{"id":30238,"date":"2022-03-22T11:15:27","date_gmt":"2022-03-22T18:15:27","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=30238"},"modified":"2026-04-15T02:36:57","modified_gmt":"2026-04-15T09:36:57","slug":"buyer-down-payment-assistance-in-north-carolina","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-down-payment-assistance-in-north-carolina\/","title":{"rendered":"Finding Your Tar Heel State Home: Down Payment Assistance in North Carolina"},"content":{"rendered":"

North Carolina continues to stand out as a top destination for homebuyers. Who doesn\u2019t love the charm that popular Netflix shows (we\u2019re looking at you, Outer Banks<\/i>) make us weep to call home? But the property prices in the state may make you weep for a different reason. As larger tech firms and millennial families flock to North Carolina, the price tag to buy a house gets bigger and bigger.<\/p>\n

\u201cIt\u2019s an attractive location if you have a family and want a lot of space,\u201d says expert real estate agent Madison Griffith with Ginger & Co. Real Estate<\/a>. \u201cI would say our team sees every third buyer as new to the state and relocating for work, [with] Google and Apple coming,\u201d she explains.<\/p>\n

In North Carolina, home prices rose around 10% across counties in quarter 2 of 2021, creating a median around $170,000 as reported by the National Association of Realtors. Pairing that median price with an average down payment of 12%<\/a> makes for an extra $21,000 that most of us don\u2019t have.<\/p>\n

This is where down payment assistance (DPA) in North Carolina can help you purchase your dream home. It\u2019s the fairy home godmother you didn\u2019t know existed \u2026 until now!<\/p>\n

We researched HUD options, interviewed the experts, and brought together 10+ years of real estate experience to share a comprehensive guide to DPA programs in the state. In short, it may be possible to have that dreamy, charming home you\u2019ve been imagining.<\/p>\n

Here is what you need to know to make your dollar stretch further and take advantage of North Carolina down payment assistance programs.<\/p>\n

\"A<\/a>
<\/a> Source: (Gene Gallin \/ Unsplash)<\/figcaption><\/figure>\n
<\/div>\n

How much do you need to buy a house in North Carolina?<\/h2>\n

You may already be prioritizing southern comforts on your home wishlist. However, you first need to get a feel for median housing costs in the state so you know what you can afford.<\/p>\n

In Q2 of 2021, North Carolina\u2019s home prices rose by 10% across all counties<\/a>, and that number is predicted to continue growing as more homeowners flock to the state. Union saw a median house price at $330,000 on the higher side, whereas Richmond saw a $94,000 median on the lower side. All in all, North Carolina is homebuyer-friendly compared to the national median of a single-family home sale at $353,600 in 2021.<\/p>\n

\u201cI have some clients currently searching in the $200,000 range, and that seems to be a pretty modest budget, depending on location. It can be challenging, but a good agent will work to find a place at the price you need,\u201d Griffith shares.<\/p>\n

But remember \u2013 flexibility is key to finding the best place for you. \u201cYou need to be flexible on location or fixer-uppers. There\u2019s a house for everyone if you get creative in the searching process.\u201d<\/p>\n

Property taxes are another thing to keep aware of when it comes to remaining flexible to different cities or locations in the state. The North Carolina Association of County Commissioners shared that the average property tax rate as of February 2022 is 0.6760<\/a>, yet some counties can go as high as 0.95 or 1.0 in Edgecomb and Scotland respectively. That may not sound like a lot, but keep in mind that spending another $10 per year for every $1,000 in home value can stretch a budget uncomfortably.<\/p>\n

<\/div>\n

Your chosen lifestyle will impact the cost of your dream home in North Carolina<\/h2>\n

North Carolina has an incredibly diverse landscape that feeds into a lot of different hobbies, personalities, and lifestyles. You really can make lemonade with the amount of lemons that North Carolina gives, though a lemon iced tea may be more appropriate.<\/p>\n

You\u2019ll want to pay attention to the type of neighborhood that would be best for your family. \u201cNorth Carolina has mountains close by, suburban areas, spots with more acreage. Everything you could want is here,\u201d Griffith explains. North Carolina has over 320 miles of coastline<\/a>, over 40 mountains<\/a> rich with hiking trails, and one of America\u2019s biggest cities ripe with jobs, culture, and a hub for international travel.<\/p>\n

Do you prefer the hustle and bustle of the big city Charlotte (median $315,000)<\/a>? Do you enjoy a rural style of life like Bryson City ($150,000)? Maybe a suburb like Carrboro ($380,000) is the dream.<\/p>\n

Factors such as the pandemic, increasing job opportunities, and a lower cost of living have increased the demand for housing in North Carolina. \u201cWe are in a competitive market. It\u2019s key to work with an agent that has the experience and knows the tactics to get you closed quickly. For instance, I show my clients properties well below their max budget so there\u2019s room to negotiate and offer an over list price,\u201d states Griffith.<\/p>\n

Utilize sources such as the National Association of Realtors to find current pricing across counties when you begin your home search journey.<\/p>\n

<\/div>\n

How much do you need to save for a down payment on a median-priced home in North Carolina?<\/h2>\n

In 2021, NAR reported 13%<\/a> as the average down payment. However, a down payment amount typically ranges anywhere from 3% to 20%, and first-time homebuyers don\u2019t put down as much; their average is closer to 7%. Different variables affect how much is appropriate to put down on the property, including:<\/p>\n