Phil Georgiades
North Carolina’s Triad area which covers Greensboro, Winston-Salem, and High Point is known as one of the primary transportation hubs and manufacturing areas in the southern United States. In addition, the area is also known for its rich culture and educational system, both of which make it a great place to buy a house and raise a family.
However, becoming a homeowner is often considered a costly venture. Most buyers think that they cannot afford to buy a home because they do not have the funds for a down payment.
The good news is that there are certain government loan programs that can help reduce or even eliminate this initial cost and get you one step closer to becoming a homeowner.
These Government backed programs come in the form of Federal Housing Administration Loans, USDA home Loans, and Veteran Affairs home loans. All three of these government backed programs offer very low-down payments. In fact, some even offer zero down payment home loan options. However, eligibility differs depending on the program that you are applying for.
FHA Home Loans
FHA is a government guaranteed loan program that is perfect for first time home buyers with its low-down payment options. In addition, the FHA program is also amongst the easiest to qualify for thanks to the program being backed by the U.S. government which protects lenders against loss, in case the borrower defaults on their loan.
Additional benefits from having an FHA loan include:
- Applicants can use a cosigner to qualify
- FICO credit check requirements can go as low as 580 with some lenders going even lower.
- Some FHA loans loan more than the property is worth in order to pay for repairs.
- People that are two years away from bankruptcy can still qualify.
In the North Carolina Triad area, FHA loans limits are $331,760 for Single-Family housing, $424,800 for Duplexes, $513,450 for Triplexes, and $638,100 for Fourplexes. These FHA loan limits are the same for all 12 counties that make up the North Carolina Triad area.
USDA Home Loans
The United States Department of Agriculture which is responsible for farming, forestry, food, and rural economic development also administers home loans. USDA home loans are designed to assist low income individuals who live in rural communities. However, in certain areas their coverage extends to more urban areas.
The program offers a zero down payment option so long as the borrower meets the criteria and the property that is being applied for qualifies for the USDA home loan. Qualifying properties must be modestly sized with no in-ground pool, they must be already built, and they must be in an area that qualifies for the USDA program. If you want to know if the property that you’re applying for qualifies for the USDA program you can
The USDA Loan Limit for the North Carolina Triad area is $265,400 which is the same for all twelve counties within the triad area. Fed Home Loan Centers can be contacted if you need assistance in determining whether your property qualifies for the USDA loan program.
VA Home Loans
Veteran Affairs Loans, which are exclusively for veterans, active duty service members, and surviving spouses of veterans, are amongst the best types of home loans out there. The loan is guaranteed by the United States Government and has helped around 18 million service members purchase their homes since it was established.
Benefits from the VA home loan include.
- Zero down payment options
- Low monthly costs
- Low interest rates
- No Mortgage Insurance Premiums
- No prepayment options
- Ability to finance the funding fee
After the Blue Water Act of 2019 which came into effect in January 1st, 2020, VA home loan limits have been removed enabling borrowers to purchase homes in more affluent communities. However, lenders are still doing their due diligence by making sure that the borrower can afford the monthly payments before approving the loan. VA Home Loan Centers currently has a limit of 5,000,000.
For borrowers in North Carolina’s triad area who already have one active VA loan the second VA loan is limited to $510,400. Furthermore, if you are interested in starting the pre-approval process, VA Home Loan Centers would be happy to provide further information and start your journey to home ownership.
Phil Georgiades is the CLS for FedHome Loan Centers, a brokerage specializing in First time buyer home loans. He has been practicing real estate for 22 years. To learn more about programs available to you or apply for a home loan.
