FHA Loan Limits in North Carolina | LendingTree (2024)

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North Carolina FHA loan limits by county How are FHA loan limits determined? How to qualify for an FHA loan in North Carolina Buying a multifamily property with an FHA loan FHA lenders in North Carolina FAQs References

FHA Loan Requirements, Limits, How to Apply and Best Lenders

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Rene Bermudez

Rene Bermudez is a staff writer covering personal finance at LendingTree. Previously, she was an independent writer, editor, and researcher whose work appeared in outlets including The Guardian, The Washington Post, The LA Times, CNN and MIT Press.

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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 who have limited cash for a down payment. However, FHA loans come with limits on how much you can borrow.

The FHA loan limits in North Carolina allow homebuyers to borrow up to $472,030 for a single-family home in most counties. The limit rises in high-cost areas, which include popular vacation areas like the Outer Banks, and tops out at $805,000.

North Carolina FHA loan limits by county
How are FHA loan limits determined?
How to qualify for an FHA loan in North Carolina
FHA lenders in North Carolina

North Carolina FHA loan limits by county

	County name	One unit	Two units	Three units	Four units	Median sale price
1	ALAMANCE	$472,030	$604,400	$730,525	$907,900	$240,000
2	ALEXANDER	$472,030	$604,400	$730,525	$907,900	$205,000
3	ALLEGHANY	$472,030	$604,400	$730,525	$907,900	$94,000
4	ANSON	$472,030	$604,400	$730,525	$907,900	$395,000
5	ASHE	$472,030	$604,400	$730,525	$907,900	$111,000
6	AVERY	$472,030	$604,400	$730,525	$907,900	$200,000
7	BEAUFORT	$472,030	$604,400	$730,525	$907,900	$172,000
8	BERTIE	$472,030	$604,400	$730,525	$907,900	$65,000
9	BLADEN	$472,030	$604,400	$730,525	$907,900	$95,000
10	BRUNSWICK	$472,030	$604,400	$730,525	$907,900	$311,000
11	BUNCOMBE	$472,030	$604,400	$730,525	$907,900	$394,000
12	BURKE	$472,030	$604,400	$730,525	$907,900	$205,000
13	CABARRUS	$472,030	$604,400	$730,525	$907,900	$395,000
14	CALDWELL	$472,030	$604,400	$730,525	$907,900	$205,000
15	CAMDEN	$507,150	$649,250	$784,800	$975,300	$441,000
16	CARTERET	$472,030	$604,400	$730,525	$907,900	$311,000
17	CASWELL	$472,030	$604,400	$730,525	$907,900	$117,000
18	CATAWBA	$472,030	$604,400	$730,525	$907,900	$205,000
19	CHATHAM	$602,600	$771,450	$932,500	$1,158,850	$524,000
20	CHEROKEE	$472,030	$604,400	$730,525	$907,900	$169,000
21	CHOWAN	$472,030	$604,400	$730,525	$907,900	$210,000
22	CLAY	$472,030	$604,400	$730,525	$907,900	$195,000
23	CLEVELAND	$472,030	$604,400	$730,525	$907,900	$157,000
24	COLUMBUS	$472,030	$604,400	$730,525	$907,900	$100,000
25	CRAVEN	$472,030	$604,400	$730,525	$907,900	$230,000
26	CUMBERLAND	$472,030	$604,400	$730,525	$907,900	$265,000
27	CURRITUCK	$507,150	$649,250	$784,800	$975,300	$441,000
28	DARE	$603,750	$772,900	$934,250	$1,161,050	$525,000
29	DAVIDSON	$472,030	$604,400	$730,525	$907,900	$250,000
30	DAVIE	$472,030	$604,400	$730,525	$907,900	$250,000
31	DUPLIN	$472,030	$604,400	$730,525	$907,900	$115,000
32	DURHAM	$602,600	$771,450	$932,500	$1,158,850	$524,000
33	EDGECOMBE	$472,030	$604,400	$730,525	$907,900	$203,000
34	FORSYTH	$472,030	$604,400	$730,525	$907,900	$250,000
35	FRANKLIN	$502,550	$643,350	$777,650	$966,450	$437,000
36	GASTON	$472,030	$604,400	$730,525	$907,900	$395,000
37	GATES	$507,150	$649,250	$784,800	$975,300	$441,000
38	GRAHAM	$472,030	$604,400	$730,525	$907,900	$150,000
39	GRANVILLE	$602,600	$771,450	$932,500	$1,158,850	$524,000
40	GREENE	$472,030	$604,400	$730,525	$907,900	$105,000
41	GUILFORD	$472,030	$604,400	$730,525	$907,900	$240,000
42	HALIFAX	$472,030	$604,400	$730,525	$907,900	$90,000
43	HARNETT	$472,030	$604,400	$730,525	$907,900	$265,000
44	HAYWOOD	$472,030	$604,400	$730,525	$907,900	$394,000
45	HENDERSON	$472,030	$604,400	$730,525	$907,900	$394,000
46	HERTFORD	$472,030	$604,400	$730,525	$907,900	$80,000
47	HOKE	$472,030	$604,400	$730,525	$907,900	$265,000
48	HYDE	$483,000	$618,300	$747,400	$928,850	$175,000
49	IREDELL	$472,030	$604,400	$730,525	$907,900	$395,000
50	JACKSON	$472,030	$604,400	$730,525	$907,900	$275,000
51	JOHNSTON	$502,550	$643,350	$777,650	$966,450	$437,000
52	JONES	$472,030	$604,400	$730,525	$907,900	$230,000
53	LEE	$472,030	$604,400	$730,525	$907,900	$233,000
54	LENOIR	$472,030	$604,400	$730,525	$907,900	$117,000
55	LINCOLN	$472,030	$604,400	$730,525	$907,900	$395,000
56	MACON	$472,030	$604,400	$730,525	$907,900	$230,000
57	MADISON	$472,030	$604,400	$730,525	$907,900	$394,000
58	MARTIN	$472,030	$604,400	$730,525	$907,900	$80,000
59	MCDOWELL	$472,030	$604,400	$730,525	$907,900	$135,000
60	MECKLENBURG	$472,030	$604,400	$730,525	$907,900	$395,000
61	MITCHELL	$472,030	$604,400	$730,525	$907,900	$150,000
62	MONTGOMERY	$472,030	$604,400	$730,525	$907,900	$109,000
63	MOORE	$472,030	$604,400	$730,525	$907,900	$350,000
64	NASH	$472,030	$604,400	$730,525	$907,900	$203,000
65	NEW HANOVER	$472,030	$604,400	$730,525	$907,900	$350,000
66	NORTHAMPTON	$472,030	$604,400	$730,525	$907,900	$90,000
67	ONSLOW	$472,030	$604,400	$730,525	$907,900	$224,000
68	ORANGE	$602,600	$771,450	$932,500	$1,158,850	$524,000
69	PAMLICO	$472,030	$604,400	$730,525	$907,900	$230,000
70	PASQUOTANK	$805,000	$1,030,550	$1,245,700	$1,548,100	$203,000
71	PENDER	$472,030	$604,400	$730,525	$907,900	$350,000
72	PERQUIMANS	$805,000	$1,030,550	$1,245,700	$1,548,100	$203,000
73	PERSON	$602,600	$771,450	$932,500	$1,158,850	$524,000
74	PITT	$472,030	$604,400	$730,525	$907,900	$220,000
75	POLK	$472,030	$604,400	$730,525	$907,900	$310,000
76	RANDOLPH	$472,030	$604,400	$730,525	$907,900	$240,000
77	RICHMOND	$472,030	$604,400	$730,525	$907,900	$100,000
78	ROBESON	$472,030	$604,400	$730,525	$907,900	$98,000
79	ROCKINGHAM	$472,030	$604,400	$730,525	$907,900	$240,000
80	ROWAN	$472,030	$604,400	$730,525	$907,900	$395,000
81	RUTHERFORD	$472,030	$604,400	$730,525	$907,900	$200,000
82	SAMPSON	$472,030	$604,400	$730,525	$907,900	$95,000
83	SCOTLAND	$472,030	$604,400	$730,525	$907,900	$84,000
84	STANLY	$472,030	$604,400	$730,525	$907,900	$210,000
85	STOKES	$472,030	$604,400	$730,525	$907,900	$250,000
86	SURRY	$472,030	$604,400	$730,525	$907,900	$130,000
87	SWAIN	$472,030	$604,400	$730,525	$907,900	$275,000
88	TRANSYLVANIA	$472,030	$604,400	$730,525	$907,900	$310,000
89	TYRRELL	$472,030	$604,400	$730,525	$907,900	$105,000
90	UNION	$472,030	$604,400	$730,525	$907,900	$395,000
91	VANCE	$472,030	$604,400	$730,525	$907,900	$125,000
92	WAKE	$502,550	$643,350	$777,650	$966,450	$437,000
93	WARREN	$472,030	$604,400	$730,525	$907,900	$158,000
94	WASHINGTON	$472,030	$604,400	$730,525	$907,900	$89,000
95	WATAUGA	$472,030	$604,400	$730,525	$907,900	$344,000
96	WAYNE	$472,030	$604,400	$730,525	$907,900	$168,000
97	WILKES	$472,030	$604,400	$730,525	$907,900	$150,000
98	WILSON	$472,030	$604,400	$730,525	$907,900	$163,000
99	YADKIN	$472,030	$604,400	$730,525	$907,900	$250,000
100	YANCEY	$472,030	$604,400	$730,525	$907,900	$215,000

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 change each year in response to changes in the median house prices over the preceding year.

FHA loan limits fall between a nationwide “floor” and a “ceiling.” The floor is the lowest loan limit, and it’s calculated as 65% of the conforming loan limit. That means that the lowest loan limit you’ll encounter is $472,030. The vast majority of counties in North Carolina are subject to this loan limit.

The ceiling applies to high-cost areas with the country’s most expensive housing markets. This year, the ceiling is $1,089,300 for a single-family home, but no counties in North Carolina have a loan limit at the FHA’s ceiling in 2023.

Some North Carolina counties have loan limits that fall in between the floor and ceiling. The counties that make up the Outer Banks — Carteret, Currituck, Dare and Hyde — have loan limits ranging from the floor up to $603,750. Other counties with loan limits between $472,030 and $603,750 include Camden, Chatham, Durham, Franklin, Gates, Granville, Orange and Person.

Pasquotank and Perquomans counties, home to the bustling coastal town of Elizabeth City, enjoy the highest loan limit in the state: $805,000.

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. This can be great news for buyers struggling to make a down payment or who have some dings on their credit.

In addition to the purchase price of your new home falling within the FHA loan limit for the county where the property is located, you’ll also need to meet the following requirements:

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 0.15% to 0.75% of the loan amount — that will be added to your monthly mortgage payment.

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 cash reserves or other sources of income.

An FHA loan appraisal. To qualify for a loan, any property you want to buy will have to meet the guidelines that are part of an FHA home appraisal. The appraisal will make sure that the house is safe and sanitary, in addition to assessing its value.

Primary residence. 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 properties used exclusively as investment properties are allowed.

Buying a multifamily property with an FHA loan

It’s possible to use an FHA loan to buy a multifamily home while enjoying the same requirements that apply to single-family home loans. You will need to use one of the units as your primary residence for at least a year, but on the upside, you could qualify for putting down as little as 3.5% and still have the ability to collect rent. Multifamily homes have higher FHA loan limits.

In most counties in the Tar Heel state, the 2023 multifamily loan limits are:

$604,400 for two units
$730,525 for three units
$907,900 for four units

FHA lenders in North Carolina

Lender name	LT rating	Minimum FHA credit score
Truist	4 stars	580
Wells Fargo	5 stars	640
Guild Mortgage	3 stars	580
Chase Bank	5 stars	Not disclosed

Compare FHA Loans for Free

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As a seasoned expert in the field of personal finance and real estate, I've had the privilege of contributing to reputable publications such as The Guardian, The Washington Post, The LA Times, CNN, and MIT Press. My extensive background as an independent writer, editor, and researcher has equipped me with a comprehensive understanding of various financial topics.

Now, let's delve into the concepts covered in the provided article on FHA Loan Requirements, Limits, How to Apply, and Best Lenders.

FHA Loan Limits in North Carolina:
- The FHA loan limits in North Carolina vary by county, allowing homebuyers to borrow up to $472,030 for a single-family home in most counties.
- High-cost areas, including popular vacation spots like the Outer Banks, have higher limits, reaching up to $805,000.
Determining FHA Loan Limits:
- FHA loan limits are based on conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional mortgages.
- The limits range between a nationwide "floor" (65% of conforming loan limit) and a "ceiling" (the highest limit, which is $1,089,300 for a single-family home in 2023).
- In North Carolina, no county reaches the FHA's ceiling, with most falling under the floor.
Qualifying for an FHA Loan in North Carolina:
- FHA loan requirements are often more lenient than those for conventional mortgages, making them suitable for first-time homebuyers or those with limited credit history.
- Key qualifications include a minimum down payment of 3.5%, a credit score of 500 or more (with higher scores requiring lower down payments), mortgage insurance, a debt-to-income ratio of 43% or less, an FHA loan appraisal, and the property being a primary residence.
Buying a Multifamily Property with FHA Loan:
- FHA loans can be used to purchase multifamily homes, with the requirement that one unit serves as the primary residence for at least a year.
- Multifamily homes have higher FHA loan limits, with 2023 limits ranging from $604,400 for two units to $907,900 for four units in most North Carolina counties.
FHA Lenders in North Carolina:
- Several lenders in North Carolina offer FHA loans, each with its own rating and minimum FHA credit score requirements.
- Notable lenders include Truist, Wells Fargo, Guild Mortgage, and Chase Bank.

By understanding these concepts, potential homebuyers in North Carolina can make informed decisions about FHA loans, taking advantage of the benefits they offer, especially for those with limited credit or financial resources.

FAQs

FHA Loan Limits in North Carolina | LendingTree? ›

The highest amount you can borrow with a FHA-backed loan for a single-family unit in North Carolina is $805,000. Requirements are generally not as strict for conventional loans, and so they're a great option if you have a lower credit score, limited credit history or not a lot of cash for a down payment.

What is the FHA loan limit in North Carolina? ›

North Carolina FHA Loan Limits

Most counties in North Carolina have a loan limit of $498,257 for a single-family home. Some counties have higher than average limits because housing there is more expensive.

View Details ›

What determines the maximum FHA loan limit? ›

In addition, FHA loans come with maximum loan limits that cap how much you can borrow. The FHA uses two crucial factors to determine these limits: the property's location (a low-cost area versus a high-cost area) and the type of property (single-family or multi-family).

Read On ›

What credit score do you need for a FHA loan in NC? ›

North and South Carolina FHA loan requirements include: A credit score of at least 580. However, if your score is between 500 and 579, you may still be eligible for an FHA loan if you make a down payment of at least 10% of the home's purchase price.

Get More Info Here ›

What disqualifies you from an FHA loan? ›

The three primary factors that can disqualify you from getting an FHA loan are a high debt-to-income ratio, poor credit, or lack of funds to cover the required down payment, monthly mortgage payments or closing costs.

What is the FHA loan limit in NC 2024? ›

For 2024, the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below. Also, for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans.

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Will FHA limits go up in 2024? ›

Because FHA sets limits at 65% of conventional limits, FHA loan limits for a 1-unit property in a standard area increased from $472,030 in 2023 to $498,257 in 2024. Loan limits increased for 2-4 unit properties and homes in high-cost areas as well.

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What are the qualifications for an FHA loan? ›

FHA minimum credit score: 500.
FHA minimum down payment: 3.5%
FHA debt-to-income ratio: 50% or less.
FHA loan income requirements.
FHA loan limits: $498,257 (floor) to $1,149,825 (ceiling)
FHA documentation requirements.
FHA inspection and property requirements.

More items...

Mar 20, 2024

What determines the loan limit? ›

Lenders will consider several factors including credit score, debt-to-income ratio, the purpose of the loan, the type of loan, and more. In general, the lower your debt-to-income ratio and the higher your credit score, the higher you can expect the maximum loan amount to be.

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What is the FHA loan Cannot exceed? ›

FHA Loan Limits

According to HUD, the maximum FHA lending amount for high-cost areas (such as large metropolitan areas) is $1,149,825 for 2024. In lower-cost areas, the FHA limits are based on county, but generally, for one-unit properties the 2024 limit is $498,257. If you have multiple units, limits may be higher.

Get More Info Here ›

Does FHA require all 3 credit scores? ›

Two lines of credit are necessary to apply for an FHA loan. However, in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms.

What is the minimum FICO score for an FHA loan? ›

The Takeaway

To qualify for an FHA-insured loan, you need a minimum credit score of 580 for a loan with a 3.5% down payment, and a minimum score of 500 with 10% down. However, many FHA lenders require credit scores of at least 620.

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What credit score is required to get an FHA loan with only 3.5% down? ›

FHA loans require a minimum 3.5 percent down payment for borrowers with a credit score of 580 or more. Borrowers with a credit score of 500 to 579 need to put 10 percent down to get an FHA loan.

Keep Reading ›

How often are FHA loans denied? ›

The report also shows that the denial rate of Federal Housing Administration (FHA) loan applications differed from the overall average, at 12.4% in 2021.

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Why do sellers refuse FHA loans? ›

Some reasons a seller might refuse an FHA loan include misconceptions about longer closing times, stricter property requirements, or the belief that FHA borrowers are riskier.

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What would cause a house to fail FHA inspection? ›

The overall structure of the property must be in good enough condition to keep its occupants safe. This means severe structural damage, leakage, dampness, decay or termite damage can cause the property to fail inspection. In such a case, repairs must be made in order for the FHA loan to move forward.

Read On ›

How much can I borrow with an FHA loan? ›

FHA loan limits vary by housing type and are based on the state and county in which the property is located. FHA loan limits in 2024 range from $498,257 in “low-cost” areas to up to $1,149,825 in “high-cost” areas for single-unit homes.

Find Out More ›

What is the minimum credit score to buy a house in NC? ›

Step 2: Explore Bad Credit Mortgage Loan Options

Loan Program	Minimum Credit Score
Conventional Loans	620
FHA Loans	500 - 580
VA Loans	None
USDA Loans	None

Apr 10, 2024

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