Learn About Housing Programs in North Carolina

Overview of North Carolina Housing Programs

North Carolina offers several housing programs designed to help residents address different housing challenges. These programs exist at state and local levels and target various situations—from purchasing a first home to finding rental housing or making repairs to an existing home. Understanding what programs exist and how they work is an important first step for anyone facing housing concerns.

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The state's housing programs stem from funding through federal dollars, state appropriations, and nonprofit partnerships. Some programs focus on homeownership, while others concentrate on rental assistance or home repair. A few programs serve people experiencing homelessness or transitioning from homelessness. The specifics of each program vary significantly, including what they cover, where they operate, and what documentation they may require from participants.

North Carolina's Department of Commerce and the North Carolina Housing Finance Agency (NCHFA) manage many state-level programs. However, individual cities and counties also run their own housing initiatives. This means the programs available to you depend partly on where you live within the state. A program offered in Charlotte may differ from one in rural areas or in the mountain regions.

Housing programs in North Carolina generally fall into four categories: down payment and closing cost support for homebuyers, rental housing support, home repair funding, and homelessness prevention or transition programs. Each addresses different housing needs and operates under different rules and structures.

Practical Takeaway: Before pursuing any housing program, identify your primary housing need. Are you trying to purchase a home, secure rental housing, repair your current home, or prevent homelessness? This will help you narrow down which programs may be relevant to your situation.

First-Time Homebuyer Programs in North Carolina

North Carolina provides several pathways for first-time homebuyers to reduce the financial barriers to purchasing a home. The most prominent is the NCHFA First Mortgage Loan Program, which offers below-market interest rates and down payment assistance. This program works by combining a first mortgage with a separate down payment assistance loan, reducing the amount of money a buyer needs upfront.

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The Down Payment Assistance Program through NCHFA provides up to 5 percent of the loan amount for down payment and closing costs, with funds offered as a second mortgage loan. The second mortgage accrues no interest and typically requires no monthly payments during the time the borrower owns the home. Repayment may occur when the home is sold or when the first mortgage is paid off.

Another option is the Community Development Block Grant (CDBG) program, administered at the local level. Many cities and counties use CDBG funds to create homebuyer assistance programs. These programs vary by location but often provide down payment help, closing cost reduction, or direct subsidies to reduce the purchase price. Some CDBG programs also offer homebuyer education courses, which teach fundamental skills about budgeting, loan types, credit management, and home maintenance.

Local nonprofits across North Carolina also partner with government agencies to offer first-time homebuyer support. Organizations like habitat for humanity chapters throughout the state build or rehabilitate homes for income-qualified buyers. These programs typically involve sweat equity—the buyer contributes labor hours alongside volunteers—which reduces the final cost of the home.

The state also recognizes the importance of credit counseling and homebuyer education. HUD-approved housing counseling agencies operate in most North Carolina communities. These agencies provide free or low-cost counseling on credit, budgeting, debt management, and home purchase planning. Many lenders and down payment assistance programs require borrowers to complete counseling before receiving funds.

Practical Takeaway: If you are considering purchasing a home, contact your local NCHFA office or HUD-approved housing counselor to learn what programs operate in your area. Homebuyer education is often available and can significantly improve your understanding of the home purchase process and long-term homeownership responsibilities.

Rental Assistance and Affordability Programs

North Carolina operates rental assistance programs intended to help households pay rent, avoid eviction, or transition to stable housing. The Emergency Rental Assistance Program (ERAP), funded by federal COVID-19 relief dollars, has provided substantial support to renters. This program pays landlords directly for past-due rent, helping prevent evictions and homelessness. While the initial emergency funding has expired, North Carolina continues to administer remaining ERAP funds through local jurisdictions.

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Beyond emergency rental assistance, North Carolina has a limited public housing system. The Public Housing Authority in major cities—including Charlotte, Raleigh, Greensboro, and Winston-Salem—manages subsidized rental units. These properties house income-qualified residents at below-market rents. Wait times for public housing can be long in many communities, sometimes extending years. Public housing authorities maintain their own lists of interested persons and determine who receives housing based on priority factors such as homelessness, very low income, and family size.

The Housing Choice Voucher Program (formerly Section 8) is another critical rental support system. This federal program provides vouchers that subsidize rent in private market apartments. Rather than living in public housing, voucher holders rent from private landlords and pay a percentage of their income toward rent, with the voucher covering the remainder (up to a set limit). The program operates through local housing authorities, and availability varies by county. Some areas have no voucher availability, while others maintain active programs with varying wait times.

North Carolina also has programs targeting specific populations. The Veterans Assistance Grant provides rental and homeownership support for eligible veterans. The Supportive Housing Program serves people with mental illness or developmental disabilities, combining affordable housing with support services. The Homeless Prevention Program funds interventions designed to keep people stably housed and out of shelters.

Many nonprofit organizations operate rental assistance programs funded through private grants and donations. These programs may have shorter wait times than government programs and sometimes focus on specific communities or populations. Local nonprofit housing organizations can direct renters to available resources in their area.

Practical Takeaway: If you are struggling with rent payments or facing eviction, contact your county housing authority or local nonprofit housing organization immediately. Rental assistance may be available through government or nonprofit programs, and time-sensitive support such as eviction prevention may require quick action.

Home Repair and Rehabilitation Programs

Many North Carolina homeowners struggle to maintain their properties due to limited income or deferred maintenance issues. The state and local governments fund programs that help owner-occupants repair or rehabilitate their homes. These programs range from weatherization improvements to structural repairs that make homes safe and habitable.

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The Community Development Block Grant (CDBG) program provides funding for local home repair initiatives. Counties and cities use CDBG dollars to create rehabilitation programs that help low-income homeowners repair critical systems—roofs, plumbing, electrical systems, heating—and improve accessibility for people with disabilities. CDBG-funded programs typically have income limits and prioritize urgent safety and health issues. Work is often completed by local contractors, with the homeowner paying reduced or no out-of-pocket costs.

The Weatherization Assistance Program, administered through the Department of Energy and implemented locally in North Carolina, helps low-income households reduce energy costs through home improvements. Weatherization specialists assess homes and install insulation, caulking, weather stripping, and efficient heating and cooling equipment. The goal is to reduce energy consumption and lower utility bills. The program is free to households meeting income thresholds.

The Residential Rehabilitation Program through NCHFA provides loans to low- and moderate-income homeowners for substantial repairs or improvements. These loans carry below-market interest rates and extended repayment terms, making them manageable for households with limited income. The program covers repairs to major systems, lead paint remediation, and accessibility improvements.

Individual counties also operate their own home repair programs. Many rural counties have rehabilitation initiatives that address specific issues prevalent in their communities. For example, some rural programs focus on septic system replacement or well water testing and repair, while urban programs may emphasize lead-based paint remediation or roof repairs.

Nonprofit organizations including Habitat for Humanity and faith-based groups also undertake home repair work. Some focus on critical repairs for elderly homeowners or people with disabilities. Funding structures vary—some charge nothing, while others charge a portion of the cost based on income.

Practical Takeaway: If your home needs repairs you cannot afford, contact your county or city housing department to learn what repair programs operate locally. Having documentation of the problem (inspection reports, contractor estimates) can strengthen your participation in these programs.