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Are you looking to purchase a home in North Carolina as a first-time homebuyer?

FHA loans are designed to make homeownership more accessible by providing:

  • Lower down payment requirements: FHA loans typically require a down payment as low as 3.5% of the purchase price. This is significantly lower than the 10% to 20% down payment often required for conventional loans in North Carolina.
  • Flexible credit requirements: While FHA loans do have credit score requirements, they are generally more forgiving than those for conventional loans. Borrowers with credit scores as low as 580 can qualify with a 3.5% down payment. Those with scores between 500 and 579 may still qualify, but with a higher down payment of 10%.
  • Closing cost assistance: FHA loans allow sellers to contribute up to 6% of the home's sale price towards the buyer's closing costs, which can reduce the amount of cash needed upfront.
  • Fixed or adjustable rates: FHA loans offer both fixed-rate and adjustable-rate mortgage options. Borrowers can choose the option that best fits their financial situation and long-term plans.

FHA Loan Limits in North Carolina
FHA loan limits vary by county because they are based on the median home prices in each area. In North Carolina, these limits can change annually to reflect changes in home prices. The limits also vary depending on the type of property (single-family, duplex, triplex, or fourplex).

As of the most recent updates, the FHA loan limits for North Carolina in 2024 are as follows:

  • Single-family homes: The baseline loan limit for single-family homes in most of North Carolina is $420,680. However, in higher-cost areas such as the Raleigh-Durham-Chapel Hill metro area, the limit can go up to $548,250.
  • Duplexes: For two-unit properties, the limit ranges from $538,650 in standard areas to $702,000 in higher-cost areas.
  • Triplexes: The loan limit for three-unit properties ranges from $651,050 to $848,500.
  • Fourplexes: For four-unit properties, the limits range from $809,150 to $1,054,500.

These limits allow borrowers to qualify for North Carolina FHA loans up to a certain amount, depending on where the property is located within the state. It's important for potential homebuyers to check the specific limits for their county or metro area, as they can significantly affect the types of properties they can consider purchasing with an FHA loan.

County FHA Limit Single Conventional Limit
Alamance $524,225 $806,500
Alexander $524,225 $806,500
Alleghany $524,225 $806,500
Anson $524,225 $806,500
Ashe $524,225 $806,500
Avery $524,225 $806,500
Beaufort $524,225 $806,500
Bertie $524,225 $806,500
Bladen $524,225 $806,500
Brunswick $524,225 $806,500
Buncombe $524,225 $806,500
Burke $524,225 $806,500
Cabarrus $524,225 $806,500
Caldwell $524,225 $806,500
Camden $757,850 $806,500
Carteret $524,225 $806,500
Caswell $524,225 $806,500
Catawba $524,225 $806,500
Chatham $632,500 $806,500
Cherokee $524,225 $806,500
Chowan $524,225 $806,500
Clay $524,225 $806,500
Cleveland $524,225 $806,500
Columbus $524,225 $806,500
Craven $524,225 $806,500
Cumberland $524,225 $806,500
Currituck $757,850 $806,500
Dare $663,550 $806,500
Davidson $524,225 $806,500
Davie $524,225 $806,500
Duplin $524,225 $806,500
Durham $602,600 $806,500
Edgecombe $524,225 $806,500
Forsyth $524,225 $806,500
Franklin $530,150 $806,500
Gaston $524,225 $806,500
Gates $757,850 $806,500
Graham $524,225 $806,500
Granville $632,500 $806,500
Greene $524,225 $806,500
Graham $524,225 $806,500
Granville $632,500 $806,500
Greene $524,225 $806,500
Guilford $524,225 $806,500
Halifax $524,225 $806,500
Harnett $524,225 $806,500
Haywood $524,225 $806,500
Henderson $524,225 $806,500
Hertford $524,225 $806,500
Hoke $524,225 $806,500
Hyde $524,225 $806,500
Iredell $524,225 $806,500
Jackson $524,225 $806,500
Johnston $529,000 $806,500
Jones $524,225 $806,500
Lee $524,225 $806,500
Lenoir $524,225 $806,500
Lincoln $524,225 $806,500
McDowell $524,225 $806,500
Macon $524,225 $806,500
Madison $524,225 $806,500
Martin $524,225 $806,500
Mecklenburg $524,225 $806,500
Mitchell $524,225 $806,500
Montgomery $524,225 $806,500
Moore $524,225 $806,500
Nash $524,225 $806,500
New Hanover $524,225 $806,500
Northampton $524,225 $806,500
Onslow $524,225 $806,500
Orange $632,500 $806,500
Pamlico $524,225 $806,500
Pasquotank $805,000 $806,500
Pender $524,225 $806,500
Perquimans $805,000 $806,500
Person $632,500 $806,500
Pitt $524,225 $806,500
Polk $524,225 $806,500
Randolph $524,225 $806,500
Richmond $524,225 $806,500
Robeson $524,225 $806,500
Rockingham $524,225 $806,500
Rowan $524,225 $806,500
Rutherford $524,225 $806,500
Sampson $524,225 $806,500
Scotland $524,225 $806,500
Stanly $524,225 $806,500
Stokes $524,225 $806,500
Surry $524,225 $806,500
Swain $524,225 $806,500
Transylvania $524,225 $806,500
Tyrrell $524,225 $806,500
Union $524,225 $806,500
Vance $524,225 $806,500
Wake $530,150 $806,500
Warren $524,225 $806,500
Washington $524,225 $806,500
Watauga $524,225 $806,500
Wayne $524,225 $806,500
Wilkes $524,225 $806,500
Wilson $524,225 $806,500
Yadkin $524,225 $806,500
Yancey $524,225 $806,500

Applying for an FHA Loan in North Carolina
To apply for an FHA loan in North Carolina, borrowers typically follow these steps:

  1. Find an FHA-approved lender: Not all lenders offer FHA loans, so it's important to find one that is approved by the FHA to originate these loans.
  2. Gather documentation: Lenders will require documentation of income, employment history, credit history, and other financial information to evaluate your eligibility for an FHA loan.
  3. Pre-approval: Getting pre-approved for an FHA loan to purchase a property in North Carolina can give you a clear idea of how much you can borrow and help streamline the homebuying process.
  4. Find a home and make an offer: Once you find a property within the FHA loan limits for your area, you can make an offer. If your offer is accepted, you'll move forward with the loan application process.
  5. Loan processing and approval: The lender will process your loan application, verify your information, and determine whether you meet all FHA requirements.
  6. Closing: If approved, you'll attend a closing where you'll sign the final paperwork, pay any remaining closing costs, and officially take ownership of the property.

Benefits and Considerations
FHA loans are an attractive option for many North Carolina homebuyers, but they do come with some considerations:

Overall, FHA loans can be an excellent choice for first-time homebuyers or those with limited funds for a down payment. They provide flexibility and accessibility that can make homeownership a reality for many individuals and families in North Carolina and across the United States. Each state and county and can have different limits. Make sure to check out the various loan limits by state.