North Carolina FHA Loans
Thanks to the economy, house prices are still lower than they've been in a long while. While economic recovery has already begun and will continue to pick up steam, you can still get a great deal on a house! But what if you're not feeling too confident about your credit score? If you've been waiting to purchase a house until you're the perfect candidate, stop waiting. House prices are only going to increase and the good news is that there are loan products that are geared toward your situation, like the North Carolina FHA loan program.
Managed by the Federal Housing Administration, North Carolina FHA loans are geared towards buyers who want to purchase a home now but might not qualify for a traditional bank loan. The North Carolina FHA program furnishes the bank who provides the loan to the borrower with a guaranty that lowers the bank's risk. Even if the bank would have been unable to approve the borrower for a traditional bank loan, the guaranty allows them to relax their standards a bit.
FHA Loan Benefits
North Carolina FHA loans come with other advantages besides less stringent credit standards as well, including lower down payment amounts (3.5% instead of the traditional 20% of the purchase price) and the ability to roll closing costs into the loan. In addition, North Carolina FHA loans have competitive rates and several different loan packages so that you can choose the one that's right for you. Unlike other non-traditional loan products, you can be sure that you're getting a safe, financially healthy loan with the FHA program.
North Carolina FHA Loan Limits
North Carolina FHA loans can be obtained through the same lender you would ask for a traditional loan. Be sure to check with him or her regarding current maximum loan amounts in your area. The 2009 baseline maximum for single family homes is $271,050, but this amount is adjusted for higher cost of living areas to ensure that everyone, regardless of the cost of living, can realistically purchase a home. Multi-family homes can also be purchased under the FHA program and the maximum amount you can borrow for those types of dwellings vary by the number of units in them as well as area.