NC Housing’s 97% Conventional program lowers credit score requirement and adds condos


The popular NCHFA 97% Conventional program has gotten even better. There are two new additions to the program that will make it available to more people.

1. The minimum credit score on all conventional loans will now be 640 across the board. That means conventional loans even up to 97% Loan To Value will only need a 640+ credit score and Automated Underwriting System Approval. The old 680 minimum is removed.

2. Condos will now be an eligible property type on conventional loans. They must meet all Fannie Mae requirements for eligibility.

The 3% down payment assistance is available as well here, which brings down payment to ZERO! (application closing costs/escrows apply) Rates are available at this link.

Some more information on the program:

  • 97% loan to value loan with 3% down payment assistance available
  • 18% Mortgage Insurance coverage required (about half of a typical FHA loan)
  • Mortgage Insurance can be: Monthly, Split Premium or Single Premium (down payment assistance can be used to pay for part of split premium)
  • Single family homes, Townhouses and Condos qualify
  • $85,000 maximum household income
  • Up to 45% Debt to Income ratio allowed as it is QM exempt (Calculate your DTI here)
  • 60 day locks are available
  • Down payment assistance is treated as second mortgage and is fully forgiven after 15 years. The balance is deducted 20% per year from years 11-15.
  • A Mortgage Credit Certificate (MCC) can be attached for first time home buyers

Want more information or wish to apply: Contact me at 919-260-8013, via email or apply online and I can answers any questions you may have!

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