An FHA insured mortgage is a home loan guaranteed by the United States Federal Housing Administration and processed by an FHA approved lender or banks. The Federal Housing Administration loan program started in the 1930s during the Great Depression. The goal of the program was to try to protect lenders and home buyers while still minimizing the number of defaults and foreclosures.
FHA loans are available to any qualified home buyer by offering limited down payment and credit restrictions. This program opens up a lot of opportunities for North Carolina home buyers, and it is definitely something that should be considered by first time home buyers in Charlotte, Raleigh, Greensboro and Durham. Home buyers in more rural locations in NC should also look into the USDA loan here.
FHA, just like other government mortgage programs, have some requirements that must be met in order to be eligible for the program. There is a one-time premium of 1.75 percent of the loan amount that has to be paid to FHA by all borrowers, and this is often rolled into the loan amount. Additionally, there is a monthly premium PMI as well. Home buyers can read more about the FHA mortgage details here.
FHA loans are one of the easier mortgage types to qualify for because they are backed and insured by the federal government. Because of this, FHA has lower credit guidelines than traditional mortgage types.
North Carolina FHA Loan Guide for 2025:
North Carolina FHA Loan Guide for 2025:What are some of the FHA loan guidelines?
- Have a good credit history over the last 2 years. 600 credit min for those financing the max 96.5%. Lower credit down to 550 can be accepted for borrowers with 5%-10% down payment.
- Show consistent income and employment with no large unexplained gaps in employment
- Have no bankruptcies in the last 3 years
- The mortgage payment must not exceed 35% of the buyer’s gross income
- Down payment – can be as low as 3.5% of the purchase price. Special 100% FHA financing with down payment assistance may be available depending on location, please contact us today.
- Closing costs – Closing costs are allowed to be paid by the home seller, so all the buyers need is the down payment
FHA Loan Benefits?
- FHA loan limits start at $524,225 for a single 1-unit property in North Carolina, slightly higher in select counties.
- Low down payment 3.5% – finance up to 96.5% loan to value. *100% FHA with down payment assistance available for income eligible buyers.
- Limited closing costs, closing costs can be paid by the home seller
- Gift funds allowed for down payment or approved down payment assistance, bond programs
- No prepayment penalty
- Secure 15 or 30-year fix low-cost
- No income limits
- Approved FHA homes types include single-family, townhomes, approved condo. No investment homes or mobile- manufactured homes permitted
- Low-cost Streamline Refinance options available should interest rates decrease in the future
Please call us 7 days a week with questions at Ph: 800-743-7556 or just submit the info request form on this page for quick service. Proud to serve buyers all across the U.S. including Charlotte, Raleigh, Greensboro, Durham, Winston-Salem, Fayetteville, Cary, Wilmington, High Point, Greenville, Asheville, Concord, Gastonia, Jacksonville, Chapel Hill NC