Home Ownership
Agency Provides More Than $1 Billion in Mortgage Lending to Home Buyers
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Mortgage Products And Partners
In 2023, mortgage interest rates rose to the highest level since November 2000, making it difficult for North Carolinians to reach their dreams of home ownership. Low inventory and rising home prices also made it a less than perfect climate for buyers, particularly those trying to purchase their first home.
With more than $1 billion in mortgage lending, the Agency made home ownership a reality for 5,430 buyers in 2023 by providing affordable mortgage options, tax credits and down payment assistance offered through a statewide network of real estate and loan officer partners.
The Agency recognized the importance of down payment assistance due to the increasing affordable housing crisis. In April 2023, the Agency rose to meet this demand by increasing the NC 1st Home Advantage Down Payment from $8,000 to $15,000, expanding the possibilities for low- and moderate-income buyers who may have otherwise been priced out of the market and filling a critical need for North Carolinians.
Down Payment Assistance Makes Home Ownership a Reality
Samantha and her five-year-old son received news that they needed to move out of their home. Unable to find a rental home she could afford, she decided to purchase her first home.
“It all started off with my [real estate agent] who told me how I could qualify for a first-time home buyer loan with down payment assistance,” Samantha said. “One day I was looking at a house, putting in offers and the next day my offer was accepted!”
With the help of down payment assistance offered by the NC Housing Finance Agency, Samantha’s son now has a home to grow up in.
In 2023…
The NC Home Advantage Mortgage™ provided 4,660 home buyers with the affordable mortgage option they needed to purchase a home they can afford for the long term.
The NC Home Advantage Tax Credit helped more than 650 homeowners more easily afford their mortgage with Mortgage Credit Certificates that reduced their federal tax obligations, putting more money back into their pockets, increasing mortgage payment affordability.
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Community Programs
Community Home Ownership Programs Opened Doors for Low- and Moderate-Income Buyers
Community home buying programs provided down payment assistance and low-cost financing for local governments and nonprofit organizations that serve North Carolina home ownership hopefuls with low and moderate incomes below 80% of the area median. Contributing to the $1 billion in total mortgage financing in 2023, the Community Partners Loan Pool helped 220 homeowners reach their dreams of home ownership through down payment assistance and housing counseling.
In addition, the Self-Help Loan Pool provided 120 home buyers with zero-interest, shared mortgage financing to buyers working with Habitat for Humanity affiliates statewide to help make buying their home more affordable.
Having an affordable home is more than just having an affordable mortgage. The Agency partners with Advanced Energy to offer home certification through SystemVision to build homes to a higher energy efficiency standard. These high standards provide homeowners with lower heating and cooling bills, in many cases as little as $50 per month. In 2023, more than 100 new homeowners who used our community home buying programs realized these energy savings through this partnership.
Agency Investments Develop Affordable Neighborhood in Durham
The Agency’s financing options provided needed affordable homes for many home buyers in East Durham. In 2023, the Durham Housing Authority and Habitat for Humanity of Durham leveraged HOPE VI funding to develop and build an affordable community in this severely distressed area. A 2023 Housing North Carolina Award winner, this community’s 37 single-family homes provided space for more than 150 Durham residents to build their lives.
One homeowner is a single mom with two children who works at UNC. One of her sons has health challenges that can make everyday life complicated. Thanks to this partnership and Agency funding, this family now has a home that is safe and affordable.
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Rehabilitation
Home Ownership Rehabilitation Allows North Carolinians to Age Safely in Place
For homeowners across the state, keeping the home safe is essential, especially for rural homeowners with aging homes and homeowners who are elderly or who have disabilities. In 2023, Agency financing enabled local government and nonprofit partners to provide urgent repairs, comprehensive rehabilitation and accessibility modifications to low-income homeowners in communities statewide.
The Agency’s rehab programs, including the Urgent Repair Program, Essential Single-Family Rehabilitation Loan Pool and the Displacement Prevention Partnership provided more than $16.5 million in total financing to help more than 950 homeowners in 2023 stay in their homes, allowing more North Carolinians to lead independent lives without the need for institutional care.
Rehab Investments Keep Homeowners Safe in Gaston County
Homeowners who are elderly or who have disabilities often are challenged to keep up with repairs on their homes. The Gaston County Housing Rehabilitation Department, a 2023 Housing NC Award Winner, has been working to help homeowners stay in their homes by providing repairs and rehabilitation using funds from the Agency’s Urgent Repair Program.
One homeowner who has lived in her home for 30 years is now able to continue aging in place thanks to repairs by the Gaston County Housing Rehabilitation Department. The organization utilized Agency financing to widen her front porch steps, replace a broken storm door, repair her rotted kitchen floor, replace her bathroom and repair her roof. With these repairs and modifications, she hopes to live in her home for years to come.
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Preventing foreclosure
NC Homeowner Assistance Fund Saves Nearly 18,000 Homes from Foreclosure
COVID-19 not only put our health at risk, but our homes, too. Established through the American Rescue Plan of 2021, the NC Homeowner Assistance Fund (NCHAF) was created for homeowners in North Carolina to help prevent mortgage delinquencies, defaults, displacements and foreclosures due to COVID-19. Officially closed in November 2023, NCHAF helped nearly 18,000 North Carolinians avoid foreclosure since its inception, with 14,500 of those in 2023 alone.
State Home Foreclosure Prevention Project Counsels Homeowners to Success
Administered by the Agency, the State Home Foreclosure Prevention Project offers free counseling to homeowners who are struggling to make mortgage payments. The statewide network of HUD-approved housing counselors provided housing counseling to 1,700 homeowners in 2023. To date, the State Home Foreclosure Prevention Project has helped more than 18,870 homeowners avoid foreclosure.
NC Homeowner Assistance Fund Provides Help for Homeowners Impacted by COVID-19
Wake County Homeowner Barry experienced a layoff due to the nationwide shutdown in the midst of the COVID-19 pandemic. Without work and surviving off of his savings, Barry fell behind on his mortgage payments. While watching the evening news, he learned about the NC Homeowner Assistance Fund and decided to apply for help with his past-due mortgage payments.
Barry felt a burden lifted when his case manager informed him he was approved for assistance with his past-due mortgage payments.
“My case manager held my hand the entire way,” he said. “The process was quick and straightforward. I am caught up on my payments thanks to the NC Homeowner Assistance Fund that helped me in my time of need.”