# North Carolina mortgages: NCHFA help, the excise tax and monthly costs

> North Carolina home buying numbers: the median home’s payment, the 0.61% property tax rate, the seller’s excise tax and NCHFA down-payment help.

URL: https://mortgage-math-us.com/location/north-carolina/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

At the median value of $333,000, a North Carolina home costs about **$2,498 a month** with 10% down at the 7.24% national average rate, including property tax at the state’s effective rate of 0.61% — below the national 0.89%. The seller pays the state excise tax of 0.2%. Through NCHFA, buyers can get up to 3% of the loan, or $15,000 for first-time buyers and veterans, forgiven after 15 years.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value | $333,000 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US37) | 2024 ACS 1-year |
| Effective property tax rate | 0.61% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US37) | 2024 ACS 1-year |
| Median year homes were built | 1993 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US37) | 2024 ACS 1-year |
| Excise tax on the deed (seller) | 0.2% | [N.C. Gen. Stat. 105-228.30](https://ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_105/Article_8E.html) | Oct 28, 2026 |
| NC 1st Home Advantage Down Payment | $15,000 | [NC Housing Finance Agency: NC 1st Home Advantage Down Payment](https://www.nchfa.com/home-buyers/home-buyer-mortgage-products/nc-1st-home-advantage-down-payment) | Oct 29, 2026 |
| NCHFA minimum credit score | 640 | [NC Housing Finance Agency: NC Home Advantage Mortgage](https://www.nchfa.com/home-buyers/buy-home/nc-home-advantage-mortgage) | Oct 29, 2026 |
| Elderly or disabled exclusion, at least | $25,000 | [N.C. General Statutes § 105-277.1](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-277.1.html) | Oct 29, 2026 |

## Newer houses, lighter tax bills

Half of North Carolina’s homes were built in 1993 or later, the 6th-newest housing among the states and DC; nationally the median year is 1981. Newer stock tends to mean fewer surprises in the inspection, though growing suburbs also bring new-construction contracts, HOA dues and special assessments to read carefully.

Property taxes are moderate. The median owner pays $2,044 a year, an effective rate of 0.61% — the 15th-lowest among the states and DC. On the median-value home, that is $169 a month, $78 less than the same house would pay at the national ratio. Counties reappraise on their own schedules, so a recent revaluation can move a bill noticeably; check the county’s current rate and the property’s assessed value before you offer.

## The monthly cost, two ways

Here is the median home with a conventional 10% down payment next to an FHA loan with the minimum 3.5% down, where NC Home Advantage assistance helps with the cash.

> **Worked example: $333,000 home, 30-year fixed at 7.24%**
>
> | Monthly | 10% down, conventional | 3.5% down, FHA |
> |---|---:|---:|
> | Loan amount | $299,700 | $326,969 (incl. upfront MIP) |
> | Principal and interest | $2,042 | $2,228 |
> | Property tax at 0.61% | $169 | $169 |
> | Insurance at the national $4.90 per $1,000 | $136 | $136 |
> | PMI or annual FHA MIP | $150 | $147 |
> | **Total** | **$2,498** | **$2,681** |
> 
> On the FHA loan, 3% of the loan in NC Home Advantage assistance is $9,809 — leaving $1,846 of the down payment for you to cover. The FHA payment is higher because you borrow more and pay mortgage insurance.

On North Carolina’s median household income of $73,958, Freddie Mac’s 30% housing guideline allows $1,849 a month. With 10% down, that supports about **$247,000**, $86,000 below the median value; buying the median home on that guideline takes roughly $100,000 a year. Adjust any of these inputs in the [mortgage payment calculator](https://mortgage-math-us.com/tools/mortgage-payment-calculator/?price=333000&down=10&tax=0.61&state=NC).

## NCHFA’s two kinds of down-payment help

The North Carolina Housing Finance Agency works through participating lenders. Its assistance comes as a 0% deferred second mortgage, forgiven in stages and gone entirely after 15 years — sell, refinance or transfer the home before then and some is repaid.

*NCHFA purchase assistance (checked Oct 2026)*

| Program | Help | Who qualifies |
|---|---|---|
| NC Home Advantage Mortgage | Up to 3% of the loan | First-time and move-up buyers with income up to $158,000 |
| NC 1st Home Advantage Down Payment | $15,000 | First-time buyers (no principal residence in the past 3 years) and military veterans, or buyers in targeted areas; used with an NC Home Advantage Mortgage |

Both need a credit score of at least 640 and work with FHA, VA, USDA or conventional loans within each loan type’s limits. For a buyer who qualifies, the flat $15,000 is worth more than the $9,809 that 3% of a median-price FHA loan would bring. See how these compare with federal options in the [first-time buyer programs guide](https://mortgage-math-us.com/first-time-buyers/programs/).

## Excise tax and other closing costs

North Carolina’s excise tax on deeds is 0.2% of the price, paid by the seller — about $666 on the median-value home. Buyers pay their own lender charges, title insurance, recording fees and prepaid items; at the CFPB’s 2%–5% rule of thumb, budget $6,660–$16,650 on the median home. The [closing cost estimator](https://mortgage-math-us.com/tools/closing-cost-calculator/?state=NC) breaks it down line by line.

## Charlotte, Raleigh and the rest of the state

*North Carolina’s two largest markets (Census ACS 2024 1-year, city limits)*

| | Charlotte | Raleigh | North Carolina |
|---|---:|---:|---:|
| Median home value | $431,900 | $450,300 | $333,000 |
| Median household income | $86,416 | $85,060 | $73,958 |
| Effective property tax rate | 0.69% | 0.72% | 0.61% |

Both cities’ median values sit above the statewide figure, and Raleigh’s is $18,400 higher than Charlotte’s. Both cities run their own buyer assistance on top of NCHFA’s; see the [Charlotte](https://mortgage-math-us.com/location/charlotte-nc/) and [Raleigh](https://mortgage-math-us.com/location/raleigh-nc/) guides for local programs and costs.

## North Carolina’s homestead exclusion for older and disabled owners

North Carolina’s elderly or disabled exclusion removes the greater of $25,000 or 50% of a home’s appraised value from taxation for owners who are 65 or older or totally and permanently disabled and whose income is under a limit the Department of Revenue adjusts each year. On a home at the median value, 50% would exclude $166,500 — roughly $1,016 a year at the state’s effective rate. Apply with your county tax office.

## Frequently asked questions

### What is the property tax rate in North Carolina?

Census data put the median North Carolina bill at $2,044 a year, an effective rate of about 0.61% of home value. Each county and city sets its own rate, so check the rate where you are buying.

### Who pays the excise tax when you buy a house in North Carolina?

The seller. The state excise tax is 0.2% of the price, about $666 on a median-value home.

### Does North Carolina have a first-time homebuyer program?

Yes. NCHFA’s NC 1st Home Advantage Down Payment provides $15,000 to first-time buyers and military veterans, and the NC Home Advantage Mortgage offers up to 3% of the loan to first-time and move-up buyers. Both are forgiven after 15 years.

### What credit score do I need for NC Home Advantage?

NCHFA requires a score of at least 640, with a higher minimum for manufactured homes. Household income can’t exceed $158,000.

### How much income do you need to buy a house in North Carolina?

For the median $333,000 home with 10% down at today’s average rate, keeping housing under 30% of gross income takes about $100,000 a year, assuming few other debts.

### Does North Carolina have a homestead exemption?

Not for all owners. Owners 65 or older, or totally and permanently disabled, with income under the yearly limit can exclude the greater of $25,000 or 50% of appraised value.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US37) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US37) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US37) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- [HUD Mortgagee Letter 2023-05](https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-05hsgml.pdf) — FHA upfront mortgage insurance premium; FHA annual MIP, 30-year loan, more than 95% LTV (Feb 22, 2023)
- [NC Housing Finance Agency: NC Home Advantage Mortgage](https://www.nchfa.com/home-buyers/buy-home/nc-home-advantage-mortgage) — NC Home Advantage Mortgage down payment assistance, up to (share of the loan amount); NC Home Advantage Mortgage income limit; NC Home Advantage Mortgage minimum credit score (Oct 29, 2026)
- [NC Housing Finance Agency: NC 1st Home Advantage Down Payment](https://www.nchfa.com/home-buyers/home-buyer-mortgage-products/nc-1st-home-advantage-down-payment) — NC 1st Home Advantage Down Payment (first-time buyers and military veterans); NCHFA down payment assistance is fully forgiven after (Oct 29, 2026)
- [N.C. General Statutes § 105-277.1](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-277.1.html) — NC elderly or disabled homestead exclusion, at least (of appraised value); NC elderly or disabled homestead exclusion, share of appraised value (if larger than $25,000) (Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [N.C. Gen. Stat. 105-228.30](https://ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_105/Article_8E.html) — State real estate transfer tax (Oct 28, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US37) — Median year homes were built (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=010XX00US) — Median year homes were built (2024 ACS 1-year)
- [42 U.S.C. 12704(14)](https://www.law.cornell.edu/uscode/text/42/12704) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US3712000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=160XX00US3755000) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US3712000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=160XX00US3755000) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US3712000) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=160XX00US3755000) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [NC Housing Finance Agency: Home buyers](https://www.nchfa.com/home-buyers)
- [NCHFA: NC 1st Home Advantage Down Payment](https://www.nchfa.com/home-buyers/home-buyer-mortgage-products/nc-1st-home-advantage-down-payment)
- [N.C. General Statutes § 105-277.1: Elderly or disabled exclusion](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-277.1.html)

_General information, not financial advice._