Transitioning from renter to homeowner typically requires significant cash for closing costs and a down payment. Homebuyer programs can help first time buyers (defined as those who haven't owned a home in the past three years) by providing down payment assistance. Typically, the agency providing the down payment assistance will take back a "silent" second mortgage requiring no payments until the home is sold or the homeowner moves. The North Carolina Housing Finance Agency can help with first time buyer programs and also provides home loan information for current homeowners who want to refinance to a lower rate or better terms, or need help with avoiding foreclosure.

You can also find first time NC homebuyer programs administered through the North Carolina Housing Finance Agency as well as community homebuyer programs can help first time buyers with down payments, buyer education, and affordable mortgage loans.

North Carolina Homeowners Needing Help

If your home is worth less than your mortgage amount, and you cannot refinance, go to the housing counseling agencies link through the US Department of Housing and Urban Development's North Carolina Resources refinance and homeowner resources page. HUD approved housing counseling agencies can assist struggling homeowners and can help determine your eligibility for loan modifications, refinances and other relief programs available through government programs.

The North Carolina Housing Finance Agency reminds homeowners not to dodge their lenders, as lenders may call or write with program information that can help save your home. Working with your lender and accredited counseling programs can help you keep your home and work toward resolving financial problems that can jeopardize home ownership.

NC Community Housing Agencies Offer Assistance

Homeowners with special needs and homeowners who need funds for rehabilitating their property may qualify for grants and other assistance. Contact your city or county's housing department for information.

Avoiding Foreclosure

North Carolina foreclosure law provides for both power-of-sale foreclosure and judicial foreclosure. The time frame for completing foreclosure varies according to the type of mortgage documents you have. Contact your lender or a certified North Carolina housing counselor immediately for help with preventing foreclosure.

If you lose your home to foreclosure, you have the right of redemption using the upset bid procedure, where you can bid 5% above the winning bid within 10 days of the foreclosure sale. North Carolina does allow lenders to pursue deficiency judgments, which means they can sue you for any losses caused by foreclosing your home loan. If your home declined in value, you may be able to successfully defend against a deficiency judgment.