Purchasing your first home should be enjoyable and as painless as possible, especially when it comes to deciding on a financing package.
If you’re currently in this position, no need to worry, other homebuyers in Georgia have been there too, and many of them find the Georgia FHA loan program appealing for multiple reasons. Continue reading to see why an FHA loan in Georgia may be right for you.
Why choose an FHA Loan in Georgia
If you’re planning on moving to Georgia, you’re in luck as the median home cost is $179,700, well below the national average. Its clear homebuyers are taking advantage as the total value of FHA loan in Georgia was nearly $537 million as of April 2019!
Benefits of FHA Loans in GA
- FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
- FHA mortgage rates are typically lower than conventional mortgage rates.
- FHA down payment and credit score requirements are typically lower than conventional loans
- Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
- FHA loans are assumable
FHA Loan Limits in Georgia
Before you begin house hunting, it’s important to know how much you can borrow. There are maximum loan limits, and these limits are adjusted every year and depend on where you decide to buy your home. For example, the baseline loan limit for most of Georgia is $498,257, but the limit in Atlanta is $649,750. See the link below for a full list of Georgia FHA loan limits in 2024.
Are You Eligible for an FHA Loan in GA?
You may be eligible for an FHA loan, if you:
- Have 2 years of steady employment, preferably with the same employer.
- Have had steady income (or increasing income) in the past two years.
- Have had less than two 30-day periods of late payments on your credit report.
- Have declared bankruptcy no less than two years ago and have maintained good credit since.
- Have not been a party in a foreclosure for at least three years and have maintained good credit since.
- Anticipate your mortgage payment will be equal to or less than 30% of your gross income.
What Do You Need to Apply for an FHA Loan in GA?
Buyers must be able to provide the following information and documents as requested by lenders:
- The addresses of all your residences over the past two years.
- The names of your employers over the past two years.
- W2's for the past two years and current paycheck stubs.
- Your current gross monthly salary.
- Your Social Security Number.
- Names, addresses, and account numbers with balances on all checking and savings accounts.
- Addresses and loan information of any other real estate you owned.
- Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
- Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.
Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.