North Carolina Grants There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down.  Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level.  Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds.  State Sponsored Bank Sponsored Matching Funds Programs Community/local Sponsored Grants Seller Funded Down Payment Assistance Programs State Sponsored  The State of North Carolina offers a deferred grants of the higher of $8000, to be used for down payment and closing costs. There are no monthly payments required on this grant but it must be paid back upon the sale of the home. They also work with local community through their New Homes Loan Pool Program. Through this program, local communities can offer 2nd mortgages of up to $20,000 to assist in purchasing a home. Below is a link to the State’s web site:  http://www.nchfa.com/Homebuyers/HBwhatweoffer.aspx  New Homes Loan Pool Program Participants: http://www.nchfa.com/Applications/SI_Addit_Listings/HPnhlplist.aspx  Bank Sponsored Matching Funds Programs  Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information. Community/local Sponsored Grants New Homes Loan Pool Program Participants: http://www.nchfa.com/Applications/SI_Addit_Listings/HPnhlplist.aspx  Asheville Neighborhood Housing Services, Inc. of Asheille Single Family New Construction Program (SFNC)  (828) 251-5054  Cumberland County First Time Homebuyers Program (FTHB)  (910) 323-6112  Durham First Time Homebuyers Program (FTHP)  (919) 560-4570  Gaston County Homebuyers Assistance Program  (704) 866-6756  Greensboro Affordable Home Loan Initiative Program (GAHLI)  (336) 373-4146  Hickory 1st Time Homebuyer's Program (FTHB)  (828) 323-7414  High Point Homeownership Assistance Program (HAP)  (336) 883-3347  Iredell Statesville Housing Authority HOME Program Funds  (704) 872-9811  Orange County HOME Down payment Assistance Program  (919) 644-3056  Pasquotank County, Community Homebuyers Assistance Program (HAP)  (252) 335-3702  Wilson County Affordable Home Ownership Program  (252) 399-2230  Seller Funded Down Payment Assistance Programs There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site. American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm Nehemiah Corp:    http://www.nehemiahcorp.org/