First-Time Homebuyer Programs in North Carolina and South Carolina
Buying your first home starts with understanding your options, your budget, and what happens next.
You don’t need to know which mortgage program to choose before we talk. My job is to help you understand what you may qualify for, compare the numbers, and build a financing plan around your goals.
I’m Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. I help first-time buyers work through the mortgage process with upfront document reviews, clear explanations, and detailed financing comparisons.
Whether you’re buying in Charlotte, Matthews, Concord, Fort Mill, Indian Land, Rock Hill, or elsewhere in the Carolinas, we’ll start with your situation and explain your options before you make an offer.
Start With a Comfortable Payment
“How much house can I qualify for?” is a common first question.
Just as important is: “What payment can I comfortably manage while still saving and covering my other expenses?”
Before choosing a price range, we’ll discuss:
Your preferred monthly housing budget.
Your employment and sources of income.
Existing debt payments.
Savings available for the purchase.
Money you want to keep after closing.
Your lease, moving plans, and buying timeline.
The locations and types of homes you’re considering.
Your housing budget should account for principal and interest, property taxes, homeowners insurance, mortgage insurance when required, and any HOA dues. You’ll also want room for utilities, maintenance, repairs, and everyday life.
The maximum a lender may approve is not automatically the amount you should spend. We’ll use your qualifications and your comfort level to guide the conversation.
What Are First-Time Homebuyer Programs?
“First-time homebuyer program” can describe several different financing options. It does not refer to one universal mortgage or one automatic benefit.
Depending on your qualifications, your choices may include conventional, FHA, VA, or USDA financing. Some buyers may also qualify for an available down payment assistance option.
Each comes with its own requirements, costs, and trade-offs. Several of these loan types are also available to buyers who have owned a home before.
The starting point is understanding your financial picture. Then we can compare the programs that may fit.
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You may count as a first-time homebuyer even if you've owned before. Many programs define a first-time buyer as someone who hasn't owned a principal residence in the past three years. Some low-down-payment options also require at least one borrower to complete a homebuyer education course.
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Usually less than 20%.
Conventional Loans
Some eligible first-time buyers can purchase with as little as 3% down.
With less than 20% down, private mortgage insurance (PMI) may apply. Depending on the loan and how your equity changes over time, PMI may be removable later when applicable requirements are met.
FHA Loans
FHA loans can require as little as 3.5% down with a credit score of 580 or higher, subject to FHA and lender requirements.
VA Loans
Eligible veterans, service members and other qualifying borrowers may be able to purchase with no down payment, subject to VA requirements.
USDA Loans
USDA loans can offer no-down-payment financing for eligible buyers purchasing eligible properties.
USDA also has household income limits and other program requirements, so both the borrower and property need to qualify.
Don't Forget Closing Costs
Your down payment isn't the only cash you may need to buy a home.
You'll also need to plan for expenses such as:
Closing costs
Prepaid property taxes
Homeowners insurance
Initial escrow funding
Prepaid interest
Any applicable deposits or other funds due before closing
The exact amount depends on the property, mortgage program and purchase contract, which is why it's helpful to estimate the total cash to close, not just the down payment.
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The loan programs generally work the same way in both states, but a few local differences can affect your upfront costs and monthly housing expense.
North Carolina
Due diligence and earnest money: Buyers commonly negotiate a due diligence fee paid directly to the seller when they go under contract, along with earnest money. The due diligence fee is generally nonrefundable if you decide not to move forward, so having a document-based mortgage preapproval before making an offer is important.
Property taxes: Property taxes are based on the property's assessed value and applicable local tax rates. Depending on the address, county and city or town taxes may both apply.
South Carolina
Owner-occupied property taxes: A qualifying legal residence can generally receive a 4% assessment ratio and an exemption from school operating taxes. You must apply and qualify for the legal-residence treatment. Tax rates can vary significantly depending on the county, school district, municipality and whether the property is inside or outside town limits.
USDA eligibility: Some areas outside the more developed Charlotte suburbs, including portions of York and Lancaster counties, may be eligible for USDA financing. Property eligibility is address-specific, and household income limits and other USDA requirements apply.
For a deeper comparison, see my guides to North Carolina vs. South Carolina property taxes and lower property taxes in South Carolina near Charlotte.
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If you're getting ready to buy your first home, these guides cover some of the most common questions that come up before and during the mortgage process.
Getting Ready for a Mortgage
Budgeting and Affordability
Where and How to Buy
My First-Time Homebuyer Process
1. Talk Through Your Goals
We’ll discuss where you want to buy, when you want to move, your preferred payment, and how much money you’re comfortable using for the purchase.
Bring your questions. You don’t need to understand mortgage terminology or have everything figured out before the first conversation.
2. Complete Your Application and Upload Documents
Your application gives us the information needed to begin reviewing your qualifications. Supporting documents help us verify income, assets, and other details.
Depending on your situation, requested documents may include:
Recent pay stubs and W-2s.
Tax returns when required.
Bank statements and other asset documentation.
Identification.
Documents supporting self-employment, retirement, benefits, or other income.
Information about planned gift funds.
I’ll explain what is needed for your particular file. Upload sensitive documents through the secure application portal.
Start Your Secure Mortgage Application
3. Review Credit, Income, Assets, and Debts
With your authorization, we’ll review your credit alongside your income, monthly obligations, and available funds.
A credit score is only one part of mortgage qualification. We also need to determine which income can be used, how your debts affect the application, and whether your funds meet the program’s requirements.
Reviewing this information early gives us an opportunity to identify questions before you commit to a property.
4. Compare Your Financing Options
We’ll compare the loan programs and structures available for your situation.
I’ll explain the estimated payment, cash needed, mortgage insurance, closing costs, and relevant requirements. A detailed estimate and video explanation can help you review the numbers at your own pace and come back with questions.
If assistance is available and appropriate, we’ll compare its terms with financing without assistance.
5. Prepare Your Preapproval
After the necessary information has been reviewed, we can determine whether a preapproval can be issued and explain its conditions.
Preapproval is not final loan approval. The property, required valuation, title, updated documentation, and remaining underwriting requirements still matter.
Learn About Mortgage Preapproval Before House Hunting
6. Review the Property Before Making an Offer
When you find a home you like, send me the address and proposed purchase price.
We can update your estimate using available property-tax information, estimated homeowners insurance, HOA dues, and the proposed financing structure. If you’re considering asking for seller credits, we’ll discuss how they could fit into the transaction.
Two homes with the same purchase price can have different monthly costs. Looking at the specific property helps you make a more informed decision.
7. Work Through Underwriting and Closing
Once you’re under contract, we’ll discuss the rate-lock decision, disclosures, appraisal or other required valuation, underwriting conditions, and the remaining steps.
Before closing, we’ll review your Closing Disclosure and the funds needed to complete the purchase.
Closing dates depend on appraisal, title, underwriting, documentation, and the purchase contract. We’ll discuss a realistic timeline for your specific file.
“Paul is a wonderful mortgage broker. This was my first time buying a home. He made sure the process went smoothly and the best financing options were secured for me. He communicates and explains things well. He is very personable and works hard to ensure everything works out in maximal favor of the client. 10/10 would recommend.”
See Your Mortgage Options Side by Side
A mortgage comparison should help you understand what you’re choosing and why.
My Total Cost Analysis allows us to compare available financing options using the same property and consistent assumptions. We can look at different loan programs, down payments, or other eligible structures.
Three questions guide the comparison.
How Much Money Do I Need Upfront?
We’ll review the down payment, estimated closing costs, prepaid expenses, and any eligible credits or assistance.
We’ll also distinguish between expenses paid before closing and funds still due at closing, then discuss the savings you expect to have left afterward.
What Is the Complete Monthly Cost?
We’ll compare principal and interest, estimated property taxes, homeowners insurance, mortgage insurance, HOA dues, and any required payment on an additional loan.
Looking at the full housing expense makes the comparison more useful than looking at principal and interest alone.
What Does Each Option Cost Over Time?
We’ll review financing costs over a stated period, together with the remaining loan balances.
If one option requires more money upfront, we’ll discuss what changes in return. If an assistance loan has repayment or forgiveness conditions, those belong in the comparison too.
The goal is to help you understand the trade-offs and choose a structure that fits your plans.
Your actual options depend on your qualifications, the property, current pricing, and available loan programs. The analysis is an educational estimate and does not replace your official Loan Estimate or Closing Disclosure.
Already Have a Loan Estimate From Another Lender?
Let’s walk through it together.
If you’ve already received a Loan Estimate or written mortgage proposal, I can help you understand the interest rate, discount points, lender fees, mortgage insurance, estimated payment, and cash needed at closing.
We’ll discuss what you’re being offered and whether other available financing options deserve a closer look. When comparing proposals, we’ll account for differences in loan type, down payment, rate-lock status, and estimated expenses.
You don’t need to understand every line before reaching out. Bring your estimate and your questions.
Still getting started and don’t have an estimate? Schedule a first-time buyer consultation, and we’ll begin with your budget and next steps.
Mortgage Options for First-Time Buyers
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Conventional financing may offer low-down-payment options for qualified buyers. Depending on the specific program, income limits, homebuyer education, or first-time buyer requirements may apply.
Credit, down payment, and other factors can affect pricing and private mortgage insurance. PMI may later be eligible for cancellation when the applicable requirements are met.
We’ll compare the payment, cash needed, mortgage insurance, and overall cost with other available choices.
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FHA financing may be worth considering when its qualification requirements fit your credit history and overall financial situation.
FHA loans include mortgage insurance and have borrower and property requirements. FHA financing is not limited to first-time buyers, and being a first-time buyer does not automatically make FHA the right choice.
Comparing FHA and conventional financing can help you understand how the costs and requirements differ.
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Eligible veterans, service members, and certain surviving spouses may qualify for VA financing.
VA loans can offer no-down-payment financing for eligible transactions and do not require monthly mortgage insurance. A funding fee may apply unless the borrower qualifies for an exemption.
Closing costs and prepaid expenses still need to be considered. Eligibility for the VA benefit and approval for a particular mortgage are separate parts of the review.
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USDA financing may offer a no-down-payment option for eligible buyers purchasing an eligible primary residence.
Household income, property location, and the complete loan application matter. We need to check the specific address rather than assume an entire town or surrounding area qualifies.
Program fees, closing costs, and the complete monthly payment belong in the comparison.
Down Payment Assistance: Understand the Full Picture
Down payment assistance may help an eligible buyer cover part of the upfront purchase expense, but it should not automatically be treated as free money.
Depending on the available program, assistance may have repayment requirements, an additional monthly payment, forgiveness conditions, or restrictions affecting a future sale or refinance.
If an assistance option is available through my lending relationships and you qualify, we’ll review questions such as:
Does it create a second mortgage?
Is there a required monthly payment?
Does the balance have to be repaid?
What conditions must be met for forgiveness?
What happens if you sell, refinance, or stop occupying the home?
Does the associated first mortgage have different pricing or fees?
How much money would you need without assistance?
How do the complete costs compare?
A deferred payment means payment is postponed. It does not automatically mean the debt is forgiven.
Assistance can be useful when it fits your situation. The important step is comparing the actual terms with your other available options.
Plan for More Than the Down Payment
Your down payment is only one part of the money needed to buy a home.
We’ll build a purchase plan that accounts for the other expenses too.
Closing Costs
These may include lender charges, title and settlement services, recording fees, and other transaction expenses.
The amount depends on the loan, property, location, and specific transaction.
Prepaid Expenses and Escrow Funding
You may need funds for items such as homeowners insurance, prepaid interest, and initial deposits into an escrow account for taxes and insurance.
These expenses are part of the purchase budget even though they are different from lender fees.
Costs Before Closing
Inspections, contract deposits, and other expenses may be due before the closing date.
Ask your real estate agent or closing attorney to explain the timing and refundability of any contract deposit before you commit funds.
Moving Costs and Savings After Closing
Moving expenses, utility connections, maintenance, and unexpected repairs should also be considered.
Using every available dollar to purchase a home may leave you with less flexibility afterward. We’ll discuss the savings you want to preserve alongside the loan’s requirements.
First-Time Homebuyer Questions
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No, but your credit history is part of the qualification review.
Requirements vary by program, lender, and the overall application. Income, debts, available funds, and the property also matter.
We’ll review the credit information used for your mortgage and explain how it affects the options available to you.
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Not necessarily. Some programs offer low-down-payment financing, and eligible VA or USDA transactions may not require a down payment.
You still need a plan for closing costs, prepaid expenses, and any expenses due before closing.
We’ll review the complete cash requirement and acceptable sources of funds.
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No. FHA is one option to evaluate.
Conventional, VA, USDA, or another available structure may fit your situation better. The comparison should consider qualification requirements, mortgage insurance, upfront costs, monthly costs, and your plans.
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No single structure is best for everyone.
Assistance may help preserve savings, but its repayment terms, restrictions, and associated mortgage costs need to be considered.
We’ll compare the complete financing package with other options you may qualify for.
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Eligible gift funds may be permitted, depending on the loan program, donor, and intended use.
Documentation requirements apply. Tell me about a planned gift before money is transferred so we can explain the records needed.
A gift must meet the program’s requirements and cannot be an undisclosed loan.
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Many mortgage programs permit negotiated seller credits toward eligible closing costs and prepaid expenses, subject to limits.
Seller credits generally cannot replace a required down payment. They depend on the loan guidelines, actual eligible costs, and what the seller agrees to.
We should discuss any planned credit before you submit an offer.
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Possibly. Existing debts do not automatically prevent mortgage approval.
The lender evaluates the payments that must be counted alongside your proposed housing expense and qualifying income. Student-loan calculations can vary by program and loan status.
We’ll review the actual obligations before making recommendations.
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Discuss a major payoff with me before using your savings specifically to prepare for a mortgage.
Paying down debt may help in some situations, but it can also reduce the money available for closing and reserves.
We’ll compare the effect on qualification with the effect on your available cash.
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Possibly. The new position, pay structure, employment history, and applicable loan requirements all matter.
A change from salary to commission, hourly work to self-employment, or one industry to another may require additional review.
Share the details early so we can determine what documentation is needed.
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Possibly. Self-employed buyers can qualify for mortgages, but the income calculation and documentation may differ from those used for salaried employees.
Business revenue, personal income, and income eligible for mortgage qualification are not necessarily the same amount.
We’ll review the documentation and determine which available programs deserve consideration.
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Start before serious house hunting, with enough time to review your finances and address any outstanding questions.
Tell me about your lease expiration, moving plans, and target purchase date. Those details help us build a practical timeline.
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You can begin with a planning conversation.
We can identify the information needed for a future review and discuss the preparation your situation may require.
Future qualification depends on your circumstances, the property, and the loan guidelines in effect when you apply.
Helpful Articles for First-Time Homebuyers
Mortgage Preapproval Before House Hunting
Understand what preapproval helps establish and why your financing should be reviewed before making offers.
Read the Mortgage Preapproval Guide
FHA vs. Conventional Loan: Which Is Better?
Explore how mortgage insurance, qualification requirements, and your overall loan structure affect the comparison.
Read the FHA vs. Conventional Guide
Can You Use Gift Funds on FHA Loans?
Learn how eligible gift funds may fit into an FHA purchase and why documenting the funds matters.
Escrow Explained for First-Time Homebuyers
Understand how an escrow account fits into your mortgage and helps manage certain property-related expenses.
“As first time homebuyers, just having moved here from out-of-state, Paul Mattos and his team made this such a pleasant and stress-free experience. He informed us of the programs available to us, answered all of our questions, and made sure to find out exactly what mortgage and downpayment we were comfortable with, and tailored everything to meet our needs.”
Let’s Build Your First-Home Financing Plan
You don’t have to figure out the mortgage process by yourself.
Bring your questions, preferred payment, available savings, and buying timeline. I’ll explain what we need to review and help you compare the financing options that may fit your situation.
For a productive first conversation, be ready to discuss:
Where you want to buy.
When you hope to move.
Your employment and income.
Existing monthly debt payments.
Savings and any planned gift funds.
A monthly housing budget that feels comfortable.
When you’re ready for a qualification review, we’ll move forward with your application and supporting documents.
My goal is for you to understand the numbers, the trade-offs, and the next steps before committing to a home.
Paul Mattos
Mortgage Broker | Refine Mortgage
Licensed in North Carolina and South Carolina
NMLS# 2339069
Financing is subject to borrower and property eligibility, credit review, acceptable appraisal or other required valuation, title, and underwriting approval. Program availability and terms may change. Estimates are not a commitment to lend or a rate guarantee.