Mecklenburg County, NC
First-time home buyers in Charlotte
Most first-time buyers in Charlotte arrive believing two things that are not true: that they need 20 percent down, and that their maximum approval is their budget. Correcting both is usually the most valuable half hour of the process.
Here is what buying your first house in Mecklenburg County actually requires, and which programs are worth your attention.
Updated
At a glance
- Minimum down
- 3% conventional · 3.5% FHA · 0% VA and USDA
- Typical closing costs
- 2–5% of price, often partly seller-paid
- Credit floor
- ~620 conventional · ~580 FHA
- Pre-approval cost
- Nothing
- Timeline
- 24 hours to pre-approval, 21–35 days to close
The 20 percent myth, retired
Conventional loans start at 3 percent down for qualifying first-time buyers and 5 percent otherwise. FHA starts at 3.5 percent. VA and USDA can be zero for eligible buyers and properties. Twenty percent avoids mortgage insurance — it is not, and never was, a requirement to qualify.
The more useful question is not how little you can put down but what combination of down payment, mortgage insurance and cash reserves leaves you comfortable. Putting every dollar you have into the down payment and closing with nothing in the bank is a worse position than putting less down and keeping a cushion.
| Program | Minimum down | Mortgage insurance | Best when |
|---|---|---|---|
| Conventional | 3–5% | Removable at 20% equity | Credit in the 700s |
| FHA | 3.5% | Usually for the life of the loan | Thinner credit, tighter ratios |
| VA | 0% | None | You are an eligible veteran |
| USDA | 0% | Annual fee, lower than FHA | The address is eligible |
Minimums by program. Actual eligibility depends on credit, debt ratios, property type and location.
Cash to close, not down payment
The number to plan around is cash to close: down payment plus closing costs plus prepaid taxes and insurance, less your deposits and any credits. Closing costs commonly run 2 to 5 percent of the price. Some of that can be covered by seller concessions or a lender credit, and in Charlotte a seller contribution toward closing costs is a normal thing to ask for.
Down payment and closing cost assistance
The North Carolina Housing Finance Agency runs statewide assistance products, and employer, municipal and non-profit programs exist as well. Availability and eligibility are set by the sponsoring agency, income limits usually apply, and no single lender can originate every product. Ask me which ones we can actually do before you build a plan around one.
The mistakes that cost first-time buyers their approval
- Financing furniture before closing — a new payment changes your debt ratios at exactly the wrong moment.
- Depositing cash without a paper trail. Move money by transfer so it can be sourced.
- Changing jobs mid-transaction without telling anyone. It is often fine; it is never fine as a surprise.
- Letting a credit card balance spike. Credit is re-checked shortly before closing.
- Waiving the inspection to win a bidding war on a fifty-year-old house.
First-time buyers in Charlotte mortgage questions.
Down payment plus 2 to 5 percent of the price for closing costs, minus any seller concessions or lender credit you negotiate. On a low-down-payment program that is a substantially smaller number than most first-time buyers assume, and the calculator will give you a specific figure.
Not inherently. Low-down-payment conventional loans and FHA loans price differently from a 20 percent down conventional loan because the risk differs, and assistance products can carry their own terms. The honest comparison is total monthly cost and total cost over the years you expect to own — which is a calculation, not a slogan.
Generally someone who has not owned a primary residence in the previous three years, though the exact definition varies by program. It is worth asking rather than assuming you are disqualified because you owned a house a decade ago.
Pre-approval in about 24 hours once your documents are in, then however long the house hunt takes, then 21 to 35 days from contract to keys.
Programs that fit here
What most Charlotte buyers actually use.
From clients
What working with me was actually like.
Unedited reviews from clients and agents. If a review was written while I was with a previous company, it says so — the words are theirs and I am not going to tidy them up.
5.0
45 reviews
Travis and his team are just absolutely wonderful. We just closed on our new house and he was with us every step of the way. This is the 4th time we have used him as our lender over the years and he never disappoints. He is consistent with his knowledge but does it in a way that you feel like you are old friends with him. I tell everyone I know looking to buy a home to call him. I honestly know they will get the same amazing care my husband and I receive by working with him. Can’t say enough good things about him…. If you are looking to buy I highly suggest you reach out to him and his team!
I absolutely recommend Travis for any prospective buyer! As a first time homebuyer, I was really nervous and unsure about the process, but Travis was super helpful every step of the way. He took the extra time to explain everything to me and was always quick to respond to any questions or concerns I had which I really appreciated. Travis made this experience so much less stressful, I felt like I could relax a little since I knew I could count on him. Additionally, he was always a delight to talk to and by the end he was just as excited as me to close on my house, haha. I highly recommend his services especially for any first time homebuyers looking for a supportive and knowledgeable lender!
Travis is the best! He made buying a house on the finance side stress free! My husband and I can’t thank him enough for all he did for us and going above and beyond anytime of the day!
Travis was always there with an answer and guiding me through the whole lending process! Very professional and friendly, feel like I've known him for years...would highly recommend Travis for anyone in the market!!!
Being a first time homebuyer, I was nervous about the buying process. Now that it’s all over, I don’t remember stressing during our buying process at all. Travis literally made it stress free. It was almost a hands off process, he did it all! His communication, professionalism, and passion to make your dreams come true is unmatched. I whole heartedly believe he is the best in the business. As long as the world is turning, I’ll be trusting Travis and his team with my lending needs.
Travis went above and beyond to make sure we understood the financial process of buying a home. He was always responsive whenever we had questions.
This is not an offer to enter into an agreement or a commitment to lend. Not all applicants will qualify. Information and rates are subject to change without notice. All loans are subject to credit review and approval.
Fairway Independent Mortgage Corporation is not affiliated with any government agencies. These materials are not from HUD, VA, USDA or FHA, and were not approved by HUD, VA, USDA or any other government agency.
Equal Housing Opportunity. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
Next step
Buying in Charlotte? Start with the number.
A documented pre-approval takes about 24 hours from a complete document set, and it tells you exactly what you can offer in Charlotte — plus what closing day costs.