Raleigh, NC: First Time Buyers - Here's the Money!

Real Estate Agent

Written by:
Darleen McCullen, REALTOR®, Broker
Keller Williams Realty
Phone: 919.454.8864
Email: darleen@darleenmc.com

Magic MoneyNo doubt, you've been watching the news or reading it in the papers or on the Net. And it seems as if it's all doom and gloom, doesn't it?  Even in the Raleigh area, home of one of the strongest real estate markets in the country, Buyers and Sellers are concerned about the housing market - and where Buyers are going to obtain the money to purchase the increased inventory of homes on the market.

Although FHA Seller down payment assistance programs no longer exist, there are several programs that allow buyers to close bringing little to no money to the table. Yes...100 percent financing!


One program my clients have taken advantage of is CHIP, which is BB&T's Community Homeownership Incentive ProgramNOTE: The Website indicates that it's a 97% financing program (with 3% down payment being brought to closing by the Buyer. However, this is OLD information, according to the loan officer I recently worked with a couple of weeks ago to close a loan for my Buyer, who obtained a 100% loan through this program).

North Carolina Housing Finance Agency

Another popular program, the FirstHome Mortgage, is offered through the North Carolina Housing Finance Agency (NCHFA).  To help with down payment costs, NCHFA offers an interest-free, deferred second mortgage of up to $7,000 to offset some down payment and closing costs for buyers who fall below 80 percent of area's median income. The organization provides buyers with interest rates that are below market value. (Today, Oct. 14, 2008, the interest rate is 5.99%)

Also, the NCHFA offers a feature called HomeSaver, which helps borrowers keep their homes if they lose their jobs, through, say, company downsizing, which is through no fault of their own. The Agency will provide up to 4 months of principal and interest payments, and the borrower(s) repay the loan at no interest when the property is refinanced or sold. Money Key

USDA Rural Development

The USDA (United States Department of Agriculture) offers 100%  home financing in rural areas. I've been pleasantly surprised that often, the properties were not in areas that were traditionally thought of as rural areas.

In Wake County, the estimated loan limit is $160,100, while the Durham County limit is $153,800. View the income levels for 1 to 8 individuals living in a household. To view loan limits for other areas within North Carolina or in other parts of the United States, visit the USDA Rural Development Website.

See if a property is eligible for the USDA 100% financing program by following these steps:

  1. Visit the USDA Income and Property Eligibility Website.
  2. On the left under "Property Eligibility Programs", choose the property type. For first-time buyers, this will probably be "Single Family Housing".
  3. Type in the property address; select a state; and type in a zip.

Do you have loan programs not listed here to share that may help first-time Buyers realize the American dream? Please share!

Disclaimer:  I am not a loan officer (nor do I play one on television J ... however, as a REALTOR®, I do my best to be educated on what's available to my clients. If you need additional information other than what is offered here, I will be happy to refer you to my lenders of choice.


REALTOR® on a Mission... NOT Just Seeking a Commission!TM

Phone: 919.454.8864
Website: http://www.darleenmc.com/

Disclaimer: Opinions expressed by those who are part of the ActiveRain community, including those providing comments relating to this blog, are their opinions and their alone - and do NOT reflect the opinions of Darleen McCullen and Keller Williams Realty. Darleen McCullen and Keller Williams Realty are not responsible for the accuracy (or lack thereof) or content provided by others. 

Comments (8)

Leesa Finley
RED Properties - Wake Forest, NC
RED Properties - Raleigh NC Real Estate

Darleen - You have got to stop going away!  I miss you when you leave but I am always pleasantly surprised when you pop back up on my blog subscrition list.  This is a great post highlighting all of the wonderful SOLID programs that are available!  I have been trying to get the word out as well!

Oct 14, 2008 09:50 AM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Hello Darleen,
And welcome back, my friend.  These are great programs and I'm off to read more about the CHIPS program.  Thank you.

Oct 14, 2008 12:03 PM
Darleen McCullen
Raleigh, NC
Broker - Raleigh, NC Real Estate

Leesa ~ Hi. Thanks! Yes, we have to keep searching for those programs that will help our clients become home owners.

Cynthia ~ Thank you for all of your wonderful support! I think I'm back for good this time. :-)

Oct 16, 2008 01:43 AM
James Wexler
wexzilla.com - Scottsdale, AZ

Darleen -  are there 100% financing programs available for first time home owners in phoenix az ?? We have nothing above jumbo programs with anything less than 20% plus down

Oct 25, 2008 05:06 PM
Darleen McCullen
Raleigh, NC
Broker - Raleigh, NC Real Estate

James ~ Hi. I'm not sure about specific programs for your area; However, I would think that the USDA program may be available, as well as programs through your local banks. For instance, I've had clients take advantage of local "community" programs through banks like Bank of America and SunTrust.

Oct 26, 2008 11:08 AM
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Hello Darleen! Like Leesa said you can't keep going away especially since you are one of my favorite bloggers here on Active Rain. This is great information for Raleigh NC first time home buyers. I just spoke to someone about seven minutes ago who is willing to pay around $1100-$1200 for rent and think he can't buy a house because he can't afford a downpayment. We definitely need to let people know that even though Nehemiah,Ameridream and Hart programs are gone,there are still programs for first time home buyers. Thanks for sharing this information with us Darleen. Great post.

Nov 11, 2008 04:30 AM
Darleen McCullen
Raleigh, NC
Broker - Raleigh, NC Real Estate

Lanre ~ There are still some programs out there that may work for buyers to assist them with down payment. Let us know what you find in your area. (We should all be looking around to see how we can help our buyers buy.)

Nov 12, 2008 09:13 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

I think your last comment is something we all could to in order to help our buyers - "We should all be looking around to see how we can help our buyers buy."

We need to have a good working relationship with our lenders to keep us up to date on programs.

Nov 15, 2008 12:11 PM