Akron FHA Loan Rates, Closing Costs & Stats

AKRON, OH

FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

For additional requirements as defined by the FHA, click here.

Akron's 114 lenders originated 1,776 FHA loans during 2024. The total origination value was $360,690,000, with an average FHA loan value of $203,091.

Akron FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Akron averaged 6.38% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

Akron's average FHA mortgage closing costs are $6,901.

The average rate for the prior week (2025-03-28) was 6.88% and one month ago for the week of 2025-02-28, the average rate was 6.66%.

The average rate one year ago was 6.78%.

For refis of the same type during the week of 2025-04-04, the average rate was 7.1%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Akron FHA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Akron level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
CROSSCOUNTRY MORTGAGE, LLC 274 6.72% $10,393
QUICKEN LOANS, LLC 241 6.41% $10,087
NVR Mortgage Finance, Inc. 75 6.52% $9,198
UNITED WHOLESALE MORTGAGE, LLC 71 6.12% $11,659
The Huntington National Bank 66 6.91% $7,948
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 63 6.73% $7,159
RUOFF MORTGAGE COMPANY, INC. 52 6.76% $7,568
POLARIS HOME FUNDING CORP. 39 6.54% $10,769
FREEDOM MORTGAGE CORPORATION 35 6.51% $10,363
PENNYMAC LOAN SERVICES, LLC 32 6.10% $8,910
LIBERTY HOME MORTGAGE CORPORATION 29 6.80% $8,452
S1L, Inc. 27 6.61% $10,094
Citizens Bank 24 6.39% $7,508
UNION HOME MORTGAGE CORP. 24 6.71% $11,210
HOWARD HANNA FINANCIAL SERVICES, INC. 20 6.54% $8,755
LOANDEPOT.COM, LLC 20 6.55% $8,687
Nations Lending Corporation 20 6.59% $8,867
GUARANTEED RATE, INC. 19 6.47% $10,105
BROKER SOLUTIONS, INC. 18 6.78% $10,699
Mr. Cooper ( Nationstar Mortgage ) 15 6.65% $12,907
RELIANCE FIRST CAPITAL, LLC 14 6.96% $7,629
LOANPAL, LLC 14 5.66% $9,705
NEWREZ LLC 13 6.17% $9,507
Flagstar Bank, FSB 12 6.22% $7,466
GUILD MORTGAGE COMPANY 11 6.84% $9,029
VILLAGE CAPITAL MORTGAGE 11 6.51% $7,852
Fifth Third Bank 10 6.84% $6,328
Ixonia Bank 10 7.00% $9,665
ZILLOW HOME LOANS, LLC 10 6.50% $9,000
AMERICAN PACIFIC MORTGAGE CORPORATION 10 6.70% $9,612
ENDEAVOR CAPITAL, LLC. 10 6.18% $8,442
KeyBank 10 6.03% $7,557
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 10 5.16% $11,749
PREMIER LENDING, INC. 9 7.07% $10,202
MUTUAL OF OMAHA MORTGAGE, INC. 9 6.67% $11,194
MOVEMENT MORTGAGE, LLC 9 6.47% $7,948
GVC MORTGAGE, INC. 9 6.85% $8,848
CALCON MUTUAL MORTGAGE LLC 8 6.62% $9,773
Equity Prime Mortgage LLC 8 6.66% $8,648
LAKEVIEW LOAN SERVICING, LLC 8 6.48% $8,165
AMERISAVE MORTGAGE CORPORATION 7 6.13% $14,052
Carrington Mortgage Services, LLC 7 6.18% $15,271
Alcova Mortgage LLC 7 6.70% $6,678
PNC Bank 6 6.58% $7,802
HOMESIDE FINANCIAL, LLC 6 6.21% $12,245
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 6 6.92% $11,648
JPMorgan Chase Bank 6 6.29% $6,447
AMERICAN FINANCIAL NETWORK, INC. 6 6.75% $10,493
NFM, INC. 5 7.25% $11,534
AmeriHome Mortgage Company, LLC 5 6.80% $5,757
ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.30% $9,042
EMM LOANS LLC 5 5.97% $12,746
Mortgage Research Center, LLC 5 6.58% $7,108
SUN WEST MORTGAGE COMPANY, INC. 5 6.07% $12,605
U.S. Bank 5 6.83% $6,965
OCEANSIDE MORTGAGE COMPANY 4 5.94% $4,555
CARDINAL FINANCIAL 4 6.63% $12,415
PLAZA HOME MORTGAGE, INC. 4 7.31% $7,603
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 7.09% $10,227
ABSOLUTE HOME MORTGAGE CORPORATION 4 7.13% $10,622
LEADERONE FINANCIAL CORPORATION 4 6.41% $11,529
MID AMERICA MORTGAGE, INC. 3 6.71% $8,289
The Farmers National Bank of Canfield 3 6.29% $7,457
Union Savings Bank 3 5.71% $8,095
CMG MORTGAGE, INC. 3 6.54% $10,794
PLANET HOME LENDING, LLC 3 6.21% $4,411
Civista Bank 3 6.46% $6,322
HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.00% $7,007
MYCUMORTGAGE, LLC 3 6.75% $9,166
First Commonwealth Bank 3 6.50% $8,067
WEST PENN FINANCIAL SERVICE CENTER, INC. 2 6.63% $7,509
PREMIER MORTGAGE RESOURCES, L.L.C. 2 6.81% $11,875
PRIMARY RESIDENTIAL MORTGAGE, INC. 2 7.50% $9,685
PULTE MORTGAGE LLC 2 4.75% $7,391
ROYAL UNITED MORTGAGE LLC 2 7.13% $7,610
GENEVA FINANCIAL, LLC 2 6.13% $9,830
MILEND, INC. 2 6.37% $12,668
T2 FINANCIAL LLC 2 6.19% $16,543
The Federal Savings Bank 2 7.00% $8,013
TOP FLITE FINANCIAL, INC. 2 6.88% $6,052
TruHome Solutions, LLC 2 5.56% $9,352
UNION CAPITAL MORTGAGE CORPORATION 2 6.63% $6,229
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 5.37% $20,300
American Mortgage & Equity Consultants, Inc. 2 6.63% $12,994
AMERICAN FINANCIAL RESOURCES, INC. 2 6.69% $12,086
AMERICAN FINANCING CORPORATION 2 5.38% $11,501
EUSTIS AND AMERICAN MORTGAGE COMPANY 2 6.63% $8,270
LAND HOME FINANCIAL SERVICES, INC. 2 6.81% $10,257
Century Mortgage Company DBA Century Lending Company 1 6.50% $9,628
Hometown Equity Mortgage, LLC 1 6.50% $8,798
GUARANTEED RATE AFFINITY, LLC 1 6.13% $13,390
MORIA DEVELOPMENT, INC. 1 7.13% $6,860
MORTGAGE CENTER L.C 1 7.25% $12,935
First Federal Savings and Loan Association of Lakewood 1 6.00% $6,835
First Federal Bank of the Midwest 1 5.75% $8,333
NBKC BANK 1 6.00% $7,534
FIRST COLONY MORTGAGE CORPORATION 1 5.88% $10,596
NORTHERN MORTGAGE SERVICES, LLC 1 6.63% $2,577
FIRST ALLIANCE HOME MORTGAGE, LLC 1 4.88% $10,844
Paramount Residential Mortgage Group, Inc. 1 6.13% $4,168
EVERETT FINANCIAL, INC. 1 6.50% $9,927
PENTAGON FEDERAL CREDIT UNION 1 6.13% $10,440
Dollar Bank, Federal Savings Bank 1 6.38% $8,616
DATA MORTGAGE, INC. 1 5.99% $7,240
Prosperity Home Mortgage, LLC 1 5.63% $14,788
Stifel Bank and Trust 1 6.50% $9,337
STOCKTON MORTGAGE CORPORATION 1 6.25% $7,908
YOUR HOME FINANCIAL LLC 1 7.38% $8,153
BAYSHORE MORTGAGE FUNDING, LLC 1 6.99% $6,391
The Loan Store, Inc. 1 6.25% $9,564
TOWNE MORTGAGE COMPANY 1 7.25% $8,166
UNITED MORTGAGE CORP 1 6.25% $14,254
Lakeview Community Capital, LLC 1 6.75% $7,079
JMAC LENDING, INC. 1 6.75% $8,297

The top Akron FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 274 FHA loans originated. Their average total fees are $10,393, which is $307 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Akron FHA lenders (with over 10 loans originated) are Fifth Third Bank ($6,328), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($7,159), Flagstar Bank, FSB ($7,466), Citizens Bank ($7,508) and KeyBank ($7,557).

The lowest rate Akron FHA lenders (with over 10 loans originated) are K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. (5.16%), LOANPAL, LLC (5.66%), KeyBank (6.03%), PENNYMAC LOAN SERVICES, LLC (6.10%) and UNITED WHOLESALE MORTGAGE, LLC (6.12%).

Akron FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
AKRON, OH PORTAGE 2022 $420,680 $538,650 $651,050 $809,150
AKRON, OH SUMMIT 2022 $420,680 $538,650 $651,050 $809,150
AKRON, OH PORTAGE 2023 $472,030 $604,400 $730,525 $907,900
AKRON, OH SUMMIT 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Akron (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $132,825 (5.3%) $213,814 (8.8%) 0.49 1,868
2018-02-01 $133,900 (3.1%) $216,225 (7.3%) 0.49 1,845
2018-03-01 $145,000 (5.1%) $229,991 (9.4%) 0.51 1,793
2018-04-01 $149,950 (7.1%) $237,212 (9.8%) 0.51 1,771
2018-05-01 $162,400 (16.0%) $244,625 (7.1%) 0.54 1,808
2018-06-01 $169,900 (18.5%) $252,329 (9.8%) 0.57 1,920
2018-07-01 $173,000 (16.1%) $253,602 (9.8%) 0.58 1,960
2018-08-01 $166,000 (10.7%) $243,061 (6.8%) 0.56 2,099
2018-09-01 $160,000 (8.1%) $239,641 (5.2%) 0.54 2,131
2018-10-01 $159,900 (11.1%) $236,163 (7.2%) 0.54 2,105
2018-11-01 $154,975 (10.7%) $236,661 (8.9%) 0.53 2,005
2018-12-01 $152,000 (9.4%) $233,394 (8.8%) 0.52 1,790
2019-01-01 $149,900 (12.9%) $234,887 (9.9%) 0.52 1,624
2019-02-01 $153,525 (14.7%) $245,902 (13.7%) 0.52 1,481
2019-03-01 $164,014 (13.1%) $252,842 (9.9%) 0.54 1,486
2019-04-01 $169,250 (12.9%) $259,196 (9.3%) 0.54 1,494
2019-05-01 $174,900 (7.7%) $255,460 (4.4%) 0.55 1,549
2019-06-01 $179,000 (5.4%) $256,375 (1.6%) 0.56 1,693
2019-07-01 $177,450 (2.6%) $257,121 (1.4%) 0.56 1,788
2019-08-01 $172,200 (3.7%) $252,186 (3.8%) 0.55 1,817
2019-09-01 $168,150 (5.1%) $246,668 (2.9%) 0.54 1,868
2019-10-01 $165,000 (3.2%) $242,053 (2.5%) 0.53 1,937
2019-11-01 $153,950 (-0.7%) $224,363 (-5.2%) 0.50 1,870
2019-12-01 $149,900 (-1.4%) $216,272 (-7.3%) 0.50 1,702
2020-01-01 $144,900 (-3.3%) $215,976 (-8.1%) 0.48 1,542
2020-02-01 $149,900 (-2.4%) $224,664 (-8.6%) 0.49 1,385
2020-03-01 $159,950 (-2.5%) $239,728 (-5.2%) 0.50 1,293
2020-04-01 $166,450 (-1.7%) $245,938 (-5.1%) 0.52 1,260
2020-05-01 $178,250 (1.9%) $254,645 (-0.3%) 0.54 1,132
2020-06-01 $189,450 (5.8%) $267,565 (4.4%) 0.56 1,061
2020-07-01 $189,950 (7.0%) $271,112 (5.4%) 0.55 1,015
2020-08-01 $189,900 (10.3%) $272,614 (8.1%) 0.54 923
2020-09-01 $179,950 (7.0%) $270,789 (9.8%) 0.52 918
2020-10-01 $179,900 (9.0%) $265,953 (9.9%) 0.52 927
2020-11-01 $166,750 (8.3%) $253,511 (13.0%) 0.49 915
2020-12-01 $158,500 (5.7%) $239,545 (10.8%) 0.47 792
2021-01-01 $149,900 (3.5%) $229,439 (6.2%) 0.45 676
2021-02-01 $153,850 (2.6%) $248,136 (10.5%) 0.45 523
2021-03-01 $167,400 (4.7%) $256,752 (7.1%) 0.48 482
2021-04-01 $179,925 (8.1%) $267,615 (8.8%) 0.49 478
2021-05-01 $189,450 (6.3%) $272,707 (7.1%) 0.50 583
2021-06-01 $187,450 (-1.1%) $272,231 (1.7%) 0.49 768
2021-07-01 $189,900 (0.0%) $268,163 (-1.1%) 0.50 909
2021-08-01 $183,950 (-3.1%) $279,379 (2.5%) 0.49 958
2021-09-01 $179,450 (-0.3%) $274,373 (1.3%) 0.48 965
2021-10-01 $175,000 (-2.7%) $265,176 (-0.3%) 0.47 975
2021-11-01 $169,950 (1.9%) $264,925 (4.5%) 0.45 861
2021-12-01 $157,400 (-0.7%) $254,561 (6.3%) 0.43 793
2022-01-01 $149,250 (-0.4%) $254,363 (10.9%) 0.40 644
2022-02-01 $155,000 (0.8%) $270,084 (8.9%) 0.40 489
2022-03-01 $171,950 (2.7%) $283,749 (10.5%) 0.43 473
2022-04-01 $179,900 (0.0%) $294,221 (9.9%) 0.43 559
2022-05-01 $187,400 (-1.1%) $293,402 (7.6%) 0.43 654
2022-06-01 $199,900 (6.6%) $298,113 (9.5%) 0.45 803
2022-07-01 $199,900 (5.3%) $289,189 (7.8%) 0.45 964
2022-08-01 $199,750 (8.6%) $278,782 (-0.2%) 0.46 966
2022-09-01 $198,000 (10.3%) $278,249 (1.4%) 0.46 1,001
2022-10-01 $189,000 (8.0%) $272,085 (2.6%) 0.44 1,085
2022-11-01 $188,250 (10.8%) $266,899 (0.8%) 0.45 1,090
2022-12-01 $179,999 (14.4%) $268,029 (5.3%) 0.44 929
2023-01-01 $177,450 (18.9%) $264,401 (4.0%) 0.44 792
2023-02-01 $180,450 (16.4%) $270,681 (0.2%) 0.44 656
2023-03-01 $179,675 (4.5%) $274,750 (-3.2%) 0.42 611
2023-04-01 $199,900 (11.1%) $290,760 (-1.2%) 0.46 578
2023-05-01 $212,000 (13.1%) $298,760 (1.8%) 0.48 587
2023-06-01 $225,500 (12.8%) $303,426 (1.8%) 0.51 685
2023-07-01 $230,000 (15.1%) $314,740 (8.8%) 0.52 670
2023-08-01 $232,475 (16.4%) $323,173 (15.9%) 0.53 763
2023-09-01 $234,950 (18.7%) $326,310 (17.3%) 0.55 823
2023-10-01 $229,950 (21.7%) $323,978 (19.1%) 0.54 900
2023-11-01 $217,000 (15.3%) $317,322 (18.9%) 0.52 887
2023-12-01 $217,000 (20.6%) $318,336 (18.8%) 0.53 792
2024-01-01 $214,793 (21.0%) $323,634 (22.4%) 0.52 707
2024-02-01 $209,950 (16.4%) $318,861 (17.8%) 0.51 645
2024-03-01 $214,900 (19.6%) $325,974 (18.6%) 0.51 646
2024-04-01 $228,750 (14.4%) $354,727 (22.0%) 0.53 594
2024-05-01 $247,000 (16.5%) $377,008 (26.2%) 0.56 638
2024-06-01 $250,000 (10.9%) $364,581 (20.2%) 0.57 719
2024-07-01 $249,675 (8.6%) $362,925 (15.3%) 0.57 824
2024-08-01 $244,900 (5.3%) $342,066 (5.9%) 0.57 927
2024-09-01 $230,000 (-2.1%) $325,738 (-0.2%) 0.54 993
2024-10-01 $228,200 (-0.8%) $318,669 (-1.6%) 0.54 1,105
2024-11-01 $219,900 (1.3%) $303,387 (-4.4%) 0.53 1,152
2024-12-01 $209,950 (-3.3%) $281,571 (-11.6%) 0.52 966
2025-01-01 $199,950 (-6.9%) $283,971 (-12.3%) 0.50 862
2025-02-01 $217,975 (3.8%) $309,662 (-2.9%) 0.53 791
2025-03-01 $225,000 (4.7%) $312,341 (-4.2%) 0.00 755
Akron's median listing price for 2025-03-01 was $225,000, a difference of $10,100 (4.7%) versus the prior year and $7,025 versus the prior month.

Akron's median listing price comes in at 0% of the national average.

Akron's average listing price for 2025-03-01 was $312,341, a difference of $-13,633 (-4.2%) versus the prior year and $2,679 versus the prior month.

For the 2025-03-01 period, Akron had 755 MLS listings, a difference of -36 listings (-5%) versus the prior month and 109 listings (17%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Akron (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 75 days 1,538 sqft
2018-02-01 68 days 1,546 sqft
2018-03-01 57 days 1,585 sqft
2018-04-01 49 days 1,606 sqft
2018-05-01 47 days 1,665 sqft
2018-06-01 45 days 1,695 sqft
2018-07-01 50 days 1,874 sqft
2018-08-01 48 days 1,798 sqft
2018-09-01 53 days 1,788 sqft
2018-10-01 57 days 1,781 sqft
2018-11-01 59 days 1,740 sqft
2018-12-01 67 days 1,720 sqft
2019-01-01 75 days 1,683 sqft
2019-02-01 72 days 1,708 sqft
2019-03-01 55 days 1,732 sqft
2019-04-01 44 days 1,752 sqft
2019-05-01 42 days 1,707 sqft
2019-06-01 43 days 1,726 sqft
2019-07-01 47 days 1,747 sqft
2019-08-01 51 days 1,735 sqft
2019-09-01 53 days 1,731 sqft
2019-10-01 54 days 1,728 sqft
2019-11-01 61 days 1,680 sqft
2019-12-01 70 days 1,637 sqft
2020-01-01 80 days 1,615 sqft
2020-02-01 76 days 1,644 sqft
2020-03-01 58 days 1,707 sqft
2020-04-01 53 days 1,710 sqft
2020-05-01 72 days 1,748 sqft
2020-06-01 55 days 1,819 sqft
2020-07-01 45 days 1,822 sqft
2020-08-01 48 days 1,800 sqft
2020-09-01 51 days 1,765 sqft
2020-10-01 46 days 1,746 sqft
2020-11-01 50 days 1,652 sqft
2020-12-01 57 days 1,576 sqft
2021-01-01 60 days 1,533 sqft
2021-02-01 50 days 1,548 sqft
2021-03-01 36 days 1,591 sqft
2021-04-01 32 days 1,654 sqft
2021-05-01 26 days 1,698 sqft
2021-06-01 24 days 1,709 sqft
2021-07-01 29 days 1,691 sqft
2021-08-01 31 days 1,658 sqft
2021-09-01 37 days 1,633 sqft
2021-10-01 39 days 1,615 sqft
2021-11-01 42 days 1,622 sqft
2021-12-01 45 days 1,563 sqft
2022-01-01 50 days 1,537 sqft
2022-02-01 46 days 1,547 sqft
2022-03-01 35 days 1,576 sqft
2022-04-01 25 days 1,586 sqft
2022-05-01 28 days 1,629 sqft
2022-06-01 28 days 1,668 sqft
2022-07-01 31 days 1,680 sqft
2022-08-01 36 days 1,671 sqft
2022-09-01 36 days 1,652 sqft
2022-10-01 36 days 1,640 sqft
2022-11-01 39 days 1,665 sqft
2022-12-01 49 days 1,623 sqft
2023-01-01 56 days 1,607 sqft
2023-02-01 48 days 1,619 sqft
2023-03-01 38 days 1,584 sqft
2023-04-01 36 days 1,668 sqft
2023-05-01 36 days 1,681 sqft
2023-06-01 33 days 1,692 sqft
2023-07-01 34 days 1,747 sqft
2023-08-01 32 days 1,743 sqft
2023-09-01 36 days 1,730 sqft
2023-10-01 36 days 1,728 sqft
2023-11-01 38 days 1,705 sqft
2023-12-01 44 days 1,685 sqft
2024-01-01 53 days 1,672 sqft
2024-02-01 42 days 1,626 sqft
2024-03-01 38 days 1,672 sqft
2024-04-01 36 days 1,788 sqft
2024-05-01 28 days 1,803 sqft
2024-06-01 32 days 1,799 sqft
2024-07-01 32 days 1,757 sqft
2024-08-01 33 days 1,746 sqft
2024-09-01 36 days 1,697 sqft
2024-10-01 36 days 1,669 sqft
2024-11-01 40 days 1,648 sqft
2024-12-01 51 days 1,611 sqft
2025-01-01 59 days 1,577 sqft
2025-02-01 43 days 1,621 sqft
2025-03-01 0 days 1,664 sqft
Akron's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

Akron's median square footage for active listings during the 2025-03-01 period was 1,664 sqft. One year prior, the average listing was 1,672 sqft.

FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).