Is North Carolina Down Payment Assistance Forgivable? (2026)
Yes, North Carolina's down payment assistance is forgivable, but on a schedule that surprises people: nothing forgives for ten years, then it forgives over the next five. Here is exactly how it works and when you repay.
The straight answer
North Carolina’s assistance is genuinely forgivable, which sets it apart from states where the down payment second is simply a deferred loan you always repay. But the schedule is specific. For the first ten years, nothing forgives, though you also make no payment. Beginning in year 11, it forgives 20% of the original amount each year, and by the end of year 15 it is fully forgiven. So the program rewards staying: a buyer who keeps the home 15 years never repays the 3% or the $15,000.
When you repay
You repay only if you leave early. Sell, refinance, or stop occupying the home before year 11, and the full amount comes due from your proceeds. Do it between years 11 and 15, and you repay just the part not yet forgiven, which drops each year. After year 15, there is nothing to repay. Because there is no monthly payment throughout, the assistance never adds to your housing cost, it is only ever settled at a sale or refinance. Full details on our forgiveness page.
What it means for your plan
If you are buying a home you expect to keep, treat NCHFA’s assistance as money you will likely never repay, that is the design. If you might move or refinance in the first several years, plan for the balance to come due then from your equity. Either way it is a zero-payment second in the meantime. For a first-time buyer or veteran, the forgivable $15,000 is one of the more generous offers in the Southeast.
Common questions
Is North Carolina down payment assistance forgivable?
Yes. NCHFA's assistance (the 3% and the $15,000) is a 0% deferred second forgiven 20% per year in years 11 through 15, fully forgiven at 15 years. There is no forgiveness for the first 10 years and no monthly payment the whole time.
When do you repay NC down payment assistance?
Only if you leave before it fully forgives. Sell, refinance, or move out before year 11 and you repay the full amount; between years 11 and 15 you repay just the part not yet forgiven. After year 15 there is nothing to repay.
Does NC down payment assistance have a monthly payment?
No. It is a 0% deferred second with no monthly payment for the entire term. It is only ever settled at a sale or refinance, and if you keep the home 15 years it is fully forgiven.
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