North Carolina Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  December 2025

North Carolina is an increasingly active private money lending market, with strong activity in Charlotte, Raleigh-Durham, and the Research Triangle area. Population growth, affordable housing relative to other East Coast markets, and a growing investment property market drive demand for private money loans.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in North Carolina.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

North Carolina requires a Mortgage Lending Act license for companies making consumer mortgage loans. Private money lenders making business-purpose loans are generally exempt from state licensing requirements.

Key Compliance Considerations

North Carolina uses a deed of trust with a power of sale clause, allowing non-judicial foreclosure. However, the process requires a hearing before the clerk of court to authorize the sale, which adds a step not present in most other non-judicial states.

The borrower has a 10-day upset bid period after the foreclosure sale during which any party can submit a higher bid. This can delay final resolution but generally does not significantly extend the timeline.

North Carolina has a 6% general usury limit that applies in the absence of a written agreement. For written contracts involving business-purpose loans over $25,000, there is no statutory maximum rate.

The state requires specific notice provisions including 45 days written notice before initiating foreclosure proceedings.

Document Requirements for North Carolina Private Money Loans

North Carolina private money loans require a deed of trust as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, North Carolina-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with North Carolina lending transactions.