Homebuyer Programs in Fayetteville, NC (2026)
Fayetteville is the sixth-largest city in North Carolina, located in Cumberland County and home to Fort Liberty (formerly Fort Bragg), one of the largest military installations in the world. With a median home price around $240,000, Fayetteville is one of the most affordable metro areas in the state. First-time buyers can access the City of Fayetteville's Homebuying HERO Program, which provides up to $20,000 in forgivable gap financing for residents and up to $30,000 for public service employees and city workers. Combined with state programs like the NC 1st Home Advantage ($15,000 in forgivable down payment assistance) and the NC Home Advantage Mortgage (up to 3% of the loan amount), buyers in Fayetteville can potentially stack over $45,000 in assistance toward their home purchase.
Top Homebuyer Programs in Fayetteville
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Fayetteville Homebuying HERO Program | Forgivable Loan | Up to $20,000 for Citizen HERO; up to $30,000 for Public Service HERO and City Employee HERO | Yes | View → |
| Cumberland County Down Payment and GAP Assistance Program | Forgivable Loan | Down Payment Assistance (DAP) up to $5,000; GAP Loan up to $20,000; or up to $25,000 when DAP and GAP are combined | Yes | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Fayetteville Area Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable mortgage with below-market terms. Home purchase price based on construction costs. | No | View → |
| NCCHC Homebuyer Assistance Program | Grant | Varies based on program and funding availability. | Yes | View → |
| Community Partners Loan Pool (CPLP) | Deferred Loan | Up to 25% of the sales price, maximum $50,000 | No | View → |
| NC 1st Home Advantage Down Payment | Forgivable Loan | $15,000 | Yes | View → |
| NC Home Advantage Mortgage | Deferred Loan | Up to 5% of the loan amount | No | View → |
| ReBuild NC Homeownership Assistance Program (HAP) | Forgivable Loan | Up to $30,000 in down payment assistance plus up to 5% of sales price for closing costs | Yes | View → |
| Self-Help Loan Pool (SHLP) | Zero-Interest Loan | Up to $50,000 (max $35,000 if home is within one of 24 CDBG Entitlement Cities in NC) | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 for Citizen HERO; up to $30,000 for Public Service HERO and City Employee HERO
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Down Payment Assistance (DAP) up to $5,000; GAP Loan up to $20,000; or up to $25,000 when DAP and GAP are combined
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with below-market terms. Home purchase price based on construction costs.
- First-time only:
- No
- Type:
- Grant
- Amount:
- Varies based on program and funding availability.
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to 25% of the sales price, maximum $50,000
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- $15,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $30,000 in down payment assistance plus up to 5% of sales price for closing costs
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Up to $50,000 (max $35,000 if home is within one of 24 CDBG Entitlement Cities in NC)
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. The Homebuying HERO Program requires household income at or below 120% of the area median income (140% for City employees). You must be a first-time homebuyer who has not owned a home in the past three years.
- Step 2:
Complete homebuyer education. Attend a HUD-approved homebuyer workshop through Kingdom CDC, offered at Fayetteville Technical Community College every fourth Saturday of the month. Contact Kingdom CDC at 910-606-3388 to register.
- Step 3:
Contact a HUD-approved housing counselor. North Carolina Community Housing and Consulting (NCCHC) provides free housing counseling and can help you navigate available programs.
- Step 4:
Get pre-approved for a mortgage. Work with a participating lender or an NCHFA-approved lender to determine your loan amount and explore state programs like NC 1st Home Advantage and NC Home Advantage Mortgage.
- Step 5:
Find a home within Fayetteville city limits. The Homebuying HERO Program requires the property to be a single-family home (attached or detached) or modular home within city limits.
- Step 6:
Submit your application to the City of Fayetteville Economic and Community Development department. Processing times vary based on funding availability, so apply early in your homebuying process.