How to Buy a Home in Raleigh with Little to No Money Down in 2025

For many first-time homebuyers in Raleigh, the biggest barrier to owning a home isn’t credit or income, it’s the down payment. But here’s the good news: In 2025, Raleigh buyers have more low and zero down payment options than ever before. Between federal loan programs, local assistance grants, and creative real estate strategies, you can buy a home without emptying your savings.

According to Zillow, the average down payment for North Carolina homebuyers fell to 6% in 2024, compared to the national average of 13%. That’s largely thanks to accessible programs and rising awareness of buyer incentives available in the Raleigh market.

“You don’t need 20% down to buy a home in Raleigh, you need the right strategy, guidance, and programs.” — Phil Slezak

1. Understanding How Low and No Down Payment Options Work

Before exploring specific programs, it’s important to understand how these loans operate. Low or zero down payment options help buyers secure homes by minimizing upfront costs while maintaining stable financing terms.

Types of Down Payment Structures:

• Zero Down: No upfront down payment required; often available through USDA or VA loans.

• Low Down: 3%–5% down through FHA or conventional first-time buyer loans.

• Assistance Programs: Grants or forgivable loans that cover down payments and closing costs.

These programs are designed to make homeownership accessible, especially for first-time buyers and moderate-income families.

2. Raleigh’s Top No-Money-Down Mortgage Programs

1. USDA Loans

One of the most popular zero-down programs in the Triangle area, USDA loans are backed by the U.S. Department of Agriculture and designed for rural or suburban buyers. Many areas around Raleigh — including Knightdale, Wendell, and Rolesville qualify.

• Down Payment: 0%

• Credit Score: Minimum 640 (varies by lender)

• Income Limits: Vary by household size and location

• Benefits: Low mortgage insurance and flexible credit requirements

Check your eligibility using USDA’s Property Eligibility Tool.

2. VA Loans

For veterans, active-duty service members, and eligible spouses, VA loans offer one of the best financing options available.

• Down Payment: 0%

• Credit Score: Typically 620+

• Benefits: No private mortgage insurance (PMI), competitive rates, and flexible underwriting.

• Raleigh Advantage: Large veteran community and access to VA Regional Loan Centers in North Carolina.

3. North Carolina Home Advantage Mortgage

Offered by the North Carolina Housing Finance Agency (NCHFA), this program provides down payment assistance for first-time and move-up buyers.

• Down Payment Assistance: Up to 3% of loan amount

• Forgivable Grant: After living in the home for 15 years

• Eligibility: Income limits apply (up to $134,000 in Wake County)

4. FHA Loans

FHA loans remain a cornerstone for first-time buyers in Raleigh thanks to their low requirements.

• Down Payment: As low as 3.5%

• Credit Score: Minimum 580

• Mortgage Insurance: Required, but affordable

• Advantages: Easier qualification and refinancing flexibility

5. Conventional 97 Loan

This Fannie Mae-backed option allows buyers to put down just 3%.

• Down Payment: 3%

• Credit Score: 620+

• First-Time Buyer Requirement: Yes

• Benefits: Lower PMI and easier equity growth

3. Raleigh Grants and Assistance Programs for Homebuyers

Beyond national programs, Raleigh offers several local grants and incentives to reduce out-of-pocket costs.

Raleigh Affordable Homeownership Program

A city-backed initiative that provides forgivable loans of up to $30,000 for eligible first-time buyers.

• Eligibility: Income-based (up to 80% AMI)

• Repayment: Forgiven after 10 years of occupancy

• Additional Perk: Covers closing costs and inspection fees.

Wake County Homebuyer Assistance Program

Provides down payment help up to $20,000 for qualifying households.

• Focus: Assists moderate-income buyers in unincorporated areas of Wake County.

• Bonus: Pairs with NCHFA loans for maximum support.

Neighborhood LIFT (by Wells Fargo)

Although not always available, this program often relaunches annually in Raleigh, offering $15,000 grants for first-time buyers.

Visit Wells Fargo’s LIFT Program Page to check 2025 availability.

4. Creative Ways to Buy with Little Money Down

Even if you don’t qualify for government programs, you can still buy strategically.

1. Seller-Paid Closing Costs

Negotiate with sellers to cover 2–3% of your closing costs. In Raleigh’s 2025 market, where inventory is higher, many sellers are open to concessions.

2. Employer Home Purchase Assistance

Several Raleigh-based companies — including those in Research Triangle Park (RTP) — offer relocation or home purchase stipends.

3. Gift Funds

Family members can contribute toward your down payment; FHA and conventional loans allow this with proper documentation.

4. Phil Slezak’s Zero-Commission Buyer Program

Phil’s unique Zero Commission strategy helps buyers save thousands in agent fees, freeing up funds for down payments and closing costs.

“Every dollar saved upfront brings you one step closer to ownership. My mission is to make that possible for every Raleigh buyer.” — Phil Slezak

5. Best Raleigh Neighborhoods for First-Time and Low-Down Buyers

• Knightdale: Offers USDA-eligible communities and new construction starting in the mid-$300s. Perfect for buyers seeking modern homes and short commutes.

• Garner: Strong local schools and affordable existing homes make Garner a go-to for first-time buyers.

• Wendell Falls: One of the Triangle’s fastest-growing planned communities, with FHA-friendly new builds and eco-smart designs.

• Rolesville: Family-oriented suburb with affordable properties and strong appreciation potential.

• Fuquay-Varina: Combines suburban affordability with proximity to major employment centers.

Each of these areas offers access to Raleigh’s strong economy and high-quality amenities without the downtown price tag.

6. Tips to Strengthen Your Raleigh Homebuying Application

1. Improve Your Credit Score

A higher score unlocks better interest rates and more program options.

• Pay off credit card balances.

• Avoid new debt 6 months before applying.

• Check your credit report at AnnualCreditReport.com.

2. Get Pre-Approved Early

A pre-approval shows sellers you’re serious and ready to close.

3. Work with Local Experts

Partner with Raleigh-based lenders and Realtors familiar with state-specific programs and closing procedures.

4. Budget Beyond the Down Payment

Factor in taxes, insurance, and maintenance. Phil helps buyers estimate total monthly costs so they purchase confidently.

7. FAQ: Buying a Home in Raleigh with Low or No Down Payment

1. Can I really buy a home in Raleigh with no money down?

Yes. USDA and VA loans offer zero down payment options, and Raleigh buyers can combine local grants for additional savings.

2. What credit score do I need?

Most programs require a minimum score of 620–640, but some FHA loans allow lower scores with higher insurance premiums.

3. Do I have to be a first-time buyer?

Not always. Many programs define “first-time buyer” as someone who hasn’t owned a home in three years.

4. Are there hidden costs?

No, but you’ll need to budget for closing costs and inspections. Many grants can cover these expenses.

5. How long does the process take?

Typically 45–60 days from pre-approval to closing, depending on lender and program.

8. Raleigh’s 2025 Market Outlook for Entry-Level Buyers

Raleigh continues to balance growth and accessibility. With new communities under construction in Holly Springs, Clayton, and Knightdale, more affordable homes are entering the market. Analysts from Forbes predict that Raleigh’s home values will rise 4–6% annually through 2026, meaning buyers who act now will likely build equity faster.

“Waiting costs more than acting. Every month you delay, home prices and interest rates can shift.” — Phil Slezak
How Phil Slezak Real Estate Can Help You

At Phil Slezak Real Estate, brokered by LPT Realty, we do more than just help you find a home, we make sure your entire moving process is stress-free and seamless. Whether you’re buying, selling, investing, or relocating, we have the resources, expertise, and connections to guide you every step of the way.

Why Work With Us?

✔ Exclusive Off-Market Listings – Get access to homes before they hit the market.
✔ Zero-Commission Selling Options – Save thousands when selling your home.
✔ Relocation Assistance – We connect you with the best movers in Raleigh for a smooth transition.
✔ Buyer Home Guarantee – If your home isn’t perfect, we’ll sell it for zero listing commission.
✔ Sold Zero Commission – Maximize your profits with no listing commission when selling your home.
✔ Cash Offers – Get 4 cash offers on your home in minutes

Conclusion:

Owning a home in Raleigh is more achievable than ever in 2025. With a wide array of zero- and low-down payment programs, local grants, and smart negotiation tactics, buyers can break free from renting and start building wealth.

Whether you’re a first-time buyer or relocating to the Triangle, the key is working with a knowledgeable local expert who knows how to unlock every available program and opportunity.

📲 Want expert advice on your next move?

📞 Call or text me at +1919-607-4844 or connect with me on social media. I help people just like you every week make smart real estate decisions, let’s chat about yours!

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