FHA Loans in NC, SC & GA
Quick answer
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration that lets you buy a primary residence with 3.5% down if your credit score is 580 or higher (10% down from 500 to 579). It has more flexible credit and debt guidelines than conventional loans, in exchange for upfront and annual mortgage insurance.
FHA loans are government-insured and built for buyers who want a low down payment or are still building credit. You can put down 3.5% with a credit score of 580 or higher, and FHA is more forgiving of higher debt ratios and past credit bumps than most conventional loans. Here is how it works, what it costs, and when it is the right call.
FHA at a glance.
| Minimum down payment | 3.5% with a 580+ score; 10% with a score from 500 to 579 |
|---|---|
| Typical minimum credit | 580 for 3.5% down under FHA rules; many lenders set their own floor around 600 or higher |
| Mortgage insurance | 1.75% upfront premium (can be financed) plus an annual premium paid monthly; lasts the life of the loan with less than 10% down, 11 years with 10% or more |
| Occupancy | Primary residence only (1 to 4 units if you live in one) |
| Loan limits | Set by county; the 2026 floor is $541,287 for a one-unit home, higher in some metro counties |
| Best for | Buyers with credit still building, higher debt-to-income, or a past credit event |
General guidelines only. Lenders can add their own requirements, and program rules change.
How it works.
FHA loans are insured by the Federal Housing Administration, part of HUD, which makes lenders more comfortable approving borrowers with lower scores or higher debt. At a 580 score or above you can put down 3.5%; scores between 500 and 579 may qualify with 10% down. The trade-off is mortgage insurance: an upfront premium of 1.75% of the loan, usually rolled into the loan amount, plus an annual premium split into your monthly payment. With less than 10% down, that annual premium stays for the life of the loan.
What FHA mortgage insurance costs
The upfront premium is 1.75% of the base loan amount. The annual premium depends on the loan amount, term, and down payment; for most 30-year FHA loans with the minimum down payment, it is 0.55% of the loan per year, divided into monthly payments. With 10% or more down, the annual premium ends after 11 years. With less, it lasts as long as the loan.
Many FHA borrowers plan to refinance into a conventional loan later, once their credit improves and they have about 20% equity, to drop the mortgage insurance. That is a strategy, not a promise, since it depends on future rates and home values.
Why FHA is more forgiving
FHA's automated underwriting can approve higher debt-to-income ratios than conventional loans, sometimes well above 50% with strong compensating factors. Waiting periods after bankruptcy and foreclosure are shorter: generally two years after a Chapter 7 discharge and three years after a foreclosure. Medical collections are generally not counted against you.
FHA also allows non-occupant co-borrowers, such as a parent, to help you qualify, and it lets you buy a two to four unit property with 3.5% down if you live in one of the units.
Property standards and appraisal
FHA appraisers check that the home meets HUD's minimum property standards for safety, security, and soundness. Peeling paint on older homes, missing handrails, or roof problems can trigger required repairs before closing. Condos must be FHA-approved or eligible for single-unit approval.
Who it's best for.
Buyers who want a lower down payment and more forgiving credit guidelines.
- Credit scores roughly in the 580 to 680 range
- Higher debt-to-income ratios, such as student loans or car payments
- A bankruptcy or foreclosure a few years back
- Buyers who want to house hack a duplex, triplex, or fourplex
When another loan may be better.
- Strong credit with 5% or more down, where conventional PMI is often cheaper and removable
- Second homes or investment properties, which FHA does not finance
- Eligible veterans, who should compare VA first
- Homes needing major repairs, unless you use FHA's 203(k) renovation option
How the process works, start to finish.
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1
Credit and budget review
We look at your score, debts, and savings to confirm FHA is the right fit versus conventional.
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2
Pre-approval through FHA automated underwriting
Your file runs through FHA's TOTAL Scorecard via automated underwriting, which tells us what you are approved for.
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3
Check the county loan limit
We confirm the FHA limit for the county where you are shopping so your price range is realistic.
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4
FHA appraisal
The appraiser confirms value and HUD property standards. Any required repairs are handled before closing.
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5
Underwriting and closing
The underwriter clears conditions, and you close with your attorney after reviewing your Closing Disclosure.
What you'll typically need.
- Pay stubs covering 30 days
- Two years of W-2s or tax returns
- Two months of bank statements
- Photo ID and Social Security number
- Gift letter and donor documentation if applicable
- Explanation of past credit events if any
Common reasons files get denied or delayed.
- Score below the lender's FHA floor, even if above FHA's 580 minimum
- Appraisal repairs the seller will not make
- Delinquent federal debt such as defaulted student loans (checked in CAIVRS)
- Condo project not FHA-approved
- Recent late payments on housing or installment debt
What's different in the Carolinas and Georgia.
- FHA loan limits vary by county across NC, SC, and GA. Most counties use the 2026 floor of $541,287 for a one-unit home, while some metro counties, including Charleston County, have higher limits.
- Older homes in historic districts, from Savannah to Wilmington, can raise FHA appraisal questions about paint, roofs, and systems. A good inspection early helps.
- The Chenoa Fund, which I can place, pairs down payment assistance with an FHA 30-year fixed loan in all three states. State programs from NCHFA, SC Housing, and Georgia Dream also commonly pair with FHA through participating lenders, though they often require a higher score than FHA itself.
- North Carolina, South Carolina, and Georgia all use attorneys to close real estate transactions, so a local closing attorney (not just a title company) will handle your closing, title work, and recording. Build their fee and schedule into your timeline.
Helpful tools
Related guides
Common questions: FHA.
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Does FHA mortgage insurance ever go away?
With less than 10% down, the annual premium typically stays for the life of the loan. With 10% or more down, it ends after 11 years. Many borrowers refinance to conventional later once they have enough equity.
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Can I use gift money for an FHA down payment?
Yes. Gifts from eligible donors, such as family members, are allowed for the full down payment with a gift letter and documentation of the transfer.
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What is the minimum credit score for an FHA loan?
FHA allows 3.5% down with a 580 or higher score and 10% down from 500 to 579. Many lenders set their own minimum higher, which is why shopping multiple lenders matters.
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How much is the FHA upfront mortgage insurance premium?
It is 1.75% of the base loan amount. Most borrowers finance it into the loan rather than paying it in cash at closing.
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What is the FHA loan limit in my county?
It depends on the county. For 2026, the floor for a one-unit home is $541,287, and higher-cost counties can have higher limits. I check the exact limit for where you are shopping.
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Can I get an FHA loan after bankruptcy?
Often, yes. Generally FHA requires two years after a Chapter 7 discharge, and you may qualify during a Chapter 13 plan after 12 months of on-time payments with court approval.
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Can I buy a duplex with an FHA loan?
Yes. FHA allows two to four unit properties with 3.5% down as long as you live in one of the units as your primary residence. Rental income from the other units can help you qualify under FHA rules.
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Is FHA only for first-time buyers?
No. FHA is open to repeat buyers too, as long as the home will be your primary residence. You generally can only have one FHA loan at a time, with some exceptions.
Sources: HUD FHA Single Family Housing Policy Handbook 4000.1; HUD Mortgagee Letter 2023-05 (annual MIP); HUD 2026 FHA loan limits.
Last reviewed September 2026 by Keith Lopez, NMLS #2814077.
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Articles about FHA
- First-Time Buyers FHA Down Payment in Richmond Hill, GA: What First-Time Buyers Need to Know FHA loans require as little as 3.5% down in Richmond Hill, GA, and down payment assistance programs may cover that cost. Here is what first-time buyers need to know before applying.
- Loan Programs FHA Loan Limits in South Carolina for 2026, by County HUD set the 2026 FHA loan limit at $541,287 for most South Carolina counties, with higher limits in the Charleston and Hilton Head MSAs. See every county's figures and learn what the limit actually caps.
- Loan Programs FHA Loan Requirements in South Carolina: Credit, Down Payment, DTI, and More FHA loans in South Carolina require a 580 credit score for 3.5% down, allow back-end DTI up to 56% with automated approval, and must follow HUD property standards and SC attorney closing rules. Here is what buyers in Charleston, Greenville, and Columbia need to know.
FHA by city
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A note on program availability & disclosures
Program eligibility, guidelines, and pricing are set by the applicable investor, agency, or program (FHA, VA, USDA, Fannie Mae, Freddie Mac, and others) and are subject to change without notice. Not all applicants will qualify. This information is for educational purposes only and is not a commitment to lend or a guarantee of approval, rate, payment, or closing date. It is not tax or legal advice. Equal Housing Opportunity.
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Keith Lopez, NMLS #2814077 | NEXA Mortgage, LLC, NMLS #1660690 | Licensed in NC, SC & GA | Equal Housing Opportunity