NC Down Payment Assistance Programs

[Dylon May]

I have been laser focused on how to get my foot in the door (strategy), and I think it will be by purchasing an SFH, and living in it for one year, then renting it out. I want to take advantage of all of the down payment assistance programs, and also looking into an FHA loan. To me, the FHA loan gives me a better chance at home ownership because of its low down payment, and it's no reserve requirement, in addition to 1st time home buyer perks.

If an FHA loan has a down payment of only 3.5%, how do lenders combine that with down payment assistance programs? I've done some research for the state of North Carolina and see that there is a total amount up to $8,000 for down payment assistance through NCFHA. This is fully forgivable after 15 years of the loan, starting at year 11 and decreasing every year by 20%, but as far as the numbers, how does it work? For example, if the sales price on a home was $100,000 and my down payment was $3,500, is it safe to say for first time home buyers that I could get an additional $8,000 of assistance which would ultimately drop my loan amount to $88,500?? Am I understanding this correctly?

I am basically trying to reverse engineer and figure out what my maximum allowable purchase price should be for an SFH if I had, let's say, $10k for a down payment. This brings me to another question: with an FHA loan, are 1st time home buyers allowed to put more than three and a half percent down? My answer is yes, but you guys are the experts.

Let me know your thoughts.