Financing Options

Conventional loans are a popular mortgage option for North Carolina buyers who have good credit and stable income. These loans typically require at least 5% down, though first-time buyers may qualify with as little as 3%. Unlike FHA loans, mortgage insurance (PMI) can be removed once you reach 20% equity. Conventional loans offer competitive interest rates, flexible terms, and can be used for primary homes, second homes, or investment properties. Buyers with stronger credit (typically 680+) get the best rates and lowest PMI costs. Programs like the NC Home Advantage Mortgage can help qualified buyers with down payment assistance, making conventional financing even more accessible. 

North Carolina offers several down payment assistance programs to help homebuyers afford their purchase. The NC Home Advantage Mortgage provides 3% down payment assistance and is available with FHA, USDA, VA, and conventional loans for buyers who meet income and purchase price limits. First-time buyers and eligible military veterans may also qualify for the NC 1st Home Advantage Down Payment, which offers $15,000 in assistance when used with the NC Home Advantage Mortgage. Additionally, local programs across cities and counties like Durham, Charlotte, and Wilmington may offer grants, closing cost help, or additional down payment support. 

Click here to request more information about down payment assistance

FHA loans are a great option for North Carolina homebuyers, especially first-timers or those with lower credit scores or limited savings. With down payments as low as 3.5% and flexible credit requirements, FHA financing makes homeownership more accessible. Buyers can also take advantage of statewide programs like the NC Home Advantage Mortgage, which offers down payment assistance up to 3%, or $15,000 for eligible first-time buyers and veterans. FHA loans can be used for most home types—like single-family homes, townhomes, and some manufactured homes—but the property must meet FHA safety and condition standards. With competitive rates, the ability to use gift funds, and potential seller-paid closing costs, FHA loans make buying a home in North Carolina easier and more affordable. 

Jumbo loans are used in North Carolina when financing a home that exceeds the conforming loan limit of $766,550 (as of 2024). Common in areas like Charlotte, Raleigh, Wilmington, and coastal or luxury markets, jumbo loans allow buyers to purchase high-value homes with a single mortgage. These loans require higher credit scores (typically 700+), larger down payments (usually 10–20%), and strong income documentation. Buyers may also need significant cash reserves (6–12 months of payments). While rates can be slightly higher than conventional loans, jumbo loans offer flexibility for financing primary residences, second homes, or investment properties in North Carolina’s competitive housing markets. 

Land and lot buyers in North Carolina have several financing options depending on their goals and eligibility. Traditional land loans are commonly offered by local banks and credit unions, typically requiring 20–35% down with higher interest rates and shorter terms. For those planning to build in eligible rural areas, USDA rural land loans may be available, usually rolled into a USDA construction-to-permanent loan, which requires that the land be used for a primary residence and meet income and location criteria. Construction-to-permanent loans are another popular option, offering a one-time close that finances both land and construction, converting to a standard mortgage once the home is complete; these often require 5–20% down. FHA one-time close construction loans allow qualified buyers to combine land purchase and home construction into a single FHA loan with just 3.5% down, provided the property and builder meet FHA standards. VA construction loans are available for eligible veterans and may offer zero down financing for both land and construction, though they typically require more documentation and a VA-approved builder. Lastly, seller financing is sometimes available for land purchases, offering flexible terms and fewer qualification hurdles, though usually at higher interest rates; this option is especially common for off-grid or unbuildable lots. 

Click here to request a list of lenders we have used successfully to finance land/lot purchases

Seller financing—also known as owner financing—is a legal and increasingly common method of real estate financing in North Carolina, where the seller acts as the lender and finances the buyer’s purchase directly, instead of the buyer obtaining a traditional mortgage from a bank. 

In a seller-financed deal:

The buyer makes a down payment to the seller.

The seller finances the balance of the purchase price.

The buyer repays the seller in installments, typically with interest, based on agreed-upon terms.

Title and closing usually still go through a closing attorney to ensure all documentation is proper and recorded.

If you're considering offering or using seller financing in North Carolina, it's highly recommended to work with a real estate attorney and a REALTOR® familiar with creative financing to structure the deal legally and protect all parties. 

Request a list of properties with seller financing available

USDA loans are a great option for North Carolina homebuyers looking to purchase in eligible rural or suburban areas, offering 100% financing with no down payment required. These government-backed loans feature low fixed interest rates, reduced mortgage insurance, and flexible credit requirements—making them especially attractive to first-time buyers and those with moderate incomes. Most properties outside major cities in NC qualify, and income limits are generous, with many households eligible up to $110,000 or more depending on family size and location. USDA loans are for primary residences only, and homes must meet basic condition standards, but they offer one of the most affordable paths to homeownership in the state. 

USDA Eligibility Map

VA loans are an excellent option for eligible veterans, active-duty service members, and surviving spouses in North Carolina, offering zero down payment, no private mortgage insurance, and competitive interest rates. With flexible credit requirements (often 620+), VA loans can be used to purchase a primary residence anywhere in the state—from military hubs like Fayetteville to coastal and rural areas. Buyers must obtain a Certificate of Eligibility (COE) and meet VA property standards, but closing costs are limited, and sellers can contribute up to 4%. The one-time VA funding fee can be rolled into the loan and is waived for many disabled veterans. These loans are reusable and can be paired with state programs like NC’s Home Advantage Tax Credit to boost affordability, making VA loans one of the most affordable and buyer-friendly options in North Carolina.