Buying your first home in Matthews can feel exciting and overwhelming at the same time. You might be wondering how much you need to save, which loan fits you best, and what is different about buying in a Charlotte-area suburb. You are not alone. The good news is there are several first-time loan options and North Carolina programs that can make the process easier and more affordable. This guide walks you through the loans, costs, steps, and local resources you will want to know before you start shopping. Let’s dive in.
Loan options for Matthews buyers
FHA basics
FHA loans are a common path for first-time buyers who want a low down payment and flexible credit requirements. You will pay an upfront and annual mortgage insurance premium, and the home must meet FHA property standards. To learn what FHA requires and how it works, review the program details on the U.S. Department of Housing and Urban Development’s official FHA pages.
Conventional 3 percent down
Conventional low down payment options can be a great fit if you have stronger credit or meet income-based criteria. Fannie Mae’s HomeReady and Freddie Mac’s Home Possible both allow as little as 3 percent down for eligible buyers. You will typically pay private mortgage insurance until you reach 20 percent equity. Explore program features on Fannie Mae HomeReady and Freddie Mac Home Possible.
VA for eligible military
If you are an eligible veteran, active-duty service member, or qualifying spouse, a VA loan may offer 0 percent down with no monthly mortgage insurance. A VA funding fee can apply unless you qualify for an exemption. For qualification basics and benefits, visit the VA home loan program.
USDA property eligibility
Some first-time buyers qualify for USDA’s Single Family Housing Guaranteed Loan Program, which offers 0 percent down for eligible properties and incomes. Because Matthews sits close to Charlotte, many addresses may not qualify as “rural.” Always check the property address early using the USDA eligibility tool before you place an offer.
North Carolina programs to explore
NCHFA down payment help
The North Carolina Housing Finance Agency (NCHFA) partners with approved lenders to offer first mortgages paired with down payment assistance, plus required homebuyer education for some programs. There can be income and purchase price limits, and terms vary by product. Start with the NCHFA website to review current offerings and find approved lenders.
Mortgage Credit Certificate
A Mortgage Credit Certificate, when available through NCHFA or partner programs, can reduce your federal tax liability by a percentage of the mortgage interest you pay each year. This is a tax credit, which is different from a deduction. Availability and credit rate vary, and you should confirm details with an NCHFA-approved lender and a tax advisor. Learn more on the NCHFA site.
Local nonprofit assistance
Charlotte-area nonprofits sometimes provide down payment assistance or counseling for qualified buyers purchasing within certain service areas. Program funds and rules change, so check current offerings and classes with organizations like the Charlotte-Mecklenburg Housing Partnership.
What lenders look for
Lenders evaluate a few core items across all first-time programs:
- Credit score. FHA tends to allow lower scores than most conventional 3 percent programs. Stronger credit can improve your rate and mortgage insurance costs.
- Debt-to-income ratio. Your monthly debt versus your income helps determine what you can afford. Some programs also have income caps.
- Primary residence. Most assistance products require you to live in the home as your primary residence.
- Property standards. FHA has its own appraisal and condition rules. Condos and townhomes must meet program or project approval requirements.
- First-time status. Many programs define “first-time” as not owning a home in the past three years, though there are exceptions for some buyers, including eligible veterans.
If you plan to use state or federal assistance, choose a lender experienced with North Carolina programs. Many require you to work with an approved lender and complete homebuyer education.
What it may cost each month
Your monthly payment covers more than principal and interest. Plan for these common costs:
- Down payment. Ranges from 0 percent on VA or USDA (if eligible) to 3 percent on many conventional options to FHA’s minimum down payment.
- Closing costs. Typically 2 to 5 percent of the purchase price. You can negotiate seller credits within program limits to help reduce your cash to close.
- Mortgage insurance or funding fees. FHA includes an upfront and annual mortgage insurance premium. Conventional low down payment loans use PMI until you reach about 20 percent equity. VA has no monthly PMI but includes a funding fee for most borrowers. The Consumer Financial Protection Bureau explains PMI in plain language in its Owning a Home guide.
- Property taxes and insurance. Mecklenburg County property taxes and homeowners insurance are usually escrowed into your payment. For tax rate information and parcel data, start at the Mecklenburg County site.
- HOA dues. Common for townhomes and condominium communities. Review financial statements, budgets, and any special assessments before you commit.
The process and timeline
Here is a typical path from preapproval to keys in hand:
- Preapproval, 1 to 7 days
- Share pay stubs, W-2s or 1099s, bank statements, and authorize a credit check. A preapproval letter strengthens your offer in competitive Matthews neighborhoods.
- Home search and offer, variable
- Tour properties that match your budget and loan type. Your agent will help optimize your offer terms while staying within program rules, such as allowable seller credits.
- Under contract to close, about 30 to 45 days
- Complete inspections and appraisal. Your lender processes the file through underwriting and clears conditions.
- Closing and move-in
- You will receive a Closing Disclosure at least three days before settlement. Bring final funds, sign documents, and complete a final walk-through before you get the keys.
Program rules, income limits, and assistance amounts can change. Always confirm current requirements on the program pages linked in this guide and with your lender.
Matthews-specific tips
- Prepare for competition. Matthews tracks the broader Charlotte market, so desirable homes can move quickly. A strong preapproval and fast communication help you stand out.
- Verify HOA rules. For condos and townhomes, confirm project approvals and review bylaws, budgets, and any pending assessments early.
- Check USDA eligibility first. If you want to pursue a USDA loan, plug the property address into the USDA eligibility map before you write an offer.
- Take homebuyer education. Some NCHFA programs require a course. Even when optional, these classes are a smart way to learn budgeting and maintenance basics.
- Compare lender quotes. Ask for APRs, not just rates, and request a breakdown of origination fees, lender credits, and how much seller help your loan allows.
Documentation checklist
Gather these items before you apply. Doing this early can shave days off your timeline.
- Government ID
- Social Security number or tax documents
- Most recent 30 days of pay stubs
- W-2s for the past 2 years, and 1099s if applicable
- Recent bank statements and any retirement account statements used for funds
- Federal tax returns for the past 2 years if requested
- Proof of other income used to qualify
- Gift letter and documentation if using gift funds
Quick buyer checklist
- Get preapproved with an NCHFA-approved lender if you plan to use state assistance.
- Complete required homebuyer education early.
- Verify eligibility for your loan and property type, including any condo approvals.
- Budget for down payment, closing costs, taxes, insurance, and HOA dues.
- Order a home inspection and track appraisal timelines.
- Review your Closing Disclosure carefully and confirm final funds needed.
Helpful resources
- Learn mortgage steps and compare options in the CFPB’s Owning a Home guide.
- Review FHA loan basics on HUD’s FHA pages.
- Explore 3 percent down options with Fannie Mae HomeReady and Freddie Mac Home Possible.
- Check VA eligibility and benefits on the VA home loan site.
- Confirm rural eligibility using the USDA map.
- See current programs and education at NCHFA.
- Look up parcel info and taxes via Mecklenburg County.
- Explore nonprofit counseling through the Charlotte-Mecklenburg Housing Partnership.
Buying your first home in Matthews is a big move, but you do not have to figure it out alone. With the right loan strategy and a clear plan, you can align your budget, timeline, and neighborhood goals with confidence. If you want a local guide who will help you compare options, connect you with the right lenders, and move quickly when the right home hits the market, reach out to Denis Dashchenko. Let’s make your first purchase smooth, informed, and successful.
FAQs
What is a first-time homebuyer in Matthews?
- Many programs define a first-time buyer as someone who has not owned a home in the past three years, though specific program definitions can vary.
What credit score do I need for first-time loans?
- It depends on the loan: FHA can allow lower scores, while conventional 3 percent down programs generally expect stronger credit or income-based eligibility.
Are there income or price limits in North Carolina?
- Yes for many assistance programs, including NCHFA offerings, so you should check current limits and requirements with an approved lender and the NCHFA site.
Can I use gift funds for my down payment?
- Often yes, but you will need a gift letter and documentation, and some programs restrict who can give the gift.
Is Matthews eligible for USDA loans?
- Eligibility is property-specific; use the USDA map to check each address since many suburban locations near Charlotte may not qualify as rural.
Should I use a mortgage broker or a local bank in Matthews?
- Either can work; choose a lender experienced with North Carolina programs and assistance products you plan to use, and compare written quotes and APRs.
