First-Time Homebuyer Loans

What is a First-Time Homebuyer?

Most programs have a strict definition of a first-time home buyer. However, the term can be a bit misleading. Generally speaking, you’re considered a first-time home buyer if you haven’t had any form of ownership in any home in the last 3 years.

That means that, even if you have owned a home at some point in the past, you may still be eligible to participate in some first-time home buyer programs, provided it has been at least 3 years since you’ve owned a home and that you meet the other qualifying criteria.

NC Housing Finance Agency (NCHFA)

Mortgage Credit Certificate (MCC)

The MCC program operates as a federal income tax credit. The MCC reduces an eligible borrower's federal income taxes and, in effect, creates additional income for the you to use in making house payments. NCHFA offers a 30% tax credit amount (50% tax credit for new homes).

For example, a loan amount of $100,000 at an interest rate of 5% for 30 years would amount approximately $5,000 of interest in the first year. With a 30% MCC, you may be eligible to receive a federal income tax credit of $1,500 (30% of $5,000).

You can even reduce the amount of monthly federal income tax withheld by filing a revised IRS W-4 Employee Withholding Allowance Certificate in order to have more disposable income to make loan payments.

The MCC program has income and sale price limitations, but can be used with Conventional, FHA, VA & USDA loans. We will help you determine whether or not you qualify for this program.

97% Conventional Loans

Fannie Mae and Freddie Mac both offer a special 97% Conventional product for first time homebuyers. These programs allow the ability to put down less money on your purchase and may also offer reduced Private Mortgage Insurance (PMI) rates.


  • Freddie Mac Home Possible
  • Fannie Mae Home Ready
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