NCHFA $15K DPA — the 30-year-fixed-only rule that catches buyers off guard
Program figures verified July 2026 — details change; confirm your scenario with us.
NCHFA's NC 1st Home Advantage gives qualifying first-time buyers $15,000 in down payment assistance. The catch: it only works with a 30-year fixed first mortgage. If you wanted a 15-year fixed to pay off faster, you're disqualified.
Why the 30-year-fixed-only rule exists
NCHFA bonds are structured around 30-year amortization. Their portfolio modeling assumes payments and prepayment behavior of 30-year loans. 15-year loans don't fit the bond structure, so the program doesn't allow them.
That's a real trade-off for buyers who want to build equity fast: a 15-year fixed pays principal down several times faster in the first five years. The decision is $15,000 in upfront help versus a faster payoff track.
Charlotte $325K scenario
| Item | 30-year + $15K DPA | 15-year no DPA |
|---|---|---|
| Cash help at closing | $15,000 | $0 |
| Monthly payment | Lower | Higher |
| Principal paydown pace | Standard 30-year schedule | Much faster — the loan is half as long |
| DPA forgiveness | 20% per year in years 11–15 | Not applicable |
The real decision — DPA now vs payoff speed
Take the NCHFA 30-year loan with the $15,000 second, and the assistance forgives 20% per year in years 11–15 — but sell or refinance before forgiveness completes and the remaining unforgiven balance is repaid at closing. So a year-3 refinance to a 15-year fixed means giving most of the $15,000 back.
That makes the honest framing: if the $15,000 gets you into the home, take it and plan to stay on the 30-year track; if a fast payoff is the priority and you don't need the assistance, skip the DPA and take the shorter loan from day one. Some buyers do refinance later and repay the remaining balance out of accumulated equity — we run that math with your real numbers before you choose.
Common questions
Can I do a 20-year fixed?
Generally no. NCHFA is strict on 30-year fixed. Some variants allow 25-year — confirm at application.
When does the $15K forgive?
It's a 0% deferred second mortgage, forgiven 20% per year in years 11–15 and fully forgiven at year 15. Sell, refinance, or move out before forgiveness completes and the remaining unforgiven balance is repaid at closing.
Does NCHFA work with VA?
Yes — NCHFA pairs with VA, FHA, USDA, and conventional 30-year fixed first mortgages.
What's the credit score floor?
640 minimum for most NCHFA variants.
How Mike + Cornerstone help
I'm licensed in North Carolina and structure NCHFA scenarios for Charlotte, Raleigh-Durham, and Wilmington buyers regularly. The 30-year requirement is non-negotiable from NCHFA's side. If you later refinance into a 15-year loan, expect the remaining unforgiven assistance to be repaid at closing — so we run that payoff math before you choose the DPA path.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.