If you’re a first-time homebuyer in Raleigh, you’ve probably heard the pitch:
“You can buy with no money down!”
It’s a tempting promise — especially when rent keeps climbing — but “no money down” in North Carolina can mean very different things. Some paths give you real flexibility and long-term savings. Others come with strings you’ll want to know about before signing.
Let’s break them down — starting with the true 0% down loans.
1. VA & USDA Loans
VA Loan
- For qualifying veterans, active-duty service members, and some surviving spouses.
- True 0% down, no PMI, competitive interest rates.
- Flexible credit and income requirements compared to other loan types.
USDA Loan
- For properties in qualifying rural areas and buyers who meet income limits.
- True 0% down with competitive rates.
- Most restrictive in terms of credit score requirements, debt-to-income ratios, and property eligibility.
Both of these options allow you to refinance in the future without penalty — and they don’t require you to repay assistance funds.
2. Forgivable Day-One Grants
- True grants that are forgiven the moment you close.
- No payback, no strings — even if you sell or refinance the next day.
- Typically 2-3.5% of the purchase price. Relies on seller concessions to cover grant costs.
3. Short-Term Forgivable Grants
- Assistance forgiven after three years or less of ownership.
- Much shorter commitment than the 15-year forgiveness period of other programs.
- Often in the 2–5% range of your loan amount.
4. Second Mortgage Assistance
- A deferred-payment or amortized second mortgage to cover down payment or closing costs.
- Some can be paired with grants for more help.
- The second mortgage is typically repaid when you sell or refinance.
5. Low-Down-Payment Conventional Loan (3% Down)
- Keeps upfront costs low while giving you full flexibility to refinance at any time.
- Often paired with seller or lender credits to cover closing costs.
6. Negotiated Seller Credits
- With a skilled negotiation strategy, sellers can cover some or all of your closing costs.
- Can significantly reduce your immediate out-of-pocket expenses.
💡 Important Note About DPA & Closing Costs
Down payment assistance doesn’t always cover all of your closing costs. You may still need funds for closing which can come from several sources:
- Cash savings
- Gifts from family
- 401(k) loans or withdrawals
- Seller concessions (negotiated credits toward closing)
- Other sources like local grants or employer programs
Having a plan for covering these costs is just as important as securing your down payment help.
7. The NC Home Advantage Program (Last Resort)
One of the most heavily marketed programs in North Carolina, NC Home Advantage can help some buyers get into a home sooner — but I only recommend it when it’s the difference between buying now or renting for years.
Why it’s a last-choice option for me:
- 7-year lock-in: You can’t refinance to a lower interest rate without repaying the assistance in full.
- 15-year forgiveness period: Unless you stay in your home 15+ years, you’ll likely repay the funds when you sell or refinance.
- Limited lenders: Smaller lender pool, often with less competitive terms.
If it’s your only path to ownership right now, it can be a stepping stone — but know exactly what you’re signing up for.
The Bottom Line
Yes, you can buy a home in Raleigh with little or no money down — but your best choice depends on your long-term plans. Whenever possible, choose loans or grants that give you flexibility over programs with long-term restrictions, and make sure you’ve planned for all of your closing costs.
📅 Ready to Find the Best Path to Homeownership?
Every buyer’s situation is different — and the right program for you might not be the one that’s most advertised. Let’s walk through all your options, compare the pros and cons, and build a plan that gets you into a home without unnecessary costs or restrictions.
👉 [Schedule Your Free 15-Minute Options Call Here] — no pressure, just clarity on your next best move.
“My job is to show you every option, every cost, and every risk — so you walk into homeownership with both eyes open. No surprises, no regrets.”
