FHA loan limits in 2023 are now $472,030 in Wake County!! Does that mean every loan officer in North Carolina can help you with a FHA loan? No. If you need help getting an FHA Loan in Wake Co, you should call us.
FHA loans are only offered through a Mortgage Banker or broker approved to do business through the FHA. Because of the audits, and additional costly quality controls required to have your FHA designation, many brokers have not gone through the process to be approved for FHA Mortgage Raleigh NC. Those who primarily did sub-prime loans in the last 10 years – certainly have not done an FHA loan, and it’s important to understand what experience level your loan officer and their staff have with this program.
It’s not that FHA loans are so complicated – but they are wildly different from the way you process, and calculate credit and debt from other mortgage loan programs. Things that just will not work with a traditional Conventional Loan with more than 5% down, might work very easily with FHA Home Loans that only require 3.5% down Payment!
Most Conventional Loans, for instance require a credit score (for best pricing and Automted Approval) of at least 680. We can do an FHA Loan with a middle credit score of around 600. That’s a major difference.
Why is your credit score so important for a mortgage? Well, lenders use it to assess your risk as a borrower. A high credit score indicates that you’re financially responsible and have a history of making timely payments on your debts. This makes you less risky to lend money to, which means you’re more likely to be offered the best terms, like a lower interest rate. Recent changes by FHFA also changed some of the parameters for a mortgage, and they are making it cheaper to buy a house if you are a first time homebuyer!
How can you improve your credit? If you see that someone is reporting you late – does that mean you should dispute it with the credit bureaus? NO! You can also improve your score by paying your bills on time, keeping your credit card balances low, and avoiding opening new credit accounts. If you really missed a payment, challenging it will not help your score, it might make it worse!! This is one of the reasons that we love helping with a FHA Loan in Wake Co. They are common sense underwritten loans, that take into account the fact that things happen in life!
Help With Down Payment FHA Loan in Wake Co
Additionally, those same Banks and Mortgage Companies that don’t offer FHA loans, also do not offer ALL of the First Time Home Buyer Loans that our bank offers in NC. The First Time Home Buyer Loans NC include Mortgage Tax Credits (MCC) and 2 kinds of DAPs, including a Down Payment Assistance of $15,000.
That’s right, the North Carolina Housing Finance Agency (NCHFA) is offering a down payment assistance program of up to $15,000! This is a new benefit in 2023, and it will work with a FHA Loan. The minimum crdit score for the NCHFA Loans are 640. So the middle credit score of all borrowers must be at least 640. That’s not a FHA Rule, that’s a NCHFA Guideline.
Let’s break it down. The NCHFA Down Payment Assistance program provides eligible homebuyers with a loan of up to $15,000 to help cover the down payment and closing costs on their new home. This loan is a second mortgage with a 0% interest rate and no monthly payments, and it’s forgiven after 15 years if you continue to live in the home.
To be eligible for this down payment assistance in NC, you must be a first-time homebuyer or someone who hasn’t owned a home in the past three years. Your annual income cannot exceed certain limits based on the county you’re purchasing a home in. In Wake County, for instance, that limit is $110,000 for 1 to 2 people in the home, and $126,000 if there are more than 2 people in the home. The home’s purchase price cannot exceed $385,000. You’ll also need to take a homebuyer education course before closing on your new home.
If you’re thinking, “wow, that sounds great, but how do I apply?” Don’t worry, it’s simple! You’ll need to work with a participating lender who can guide you through the application process and help determine your eligibility. (Cough, Cough) that would be US! APPLY HERE! We do tons of these types of Mortgage Loans. Again, just like not all Lenders offer (or understand) how a FHA Loan in Wake Co works, not all Lenders offer first time home buyer assistance programs.
The downside to the NCHFA Programs for some people, is that they are just over the income limit, or they want to purchase a home that costs more than $385,000. In those cases, FHA is still a great option, and one that should be considered – because… you can get a GIFT for your down payment, or you can borrow it from a Retirement Account!
I am a Delegated Underwriter for FHA, and have had that designation since the late 1980’s. I work with my husband, Steve and he also has 25 years of experience with FHA Mortgage Raleigh NC. An inexperienced loan officer might not know, for instance, that there are fees associated with a mortgage that FHA does not allow borrowers to pay for.
Many Counties in NC have seen an increase in the maximum FHA Home Loan in 2023, here are the Maximum loans currently published by FHA for each county in North Carolina for 2023.
If you have questions about a FHA Loan in Wake Co NC, or you want to get pre-qualified for a FHA Home Loan in Raleigh, Cary, or Apex contact Steve and Eleanor Thorne 919-649-5058. We specialize in First Time Home Buyer Loans in NC, and we want to help you get into your Dream Home with the BEST mortgage programs available!
I try and answer all questions :)