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

#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.

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.

#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.

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.

#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 breaks it down line by line.

#Charlotte, Raleigh and the rest of the state

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 and Raleigh 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.