project approval, especially for FHA or VA; verify the project status early with your lender.
Are USDA zero-down loans available in Wake County?
- Some areas may qualify based on USDA maps and income limits; confirm eligibility through USDA Rural Development and your lender.
Can I use gift funds with these programs?
- Many programs allow gift funds from family with proper documentation; your lender will confirm program-specific rules and required paperwork.
