Friday, May 18, 2007

First Time Home Buyer Limits

North Carolina Housing Finance Agency
3508 Bush Street Raleigh, NC 27609

Contact:Margaret Matrone, NCHFA, 919-877-5606, mamatrone@nchfa.com Connie Helmlinger, NCHFA, 919-877-5607, cshelmlinger @nchfa.comMay 2, 2007

NC Housing Finance Agency Raises Sales Price Limits for First Home Mortgage Change Will Help More North Carolinians Buy First Home

Purchasing power has increased for first-time home buyers in North Carolina thanks to a boost in sales price limits for the North Carolina Housing Finance Agency’s FirstHome Mortgage. Approved last month, the change makes more homes eligible for below-market interest rates – currently 5.625%.

The new statewide home price limits are $200,000 for new construction and $190,000 for existing homes. The FirstHome Mortgage offers moderate and lower income first-time home buyers 30-year, fixed-rate mortgages at below-market rates. Offered through 700 lenders and their branches, the mortgages use FHA, VA, USDA or conventional insurance or guarantees.
“The increases are based on changes in home prices across the state,” said Lucius S. Jones, chairman of the agency’s board of directors. “The new limits provide more opportunities for North Carolinians to find homes in their communities that qualify for our loans.”
To qualify, buyers’ incomes must be below certain limits, which vary depending on family size and where the new home is located. These range from $60,500 in most non-metropolitan counties to $81,500 in Raleigh or Cary, where the average income is highest in the state. The limit for Currituck County was raised, from $69,000 to $73,500, based on the county’s rising median income.

For the 2,173 first-time buyers who used FirstHome Mortgage in 2006, the average income was $40,520, and the average home price was $113,408.
Buyers with lower incomes may qualify for downpayment assistance up to $7,000 in the form of zero-interest, deferred second mortgages that are paid when the primary loan is retired or the house is sold. Conventional loans with 100% financing are available to qualified buyers. The agency’s mortgage also includes a Job Loss Feature to help homeowners keep their home. If eligible homeowners become unemployed in the first two years of the loan, the agency will make four months of principal and interest payments to be repaid at the end of the mortgage term with no interest.

FirstHome Mortgage is available through more than 700 lenders and their branches statewide. A lender list and description of all the agency home buyer programs are available at www.nchfa.com or by calling 800-393-0988.
The North Carolina Housing Finance Agency is a self-supporting public agency. It has financed 176,000 homes and apartments in the last three decades, including nearly 74,000 homes for first-time home buyers. To learn more, go to www.nchfa.com or call 919-877-5700 or 800-393-0988.

Household Income & Sales Price Limits for Low-Interest Mortgagesfrom the N.C. Housing Finance Agency

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