Starting values: $333,000, which is the North Carolina median (28th of 51), 20% down and a 7.40% rate. Monthly cost: $2,168.08 ($1,844.50 loan, $169.25 property tax, $154.33 homeowners insurance). Put 5% down and add PMI and it rises to $2,645.74.
Homestead exemptions and property tax relief
There is no general homestead exemption for younger owners. Owners 65 and older or totally disabled with 2026 income of $38,800 or less can exclude the greater of $25,000 or 50% of the home's appraised value (G.S. 105-277.1), applying on form AV-9 by June 1. Disabled veterans have a separate exclusion.
First-time buyer programs
The North Carolina Housing Finance Agency's NC 1st Home Advantage Down Payment provides $15,000 to first-time buyers and qualifying veterans (sale price up to $525,000). The NC Home Advantage Mortgage offers up to 3% assistance to first-time and move-up buyers. Both are 0% deferred second loans forgiven 20% a year in years 11 through 15, and they cannot be combined.
Transfer and recording taxes
The state excise tax on deeds is $1 per $500 of price, about $666 on a $333,000 home, paid by the seller to the register of deeds. A few counties levy an extra local transfer tax.
Closing costs to plan for
North Carolina requires an attorney to handle the closing. Buyer costs are mostly attorney, lender and title fees plus prepaid taxes and insurance, and there is no mortgage tax.
When property tax bills are due
North Carolina property taxes for 2026–27 are due September 1, 2026, but no interest is charged until January 6, 2027. Interest starts at 2% then and adds 0.75% each month after that. Most lenders pay escrowed taxes in December, before the delinquency date.
Before you buy in North Carolina
North Carolina has no general homestead exemption. The elderly and disabled homestead exclusion removes the greater of $25,000 or 50% of the home's appraised value for owners who are 65 or older, or totally and permanently disabled, as of January 1 and had 2025 income of $38,800 or less. Apply on Form AV-9 with the county assessor by June 1, 2026. At closing, the state excise tax is $1 per $500 of price, usually paid by the seller.
2026 loan limit in North Carolina
FHFA 2026 one-unit conforming limits: no county is high-cost, so $832,750 applies statewide. So $266,400, the 80% loan on a median home, needs no jumbo financing.
North Carolina numbers used above
| Measure | North Carolina | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $333,000 | $360,600 |
| Effective property tax rate | 0.61% (37th highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,852 | $1,737 |
| Median household income | $73,958 | $81,604 |
| Median gross rent | $1,338 | $1,487 |
| Income needed at 28% (20% down) | $92,918 | – |
Frequently asked questions
Does North Carolina have a mortgage tax?
No. The only state tax on a sale is the $1 per $500 excise tax on the deed, paid by the seller.
What is the median-home payment in North Carolina?
About $2,168.08 a month on a $333,000 home with 20% down at 7.40%, including tax and insurance.
What income do lenders want for that?
Roughly $92,918 a year under the 28% rule, or $113,389 with 5% down and PMI.
How does North Carolina insurance compare?
The 2023 average HO-3 premium was $1,852, above the $1,737 U.S. average.
Sources
- G.S. 105-277.1
- NCDOR, conveyance tax
- NCHFA, NC 1st Home Advantage
- UNC School of Government, 2026 property tax calendar
- NCDOR, 2026 Form AV-9
- G.S. 105-277.1
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · North Carolina paycheck