In the event I sell the home, do I have to pay back any portion of the grant?
The only time you might have to pay back a portion of the assistance, would be if you sell the home within nine years of buying the home. This is called recapture tax.

Recapture tax is owed only when ALL three of the following events occur:
  • You sell your home within nine years

  • Earning significantly more income than when you bought the home, and

  • Have a gain from the sale of your home.

Recapture tax is a federal tax that a borrower may be required to pay from the net profit they receive from the sale of their home. If they have to pay recapture tax, it would be due when they file their federal income tax for the year in which they sell their home. The maximum recapture tax is 6.25% of the original principal balance of the loan or 50% of the gain on the sale of the home, whichever is less. For more information read Visit "Reality and Recapture"and "Recapture Tax Frequently Asked Questions"/a>.

Show All Answers

1. Who is eligible for NCTHFC programs?
2. What is NCTHFC's Eligible Loan Area?
3. Is there a residency requirement for program participation?
4. What is the definition of a first time home buyer?
5. What is meant by primary, or principal, residence?
6. I've heard that only homes in economically distressed areas qualify under these programs. Is that true?
7. How do I apply for a mortgage loan under the programs?
8. Can I buy a second home using this financing?
9. In the event I sell the home, do I have to pay back any portion of the grant?