FHA Loan Limits in North Carolina For 2022

fha loan limits in North CarolinaApplying for an FHA loan in North Carolina can be quick as soon you have all paperwork ready. You just need to check FHA loan limits in North Carolina before. You have to know what your credit score is and how much you can afford as well. With the second option, we will help you to navigate through costs related to obtaining an FHA loan, pros, and cons. We will guide you through all steps in the process so you are ready to make a move and buy or refinance your home with an FHA loan. the Federal Housing Administration (FHA) is a government agency that provides mortgage insurance on loans made by FHA-approved lenders. The FHA allows borrowers to finance homes with down payments as low as 3.5% without having to pay Private Mortgage Insurance (PMI).

  • Job History – stable employment and income. You need to be employed for 2 years or more in the same company or same niche.
  • Financial Statements – You should expect to be required to provide your 2 most recent bank statements, pay stubs, and tax returns. In some cases, you can amend your tax returns to be able to qualify for the mortgage and be able to get a prequalification letter.
  • Credit Score – To qualify for the FHA loan you must have a 500 credit score or higher.
  • Down Payment – HUD requires a 3,5% down payment for the FHA Loan depending on your credit score. On a $300,000 house, you will need $10,500. If your credit score is between 500–579, you are eligible for up to 90% financing. So the minimum down payment would be 10% of your home’s purchasing price. So if you buy a house worth $300.000 you need to come up with $30,000.
  • Debt-to-Income (DTI) – You can not have a debt-to-income ratio higher than 43%.  However, if you have “compensating factors” you might be able to get approved with higher debt levels (a compensating factor could be more money in savings, long job history, or great credit).
  • Primary Residence – You must occupy the home that you intend to purchase and have it be your primary residence. FHA loans are not available to purchase an investment property, second home, or vacation home.
  • Mortgage Insurance – FHAs require two types of mortgage insurance.  UPMIP (Upfront Mortgage Insurance Premium) and the MIP (Mortgage Insurance Premium).  FHA MIP acts similarly to how PMI (Private Mortgage Insurance) on a conventional loan acts.  You can use our loan calculator to estimate your monthly payment and mortgage insurance costs.
  • FHA Loan Limits – FHA loans have maximum lending limits, which are set at the county level. You can view the 2022 FHA loan limits in North Carolina for all counties below.

FHA Loan Limits in North Carolina for All Counties in 2022

County Single Family 2 Family 3 Family 4 Family Median Home Price
Alamance County $420,680 $538,650 $651,050 $809,150 $197,000
Alexander County $420,680 $538,650 $651,050 $809,150 $179,000
Alleghany County $420,680 $538,650 $651,050 $809,150 $104,000
Anson County $420,680 $538,650 $651,050 $809,150 $340,000
Ashe County $420,680 $538,650 $651,050 $809,150 $115,000
Avery County $420,680 $538,650 $651,050 $809,150 $200,000
Beaufort County $420,680 $538,650 $651,050 $809,150 $170,000
Bertie County $420,680 $538,650 $651,050 $809,150 $56,000
Bladen County $420,680 $538,650 $651,050 $809,150 $100,000
Brunswick County $420,680 $538,650 $651,050 $809,150 $260,000
Buncombe County $420,680 $538,650 $651,050 $809,150 $330,000
Burke County $420,680 $538,650 $651,050 $809,150 $179,000
Cabarrus County $420,680 $538,650 $651,050 $809,150 $340,000
Caldwell County $420,680 $538,650 $651,050 $809,150 $179,000
Camden County $488,750 $625,700 $756,300 $939,900 $425,000
Carteret County $420,680 $538,650 $651,050 $809,150 $275,000
Caswell County $420,680 $538,650 $651,050 $809,150 $100,000
Catawba County $420,680 $538,650 $651,050 $809,150 $179,000
Chatham County $506,000 $647,750 $783,000 $973,100 $440,000
Cherokee County $420,680 $538,650 $651,050 $809,150 $160,000
Chowan County $420,680 $538,650 $651,050 $809,150 $186,000
Clay County $420,680 $538,650 $651,050 $809,150 $195,000
Cleveland County $420,680 $538,650 $651,050 $809,150 $130,000
Columbus County $420,680 $538,650 $651,050 $809,150 $87,000
Craven County $420,680 $538,650 $651,050 $809,150 $233,000
Cumberland County $420,680 $538,650 $651,050 $809,150 $225,000
Currituck County $488,750 $625,700 $756,300 $939,900 $425,000
Dare County $471,500 $603,600 $729,600 $906,750 $410,000
Davidson County $420,680 $538,650 $651,050 $809,150 $210,000
Davie County $420,680 $538,650 $651,050 $809,150 $210,000
Duplin County $420,680 $538,650 $651,050 $809,150 $82,000
Durham County $506,000 $647,750 $783,000 $973,100 $440,000
Edgecombe County $420,680 $538,650 $651,050 $809,150 $168,000
Forsyth County $420,680 $538,650 $651,050 $809,150 $210,000
Franklin County $420,680 $538,650 $651,050 $809,150 $363,000
Gaston County $420,680 $538,650 $651,050 $809,150 $340,000
Gates County $488,750 $625,700 $756,300 $939,900 $425,000
Graham County $420,680 $538,650 $651,050 $809,150 $153,000
Granville County $506,000 $647,750 $783,000 $973,100 $440,000
Greene County $420,680 $538,650 $651,050 $809,150 $77,000
Guilford County $420,680 $538,650 $651,050 $809,150 $205,000
Halifax County $420,680 $538,650 $651,050 $809,150 $115,000
Harnett County $420,680 $538,650 $651,050 $809,150 $225,000
Haywood County $420,680 $538,650 $651,050 $809,150 $330,000
Henderson County $420,680 $538,650 $651,050 $809,150 $330,000
Hertford County $420,680 $538,650 $651,050 $809,150 $65,000
Hoke County $420,680 $538,650 $651,050 $809,150 $225,000
Hyde County $483,000 $618,300 $747,400 $928,850 $175,000
Iredell County $420,680 $538,650 $651,050 $809,150 $340,000
Jackson County $420,680 $538,650 $651,050 $809,150 $272,000
Johnston County $420,680 $538,650 $651,050 $809,150 $363,000
Jones County $420,680 $538,650 $651,050 $809,150 $233,000
Lee County $420,680 $538,650 $651,050 $809,150 $190,000
Lenoir County $420,680 $538,650 $651,050 $809,150 $99,000
Lincoln County $420,680 $538,650 $651,050 $809,150 $340,000
Macon County $420,680 $538,650 $651,050 $809,150 $208,000
Madison County $420,680 $538,650 $651,050 $809,150 $330,000
Martin County $420,680 $538,650 $651,050 $809,150 $82,000
Mcdowell County $420,680 $538,650 $651,050 $809,150 $117,000
Mecklenburg County $420,680 $538,650 $651,050 $809,150 $340,000
Mitchell County $420,680 $538,650 $651,050 $809,150 $164,000
Montgomery County $420,680 $538,650 $651,050 $809,150 $101,000
Moore County $420,680 $538,650 $651,050 $809,150 $299,000
Nash County $420,680 $538,650 $651,050 $809,150 $168,000
New Hanover County $420,680 $538,650 $651,050 $809,150 $295,000
Northampton County $420,680 $538,650 $651,050 $809,150 $115,000
Onslow County $420,680 $538,650 $651,050 $809,150 $190,000
Orange County $506,000 $647,750 $783,000 $973,100 $440,000
Pamlico County $420,680 $538,650 $651,050 $809,150 $233,000
Pasquotank County $805,000 $1,030,550 $1,245,700 $1,548,100 $200,000
Pender County $420,680 $538,650 $651,050 $809,150 $295,000
Perquimans County $805,000 $1,030,550 $1,245,700 $1,548,100 $200,000
Person County $506,000 $647,750 $783,000 $973,100 $440,000
Pitt County $420,680 $538,650 $651,050 $809,150 $195,000
Polk County $420,680 $538,650 $651,050 $809,150 $289,000
Randolph County $420,680 $538,650 $651,050 $809,150 $205,000
Richmond County $420,680 $538,650 $651,050 $809,150 $92,000
Robeson County $420,680 $538,650 $651,050 $809,150 $80,000
Rockingham County $420,680 $538,650 $651,050 $809,150 $205,000
Rowan County $420,680 $538,650 $651,050 $809,150 $340,000
Rutherford County $420,680 $538,650 $651,050 $809,150 $165,000
Sampson County $420,680 $538,650 $651,050 $809,150 $70,000
Scotland County $420,680 $538,650 $651,050 $809,150 $70,000
Stanly County $420,680 $538,650 $651,050 $809,150 $178,000
Stokes County $420,680 $538,650 $651,050 $809,150 $210,000
Surry County $420,680 $538,650 $651,050 $809,150 $114,000
Swain County $420,680 $538,650 $651,050 $809,150 $272,000
Transylvania County $420,680 $538,650 $651,050 $809,150 $285,000
Tyrrell County $420,680 $538,650 $651,050 $809,150 $88,000
Union County $420,680 $538,650 $651,050 $809,150 $340,000
Vance County $420,680 $538,650 $651,050 $809,150 $105,000
Wake County $420,680 $538,650 $651,050 $809,150 $363,000
Warren County $420,680 $538,650 $651,050 $809,150 $158,000
Washington County $420,680 $538,650 $651,050 $809,150 $81,000
Watauga County $420,680 $538,650 $651,050 $809,150 $281,000
Wayne County $420,680 $538,650 $651,050 $809,150 $155,000
Wilkes County $420,680 $538,650 $651,050 $809,150 $137,000
Wilson County $420,680 $538,650 $651,050 $809,150 $150,000
Yadkin County $420,680 $538,650 $651,050 $809,150 $210,000
Yancey County $420,680 $538,650 $651,050 $809,150 $200,000

Check My FHA Eligibility

How Hard Is To Get FHA Loan in North Carolina?

The current state of the housing market has made it more difficult for people to get mortgages, including loans backed by the Federal Housing Administration (FHA). This has led to a decrease in the number of FHA-backed loans being issued. While there are still some lenders who are willing to work with borrowers who need an FHA loan, the process can be more complicated and time-consuming than in past years.

There are a few things that you can do to make it easier to get an FHA loan in North Carolina. First, make sure that you are creditworthy and have a good credit score. You should also have a stable job and income, and be able to afford your monthly mortgage payments. It is also important to work with a reputable and experienced loan officer who can help you navigate the process.

If you are considering an FHA loan, it is important to understand that the current market conditions may make it more difficult to get approved. However, if you are prepared and work with a good loan officer, you can still find a way to get the loan you need and purchase or refinance your house in North Carolina.

Reasons For The FHA Rejection in North Carolina

Past Bankruptcy or Foreclosure in North Carolina

If a borrower has previously filed for bankruptcy or foreclosure in North Carolina, they may still be able to qualify for an FHA loan in North Carolina. However, the borrower will likely need to wait at least two years after the bankruptcy is discharged or three years after the foreclosure is completed.

Additionally, the borrower will need to show that they have re-established their credit and have been making all of their payments on time since the bankruptcy or foreclosure.

By understanding the reasons why an FHA loan may be rejected, borrowers can take the necessary steps to improve their credit score and financial situation. This will increase their chances of being approved for a loan and help them get into the home of their dreams in North Carolina.

Should I Purchase a House With FHA or Conventional Loan in North Carolina?

The FHA requires mortgage insurance for down payments of less than 20% in comparison to conventional loans, where you must have mortgage insurance for down payments under 20%. Regardless of your credit score, the FHA’s mortgage insurance premiums will be the same.

FHA Loan & Conventional Loan in North Carolina Comparison
FHA Loan Conventional Loan
Minimum Downpayment 3,5% 3% – 20%
Loan Limits in North Carolina $420,680 $647,200
Income limit None None
MAX DTI 57% 45%
MIN FICO 500* 620
Minimum Cash 0% – You can use a gift fund, grant or a loan to cover downpayment and closings costs 0% – You can use a gift fund, grant or a loan to cover downpayment and closings cos
Mortgage Insurance LTV < 90% – MIP for 11 years, LTV > 90% MIP for the life of the loan Downpayment < 20% – MIP, When LTV = 78% MIP is removed
Property Type Only Primary Residence (1-4 units) in North Carolina Primary residence, vacation home, rental property

*for 500 credit score clients 10% downpayment is required to qualify for FHA loan in North Carolina, for 580+ only 3,5% is required to qualify for a loan

What is DTI (Debt-to-Income Ratio) and How To Calculate it When Applying for a Mortgage Loan In North Carolina?

The debt-to-income ratio (DTI) is the percentage of gross monthly income spent to pay off debts such as a mortgage, student loans, automobile loans, credit cards, and other obligations. Because it’s typically a good predictor of how difficult you’ll be able to pay your bills, lenders consider your DTI.

The FHA also looks at a borrower’s debt-to-income ratio (DTI) in order to approve a loan. This ratio is calculated by dividing the total monthly debt obligations by the monthly gross income. Borrowers with a DTI of more than 41% may not be approved for an FHA loan, even if they have a credit score above 580. This is because the FHA views borrowers with high DTIs as being at a higher risk of defaulting on their mortgage.

To obtain an FHA loan, you must not spend more than half of your gross income on debt, which is usually defined as a DTI of 50% or more. With such a ratio, in certain circumstances, someone may qualify. In general, lenders will want to see that your debt-to-income ratio is no greater than 43%.

DTI calculation in North CarolinaWhat Type Of Mortgage Insurance Do I Need to Pay For FHA Loan?

The upfront mortgage insurance premium (UFMIP) is a significant disadvantage of the FHA loan. This is paid at closing, although it may also be financed into the loan amount. Monthly mortgage insurance premiums (MIP) are required by the FHA to protect the lender in case of default.

Unless you put down 10% and have at least 11 years left, MIP is a minimum of 11 years. If you refinance your FHA to a conventional loan, you may get rid of your monthly mortgage insurance. With an FHA mortgage, you will pay the same insurance premium regardless of your credit score.

Wha type of mortgage insurance i need to pay with FHA loan

Mortgage insurance is payable monthly if you put down less than 20% on a conventional loan, but this might be lower than with an FHA loan if your credit score is over 720. The borrower pays more over the life of the loan with an FHA loan.

Unpaid Bills or Collections

The FHA also looks at a borrower’s credit history in order to approve a loan. This includes any bills that are unpaid or have gone into collections.

If a borrower has any bills that are unpaid or in collections, they may not be approved for an FHA loan. Borrowers should make sure to pay any outstanding bills and get their credit score as high as possible before applying for an FHA loan.

Insufficient Funds for Closing Costs

Borrowers are typically required to pay for closing costs in order to obtain an FHA loan in North Carolina. These costs can include the down payment, appraisal fee, title search, and other related fees.

Borrowers are required to have at least 3.5% of the home’s purchase price available for the down payment. However, if the borrower is using the FHA’s “cash-out” program to refinance their existing mortgage, they may be able to finance up to 97.5% of the home’s value.

Insufficient Credit History

The FHA requires borrowers to have a minimum credit score of 500 in order to be eligible for a loan. However, borrowers with a score of 580 or higher will be able to take advantage of the FHA’s lower down payment requirements of 3.5%.

North Carolina Down Payment Assistance Program

With the NC Home Advantage Mortgage, first-time and repeat home buyers may receive a down payment loan of up to 3% of their mortgage amount.

  • This mortgage assistance loan begins to be forgiven in year 11 of your loan and is fully erased by year 15. You’ll have to repay the whole amount if you sell, transfer, or refinance before year 11.
  • Veteran and first-time homebuyer programs are also available through the VA. The Veterans United Home Purchase Assistance Program, for example, provides $8,000 in down payment help to veterans and first-timers seeking to buy a house.

Visit the North Carolina Housing Finance Agency’s website for more information. Also, check out HUD’s list of additional homeownership assistance programs in the state.