Whether youre a first-time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, the FHA loan program will let you purchase a home with a low down payment and flexible guidelines.580 Credit Score- and only -3.5% Down RELATED ARTICLES
FHA loan limits were established to define how much you can borrow for a HUD-backed mortgage. Each state has different limits, so be sure to look up your state to understand what is available for your FHA home loan.
For , the FHA floor was set at $498,257 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.
Also for 2024, the FHA ceiling was set at $1,149,825 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.
Paying the upfront costs of buying a new home can be challenging. To help overcome this hurdle, many local and state agencies offer down payment assistance in the form of grants or second mortgages.
Getting an FHA loan to buy a home in Georgia can be a great option for many homebuyers. FHA loans require lower down payments and credit scores than conventional loans, making them more accessible for many. However there are certain qualifications borrowers must meet to get approved for an FHA loan in Georgia. Here’s an overview of the key qualifications for FHA loans in the state.
FHA Loan Limits in Georgia
The first thing to understand is that there are limits on the dollar amount you can borrow with an FHA loan based on the county where you’re buying the home
In most Georgia counties, the FHA loan limit for a single-family home is $498,257 for 2024. However, in higher-cost counties like Barrow, Bartow, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale and Walton counties, the limit is higher at $649,750.
So if you’re looking to buy a high-priced home above $498,257-$649,750, an FHA loan may not work in your situation. The good news is that in most counties, the FHA limits accommodate a wide range of home prices that first-time buyers are likely to consider.
Minimum Credit Score
To qualify for an FHA loan, you’ll need a minimum credit score of 500. The higher your score, the better your interest rate and overall loan terms will be. Aim for a score of at least 580 to get reasonable rates. With scores between 500-579, you may still qualify but will pay higher rates.
Lenders also look at your overall credit history, not just your score. A limited history, past late payments, collections, and other negative marks can affect your approval chances and loan terms even if your score meets the minimum.
Debt-to-Income Ratio
Lenders want to see that your total monthly debt payments aren’t too high compared to your income. This debt-to-income (DTI) ratio is a key factor in the approval process.
For an FHA loan, your DTI generally can’t exceed 57%. This includes your estimated new mortgage payment, along with all recurring monthly debt payments like credit cards, auto loans, student loans, child support, and other obligations. Staying under 43% DTI is ideal for the most favorable rates and terms.
Down Payment
A major benefit of FHA loans is the low down payment requirement. You’re required to make a down payment of just 3.5% of the purchase price. This makes buying much more feasible for those without huge cash reserves.
While 3.5% is the minimum, putting down more can get you better rates and avoid having to pay mortgage insurance. You can put down up to 10% with an FHA loan. Gifts from family can also be used for your down payment.
Occupancy and Property Types
To qualify for an FHA loan, you must plan to use the home as your primary residence. Investment properties or second homes don’t qualify.
FHA loans can be used to buy single-family homes, townhomes, condos and some multifamily properties of 2-4 units. Manufactured and mobile homes may also qualify if they meet certain requirements.
Additional Lender Requirements
On top of FHA’s standard requirements, lenders will look at other factors to approve borrowers. These may include length and type of employment, income sources and history, assets, reserves, and your overall financial profile.
Each lender has their own qualification standards, so shop around to find one that can best accommodate your situation. Getting pre-approved can help you understand a lender’s specific requirements before you make an offer.
Alternative Options
If you don’t quite meet the qualifications for a standard FHA loan, some alternatives may help you become eligible:
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Manual underwriting – If you have limited or non-traditional credit history that’s affecting your score, this uses additional documentation to evaluate your creditworthiness.
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Adding a co-signer – Having a co-signer with stronger credit can help you qualify and/or improve your loan terms.
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Georgia Dream Loan – This state program provides down payment assistance and relaxed qualifying guidelines for eligible borrowers. Income limits apply based on your county and household size.
Carefully going over the FHA requirements and speaking with a knowledgeable loan officer can help position you for success in getting approved. With proper preparation and research, an FHA loan can be a great mortgage solution for Georgia homebuyers.
Learn About FHA Loans
Find out why FHA mortgages with low down payments are so popular with homebuyers.
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FAQ
What are the minimum requirements for an FHA loan?
What are the income requirements for a FHA loan?
What is more likely to qualify for an FHA loan?
Why would I not qualify for an FHA loan?
Can I get an FHA loan in Georgia?
To qualify for an FHA loan in Georgia, your home loan must be below the local FHA loan limits in your area. For 2024, the maximum loan limit in Georgia is $498,257 for a single-family home and $1,249,550 for a four-plex. Limits varies by county. The minimum loan limit is $5,000. Loan limits vary by county and home size.
What is the Georgia FHA mortgage program?
The Georgia FHA mortgage program provides several benefits, keeping in mind the budget difficulties of many homeowners who are considering purchasing their first home. Compared to most traditional mortgage loans, the FHA mortgage loan simplifies the process for the buyer.
How much can you borrow with a FHA loan in Georgia?
The highest amount you can borrow with a FHA-backed loan for a single-family unit in Georgia is $649,750. Requirements are generally less stringent than for conventional loans. To qualify, you’ll have to meet the following minimum FHA home loan requirements: → Minimum down payment and credit scores.
How do I get a mortgage in Georgia?
Meet mortgage loan credit requirements. Be purchasing a home with a sales price that does not exceed the limit (varies by county). Visit the Georgia Department of Community Affairs website for more eligibility details. Qualifying for a mortgage through the Georgia Dream program requires certain documentation.
What is the 2024 FHA mortgage limit in Georgia?
The 2024 FHA mortgage limit for most of Georgia in at $498,257 for a single 1-unit property. Other locations just to the north and south of Atlanta like Alpharetta, Clayton, Dekalb, Cobb, Bartow, Douglas, Butts County, and others allow for higher loan limits of up to $649,750. Please find the complete county list below.
What are the FHA loan requirements?
FHA loan requirements include a minimum credit score of 500 as well as limits on your total monthly debt load. Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page.