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Personal Loans

LendingClub Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

APR

6.95%
To
35.89%

Credit Req.

Not Specified

Terms

36 or 60

months

Origination Fee

1.00% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

LendingClub is a great tool for borrowers that can offer competitive interest rates and approvals for people with credit scores as low as 0.... Read More

LendingClub personal loan details
 

Fees and penalties

  • Terms: LendingClub offers personal loans for terms of 36 or 60 months.
  • APR range: Loan APRs range from 6.95% to 35.89%.
  • Loan amounts: You can borrow up to $40,000.
  • Time to funding: It usually takes about seven days to have your loan funded.
  • Hard pull/soft pull: Checking rates to see how much a LendingClub loan will cost you only requires a soft pull. The soft pull will not impact your credit history. However, a hard pull is required to complete the full application. The hard inquiry may appear on your credit report and can impact your credit score.
  • Origination fee: 1.00% - 6.00%, which is deducted from the total amount of your loan. For example, let's say LendingClub charges you a 5% origination fee on a loan of $1,000. You may apply for a loan of $1,000 but receive only $950 after that fee is subtracted.
  • Prepayment fee: LendingClub has no prepayment penalty fee.
  • Late payment fee: The LendingClub late fee is 5% of the unpaid amount or $15, whichever is greater.

LendingClub personal loans can be used for many purposes such as consolidating debt, making home improvements, or covering other major expenses.

Debt consolidation is one area specifically where borrowers using a LendingClub loan can save big. Besides lowering your interest rate, consolidating debt with a personal loan can turn many credit card payments due on random dates into one convenient fixed payment with a set pay-off date. That being said, LendingClub is just one of many peer to peer lenders that allow debt consolidation, so you should definitely shop around to be sure you’re getting the best rate available to you.

However, LendingClub may not be the best option for people looking for funds in a hurry. The company says it will take about seven days to fund your loan, but this estimate depends on how long it takes you to turn in requested documentation during the application, such as proof of income. The faster you get in all your information, the faster you can get access to your cash.

Eligibility requirements

  • Minimum credit history: LendingClub doesn’t share what specific aspects of your credit history will make you eligible or ineligible for a loan. However, the lowest interest rates advertised will go to borrowers with a high credit score, low debt-to-income ratio, and a long history of managing credit lines successfully.
  • Maximum debt-to-income ratio: Like most peer to peer lenders, LendingClub recommends a maximum debt-to-income ratio of 40%. This means your total monthly debt obligations are no more than 40% of your monthly gross income.

LendingClub has other basic requirements to note before applying. To qualify, you must:

  • Be at least 18 years old
  • Be a U.S. citizen, permanent resident, or long-term visa holder
  • Have a bank account

LendingClub is not currently accepting applications from Iowa, Guam or Puerto Rico.

Applying for a personal loan from LendingClub

The application and funding process for a LendingClub loan is different from a typical loan because of the peer-to-peer lending element. You aren’t getting funding in the traditional way from a financial institution. Instead, your loan is getting funded in portions by many different investors.

Before you apply for a LendingClub loan, we encourage you to check its rates and compare it to other lenders. You can do this by heading to the LendingClub website and filling out a short online form. Checking rates will not impact your credit score because it’s a soft pull.

You’ll get several offers to choose from after doing the initial pre-application. The offers will include the loan amount, loan term, monthly payment and APR. You’ll need to complete a full application after choosing an offer. Part of the full application is providing your Social Security number, your income, and details about your employment. This is where the hard credit inquiry comes into play.

Checking your rate and reviewing loan offers on the LendingClub website will not affect your credit; it will result in a soft credit inquiry which is only visible to you. If you receive a loan through LendingClub, then a hard inquiry that may affect your credit score will appear on your credit report after you receive that loan. Additional reporting will be made to credit reporting agencies during the application process to confirm you continue to meet credit criteria and to prevent potential fraudulent activities.

LendingClub reviews the information you provide to determine your credit risk. If approved, your loan will be deposited into your bank account. You can expect to receive funding within a week or more, depending on how long it takes to verify your financial information.

Pros and cons of a LendingClub personal loan

Pros:

Cons:

  • Long loan term options. If you need to stretch out loan payments, LendingClub may be right up your alley because you can choose from terms of 36 or 60 months.
  • Only a soft pull is required to check rates.There’s no hard inquiry needed to check rates which is ideal when you’re comparing various loan products. This allows you to shop around to secure a loan with the best possible interest rate you can get.
  • Longer funding times. Innovation in the online lending space has made getting access to money in as little as one day at some lenders. That’s not the case with LendingClub; it could take up to seven days to get your funds.
  • The origination fee. LendingClub gives you an origination fee and interest rate after determining your credit risk. This type of fee can take a chunk of money out of your loan.

Who’s the best fit for a LendingClub personal loan

LendingClub loans can be a good option for borrowers who are comfortable with a longer repayment term. Borrowers with stellar credit may also qualify for competitive interest rates.

However, the funding timeline may not work for borrowers looking for fast money. But if you’re borrowing money to consolidate debt, pay off credit cards, or fund a planned purchase, the time it takes to get funding may not be such a problem.

LendingClub consumer reviews

LendingClub has excellent consumer reviews and has an A rating from the Better Business Bureau. Consumers on LendingTree, (Disclaimer: MagnifyMoney is owned by LendingTree) consistently said they would recommend LendingClub, citing competitive interest rates, an easy process and excellent customer service.

Latosha from St. Louis, Mo., said, “I’m not sure why I didn’t go with LendingClub the first time but they were able to lower my payments and my interest rate but the time of my loan was cut by two years. I would not go through another company in the future, I’ll continue being a loyal customer of theirs.”

LendingClub FAQ

LendingClub offers flexibility in how you utilize your personal loan. You can spend your loan funds to refinance your credit cards, make home improvements, consolidate debt, refinance a car, pay for moving expenses, pay for a vacation and more.

Yes. You may choose to work with a co-borrower and apply for a joint loan. Once approved, each co-borrower is obligated to pay back the loan.

Once your loan has been approved and selected by investors, the funds you requested will be deposited into your bank account. Interest will begin to accrue that day. Depending on the financial institution you work with, it may take a few days for the payments to appear in your account.

Yes. You can back out of your loan up to five days after your loan has been funded. LendingClub will withdraw the funds from your account within five to seven business days. Keep in mind that if you took out a balance transfer loan and your creditors have already been paid using the loan funds, LendingClub will be unable to recover these funds for you. Contact LendingClub by phone as soon as possible to cancel your loan application or disbursement.

Yes. LendingClub allows borrowers to have a maximum of two concurrent loans active at the same time. LendingClub will not allow you to have more than $50,000 in outstanding loans combined between these two loans.

LendingClub will provide you with the reasons why you have been declined for a personal loan. LendingClub recommends reviewing these reasons and signing up for credit monitoring while you improve your credit, reduce your debt-to-income ratio or address any other concerns listed. You’re then welcome to reapply for another LendingClub loan.

Alternative personal loan options

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

5.99%
To
28.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 5.99% to 24.99% APR.

Marcus by Goldman Sachs® offers a no-fee personal loan. Interest charges are the only costs you’ll have to worry about with this product. You can get funding within five days. You can check rates online with only a soft pull that won’t affect your credit score. Ultimately, the lack of origination fee is what gives Marcus by Goldman Sachs® an edge over LendingClub.

Prosper

APR

6.95%
To
35.99%

Credit Req.

640

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

2.41% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read More


For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper is another peer-to-peer lender with interest rates and origination fees that are close to what LendingClub offers. Prosper also lets you check rates with a soft inquiry so you can shop with both peer-to-peer lenders to see which one will give you the best deal. According to Prosper, borrowers can get funds as quickly as three days after accepting an offer.

Payoff

APR

5.99%
To
24.99%

Credit Req.

640

Minimum Credit Score

Terms

24 to 60

months

Origination Fee

up to 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Payoff is a financial services firm that offers personal loans mainly to help consolidate credit card debt.... Read More


All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

A Payoff personal loan can help you consolidate existing credit card debt with a low, fixed interest rate loan. Payoff isn’t an actual financial institution; instead, it works with lenders to originate loans. This loan product has an origination fee but no other fees (late fees, returned check fees, or repayment fees).

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Anne Bouleanu
Anne Bouleanu |

Anne Bouleanu is a writer at MagnifyMoney. You can email Anne here

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

Get Personal Loan Offers
Up to $50,000

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Personal Loans

FreedomPlus Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

APR

5.99%
To
29.99%

Credit Req.

Varies

Terms

24 to 60

months

Origination Fee

0.00% - 5.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

With a personalized application process that includes a phone interview, FreedomPlus gives people with below average credit a shot at getting approved for a personal loan.... Read More


All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details.

FreedomPlus personal loan details
 

Fees and penalties

  • Terms: FreedomPlus loan terms range from 24 to 60 months.
  • APR range: 5.99% to 29.99% APR
  • Loan amounts: You can borrow from $7,500 to $40,000.
  • Time to funding: If you submit a completed application, which includes your signature, a valid ID and verification of your income and bank account, early in the day, you could receive the money within 48 hours.
  • Hard pull/soft pull: Checking personal loan rates with FreedomPlus only requires a soft pull. The soft pull will not impact your credit history.
  • Origination fee: 0.00% - 5.00%
  • Prepayment fee: $0
  • Late payment fee: Not specified

Eligibility requirements

  • Minimum credit score: Not specified.
  • Minimum credit history: Not specified.
  • Maximum debt-to-income ratio: Not specified.

While FreedomPlus doesn’t detail its credit requirements on its website, it has outlined other requirements for loan approval and its loan parameters. At a minimum, all applicants must be over 18 years old (19 in Alabama or Nebraska), be a U.S. citizen and have a valid ID. Applicants will also need to provide verified income, bank account information and a signature during the application process.

Loan limitations can vary by state. FreedomPlus does not offer loans in Arizona for less than $10,500, in Massachusetts for less than $6,500, in Ohio for less than $5,500, and in Georgia for less than $3,500. Otherwise, FreedomPlus will determine the terms of your loan based on the loan amount and your credit score, total debt, and debt-to-income ratio.

Applying for a personal loan from FreedomPlus

FreedomPlus’s simple application process starts on its website. The application prompt will ask for the amount you’d like to borrow, how you plan to use the money, and the state where you live. Before submitting, you will also need to provide your name, email address and phone number.

After FreedomPlus receives your application, a loan consultant will follow up with a phone call. The platform advertises that it “goes beyond your credit report” to qualify you for a loan, and this conversation will allow you and the consultant to further discuss the loan and your qualifications.

If you apply early in the day and submit all required documents (a valid ID and bank and income documentation) quickly, your loan could be approved the same day. Following approval, funds should be available within 48 hours.

Pros and cons of a FreedomPlus personal loan

Pros:

Cons:

  • Lower credit score: FreedomPlus looks at more than your credit score, so if your credit score isn’t stellar but you are financially stable and pay your bills on time, you could get approved for a loan.
  • Easy application process: Applying for a FreedomPlus loan simply requires filling out an online form, submitting a few documents and speaking with a loan consultant on the phone. Applicants also can expect a quick response, and, if approved, access to the money within as little as 48 hours.
  • No fee for prepayment: You can reduce interest paid on the loan by paying off the loan early.
  • Credit score check: You can pre-qualify for a loan and check your rate with only a soft pullon your credit.
  • Origination fee: FreedomPlus charges an origination fee between 0.00% - 5.00%.
  • Potentially high rates: The APR on a FreedomPlus loan can be as high as 29.99%, which is high compared with some other personal loan companies that focus on borrowers with prime credit scores.
  • Simple website: FreedomPlus’s website is straightforward and easy to navigate, but it doesn’t provide many details about fees and other loan details you’ll need when deciding which loan is best for you.

Who’s the best fit for a FreedomPlus personal loan

While FreedomPlus doesn’t offer the lowest rates, it could be a good choice for those who have a lower credit score and can show they are in a good financial position. The platform offers a quick turnaround, and qualified applicants could have the money in the bank within two days of loan approval.

Borrowers who are motivated to improve their finances also could benefit from a FreedomPlus loan. The platform doesn’t charge a prepayment fee, which means that you can pay off the loan early and save money in interest payments without paying a fee.

FreedomPlus consumer reviews

FreedomPlus has an A+ rating on the BBB. On LendingTree, MagnifyMoney’s parent company, 93% of reviewers said they would recommend working with the lender.

Many LendingTree reviews praise FreedomPlus for their quick application turnaround. They also speak highly of the staff and say the loan application process is easy to complete. Common refrain among reviews include: “easy,” “fast,” and “professional.”

Christopher from Jones, Oklahoma said, “I was initially skeptical about submitting my information, but thought I’d take the chance, and to my surprise, I was contacted very quickly, with a representative who was very professional and was knowledgeable in helping and providing up to date loan information. Afterward, I felt very comfortable moving forward. My representative supported me from the beginning to the end, and the loan was processed within a week. I’m very pleased.”

FreedomPlus FAQ

FreedomPlus offers personal loans.

Borrowers may use personal loan funds for everything from debt consolidation to home renovations, weddings, vacations and more.

Depending on an applicant’s credit score and financial situation, individuals may borrow from $7,500 to $40,000 with a rate of 5.99% to 29.99% APR.

No. A borrower can complete their application process online, at which point FreedomPlus will conduct a soft pull to determine an applicant’s eligibility. This credit check will not affect a borrower’s credit score regardless of outcome.

To apply online, borrowers will need to provide a valid ID, income and bank account information and a signature.

Depending on the time of day when a potential borrower submits their application, they may be approved for a loan that same day and receive the loan amount within 48 hours.

Borrowers may make monthly payments over the phone, by check, online or by setting up automatic payments.

Yes. Borrowers may qualify for discounts if they apply with a co-borrower; if a borrower has more than $40,000 in retirement funds such as an IRA or 401(k); if a borrower allows FreedomPlus to use a borrower’s loan to pay creditors directly. Borrowers may combine any of these discounts.

Alternative personal loan options

Upgrade

Upgrade
APR

7.99%
To
35.89%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Origination Fee

1.50% - 6.00%

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More .


The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.

Upgrade also offers an easy online application process and fast response. It’s willing to work with borrowers with credit scores as low as 620. It charges an origination fee of 1.50% - 6.00%.

Pre-qualification, which only requires a Soft Pull, involves a one-page application, and Upgrade will return a decision almost instantly. The platform provides a wider range of loans than FreedomPlus, as applicants can qualify for loans of $1,000 to $50,000 with terms of 36 or 60 months. Money will be deposited to applicants’ bank accounts within days of verification.

SoFi

SoFi
APR

5.99%
To
17.67%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.990% APR to 17.67% APR (with AutoPay). Variable rates from 5.60% APR to 14.700% APR (with AutoPay). SoFi rate ranges are current as of August 7, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.60% APR assumes current 1-month LIBOR rate of 2.27% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi doesn’t charge a prepayment penalty and offers a simple online application process. The platform provides loans ranging from $5,000 to $100,000 and its maximum APR is 17.67% (if you enroll in autopay). SoFi offers other benefits as well, including no origination fee, live customer support seven days a week and a pause in payments if you lose your job.

LightStream

APR

4.99%
To
16.79%*

with AutoPay

Credit Req.

Not specified

Terms

24 to 144*

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

LightStream is a great option for borrowers with excellent credit, as it offers a low APR and flexible terms, and has No origination fee or prepayment fees. Loan terms are determined by what you use the loan for.

If you are approved for a loan and complete all necessary steps before 2:30 p.m. EST, the money can be deposited in your bank that day. LightStream does a Hard Pull, which may have a small impact on your credit score. Borrowers can apply for loans between $5,000 and $100,000.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Anne Bouleanu
Anne Bouleanu |

Anne Bouleanu is a writer at MagnifyMoney. You can email Anne here

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Mortgage

North Carolina First-Time Homebuyer Programs

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

With its seaside views, rolling hillscapes and bustling cities, North Carolina is a great place to look for a home. If you’re considering buying your first home in the Tar Heel State, there’s good news. The state of North Carolina offers many financial assistance programs. Below is a guide to North Carolina’s 2019 first-time homebuyer programs.

North Carolina first-time homebuyer programs

The North Carolina Housing Finance Agency (NCHFA) is responsible for running several programs for first-time homebuyers. They include down payment assistance, low interest mortgages, tax credits and opportunities for military veterans and first-time homebuyers to achieve their goal of homeownership. In addition to the NCHFA, the Center for Homeownership offers courses to help borrowers make smart choices during the homebuying process.

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NC Home Advantage Mortgage

What is it?

  • Competitive fixed-interest mortgage financing paired with down payment assistance
  • Down payment assistance of up to 5% of the loan for FHA, USDA and VA mortgages
  • Up to 100% mortgage financing on FHA, USDA and VA loans
  • Down payment assistance of up to 3% for a conventional mortgage with a 97% loan-to-value ratio (LTV). Your LTV is the amount of the mortgage divided by the value of the home.
  • Can be combined with the NC 1st Home Advantage Down Payment program
  • First-time homebuyers and military veterans may be able to combine with NC Home Advantage Tax Credit programs
  • Down payment assistance does not need to be repaid unless you sell, refinance or transfer your home within 15 years. Assistance is forgiven in stages, with complete forgiveness at year 15.

Requirements

  • You must be a legal resident of the United States and buying a home in North Carolina
  • You must live at the property as your primary residence within 60 days of closing
  • Your credit score must be 640 or higher
  • Your income must not be higher than $87,500
  • Property may be:
    • A single-family home, condominium or townhouse
    • A new manufactured home for borrowers with credit scores of 660 or higher if you take out a VA, FHA or USDA mortgage
    • A duplex, exclusively for FHA loans

How to apply

To participate in the NC Home Advantage Mortgage program and to learn more about your options as a first-time homebuyer in North Carolina, search for a participating lender in your area. They’ll determine if you’re eligible and guide you through the lending process.

Learn more

NC 1st Home Advantage Down Payment program

What is it?

  • Down payment assistance of up to $8,000 for first-time homebuyers and military veterans who have qualified for the NC Home Advantage Mortgage program
  • Down payment loan acts as a 0% deferred second mortgage
  • The loan does not need to be repaid unless you sell, refinance or transfer your home before 15 years. Assistance is forgiven 20% a year from years 11 to 15, with complete forgiveness at year 15.

Requirements

  • You must be a first-time buyer, military veteran or not have owned a home in the last three years
  • You may also be eligible if you are buying in a targeted area
  • You must be a legal resident of the United States
  • Your income cannot exceed income limits, which vary by county and household size
  • Your credit score must be 640 or higher
  • You must live at the property as your primary residence within 60 days of closing
  • Property may be:
    • A single-family home, condominium or townhouse
    • A new manufactured home if you have a credit score of 660 or higher

How to apply

Qualifying first-time homebuyers may be able to combine the NC 1st Home Advantage Down Payment program with other programs offered through the NCHFA. Find a participating lender in your area to learn more about this program and others in North Carolina.

Learn more

NC Home Advantage Tax Credit

What is it?

The NC Home Advantage Tax Credit directly lowers the amount of tax you owe every year. You can combine it with other NCHFA programs, such as the NC Home Advantage Mortgage program and the NC 1st Home Advantage Down Payment program.

  • Claim up to 30% of the loan interest you pay each year on an existing home
  • Claim up to 50% of the loan interest you pay each year on a newly constructed home
  • Maximum tax credit is $2,000 per year
  • You can still claim other mortgage interest deductions for the remainder of the mortgage interest you pay per year
  • You can reap program rewards immediately:
    • Once you’ve signed up for the NC Home Advantage Tax Credit, you can revise your W-4 with your employer
    • This will lower the federal tax amount withheld from each paycheck
    • You can then use those funds to put more toward your mortgage payments each month

Requirements

  • You must be a first-time homebuyer or military veteran, or be buying in a targeted area
  • You must be a legal resident of the United States
  • You must apply and be approved for this program before you purchase a home. Apply at the same time as your mortgage application
  • Income limits vary by county and household size
  • You must occupy the property as your primary residence within 60 days of closing
  • The loan must be approved by the NCHFA before closing
  • The property may be single-family home, condominium, townhouse, or new or used manufactured home

How to apply

Find a participating lender in your area to learn more about buying a home in North Carolina using NCHFA programs. You’ll work with the lender through the application and buying process.

Learn more

Homebuyer Education

The Center for Homeownership offers education resources for those looking to buy a home in North Carolina.

What is it?

The NC Home Advantage Tax Credit directly lowers the amount of tax you owe every year. You can combine it with other NCHFA programs, such as the NC Home Advantage Mortgage program and the NC 1st Home Advantage Down Payment program.

  • Homebuyer education in the form of workshops, online resources and financial counseling
  • Connects participants with homebuying professionals in their communities, including realtors, loan officers, home inspectors, title companies, insurance agents and more
  • Offers continuing assistance after you’ve bought a home. Includes resources and courses on home maintenance, as well as continuing financial counseling

Requirements

  • There are no eligibility requirements to take part in Center for Homeownership workshops or to access online resources

How to participate

To register for a workshop, schedule an appointment or learn more about the homebuying process, explore the Center for Homeownership resources.

National first-time homebuyer assistance

The state of North Carolina isn’t the only financial resource for first-time homebuyers. Be sure to learn more about federal homebuying programs, including FHA loans, VA loans, Fannie Mae and Freddie Mac products and others. Start with LendingTree’s guide to national first-time homebuying programs to learn more. (LendingTree is the parent company of MagnifyMoney.)

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Anne Bouleanu
Anne Bouleanu |

Anne Bouleanu is a writer at MagnifyMoney. You can email Anne here

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