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FHA loans backed by the Federal Housing Administration help many first-time home buyers get into their homes each year. This is an excellent program that helps both first-time buyers and some move-up buyers who might not otherwise be able to qualify for a mortgage loan. FHA loans are available to borrowers with slightly lower credit scores and the qualification requirements aren’t quite as strict as you will find with most conventional home loans.
Benefits of FHA Home Loans
An FHA loan can allow you to qualify for a home loan with a minimum down payment of 3.5% and they offer competitive mortgage rates for eligible borrowers. There are numerous benefits of FHA loans for Atlanta home buyers. It is definitely an option you should pursue if you aren’t able to afford a high down payment or you have other financial issues that might prevent you from qualifying for a conventional mortgage loan.
FHA Loan Limits
One very important thing to know about FHA home loans is that there are limits to how much you are able to borrow. The maximum amount will be determined by the location of the property. Lower-cost areas will naturally have lower loan limits than high-cost markets. For example, here in Atlanta the loan limits are higher in and around the city compared to rural Georgia communities well outside of the metro market.
The FHA loan limits will also vary based on the type of property. One great thing about FHA loans is that you can use them to buy more than just single-family homes. They can be used for duplexes and multi-unit purchases if you want to own some investment property—as long as one of the units is used as your primary residence. In other words, you can buy a triplex, live in one unit and then rent out the other two to offset your monthly mortgage costs.
The FHA loan limits for these multi-family properties will also vary by location. Naturally, the loan limits will be higher for multi-unit purchases compared to single-family homes. The loan limits also tend to go up each year as home prices increase.
Atlanta FHA Loan Limits
Several counties make up the Atlanta metro area. Here are the single-family home FHA loan limits for each Georgia county in 2022:
• Cherokee: $471,500
• Clayton: $471,500
• Cobb: $471,500
• Dekalb: $471,500
• Douglas: $471,500
• Fayette: $471,500
• Forsyth: $471,500
• Fulton: $471,500
• Gwinnett: $471,500
• Henry: $471,500
• Rockdale: $471,500
As you can see, the FHA loan limit is the same for all Atlanta metro counties. Whether you want to buy a house in Fulton County or Cobb County, you will be limited to these amounts. This limit is higher than the lowest possible FHA loan limit, which is $420,680 for lower-cost markets in 2022. That lower limit applies in most Georgia counties outside of the Atlanta area. In these more rural locations, you may want to inquire about a USDA loan as a better option compared to an FHA loan.
Multi-Family FHA Loan Limits in Atlanta, GA
As for multi-family properties, here are the 2022 loan limits that apply in all the Atlanta counties listed above:
• Duplex: $603,600
• Triplex: $729,600
• Fourplex: $906,750
The Federal Housing Administration offers these loans to help more buyers achieve the American Dream of homeownership. It’s just important to understand the qualification requirements and lending limitations. If you are planning to buy a house that exceeds current FHA loan limits in Atlanta, you will want to look into conventional home loans or other mortgage programs that don’t have the same limits.
Contact Moreira Team | MortgageRight as you get started on your home buying journey. We will help you explore all your lending options and find the solution that is best for you and your financial situation. Call us today!