FHA Loans in Garner and Fuquay Varina NC

Many of the home buyers we talk to struggle with down payment, meaning coming up with 10 to 20% for a down payment just isnt happening.  So what are the alternatives to a no down payment USDA Home Loan Program near Raleigh? If you are not a Veteran, qualifying for a VA Loan – then the FHA Loans in Garner and Fuquay Varina NC are the most flexible options. We CAN offer down payment assistance with this program, and that means you can live where you want to !

Western Wake County, especially the areas closest to Fayetteville, are growing like wildfire. Not surprising, you can benefit from a home that’s located in “small town USA” with award winning schools!  Fuquay Varina and Garner are two cities that have benefited from this unique location. 

Unfortunately, USDA Home Loans, the program that has been used the most by first time home buyers wanting to buy a home in that area is going to see some pretty major changes later this fall.

FHA Loans are available for fixed rate or adjustable rate loans on Owner Occupied Properties.  They only require a 3.5% down payment, and have fairly easy requirements for credit.  The most important thing to remember about Credit and FHA Loans is that you need a 12 month history of making payments on time.

If you are currently behind on ANY credit card, or car payments (or RENT!) catch them up!  Get a second job, call your parents, clip coupons, only pay cash – make Birthday Presents… borrow clothes from your girlfriend… BUT GET THEM CAUGHT UP! Getting higher credit scores is like losing that extra 20 pounds – you just have to start on the diet to see results!

For a FHA home loan, you will need 3.5% for a down payment.

If you are first time home buyer, or you have not owned a home as your primary residence in 3 years, you might qualify for a 3% down payment grant from NCHFA** .  This is a forgivable grant that has no payments and no interest accruing from the State of NC –> offered by our friends at NC Housing (I’ll refer to it here as NCHFA).

**A Quick Note

We refer to these programs as “mortgage grants” because there are no payments to be made, there is no interest charge, and there’s no expectation that you will have to repay ANY of the money you receive for down payment, unless you move out of the property or refinance prior to the dates assigned by your specific down payment assistance program.

The literal term for this down payment assistance program is a “forgivable loan.” Under the terms of the program that best suits you, a portion of this down payment assistance will be forgiven on a schedule that we will share with you when you make loan application. These funds are available to us through NC Housing (NCHFA) and are available through other lenders in the state as well. The interest rates for these programs, however, will not vary from lender to lender as that is set by NC Housing.

If this is not the program for you, then you can also rob money out of your 401K or get a gift from your family and friends to purchase the home.  If you are getting married, FHA allows for a Bridal Registry to account for the down payment!

The Maximum loan amount for Garner / Fuquay in Wake County in 2019 is $339,250. 

Also, remember that parts of Garner are located in Wake County – and parts in Johnston County.  The maximum loan amount for FHA varies by county. The 2019 FHA Loan Limit of $339,250 will cover both Wake and JoCo parts of Garner.

HOWEVER Fuquay is located in Wake County and HARNETT County.  The numbers for the Harnett County portion of Fuquay are different – please call us at 919 649 5058 for more details

The FHA Loan Limit for each county is subject to change each October 1st.  The old limits for Wake County were $295,000!

With an FHA loan, we can offer manual underwriting.  This important to remember, because FHA recently made changes that make it a little more difficult to get through the “automated” Underwriting system if you have lower credit scores and higher debt to income ratios.  We can still go to almost 50% on total debt to income ratios!

The NC Affordable Mortgage Loan for folks who have been renting for the last three years have a few different requirements.  The minimum credit score for the program is higher at 640.   There are income limits for all of the surrounding counties near Garner and Fuquay of $87,500.

VIEW ALL Underwriting Guidelines for FHA Loans Garner NC

Q: Are there still special programs available through FHA for Teachers?

A: If you are purchasing a HUD Home in a qualifying “Revitalization” area, HUD allows Teachers, Firemen, Police Officers, and qualifying EMT’s to purchase the home at 50% of the asking price.  They must be willing to Owner Occupy the home for 3 years – and you can not own residential real estate for 12 months prior to the offer. This program is called The Good Neighbor Next Door Program

Q: Do I have to use one of FHA’s Preferred Real Estate Specialists in Garner / Fuquay?

A:  You are not required to work with a Preferred Real Estate Specialists to buy a home with FHA financing in Garner or Fuquay Varina. You may work with any Real Estate agent you choose.  We do work with TOP real estate agents in the Garner / Fuquay area, and offering you the option of working with someone we already know is just another way that we help you become a homeowner.

Q:  Can I qualify for a Mortgage Tax Credit After I Buy a House in Garner?

A:  No.  You apply for the How the Mortgage Tax Credit works at the time you apply for the mortgage loan.  MCC Credits are issued by the State of NC.  The “Spirit” of the program is that they give first time home buyers up to $2000 a year or roughly $160 a month to help offset the cost of home ownership.  This is a true credit, and you still get to write off your mortgage interest.  NOT ALL BANKS OFFER THIS PROGRAM, (shameless plug) which is why so many folks want us to help them with their mortgage loan!

Q: Is there a NO CLOSING Cost option available with FHA Loans?

A: Instead of always quoting No Closing Cost Mortgages, we take a different approach.  We don’t believe that in mortgage lending “one size fits all.”  Our experience is that it’s better for some clients to have a Seller pay part of their closing costs. Because Seller Concessions can be a problem on a contract that is not structured correctly, we like to keep our options open!

We generally quote mortgage rates without an Origination fee, so if you are comparing our mortgage interest rate to another lender, keep that in mind.  If you are looking for the VERY BEST mortgage rate – not necessarily the VERY BEST closing costs structure – this will make a difference, and we will be glad to structure a rate and fee quote that works best for your goals!

Looking for more information about FHA Loans in Garner and Fuquay Varina 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 Garner and Fuquay NC!