Looking for a home in Charlotte, Mint Hill, Belmont or Monroe? If you’re like most people we talk to you want to get the mortgage loan that a) you can get approved for and b)has the best terms. FHA Loans in Charlotte are one of the most sought after programs available. More people are trying to buy a home before home prices go up too much, and the FHA Loan has fairly easy qualifying and offers a low down payment of 3.5%. The program is only available for a Owner Occupied Home purchase. FHA Loan Limits Charlotte are slightly higher for 2022.
Unlike qualifying for a VA Mortgage loan (where you must be a qualifying Veteran) or a USDA Home Loan (that requires that you meet income limits for your county and the property must fit within the USDA RD Loan Footprint) – FHA has far fewer restrictions! They do have Maximum Loan Amounts, which vary per county. The maximum loans amount limits are subject to change every year, and it’s based upon the median price of housing in that area.
2022 FHA Loan Limits Charlotte, Monroe | Mecklenburg County, NC
- One Family Dwelling: $420,680
- Two Family Dwelling: $538,650
- Three Family Dwelling: $651,050
The FHA loan limits are over $100,000 higher than they were in 2019, and reflect the higher home prices we are seeing in Charlotte. FHA Loans are for Owner Occupied Units, only. If you are buying a multi-family you would need to live in one of the units, but FHA does allow you to rent out the other side, and include that income in your debt to income qualifying ratios.
NOTE: The 2022 FHA Loan Limits for Charlotte, Monroe, Belmont is listed here slightly higher than the published rate on some sites – we have the accurate information!
FHA loans have pretty easy credit score requirements. We need at least a 600 middle credit score to qualify most borrowers. The very best mortgage rates for this program is currently going to those with at least a 680 middle credit score. If you had a Bankruptcy, Chapter 7 or Chapter 13 you will need to wait at least 24 months from the date of the discharge.
There are guidelines out that say that if you have a Chapter 13 and you’ve made at least 12 months of payments you can purchase a home… and with some strange situation it might work – but we have not been successful with that type of credit history. If you are currently in a Bankrupcy Plan, you must get approval from the Trustee.
Additionally, if the Chapter 7 bankruptcy involved foreclosed property (or if you had a foreclosure or a short sale) you will need to wait a full three years before purchasing another home.
Non Traditional Credit: There have been situations where we’ve been able to build credit for someone who did not have at least 3 trade lines. If you are in that situation – we suggest you get a couple of Secured Credit Cards. However, if you have a good payment history on your Utility Bills, you can also have that Alternative Credit Information added to your credit report, and it MIGHT improve your scores, by a few points.
FHA Loans allow for the down-payment of 3.5% to come from your own funds, from a gift, from an Employer or Non-profit, or a DPA like the NC Affordable Housing Program. The NC First Time Home Buyer Program is available for those who are residents of NC and have been renting for the last 36 months. The NC Affordable Housing Program offers a ton of benefits that can be used with FHA Loans in Charlotte, including the MCC Mortgage Tax Credit, low mortgage interest rates, and a forgivable 3% down payment assistance that can be used for the down payment or to cover closing costs.
The NC First Time Home Buyers Program does not have a maximum sales price in Charlotte. The Income limits for the program are subject to change annually and are based upon the median income for the County. The program does allow us to make adjustments to the Income limits based upon child care and certain deductions taken over the last 2 years on your tax return, so if you are close, please call us for more info. (how to calculate income)
- 2022 Income Limits for Charlotte, Monroe | Mecklenburg County
- $99,000 is the maximum income limit.
- MCC Mortgage Tax Credit for a household with 3 or more people is $96,000
The LITERAL TERM for this money is “Forgivable Loan.” Very few people are familiar with that term, so, again we call them “Mortgage DPAs, or Down Payment Assistance Programs.”
Here are some things you should know about these dollars, that do come with strings attached.
Is there any interest, or other fees charged on this money?
For the funds available for down payment on a home from NC Housing Finance Agency (NCHFA), the answer is “No.” There’s a fee associated with setting up the Mortgage Credit Certificate (MCC), and there are small fees associated with some of the other municipality affordable housing funds that are available. The fees vary by Agency, so you’ll find out the exact fee cost once we determine which program is best suited to help you buy a house.
I’ve been Approved For A Mortgage, How Do I Apply for First Time Home Buyer DPAs
The Down Payment Assistance Program in Charlotte, or whatever name you want to call it IS the mortgage loan. Meaning you apply for the down payment assistance with the same lender you apply for the mortgage with. They go hand in hand.
You need to complete a mortgage loan application. You can do that on this site (see the green button on the right?), or you can call us (919 649 5058), or you can come in.
Five Things First Time Home Buyers in North Carolina should know
FHA also has a unique qualification / underwriting guideline, that allows you to purchase a home, with a relative that does not live in the house… “The FHA Non-Occupying Co-Signor Program” is sometimes, referred to in the Mortgage Industry as a “Kiddie Condo,” because frankly it’s perfect for purchasing a house for kids in college!
Instead of renting a dorm in Huntersville, many NC parents put the student on the mortgage loan and purchase a house, splitting the rent with others! We also use this program for 55+ adults who having aging parents who can not, for whatever reason, qualify to purchase a home – and the child helps the parent qualify for a mortgage loan.
Looking for a home in the Charlotte / Monroe area? Remember the FHA Loan Limits for Charlotte just went up! Call Steve and Eleanor Thorne 919 649 5058. We do TONS of FHA loans in Charlotte NC and we’d love to help you! We also have some of Today’s Best Mortgage Rates in Charlotte and Monroe NC!
So if you only have one line of credit but pay off all your bad debt AND have the 3% down at closing that isn’t good enough? You have to have this crazy three lines of credit? Do school loans act as a line of credit?
Stephanie! Yes, Student Loans DO count as trade lines, if they are not in deferment. If you have a credit history, and clean credit for the last 12 months you will likely be approved. FHA has lower minimum credit score requirements than USDA Loans do. If you’d like to talk to us about your credit, and getting qualified to buy a house, it only takes us about 30 minutes. 919 649 5058
I’ve tried obtaining my credit scores from Equifax, Experian, and Transunion, but they all have different scores. How do I know which one to use to give me my middle score if they are all different?
Crissy! Thanks for asking! Let’s say that your scores look like this:
Equifax 689
Experian 660
TransUnoin 702
In this example – the middle score is 660. The credit scores will always be different from one another, because some companies report information to only one or 2 of the Bureaus.
Yes ma’am I understand that part but I guess my question is do they go to only one bureau and get that bureau’s three scores or do they go to each bureau and get their individual score and then use the middle score?
I’m sorry I misunderstood. Yes, they go to each of the three, and then use the middle score. In NC, we normally see higher (or lower scores) on Equifax – because they concentrate their business on the South East. The SECU, for instance, only reports accounts to them. If you had a car payment (and that was the only thing you had) – and that car was financed through the SECU… you would ONLY HAVE one credit score, and it would be via Equifax.
I’m glad to help you with your unique situation, just call us at 919 649 5058
I have one for you. We began this process six months ago have since had to go to two different lenders since after 4 months BOA out of the blue canceled. Now two more months and we are fighting with manual underwriting. 30k in savings that we have statement showing years of savings, VOR, proof of rent for six years, letters of credit from 5 companies, VOEs from both employers, debt\income ratio is good, buying house we have lived in for 6 years for only POA, appraised value 40k higher than loan amount, and my credit score 650 or higher his is non existent neither good or bad. Waiting on VOMs we didn’t know we needed since we are only renting house currently.
This sounds like you are trying to buy the house that maybe a family member owns? I’m so sorry you are having these problems. If there’s something we can do, even just give you a second opinion, we’ll be glad to. 919 649 5058
Looking to apply for a FHA loan but I’m currently living in CT but would like to buy a house in Charlotte, NC before me and my family move there In June. Is it realistic for me to find a home, get a loan and close the sale before June? Or should we rent the first year?. I see in the earlier comments you state that one should have a several lines of credit. My boyfriend only has one secured credit card but his credit score is 650. Is that ok for a FHA loan or should we take a year to build more credit? . Any answers will be greatly appreciated.
Yvonne! Welcome to NC (early!)
You will be fine buying a house by June. We work with several Realtors in that area, so let us know what we can do to help!
Thank you, who can I speak to, to start the FHA loan process
You can call us anytime at 919 649 5058
Does Union County/Matthews count for FHA loan?
Yes this will work in the Matthews, Union County area 🙂 We do tons of loans in that area, please call us at 919 649 5058
Do you guys charge a fee for your assistance?
Thank you for your fast response.
Rosa – we do not charge a fee. You can call us at 919 649 5058
I want to introduce myself, my name is Rena Hawkins and I’m a realtor with Allen Tate Realtors in Charlotte, NC. I work mainly with buyers from the uptown Charlotte area into South Charlotte, Pineville,Matthews, Mint Hill, and Weddington. If I can answer any questions about available homes in Charlotte, please contact me at 704-763-9587.
If I have a low credit score but a co signer with a high score can I still get a fha loan
There are still minimum credit score requirements. It will help – but you still need at least a 580 score