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 staying at the same place for 2018.
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.
2018 FHA Loan Limits Charlotte, Monroe | Mecklenburg County, NC
- One Family Dwelling: $294,515
- Two Family Dwelling: $377,075
- Three Family Dwelling: $455,800
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 2018 FHA Loan Limits for Charlotte, Monroe, Belmont is more than the published rate on some sites – it changed with Case Numbers pulled after 12/31/17.
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 situation. 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.
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 Grant 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% grant 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)
- 2018 Income Limits for Charlotte, Monroe | Mecklenburg County
- $87,500 is the maximum income limit.
- MCC Mortgage Tax Credit for a household with 3 or more people is $81,000
We call this money “Grant” money. According to Google’s Dictionary, a “Grant” means:
“…a sum of money given by an organization, especially a government, for a particular purpose”
Based upon that definition, we think that the term “First Time Home Buyer Grants” is the appropriate use of words to describe the programs we are referring to. The LITERAL TERM for this money is “Forgivable Loan.” Very few people are familiar with that term, so, again we call them “Mortgage Grants.”
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 Grants
The Down Payment Assistance Program, or Grant (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.
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, 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!