HouseCharlotte
The HouseCharlotte program is a silent second mortgage for up to $10,000 that can be used towards a down payment, closing costs, paying off medical bill collections up to $3,000 or to buy down the mortgage interest rate. The amount that you are able to receive depends on the neighborhood that you are looking to move into in Charlotte. Neighborhoods labed as "challenged" and "transitioning" are eligible for the funds with borrowers for homes in "challenged" areas receiving up to $10,000 and "transitioning" only $7,500. Police officers can receive up to $15,000 for purchasing in a "transitioning" neighborhood. Also, the borrowers income must be within 110% of the median for the area and the maximum purchase price is $147,000.
In order to receive the HouseCharlotte funds, buyers must complete 8 hours of pre-purchase home buyer training through a HUD Approved NC Housing Counseling Agency. Community Link is the HouseCharlotte approved vendor for this service but there are others. Also, the home must pass a strict HouseCharlotte inspection (which means that this may not work for a foreclosed property).
There is a downside to the HouseCharlotte program. Aside from the program being limited to only a few select neighborhoods, the buyer must remain in the home for at least 10 years as the owner-occupant in order to avoid repayment of the HouseCharlotte funds. For more information, visit the HouseCharlotte website.
NCHFA's Neighborhood Stability Program
The North Carolina Housing Finance Agency will provide first time home buyers with a no-interest loan up to $14,900 through the Neighborhood Stability Program. Borrowers must meet the income requirements set by the program (up to $55,850 for a single person in Mecklenburg county), must complete eight hours of HUD-approved home buyer counseling and contribute at least 1% of their own funds to the transaction.
The sales price of the home may not exceed $210,000, must be a foreclosed property, the contract price must be 1% less than the appraised value, newer than 1978 and may not be a manufactured home (i.e. trailer). The program is only available in 23 counties in North Carolina, however all of the counties in the Charlotte MSA are eligible (Union, Mecklenburg, Cabarrus, Gaston, and Iredell).
Additionally, the funds may only be used in conjunction with the NCHFA's FirstHome Mortgage program. Like HouseCharlotte, NSP funds are considered a silent second, which is forgiven 20% a year for 5 years, then the mortgage is eliminated.
North Carolina Housing Finance funds run low quickly and typically the loans take longer to close as a result of the government involvement. Therefore, first time home buyers looking to cash in on this program and the first time home buyer tax credit must do so no later than March 30, 2010.
More information on the program
First Time Home Buyer Tax Credit
The first time home buyer tax credit of up to $8,000 is available to home buyers who are under contract before April 30, 2010 and close by June 30, 2010. The amount received depends on the sales price of the home (10% of the sales price up to $8,000) and the income of the borrower may not exceed $145,000 for an individual. For a complete breakdown of the tax credit, visit our blog post Home Buyers: Understanding the Updated $8,000 Tax Credit.
It's important to remember that the $8,000 Home Buyer Tax Credit will have to be repaid if you fail to live in the home for three years.
HomePath Renovation Mortgage Financing
Ok, not free money but helpful none the less. If you are considering a home that is a fixer, a HomePath Renovation Mortgage may be the right fit for you. Available only on certain Fannie Mae foreclosed properties, HomePath allows for flexible terms, a low 3% down payment, and all without the need for mortgage insurance. The stresser on these loans is "light" renovation.
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