North Carolina · State guide
How to buy a house in North Carolina
The nation’s fastest-growing state by migration — affordable but rising, with low property taxes and strong down payment help, set against climbing coastal insurance. Here is the playbook for buying in the Tar Heel State.
Last updated June 2026
Why North Carolina is different
Buying a house in North Carolina, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but North Carolina has its own programs, taxes, and closing rules worth knowing before you start.
The picture: North Carolina is affordable but rising fast (a statewide median around $379,000; Charlotte and the Triangle are booming, while the coast and mountains carry a premium). It’s the #1 state for in-migration. The state agency, NCHFA, offers below-market loans plus down payment help, and property taxes are low (~0.66%).
Two things to plan for. North Carolina is an attorney-closing state — a lawyer is required to close. And home insurance is rising sharply after Hurricanes Florence and Helene, with another statewide increase landing in June 2026. Use the 50-state hub to compare other states.
The market
What homes cost in North Carolina
Affordable but rising fast, with booming metros and premium coast and mountains.
The statewide median sale price was about $379,000 in spring 2026 (Redfin), up around 1% year over year — the market is stabilizing after rapid gains, with inventory rising toward a balanced ~5 months. Prices vary by area:
Median prices by area
Asheville (Buncombe, mountains, Helene recovery) ~$507K · Wilmington (New Hanover, coast) ~$479K · Charlotte (Mecklenburg, booming) ~$435K · Raleigh (Wake) and Durham ~$425K · Greensboro (Guilford) ~$289K · Fayetteville (Cumberland, near Fort Bragg) the most affordable, ~$240K–$250K.
Down payment & rate help
NCHFA programs
You don’t apply directly — you work through a participating lender. A 640 credit score is the main requirement.
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NC Home Advantage Mortgage
The core: a 30-year fixed mortgage (FHA, VA, USDA, or conventional) for first-time and move-up buyers, with down payment assistance of up to 5% of the loan. Income up to $152,000, price up to $495,000. The help is a 0% deferred second with no monthly payment.
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The help is forgiven over time
That down payment assistance is fully forgiven after 15 years — forgiven 20% a year in years 11 through 15. There’s no payment and no interest, so if you stay put it becomes a grant. Sell or refinance sooner and you repay the unforgiven balance.
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NC 1st Home Advantage ($15,000)
First-time buyers and veterans can take a flat $15,000 in down payment assistance instead — same 0%, forgiven-over-years-11-to-15 structure. It’s often the better pick if you might move within a decade.
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Tax credit, local & federal help
The NC Home Advantage Tax Credit (MCC) adds a federal credit up to $2,000 a year. Cities stack more — Charlotte, Raleigh, Durham, and Greensboro add up to $30,000–$80,000. Plus USDA (0% down), VA (0% down, big near Fort Bragg), and FHA (3.5% down).
The NCHFA rules in brief
You’ll generally need a 640 credit score (660 for a manufactured home), completion of a homebuyer education course (for first-time buyers on conventional loans), and household income under $152,000 with a purchase price under $495,000 (the 1st Home Advantage program uses lower, county-tiered limits). The down payment help is a 0% deferred second, forgiven 20% a year in years 11–15. Note the MCC can’t be combined with the $15,000 1st Home Advantage — pick one. “First-time” means no ownership in three years.
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Property taxes
Property taxes in North Carolina: low
Good news here: North Carolina has low property taxes — an effective rate around 0.66%, below the national average, with a typical bill near $1,900. Homes are assessed at 100% of market value by the county, and you pay the county rate plus any city rate. One thing to watch: counties revalue every 4–8 years, and in fast-growing areas like Charlotte, Raleigh, and Durham those revaluations have pushed assessments — and bills — up sharply.
Relief for seniors, the disabled, and veterans
Several exclusions can lower the bill. The Elderly or Disabled Homestead Exclusion removes the greater of $25,000 or 50% of value for owners 65+ or permanently disabled (2026 income limit $38,800). A Circuit Breaker deferment caps tax as a share of income for longtime low-income owners, and 100% disabled veterans get the first $45,000 of value excluded regardless of income. File form AV-9 with the county by June 1.
Closing & costs
Closing on a home in North Carolina
North Carolina is an attorney-closing state — state law requires a licensed NC attorney to conduct the closing, examine title, and disburse funds (a title company alone can’t close). Title insurance is standard, and NC premiums are among the lowest in the country. The transfer tax — the excise tax — is low, $1 per $500 (0.2%), paid by the seller (about $760 on a $380,000 home); seven northeastern coastal counties can add up to 1% more. On financing, the 2026 conforming limit is $832,750 and the FHA floor is $541,287 in most counties — including Charlotte and Raleigh — with a few coastal and Triangle counties higher.
Two required disclosures — and “No Representation”
North Carolina requires sellers to give you two forms: the Residential Property and Owners’ Association Disclosure Statement and the Mineral and Oil & Gas Rights disclosure — both before you make an offer. But there’s a catch: sellers can answer “No Representation” on items, so the form is mandatory even though the disclosure of defects isn’t. Never treat “No Representation” as a clean bill of health — always get your own home inspection. The federal lead-paint disclosure applies to pre-1978 homes.
Insurance & risks
Insuring a North Carolina home
This is the cost rising fastest for North Carolina owners. Home insurance averages roughly $2,900–$3,100 a year statewide — far higher on the coast (Wilmington tops $7,000) — and it’s climbing. After a big industry request, a 2025 settlement set statewide base-rate increases of 7.5% in June 2025 and another 7.5% in June 2026. The risks are regional: hurricanes and storm surge on the coast (Florence, 2018), and — the hard lesson of Hurricane Helene (2024) — catastrophic flooding inland, in the western mountains around Asheville.
Coastal wind, the Beach Plan, and flood everywhere
Two things to check. On the coast, standard policies often exclude windstorm, so you may need a separate wind policy through the NC Beach Plan (the state’s coastal insurer of last resort), plus a named-storm deductible that’s a percentage of your home’s value (often 1%–5%). And Helene proved the biggest lesson: flood is never covered by a home or wind policy, and flood risk isn’t just coastal — add an NFIP flood policy even inland if there’s any risk, and buy it early (30-day wait). Away from the coast, the NC FAIR Plan is the full-peril last resort.
Wherever you buy
The steps that work the same in North Carolina
North Carolina sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in North Carolina: common questions
How much money do you need to buy a house in North Carolina?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$379,000 home that’s roughly $11,000–$13,000 down plus closing costs. NCHFA can add up to 5% of the loan, or a flat $15,000. See how much you really need →
Does North Carolina have down payment assistance?
Yes. NCHFA offers up to 5% of the loan through the NC Home Advantage Mortgage, or a flat $15,000 through NC 1st Home Advantage — both 0% and forgiven over years 11–15. Charlotte, Raleigh, Durham, and Greensboro add local help. See assistance programs →
Is the NCHFA down payment help forgiven?
Yes, over time. It’s a 0% deferred second mortgage with no monthly payment, forgiven 20% a year in years 11 through 15 — fully forgiven at year 15. If you sell or refinance before then, you repay the unforgiven balance.
Are property taxes low in North Carolina?
Yes — below the national average, with an effective rate around 0.66% and a typical bill near $1,900. Just note that county revaluations in fast-growing metros have raised assessments recently. Seniors and disabled veterans have exclusions.
What credit score do you need in North Carolina?
NCHFA generally requires a 640 (660 for a manufactured home). For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in North Carolina?
Yes. North Carolina is an attorney-closing state — state law requires a licensed NC attorney to conduct the closing, examine title, and disburse funds. Title insurance is standard and cheap here.
Does North Carolina have a transfer tax?
Yes, but it’s low — an excise tax of $1 per $500 (0.2%), paid by the seller. That’s about $760 on a $380,000 home. Seven northeastern coastal counties can add up to 1% more.
Why is home insurance rising in North Carolina?
After Hurricanes Florence and Helene, a 2025 settlement set statewide base-rate increases of 7.5% in 2025 and another 7.5% in June 2026. Coastal areas are much higher and may need a separate Beach Plan wind policy. Flood is always a separate NFIP policy.
What’s the conforming loan limit in North Carolina?
$832,750 in every county for 2026, with the FHA floor at $541,287 in most of the state — including Charlotte (Mecklenburg) and Raleigh (Wake). A few coastal counties (Dare, Currituck) and Triangle counties (Durham, Orange) are higher. Loans above the limit are jumbo.
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