FHA HOUSE

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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 $472,030 $766,550
Alexander $472,030 $766,550
Alleghany $472,030 $766,550
Anson $498,257 $766,550
Ashe $498,257 $766,550
Avery $498,257 $766,550
Beaufort $498,257 $766,550
Bertie $498,257 $766,550
Bladen $498,257 $766,550
Brunswick $498,257 $766,550
Buncombe $498,257 $766,550
Burke $498,257 $766,550
Cabarrus $498,257 $766,550
Caldwell $498,257 $766,550
Camden $690,000 $766,550
Carteret $498,257 $766,550
Caswell $498,257 $766,550
Catawba $498,257 $766,550
Chatham $602,600 $766,550
Cherokee $498,257 $766,550
Chowan $498,257 $766,550
Clay $498,257 $766,550
Cleveland $498,257 $766,550
Columbus $498,257 $766,550
Craven $498,257 $766,550
Cumberland $498,257 $766,550
Currituck $690,000 $766,550
Dare $617,550 $766,550
Davidson $498,257 $766,550
Davie $498,257 $766,550
Duplin $498,257 $766,550
Durham $602,600 $766,550
Edgecombe $498,257 $766,550
Forsyth $498,257 $766,550
Franklin $529,000 $766,550
Gaston $498,257 $766,550
Gates $690,000 $766,550
Graham $498,257 $766,550
Granville $498,257 $766,550
Greene $498,257 $766,550
Graham $498,257 $766,550
Granville $498,257 $766,550
Greene $498,257 $766,550
Guilford $498,257 $766,550
Halifax $498,257 $766,550
Harnett $498,257 $766,550
Haywood $498,257 $766,550
Henderson $498,257 $766,550
Hertford $498,257 $766,550
Hoke $498,257 $766,550
Hyde $498,257 $766,550
Iredell $498,257 $766,550
Jackson $498,257 $766,550
Johnston $529,000 $766,550
Jones $498,257 $766,550
Lee $498,257 $766,550
Lenoir $498,257 $766,550
Lincoln $498,257 $766,550
McDowell $498,257 $766,550
Macon $498,257 $766,550
Madison $498,257 $766,550
Martin $498,257 $766,550
Mecklenburg $498,257 $766,550
Mitchell $498,257 $766,550
Montgomery $498,257 $766,550
Moore $498,257 $766,550
Nash $498,257 $766,550
New Hanover $498,257 $766,550
Northampton $498,257 $766,550
Onslow $498,257 $766,550
Orange $602,600 $766,550
Pamlico $498,257 $766,550
Pasquotank $805,000 $766,550
Pender $498,257 $766,550
Perquimans $805,000 $766,550
Person $602,600 $766,550
Pitt $498,257 $766,550
Polk $498,257 $766,550
Randolph $498,257 $766,550
Richmond $498,257 $766,550
Robeson $498,257 $766,550
Rockingham $498,257 $766,550
Rowan $498,257 $766,550
Rutherford $498,257 $766,550
Sampson $498,257 $766,550
Scotland $498,257 $766,550
Stanly $498,257 $766,550
Stokes $498,257 $766,550
Surry $498,257 $766,550
Swain $498,257 $766,550
Transylvania $498,257 $766,550
Tyrrell $498,257 $766,550
Union $498,257 $766,550
Vance $498,257 $766,550
Wake $529,000 $766,550
Warren $498,257 $766,550
Washington $498,257 $766,550
Watauga $498,257 $766,550
Wayne $498,257 $766,550
Wilkes $498,257 $766,550
Wilson $498,257 $766,550
Yadkin $498,257 $766,550
Yancey $498,257 $766,550

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.