Low Down Payment Mortgages for First-Time Homebuyers
FHA loans require just 3.5% down for credit scores of 580+ in Raleigh, NC. Jason Iacovelli (NMLS #3370) brings over 30 years of mortgage experience to helping buyers explore FHA financing. Unlike conventional loans using credit eligibility based on automated underwriting findings, subject to final lender review, FHA loans accept lower scores and allow 100% gift funds for down payment. Perfect for buyers in Cary, Apex, and throughout Wake County.
Minimum 580 for 3.5% down, or 500-579 with 10% down. FHA is ideal for borrowers with lower credit who don't qualify for conventional financing.
1.75% upfront (can be financed) plus 0.55%-0.85% annually. With less than 10% down, monthly premiums last the life of the loan.
Yes! 100% of your down payment and closing costs can come from family gift funds with proper documentation.
$472,030 for single-family homes in 2024. Higher limits apply to 2-4 unit properties.
FHA is better for lower credit scores (under 680) or small down payments. Conventional is better with 20% down and 740+ credit to avoid mortgage insurance.
FHA loans are mortgages insured by the Federal Housing Administration, designed to help first-time homebuyers and those with lower credit scores achieve homeownership with as little as 3.5% down.
580+ for 3.5% down
500-579 for 10% down
3.5% minimum (with 580+ score)
Typically 43% or less (up to 50% possible)
Upfront (1.75%) + monthly premium
Yes! You can use FHA loans multiple times throughout your life, though you can typically only have one FHA loan at a time unless you're relocating.
FHA requires an upfront mortgage insurance premium (1.75% of loan amount) plus monthly premiums. With less than 10% down, monthly premiums last the life of the loan.
Single-family homes, 2-4 unit properties (if you occupy one), FHA-approved condos, townhomes, and manufactured homes on permanent foundations qualify.
Yes! FHA allows 100% of your down payment and closing costs to come from gift funds from family members with proper documentation.
Minimum 580 for 3.5% down, or 500-579 for 10% down. We work with borrowers to improve credit before applying if needed.
With complete documentation, FHA loans typically close in 30-45 days, similar to conventional loans.
Yes! Once you have 20% equity and good credit, refinancing to conventional removes mortgage insurance and may lower your rate.
Yes, FHA loan limits vary by county. In Wake County, the 2024 limit is $472,030 for single-family homes.
Sellers cannot legally discriminate, but FHA appraisals are stricter. Working with an experienced agent helps overcome seller concerns.
FHA doesn't have a funding fee like VA loans, but requires mortgage insurance premiums (MIP) - 1.75% upfront plus 0.55%-0.85% annually.