FHA Loans in Chapel Hill and Carrboro NC

Chapel Hill enjoys one of the highest income and educational family averages within the ”Triangle” region (The Research Triangle Park is a Tax Free Zone located between Durham, Chapel Hill and Raleigh, NC). There is a strong community base, yet for all its growth, there remains the feel of a much smaller town.  FHA Loans in Chapel Hill and Carrboro NC are some of the best mortgage products available to Grad Students because of the flexibility.

Many first time home buyers who come to UNC Chapel Hill for School, stay in research and medical positions.  They are often looking for a mortgage program to purchase a home that does not require a huge down payment.  One of the best programs for today’s first time home buyer is FHA Loans in Chapel Hill and Carrboro NC.

Although the FHA Loan program is clearly not just available for First Time Home Buyers it is a program that offers multiple layers of flexibility.  If you need a lower down payment, FHA offers a 3.5% down payment, and it allows for those funds to come from a Wedding Gift Registry, from a gift from a family member, or from a “DPA program,” like the NC Affordable Program described below.

FHA also allows a non-owner occupant to purchase the home with the person living in the house. This is a great program for parents who want to buy a house for a student at UNC Chapel Hill, but don’t want to put 25% down for Investment property.

There are maximum loan amounts for each county in NC.  These loan amount limits change each year, they are specific to each county (so if you are looking in Mebane or Cary it will be different) and are based upon the median income for the County.

2023 FHA Loan Amount Limit for Chapel Hill Carrboro / Orange County, NC

• One Family Dwelling:  $602,600,000.
• Four Family Dwelling:  $1,158,850.

The NC First Time Home Buyer Program is now available for anyone who is living in NC, and has not owned a home as a primary residence for the last 3 years.  So, if you’ve owned a house as investment property – but you’ve personally been renting, you might qualify.  It gives those who qualify a 3% or 5% in down payment assistance, and can also offer tax credits to help you qualify for a little larger home.  Again, this program is only for owner occupied mortgages, and it does have income limits for each county – although they did away with the maximum sales price.

• 2023 Income Limit for Orange County
  • • For NC Home Advantage 15K Program $110,000 for a family of 3
    • For MCC / Mortgage Tax Credit Program  The maximum Income for a household with 3 or more members is $110,000 for both Orange and Chatham Counties

VIEW ALL Underwriting Guidelines for FHA Loans in Chapel Hill and Carrboro NC

Q: Will FHA Count Alimony and Child Support Payments To qualify for a mortgage loan?

A:  FHA Qualifying Income Requirements:  FHA is flexible with income used to qualify buyers.  They will work with people who are in the IT field, and are on contracts, they will count part time income, and Child support and Alimony Payments.  For the most part it’s also important to remember that when starting a new job, you will probably need to receive your first full paycheck before you can close on your new home.

Q: Do all Condominium Units in Chapel Hill or Carrboro qualify for a FHA Loan?

A: No.  Because of the way most Associations are designed, simply making changes like the ones requested by FHA / HUD are expensive, time consuming and in some cases – simply not possible.

Looking for a home in the Chapel Hill / Carrboro area?  We offer all variations of FHA Loans in Chapel Hill and Carrboro NC! 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 Chapel Hill NC!