raliegh nc fha loans

FHA Loans Raleigh Cary Apex NC

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 down payment 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 differ from the limit for Wake County.  These maximum loan limits are based annually on the median sales price in each county of NC. 2015 FHA Loan Amount Limits for Raleigh, Cary, Apex  27513 / Wake County, NC

  • One Family Dwelling:  $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 Loans Raleigh Cary Apex NCFHA has a minimum down payment requirement of 3.5% and you can get a gift for the FHA Down payment. 

You might also benefit from using one of the First Time Home Buyer Grants that can give you a minimum of a 3% grant, offered through the NC Affordable Housing Program.

Additionally there are First Time Home Buyer Grants available that offer 5% – to cover the down payment and the Closing Costs!

We normally steer clients away from the 5% grant program, because there’s a way to negotiate the Seller paid Closing Costs… but in some situations, for instance if you are purchasing a Bank Owned foreclosed home, having the Down Payment and the Closing costs covered is the best 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 have been renting a place to live for the last 36 months,  you qualify for our First Time Home Buyers Program through the NC Affordable Housing Program.

And, while there are no maximum Income limits for FHA loans in Raleigh, 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 monthly FHA PMI rates went DOWN.  The more down payment 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!


  1. says

    Good morning,

    my wife and I are looking to buy our first home. We were married last September and are expecting our first little one very soon. I have been renting since 2009 and my wife since 2010. We currently just renewed a six month lease and will be in our current apartment until September of this year. I want to use these six months as the time to find our first home.
    I currently make all the income for our household and generate just under 30,000 a year. I have a credit score of 615 atm, but I just paid off one of my credit cards and the only issue with my credit causing the low score is one late payment I had last November. I’ve since paid off the whole balance of the card.
    My wife has no credit and does not currently work as she is pregnant. After reading your article I was hoping you could help me with advice or information on if we would be eligible for an FHA loan and if you could point us in the direction of an FHA lender.

    Thank you!
    Brandon Lean

  2. says

    Brandon – yes, you will likely qualify for a home for your growing family using one of several programs. We are FHA Lenders located at CrossRoads in Cary. Please call us at 919 649 5058, and we’ll be glad to help! We offer all of the First Time Home Buyer Programs, and these could save you up to $2000 a year! Congratulations, it sounds like you are making great decisions!

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