FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in North Carolina

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Loans backed by the Federal Housing Administration (FHA) are a great option for first-time homebuyers and others who have limited or spotty credit histories, or have limited cash for a down payment. However, FHA loans come with their own restrictions.

In North Carolina, borrowers can take up to $420,680 for a single-family home in most counties and up to $805,000 in high-cost areas, including those near popular vacation areas like the Outer Banks.

North Carolina FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ALAMANCE$420,680$538,650$651,050$809,150$197,000
ALEXANDER$420,680$538,650$651,050$809,150$179,000
ALLEGHANY$420,680$538,650$651,050$809,150$104,000
ANSON$420,680$538,650$651,050$809,150$340,000
ASHE$420,680$538,650$651,050$809,150$115,000
AVERY$420,680$538,650$651,050$809,150$200,000
BEAUFORT$420,680$538,650$651,050$809,150$170,000
BERTIE$420,680$538,650$651,050$809,150$56,000
BLADEN$420,680$538,650$651,050$809,150$100,000
BRUNSWICK$420,680$538,650$651,050$809,150$260,000
BUNCOMBE$420,680$538,650$651,050$809,150$330,000
BURKE$420,680$538,650$651,050$809,150$179,000
CABARRUS$420,680$538,650$651,050$809,150$340,000
CALDWELL$420,680$538,650$651,050$809,150$179,000
CAMDEN$488,750$625,700$756,300$939,900$425,000
CARTERET$420,680$538,650$651,050$809,150$275,000
CASWELL$420,680$538,650$651,050$809,150$100,000
CATAWBA$420,680$538,650$651,050$809,150$179,000
CHATHAM$506,000$647,750$783,000$973,100$440,000
CHEROKEE$420,680$538,650$651,050$809,150$160,000
CHOWAN$420,680$538,650$651,050$809,150$186,000
CLAY$420,680$538,650$651,050$809,150$195,000
CLEVELAND$420,680$538,650$651,050$809,150$130,000
COLUMBUS$420,680$538,650$651,050$809,150$87,000
CRAVEN$420,680$538,650$651,050$809,150$233,000
CUMBERLAND$420,680$538,650$651,050$809,150$225,000
CURRITUCK$488,750$625,700$756,300$939,900$425,000
DARE$471,500$603,600$729,600$906,750$410,000
DAVIDSON$420,680$538,650$651,050$809,150$210,000
DAVIE$420,680$538,650$651,050$809,150$210,000
DUPLIN$420,680$538,650$651,050$809,150$82,000
DURHAM$506,000$647,750$783,000$973,100$440,000
EDGECOMBE$420,680$538,650$651,050$809,150$168,000
FORSYTH$420,680$538,650$651,050$809,150$210,000
FRANKLIN$420,680$538,650$651,050$809,150$363,000
GASTON$420,680$538,650$651,050$809,150$340,000
GATES$488,750$625,700$756,300$939,900$425,000
GRAHAM$420,680$538,650$651,050$809,150$153,000
GRANVILLE$506,000$647,750$783,000$973,100$440,000
GREENE$420,680$538,650$651,050$809,150$77,000
GUILFORD$420,680$538,650$651,050$809,150$205,000
HALIFAX$420,680$538,650$651,050$809,150$115,000
HARNETT$420,680$538,650$651,050$809,150$225,000
HAYWOOD$420,680$538,650$651,050$809,150$330,000
HENDERSON$420,680$538,650$651,050$809,150$330,000
HERTFORD$420,680$538,650$651,050$809,150$65,000
HOKE$420,680$538,650$651,050$809,150$225,000
HYDE$483,000$618,300$747,400$928,850$175,000
IREDELL$420,680$538,650$651,050$809,150$340,000
JACKSON$420,680$538,650$651,050$809,150$272,000
JOHNSTON$420,680$538,650$651,050$809,150$363,000
JONES$420,680$538,650$651,050$809,150$233,000
LEE$420,680$538,650$651,050$809,150$190,000
LENOIR$420,680$538,650$651,050$809,150$99,000
LINCOLN$420,680$538,650$651,050$809,150$340,000
MACON$420,680$538,650$651,050$809,150$208,000
MADISON$420,680$538,650$651,050$809,150$330,000
MARTIN$420,680$538,650$651,050$809,150$82,000
MCDOWELL$420,680$538,650$651,050$809,150$117,000
MECKLENBURG$420,680$538,650$651,050$809,150$340,000
MITCHELL$420,680$538,650$651,050$809,150$164,000
MONTGOMERY$420,680$538,650$651,050$809,150$101,000
MOORE$420,680$538,650$651,050$809,150$299,000
NASH$420,680$538,650$651,050$809,150$168,000
NEW HANOVER$420,680$538,650$651,050$809,150$295,000
NORTHAMPTON$420,680$538,650$651,050$809,150$115,000
ONSLOW$420,680$538,650$651,050$809,150$190,000
ORANGE$506,000$647,750$783,000$973,100$440,000
PAMLICO$420,680$538,650$651,050$809,150$233,000
PASQUOTANK$805,000$1,030,550$1,245,700$1,548,100$200,000
PENDER$420,680$538,650$651,050$809,150$295,000
PERQUIMANS$805,000$1,030,550$1,245,700$1,548,100$200,000
PERSON$506,000$647,750$783,000$973,100$440,000
PITT$420,680$538,650$651,050$809,150$195,000
POLK$420,680$538,650$651,050$809,150$289,000
RANDOLPH$420,680$538,650$651,050$809,150$205,000
RICHMOND$420,680$538,650$651,050$809,150$92,000
ROBESON$420,680$538,650$651,050$809,150$80,000
ROCKINGHAM$420,680$538,650$651,050$809,150$205,000
ROWAN$420,680$538,650$651,050$809,150$340,000
RUTHERFORD$420,680$538,650$651,050$809,150$165,000
SAMPSON$420,680$538,650$651,050$809,150$70,000
SCOTLAND$420,680$538,650$651,050$809,150$70,000
STANLY$420,680$538,650$651,050$809,150$178,000
STOKES$420,680$538,650$651,050$809,150$210,000
SURRY$420,680$538,650$651,050$809,150$114,000
SWAIN$420,680$538,650$651,050$809,150$272,000
TRANSYLVANIA$420,680$538,650$651,050$809,150$285,000
TYRRELL$420,680$538,650$651,050$809,150$88,000
UNION$420,680$538,650$651,050$809,150$340,000
VANCE$420,680$538,650$651,050$809,150$105,000
WAKE$420,680$538,650$651,050$809,150$363,000
WARREN$420,680$538,650$651,050$809,150$158,000
WASHINGTON$420,680$538,650$651,050$809,150$81,000
WATAUGA$420,680$538,650$651,050$809,150$281,000
WAYNE$420,680$538,650$651,050$809,150$155,000
WILKES$420,680$538,650$651,050$809,150$137,000
WILSON$420,680$538,650$651,050$809,150$150,000
YADKIN$420,680$538,650$651,050$809,150$210,000
YANCEY$420,680$538,650$651,050$809,150$200,000

How are FHA loan limits determined?

FHA loan limits are based on the conforming loan limits that the Federal Housing Finance Agency (FHFA) sets for conventional mortgages each year for every county in the U.S. Conforming loan limits are based on median house prices for the year before.

FHA loan limits fall between a “floor” and a “ceiling.” The floor is the lowest loan limit and it’s calculated as 65% of the conforming loan limit; this is the maximum FHA loan amount allowed for most of the country. The ceiling applies to high-cost areas with the country’s highest housing costs. This year the ceiling is $970,800 for a single-family home but all counties in North Carolina are now below this limit. In 2021, home prices rose 18% across the county, so FHA limits rose too.

How to qualify for an FHA loan in North Carolina

Many borrowers find that FHA loan requirements are more lenient than those for conventional mortgages. If you’re buying your first home, you may qualify for even more help — like down payment assistance — from North Carolina’s first-time homebuyer programs.

The purchase price of your new home will have to fall within the FHA loan limits for the county where the property is located. Here are other requirements you’ll need to meet:

Occupancy requirements. With an FHA loan, you’ll have to use your new home as your primary residence and live in it for at least one year after purchase. No second homes or investment-only properties are allowed.

A minimum down payment of 3.5%. If your credit score is 580 or higher, you can get an FHA loan with just 3.5% down.

A credit score of 500 or more. Your credit score can be as low as 500 for an FHA loan, unlike the 620 required by a conventional mortgage. However, if your score is between 500 and 579, you’d need a 10% down payment.

Mortgage insurance. Expect to pay two kinds of FHA mortgage insurance. When you close on your loan, you’ll be charged an upfront mortgage insurance premium (UFMIP) equal to 1.75% of the loan amount; this cost will be rolled into your mortgage. You’ll also pay an annual mortgage insurance premium (MIP) — equal to 0.45% to 1.05% of the loan amount — that will be added to your monthly mortgage through 12 regular installments.

A debt-to-income (DTI) ratio of 43% or less. Lenders will look at your DTI ratio — the percentage of your monthly pretax income that goes toward debt payments — as a way to gauge your ability to afford regular mortgage payments.   Most FHA loans require a DTI ratio no higher than 43%, but DTI ratios as high as 50% may be acceptable if you have significant assets or other sources of income.

An FHA loan appraisal. To qualify for a loan, you’ll have to meet the guidelines that are part of an FHA loan appraisal to determine your new home’s worth and give it an inspection.

Buying a multifamily property with an FHA loan

It’s possible to use an FHA loan to buy a multifamily home of up to four separate living units with the same requirements that apply to single-family home loans. That means you’ll need to use one of the units as your primary residence, but you may also qualify for putting down as little as 3.5% and still collect rent. Multifamily homes have higher FHA loan limits.

FHA lenders in North Carolina

If you’re looking for anFHA lender in North Carolina, here are six highly-rated lenders licensed to operate in the state:

Lender name LT rating Minimum FHA credit score
Better Mortgage9.5/10620
Guild Mortgage9/10540
Rocket Mortgage9.5/10580
Truist9/10620
Wells Fargo8/10Not disclosed

 

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