NC Home Advantage Tax Credit

The NC Home Advantage Tax Credit could reduce your client’s federal income tax liability by up to $2,000 per year if they apply and are approved by us for a Mortgage Credit Certificate (MCC) prior to the home purchase. The savings is for every year that he or she occupies the home as the primary residence. Existing (previously occupied) homes are eligible for a tax credit up to 30% of the annual interest paid, while newly built homes are eligible for a 50% tax credit.

The MCC must be used in conjunction with a 30-year fixed rate mortgage, including FHA, USDA, VA and conventional loan types. Participating lenders may provide MCCs in conjunction with our NC Home Advantage Mortgage™. An MCC can also be used with your own loan product. MCCs are reserved through our Online Lender Services (OLS) system.

Buyer Eligibility

To be eligible for the NC Home Advantage Tax Credit, your buyers must:

  • Be first-time buyers (not have owned a home as their principal residence in the past three years) or military veterans or be buying homes in targeted census tracts.
  • Meet income and sales price limits.
  • Purchase a home in North Carolina.
  • Apply and be approved for the MCC prior to the home purchase.
  • Occupy the home as their principal residence within 60 days of closing.
  • Be a legal resident of the United States.

Property Eligibility

  • Single-family homes.
  • Townhouses.
  • Condominiums.
  • New or used manufactured homes*. 

    * Please note that if the MCC is used with our NC Home Advantage Mortgage™, only new construction, doublewide manufactured homes or greater are eligible.

North Carolina Housing Finance Agency / 3508 Bush Street / Raleigh, NC 27609 / 919-877-5700

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