One of the top reasons people continue to move to Raleigh area is because of its strong economy, growing job market, business-friendly environment, family-oriented communities, and high quality of life. The region is known for its natural beauty, access to world-class education, and vibrant lifestyle.Once a quiet capital city known mostly for government offices and college campuses, Raleigh is undergoing a dynamic transformation that’s gaining national recognition. FHA Loans Raleigh, Cary & Apex NC are leading mortgage programs for those looking for a “starter” home in this area.
For prospective homebuyers, Raleigh’s “hot spots” remain North Raleigh, the North Hills/Midtown area, and Downtown Raleigh. First-time buyers are especially drawn to the condos and walkability of downtown. North Hills offers a mix of upscale retail, restaurants, and amenities—perfect for those seeking a vibrant lifestyle at a higher price point. North Raleigh appeals to buyers with its diverse home styles, from new construction to mid-century charm. Thanks to affordability and flexible loan options, many Raleigh buyers are turning to FHA loans in 2025.
FHA Loans Raleigh, Cary, and Apex NC are NOT just for First Time Buyers
FHA Loans Raleigh are ideal for anyone purchasing a primary residence. This program allows for a parent or sibling to help with qualifying for the loan from an income perspective, it allows for part time income, and it allows slightly lower credit scores to be approved.
There are multiple down payment options with FHA Loans including family gift funds, savings or the use of one of the “NC Mortgage Grants.”
📝 A Quick Note About “Mortgage Grants”
We call these programs “mortgage grants” because there are no monthly payments, no interest charges, and no repayment—unless you sell or refinance too soon. Technically, these are called forgivable loans, and a portion is forgiven each year you stay in the home. We’ll go over the exact timeline when you apply, but typically, the full “grant” is forgiven after 5 to 15 years depending on the program.
The NC Housing Finance Agency (NCHFA) provides these funds, and while many lenders can offer them, the interest rate is set statewide, so you’ll get the same rate no matter which approved lender you use.
To qualify for the NC First Time Home Buyer Program, you’ll need to be a North Carolina resident who has rented for at least the past 36 months. Even if you just moved to NC, that’s okay—as long as you’ve been renting, you’re eligible. We have lots of customers who owned a home 5 years ago, moved about some, and after settling in NC, decide to purchase here. As long as you have not owned a primary residence in the last 3 years, and you meet the other income requirements, you should be good!
While there are no income limits for FHA loans Raleigh in general, if you want to use a First Time Home Buyer money available through NC Housing, you’ll need to meet their income caps. For Wake County, the current income limit for this program is $122,000.00,for a family of two or $140,000 for a family of three or more (updated for 2025).
Minimum credit score requirements for NC Housing’s programs remain at 640, whether you are using the 3% down money or the $15,000 Down Payment “Grant.” At this time, NC Housing is not taking an enormous amount of time to process these loans (which have to go to the Agency to approve), so we don’t normally need more than 30 or 45 days to close one of these first time home buyer “grant” loans.
Common FHA Loan Questions in 2025
Q: Does FHA mortgage insurance (PMI) ever go away?
A: Not anymore. While FHA loans Raleigh sed to remove PMI after you built enough equity, current guidelines keep PMI for the life of the loan—regardless of how much equity you gain. The upfront mortgage insurance premium (UFMIP) is still 1.75%, usually added to your loan balance, and the monthly rate has been reduced, especially if you put more than 3.5% down. It’s simply part of the cost of using this flexible program.
Q: Can I buy a condo with an FHA loan in Raleigh?
A: Possibly—but not all condos qualify. FHA has strict rules around short-term rentals and specific requirements for the HOA’s legal documents. If you’re eyeing a condo, we can help you check if it’s FHA-approved.
Q: Does FHA allow for Non-Owner Occupied Borrowers, and if so, what are the down payment requirements?
A: Yes, FHA Loans Raleigh allows for family members to assist in purchasing a home from an income qualifying perspective. There’s not a HIGHER down Payment Requirement as some people have reported on Reddit recently. It’s still only a 3.5% down payment requirement.
Q: Why do Sellers hate FHA Loans Raleigh?
A: Raleigh, Cary, Apex Home Sellers do not “hate” FHA Loan qualified borrowers. That’s another misconception. The premise of the question is incorrect. Sellers, in general, have no problem with accepting offers using FHA financing. The bigger problem is that sellers prefer offers with larger down payments.
The buyer’s down payment size should make no difference at all: the seller will receive the same amount of cash at close of escrow regardless of the buyer’s down payment. The real problem is a lack of information on the sellers’ part. They prefer offers with a larger down payment because they believe the buyer’s loan will be more likely to go through.
This assumption is simply incorrect. Lenders use the same criteria to underwrite loans with 3% down as they do for 20% down or more.
One additional aspect of FHA loans does not apply to conventional loans: the Minimum Property Requirements (MPR). The appraiser will perform an additional inspection to determine whether any defects in the property could affect the buyer’s health and safety. Specifically, they will note any obvious termite infestation, unsafe wiring, or peeling lead-based paint.
We always recommend anyone buying a resale home to get a full home inspection to uncover these kinds of defects, among others. You may also order a pest control (termite) report, roof inspection, and other reports applicable to the area and property. These reports will list the kinds of defects identified in an FHA appraisal, so the concern a Seller might have is moot.
🏡 Ready to find your home in Raleigh, Cary, or Apex? Call Steve and Eleanor Thorne at 919-649-5058. We’ve helped hundreds of homebuyers across NC get approved forFHA loans Raleigh — and we’d love to help you too. Plus, we’ve got access to today’s best mortgage rates in Raleigh and beyond!
I try and answer all questions :)