What NCHFA offers
The North Carolina Housing Finance Agency (NCHFA) runs programs that layer on top of a first mortgage rather than replacing it:
- NC 1st Home Advantage Down Payment — up to $15,000. Available to eligible first-time buyers (generally meaning you haven't owned a home in the past three years) and veterans, structured as a 0% interest, deferred second mortgage that's gradually forgiven the longer you stay in the home, with no monthly payment due on the assistance itself.
- NC Home Advantage Mortgage down payment assistance — up to 3% of the loan amount. A separate track open to a broader range of buyers, not limited to first-time purchasers.
- Community Partners Loan Pool — up to 25% of the sales price, capped at $50,000. A third, separate option available through participating local partner agencies — note this one is calculated against the sales price, not the loan amount, a genuinely different base from the other two programs.
- Mortgage Credit Certificate (MCC). An annual federal tax credit on a portion of the mortgage interest paid each year — a direct credit against federal income tax owed, on top of any standard mortgage interest deduction. Currently suspended — NCHFA exhausted allocated funds around June 2025. The agency periodically receives new allocations that could restore it; confirm current status with NCHFA before advising a buyer to plan around it.
These program mechanics are statewide — the same $15,000 cap applies whether the property is in Plymouth or Charlotte. What's specific to Washington County is how far that assistance goes: at a Washington County price point, $15,000 can cover a genuinely large share of the cash a buyer needs to close, in a way it simply doesn't in a higher-cost market.
Washington County NCHFA Down Payment Assistance Estimator
See your estimated monthly payment plus how NCHFA's down payment assistance programs reduce your actual cash to close.
NC Down-Payment Assistance
These are three separate programs — a buyer qualifies for one, based on eligibility (first-time-buyer/veteran status, household income, or working with a specific partner agency), not on which number is larger. NC Home Advantage Mortgage and NC 1st Home Advantage are 0%, deferred second mortgages, not grants — repayment can become due under certain conditions, such as selling or refinancing. Community Partners Loan Pool terms are set by the partnering local agency. Confirm your household's exact eligibility and current terms with a participating lender.
*Illustrative only. Verify all figures with a lender before relying on them. Figures use the Washington County ad valorem rate alone (no municipal or fire-district add-on).
| Program | What You Get | Who Qualifies | Forgiveness |
|---|---|---|---|
| NC 1st Home Advantage | Up to $15,000 | First-time buyers or veterans | 0% deferred second mortgage |
| NC Home Advantage Mortgage | Up to 3% of loan amount as DPA | Broader buyer pool, including move-up buyers | 0% deferred second mortgage |
| Community Partners Loan Pool (CPLP) | Up to 25% of price (capped $50K) | Partner-agency territory, income-eligible | Terms set by partner agency |
| NC Home Advantage Tax Credit (MCC) | Annual federal tax credit on mortgage interest | Currently suspended — funds exhausted ~June 2025 | N/A — credit, not a loan |
Targeted census tracts: plausible given Washington County's Tier 1 status, not confirmed for every parcel
Assistance amounts and MCC eligibility can be widened for properties located in an NCHFA-designated "targeted census tract." Washington County is a North Carolina state-designated Tier 1 county — the most economically distressed tier under the NC Department of Commerce's annual rankings — and counties with that profile often have a meaningful share of targeted tracts. That's a reasonable expectation for parts of Washington County, but it is not the same thing as every tract in the county being targeted, and it's worth noting that a county this small — roughly 10,700 residents — has very few census tracts to begin with.
Verify the specific address
Targeted census tract status is not confirmed for any specific tract in Washington County on this page — it varies address by address. Before assuming a property qualifies for expanded assistance, consult NCHFA's tract eligibility lookup tool at nchfa.com to verify the specific address.
Stacking NCHFA with your first mortgage
NCHFA down payment assistance and the MCC are typically designed to stack on top of a qualifying first mortgage — USDA Guaranteed, FHA, or conventional. Whichever loan program fits your income and the property, NCHFA assistance can help cover the down payment and closing costs on top of it:
- See Washington County USDA Eligibility for zero-down financing across most of the county.
- See Washington County FHA Loan Limits for a 3.5%-down option with no income cap and no geographic eligibility test, plus the 203(k) renovation loan for older stock.
- For the sub-$100K financing problem that neither USDA nor NCHFA assistance solves on its own, see Waterfront for a Working Budget.
Have a specific address in mind?
Travis will check which NCHFA track fits your scenario.
Send the address and a little about your situation, and Travis will flag which of the three NCHFA programs you're most likely to qualify for before you talk to a lender.
Frequently asked questions
How much down payment assistance does NCHFA offer?
Eligible first-time buyers and veterans can receive up to $15,000 through the NC 1st Home Advantage Down Payment, structured as a 0% interest, deferred second mortgage. The standard NC Home Advantage Mortgage program offers a separate down payment assistance option of up to 3% of the loan amount. A third option, the Community Partners Loan Pool, offers up to 25% of the sales price (capped at $50,000) through participating local partner agencies. The exact amount and program you qualify for depends on your buyer status, income, and, in some cases, whether the property is in a targeted census tract or a partner agency's territory.
What is a Mortgage Credit Certificate (MCC), and is it still available?
An MCC is a federal tax credit that lets an eligible borrower claim a portion of the annual mortgage interest paid as a direct credit against federal income tax owed — on top of, and separate from, the standard mortgage interest deduction. Currently suspended — NCHFA exhausted allocated funds around June 2025. The agency periodically receives new allocations that could restore it; confirm current status with NCHFA before advising a buyer to plan around it. Verified as of 2026-08-16.
Is my Washington County property in a targeted census tract?
Possibly, but it isn't confirmed for any specific tract on this page. Washington County is designated a Tier 1 (most economically distressed) county by the NC Department of Commerce, and counties with that profile often have a meaningful number of NCHFA-targeted tracts. Because Washington County is small — roughly 10,700 residents countywide — it has very few census tracts overall, so the practical difference between "in Plymouth" and "outside Plymouth" may matter less here than in a larger county. Still, consult NCHFA's tract eligibility lookup tool at nchfa.com to verify a specific address before relying on targeted-tract benefits.
Can I combine NCHFA assistance with a USDA or FHA loan?
Yes. NCHFA down payment assistance is typically designed to stack on top of a first mortgage — including USDA Guaranteed, FHA, and conventional loans. See our USDA and FHA pages for details on those first-mortgage options in Washington County.
Do I have to repay the NCHFA down payment assistance?
The NC 1st Home Advantage Down Payment and the NC Home Advantage Mortgage assistance are both structured as deferred, 0% interest second mortgages that are gradually forgiven — commonly described as forgiven in increments starting in year 11 and fully forgiven by year 15 of ownership, with no monthly payment due in the meantime. The Community Partners Loan Pool is set by the partnering local agency, so its repayment and forgiveness terms can differ from the other two. Confirm the specific repayment and forgiveness terms with NCHFA, the partner agency, or a participating lender before relying on any of these programs.