Following are 5 reasons to use an FHA loan in NC. FHA loans have been around for over 50 years. In that time FHA has help millions of home buyers buy their first home or their tenth home. FHA rates are very competitive with other mortgage products and they don’t take any more time to close than other products. The 5 reasons to use a FHA loan in NC are:
1. Low down payment requirements. Only 3 ½ % of purchase price is required as a down payment. For example; a home with a purchase price of $150,000 would require a down payment of $5,250. FHA does allow a gift from a close family member to help with the down payment.
2. Lower credit scores are okay. In order to get the best rate for a conventional loan requires a FICO score of 720 or higher. You can get a great FHA rate with a FICO score of 640. With good compensation factors the score can go lower.
3. Up to 6% seller credits allowed. There are other costs needed to purchase a home besides the down payment which we call closing costs or settlement costs. These would include costs such as attorney fees, appraisal cost, title and recording fees and settling up escrows to name a few. Unlike down payment which must come from the borrowers own funds, closing costs can be paid by the seller as a seller credit.
4. No maximum limits on income. Some Government programs have a cap on income in order to qualify but FHA does not. As long as the borrower has enough income to have a satisfactory debt to income ratio, they will be okay.
5. You do not have to be a First Time Home Buyer. Again some Government programs require the home buyer to be a first time home buyer but FHA does not. There are no limits to the number of times you can use an FHA loan as long as you only have one at a time.
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Who Can You Call For Your Mortgage Needs in North Carolina?
Call Shay Campbell a licensed Loan Officer, NMLS# 46083 and LO5 designation, located in the Triangle area of NC, which includes Raleigh, Cary, Durham, Chapel Hill, Apex, Holly Springs, RTP and the counties of Wake, Durham, Johnston, Chatham and Orange. Shay has over 12 years of originating experience in North Carolina and can assist you with FHA, VA, USDA, NCHFA and conventional loans. He has a special interest in working with first time home buyers. Shay can be contacted at 919-624-8614, shay@shaycampbellmortgage.com or visit his website at shaycampbellmortgage.com.
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