People searching for a new home have good news as we start the new year. The new FHA loan limits now give homebuyers more buying power, and it’s a definite plus for people shopping in Raleigh and the surrounding area. Every year, the Federal Housing Finance Agency (FHFA) reviews the changes in housing prices over a one-year period. Then, they adjust the limits of conforming loans to align with those changes. Between the third quarter of 2020 and the same period in 2021, home prices rose a national average of 18.05%. The FHFA has increased the 2022 home loan limits the same amount.
The 2022 FHA loan limits now range from $420,680 to $970,800, depending on where you are purchasing your home. Areas with higher priced homes—like New York, Los Angeles, Boston, Seattle, Denver, and Washington, DC—can borrow up to the ceiling of this range. Here in the Raleigh, North Carolina area, where homes are more affordable, the FHA loan limit is now $420,680.
How does the new higher 2022 FHA loan limit help homebuyers?
Let’s say you were shopping for a home in 2021. You were pre-approved for a mortgage. You had been looking for a certain size and type of home. Then the price went up.
Was it still within your price range or did you then have to look for a lesser home? Or were you forced to move to a loan with a higher interest rate or larger down payment requirement?
If this sounds familiar, you’re not alone.
The 2022 conforming loan limits allow for affordable financing that accommodates the change in home prices. If you meet the FHA loan requirements, which are guaranteed by the government, you get a low-interest loan with a loan down payment. If your credit score is 580 or above, you could qualify for an FHA mortgage with just 3.5% down payment. Even with a credit score of 500, you can get an FHA home loan with only 10% down.
New Home Inc. has homes below the FHA loan limit
New Home Inc. is working hard to provide homebuyers with more appealing choices. Our new homes for sale in Raleigh suburbs reflect the latest trends in new home design and construction, including energy efficiency, smart technology, and healthy home systems. We’re building townhomes and single-family homes at Woodberry Forest and Cross Creek in Selma, less than 30 minutes from Downtown Raleigh. The location is conveniently near I-95, just two miles from the Carolina Premium Outlets.
Using our smart design, these new construction homes start in the $200,00s, so they fall well within the FHA and conforming loan limit of $420,680! You could purchase a brand new home with features like an oversized, center island kitchen, a first-floor suite, and a home office—just a few of the upscale features you might expect only in the more expensive homes.
At New Home Inc., we’re excited to introduce you to our “Future Proof” approach to homebuilding, proof that affordable quality DOES exist. Sign up for our VIP List to get the first updates on our available homes and communities in Fuquay-Varina, Selma, and Apex, NC, with more to come. Your new home is coming to the Raleigh area and we can’t wait to bring you there!