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FHA Loans in North Carolina

By Michael Stradford
Updated October 29, 2019
3 min read
Raleigh, North Carolina

Whether you're looking for a swimming and surfing spot on the Outer Banks or a modest cabin in the Blue Ridge Mountains, buying a home in North Carolina is a wonderful choice.

The problem is that the house hunting process is all sunshine, while choosing the right type of home loan is stormy weather. FHA loans are a great option if you don’t have a lot of extra cash for a down payment, especially if you’re a first time home buyer. Keep reading to see why an FHA loan in North Carolina may be the right home loan option for you.

Why Consider an FHA Loan in North Carolina?

Whether you are looking to purchase a home in Raleigh, Charlotte, Winston, or Durham, you can’t go wrong when deciding to live in North Carolina. Many residents of this coastal state are choosing an FHA home loan, and as of April 2019, the total value of FHA loans in the state of North Carolina was $288 million!

Benefits of FHA Loans in NC

  • 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 North Carolina

Generally speaking, the majority of counties in North Carolina will have a maximum loan limit of $314,827. This number is adjusted annually, and varies depending on the location you purchase a house in. For example, places like Virginia Beach and Elizabeth City have higher loan limits due to higher real estate costs. Use the link below to see the full list of FHA loan limits in North Carolina.

Are You Eligible for an FHA Loan in NC?

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 NC?

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.

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