FHA Loans Raleigh NC

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FHA Mortgages in Raleigh NC

FHA Loans Raleigh NC are so popular because we have such a vibrant relocation population and we are a HUB for First Time Home Buyers in NC.  The FHA Loans Raleigh NC Program allows folks to buy a house with a non-owner occupying co-borrower, obtain gift funds for the down payment, allows the seller to pay for closing costs, and can be used to buy a condo in Raleigh!  It's a great mortgage loan program that offers the best mortgage rates and a very lown down payment of only 3.5%!


In a nutshell, the main reason people move to Raleigh are; the wonderful economy and employment opportunities, great place to start a business and raise a family, the beautiful landscape, world-class education options and overall quality of life.  What was once a mild capitol city mostly made up of government buildings, and College Campuses,  is quickly getting a facelift that is continuing to gain national attention!

For prospective Raleigh homebuyers the “hot spot locations” continue to be North Raleigh, North Hills / Midtown Area and Downtown Raleigh.  First Time Home buyers love the condos and walkability of downtown. Upscale shops and amenity and restaurant laden North Hills also offers up a great walkable area, at a higher price point. 

North Raleigh is a mix of price range and styles with neighborhoods ranging from brand new – to decades old homes with Mid-Century Charm.  Because of the affordability factor, many homebuyers in the Raleigh market are considering  FHA Loans Raleigh.

FHA Loans Raleigh, Cary, Apex NC are not just designed for First Time Home Buyers – but they are only reserved for Owner Occupied Properties.  The program is one of the most flexible mortgage loans available, offering reduced downpayment requirements and reduced waiting periods for those who have had a major credit issue in the recent past.

There are maximum loan amount limits for each of the surrounding counties, many of them different than the limit for Wake County.  These maximum loan limits are based annually on the median sales price in each county of NC. 2013 FHA Loan Amount Limits for Raleigh, Cary, Apex  27513 / Wake County, NC

  • One Family Dwelling:  $295,000
  • Two Family Dwelling:  $377,650
  • Three Family Dwelling:  $456,500

UPDATE:  Effective 1/1/2014 the FHA Loan Limit for Raleigh and Wake County is $280,600

If you purchase a duplex, you must be willing to live in one of the units – and you are allowed to rent the other unit out.  We can, in some cases, count rental income to offset the mortgage payment, when calculating your debt to income ratios. 

While this is a great investment strategy for some, it’s important to remember that you are responsible for the maintenance on the entire unit (both sides), and this extra maintenance is often “calculated” in as an additional cost that the Underwriters look at in your debt to income ratios.

FHA has a minimum downpayment requirement of 3.5% and you can get a gift for the FHA Down payment.  You might also benefit from using the 3% grant offered through the NC Affordable Housing Program.

The NC First Time Home Buyer Program is for folks who are residents of NC and who have been renting for the last 3 years or more.  There’s no restriction regarding how long you have to be in NC.  Meaning even if you just moved here last month, as long as you haven’t owned a home somewhere else as your primary residence – you qualify for our First Time Homebuyer Loan Program through the NC Affordable Housing Program. 

While there are no maximum Income limits for FHA loans Raleigh NC, if you are applying for a First Time Home Buyer Program, you will be required to meet those limits laid out per county.

  • Income Limits for Wake County / Raleigh no matter how many people are in the household is $85,000
  • Minimum Credit Score Requirements 640 for both the MCC Program and the Grant Program
  • There’s no maximum Sales Price Restriction for the NC Affordable Housing Program in 2013

VIEW ALL Underwriting Guidelines for FHA Loans Raleigh, Cary Apex NC

Q:  Does FHA PMI “get removed” after you meet an equity requirement?

A: The FHA PMI rates recently changed.  There’s an upfront fee of 1.75% that is usually just added to your loan amount (meaning it’s financed in) and then there’s a monthly charge added to your payments.  The more downpayment you make, the lower your FHA PMI rates will be.  Another recent change means that the FHA PMI will stay on the loan for the life of the loan / no matter how much equity you build up.  It’s just a cost of using this great program!

Q:  Are All Condominiums in Raleigh Approved for FHA Loans?

A:  No.  Primarily because of a hard rule against short term leases, and a requirement for stricter language in the projects covenants, conditions and restrictions (CC&Rs) fewer Condominium Projects in NC Qualify for FHA Financing.

Looking for a home in the Raleigh/Cary/Apex area?  Call Steve and Eleanor Thorne 919 649 5058.  We do TONS of FHA loans in NC and we’d love to help you!  We also have Today’s Best Mortgage Rates in Raleigh and Cary NC!

Originally posted at NC FHA Expert.com

Comments (1)

Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

The new FHA Loan Limits in Raleigh NC that go into effect January 1st could be a surprise to some Home Sellers in Raleigh NC

Dec 17, 2013 05:17 AM