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 146 lenders originated 2,247 FHA loans during 2022. The total origination value was $377,065,000, with an average FHA loan value of $167,808.

Akron FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Akron averaged 6.57% for the week of 2024-03-01, compared to the national average (all FHA variants) of 6.688% for the same period.

Akron's average FHA mortgage closing costs are $6,252.

The average rate for the prior week (2024-02-23) was 6.56% and one month ago for the week of 2024-01-26, the average rate was 6.05%.

The average rate one year ago was 6.08%.

For refis of the same type during the week of 2024-03-01, the average rate was 5.2%.

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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
CROSSCOUNTRY MORTGAGE, LLC 323 5.34% $8,919
QUICKEN LOANS, LLC 295 4.68% $7,859
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 168 5.36% $6,320
The Huntington National Bank 96 5.13% $6,417
LIBERTY HOME MORTGAGE CORPORATION 70 5.21% $8,269
RUOFF MORTGAGE COMPANY, INC. 59 5.41% $5,274
Nations Lending Corporation 49 4.95% $7,674
NVR Mortgage Finance, Inc. 44 4.43% $13,272
LOANDEPOT.COM, LLC 39 5.18% $8,565
UNITED WHOLESALE MORTGAGE, LLC 38 4.77% $8,682
UNION HOME MORTGAGE CORP. 36 5.28% $8,612
Citizens Bank 33 5.10% $5,749
HOWARD HANNA FINANCIAL SERVICES, INC. 32 5.15% $8,196
Mr. Cooper ( Nationstar Mortgage ) 32 4.60% $9,324
CALIBER HOME LOANS, INC. 31 5.37% $7,848
FREEDOM MORTGAGE CORPORATION 29 4.62% $8,651
EUSTIS AND AMERICAN MORTGAGE COMPANY 26 5.41% $7,658
POLARIS HOME FUNDING CORP. 25 5.40% $8,442
PENNYMAC LOAN SERVICES, LLC 23 4.55% $7,139
RELIANCE FIRST CAPITAL, LLC 22 4.89% $8,216
LAKEVIEW LOAN SERVICING, LLC 22 4.16% $4,941
FIRST OHIO HOME FINANCE, INC. 19 5.57% $3,918
AMERIFIRST FINANCIAL CORPORATION 18 5.25% $8,599
GUARANTEED RATE, INC. 17 4.95% $6,658
Waterstone Mortgage Corporation 17 4.71% $8,879
BROKER SOLUTIONS, INC. 17 5.51% $8,650
AMERICAN PACIFIC MORTGAGE CORPORATION 17 5.26% $8,722
American Midwest Mortgage Corporation 15 5.43% $7,241
Fifth Third Bank 12 4.32% $7,421
JPMorgan Chase Bank 12 4.70% $3,720
DRAPER AND KRAMER MORTGAGE CORP. 11 5.19% $8,027
Flagstar Bank, FSB 11 4.81% $8,036
T2 FINANCIAL LLC 11 4.57% $7,822
NEWREZ LLC 10 5.11% $7,694
AMERISAVE MORTGAGE CORPORATION 10 5.16% $9,050
MUTUAL OF OMAHA MORTGAGE, INC. 10 5.14% $8,306
TOP FLITE FINANCIAL, INC. 9 5.50% $11,219
U.S. Bank 9 5.01% $6,504
NFM, INC. 9 5.43% $8,960
PNC Bank 9 5.03% $6,726
VILLAGE CAPITAL MORTGAGE 8 3.98% $4,940
RAPID MORTGAGE COMPANY 8 5.03% $8,124
Mortgage Research Center, LLC 8 5.36% $4,043
AMERICAN FINANCING CORPORATION 8 4.19% $8,933
UNION CAPITAL MORTGAGE CORPORATION 7 5.13% $9,902
PRIMARY RESIDENTIAL MORTGAGE, INC. 7 6.09% $8,307
PRIMELENDING, A PLAINSCAPITAL COMPANY 7 4.95% $7,983
HALLMARK HOME MORTGAGE, LLC 7 5.64% $8,046
Carrington Mortgage Services, LLC 7 4.57% $8,741
CARDINAL FINANCIAL 7 5.38% $7,980
HOMESIDE FINANCIAL, LLC 7 4.93% $7,355
YOUR HOME FINANCIAL LLC 7 5.80% $6,644
KELLER MORTGAGE, LLC 6 4.52% $7,810
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 6 5.48% $6,683
LEADERONE FINANCIAL CORPORATION 6 5.23% $7,255
ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 5.73% $7,903
MYCUMORTGAGE, LLC 6 5.73% $5,479
Amerifirst Financial, Inc. 6 5.00% $5,923
ABSOLUTE HOME MORTGAGE CORPORATION 5 4.35% $9,339
HOME POINT FINANCIAL CORPORATION 5 4.72% $8,784
MID AMERICA MORTGAGE, INC. 5 6.05% $4,486
MOVEMENT MORTGAGE, LLC 5 4.73% $8,044
WEST PENN FINANCIAL SERVICE CENTER, INC. 5 5.75% $6,260
Bank of England 4 5.25% $7,703
PULTE MORTGAGE LLC 4 4.72% $8,117
M&T Bank 4 4.16% $7,833
CMG MORTGAGE, INC. 4 5.50% $11,796
ZILLOW HOME LOANS, LLC 4 5.47% $8,767
Lakeview Community Capital, LLC 4 3.00% $5,684
RESIDENTIAL BANCORP 4 5.34% $6,621
MORIA DEVELOPMENT, INC. 4 5.25% $9,916
KeyBank 4 5.34% $5,741
Dollar Bank, Federal Savings Bank 4 3.62% $5,435
Equity Prime Mortgage LLC 4 5.63% $6,483
NATIONWIDE MORTGAGE BANKERS, INC. 4 6.47% $13,974
AMCAP MORTGAGE, LTD. 3 5.83% $9,182
Gateway First Bank 3 5.71% $5,959
First Commonwealth Bank 3 5.00% $6,395
EVERETT FINANCIAL, INC. 3 5.33% $5,907
ALLIED MORTGAGE GROUP, INC. 3 4.46% $9,369
Wells Fargo Bank 3 4.21% $2,767
GENEVA FINANCIAL, LLC 3 6.29% $10,569
GUILD MORTGAGE COMPANY 3 5.29% $9,875
PHH Mortgage Corporation 3 4.58% $7,332
Plains Commerce Bank 3 6.17% $4,896
UNITED MORTGAGE CORP 2 4.56% $12,590
Ixonia Bank 2 5.88% $6,369
AMERICAN FINANCIAL RESOURCES, INC. 2 4.75% $9,081
NETWORK CAPITAL FUNDING CORPORATION 2 5.19% $10,612
NEW DAY FINANCIAL, LLC 2 6.75% $6,551
Florida Capital Bank 2 5.69% $4,614
ROYAL UNITED MORTGAGE LLC 2 4.19% $8,035
MICHIGAN MUTUAL, INC. 2 6.25% $7,962
DELMAR FINANCIAL COMPANY 2 4.00% $9,892
PLANET HOME LENDING, LLC 2 6.00% $15,600
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 2 5.19% $7,181
NORTHERN MORTGAGE SERVICES, LLC 2 5.50% $8,406
Northpointe Bank 2 6.25% $7,766
PLAZA HOME MORTGAGE, INC. 2 5.63% $13,721
First Federal Savings and Loan Association of Lakewood 2 4.75% $10,021
EMBRACE HOME LOANS, INC. 2 5.37% $8,110
LOANPAL, LLC 2 5.25% $9,093
Paramount Residential Mortgage Group, Inc. 2 3.88% $7,238
FIRST CENTENNIAL MORTGAGE CORPORATION 2 5.69% $10,103
Magnolia Bank 2 6.13% $10,982
NATIONS DIRECT MORTGAGE, LLC 2 4.69% $8,200
EQUITY RESOURCES, INC. 2 4.31% $9,751
TOWNE MORTGAGE COMPANY 2 5.75% $12,648
SUN WEST MORTGAGE COMPANY, INC. 2 3.81% $9,557
AmeriHome Mortgage Company, LLC 2 4.63% $11,741
Hometown Lenders, Inc. 1 6.62% $12,920
Independent Bank 1 5.00% $10,069
GUARANTEED RATE AFFINITY, LLC 1 5.25% $9,926
Lend Smart Mortgage, LLC 1 5.75% $5,272
First Guaranty Mortgage Corporation 1 3.63% $5,838
Merchants Bank of Indiana 1 4.75% $5,175
Wyndham Capital Mortgage, Inc. 1 6.25% $5,741
MLB RESIDENTIAL LENDING, LLC 1 4.99% $5,663
MORTGAGE CENTER L.C 1 4.13% $6,336
First Federal Bank 1 5.13% $18,116
AHL FUNDING 1 4.50% $15,722
EMM LOANS LLC 1 3.88% $6,234
NORWICH COMMERCIAL GROUP, INC. 1 3.75% $7,220
Paramount Bank 1 3.88% $5,920
East Coast Capital Corp. 1 3.63% $8,650
DAS Acquisition Company, LLC 1 5.63% $10,829
CONTOUR MORTGAGE CORPORATION 1 5.75% $11,601
Civista Bank 1 4.63% $10,297
CHERRY CREEK MORTGAGE, LLC 1 5.25% $7,326
ROUNDPOINT MORTGAGE SERVICING CORPORATION 1 5.25% $6,060
Century Mortgage Company DBA Century Lending Company 1 5.75% $5,973
Servion, Inc. 1 5.38% $4,877
Sierra Pacific Mortgage Company, Inc. 1 5.50% $3,516
CANTON SCHOOL EMPLOYEES 1 3.88% $4,245
The Farmers National Bank of Canfield 1 3.50% $6,233
The Federal Savings Bank 1 4.50% $20,272
BETTER MORTGAGE CORPORATION 1 4.25% $4,903
The Union Bank Company 1 4.25% $14,108
BAY EQUITY LLC 1 6.25% $8,505
AMERICAN MORTGAGE SERVICE COMPANY 1 4.75% $8,054
VANDERBILT MORTGAGE AND FINANCE, INC. 1 4.00% $5,792
VAN DYK MORTGAGE CORPORATION 1 5.50% $4,588
VERITAS FUNDING, LLC 1 5.50% $15,914
WesBanco 1 5.75% $6,855
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 3.25% $9,496
Home State Bank 1 3.88% $10,154

The top Akron FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 323 FHA loans originated. Their average total fees are $8,919, which is $1,060 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Akron FHA lenders (with over 10 loans originated) are JPMorgan Chase Bank ($3,720), FIRST OHIO HOME FINANCE, INC. ($3,918), LAKEVIEW LOAN SERVICING, LLC ($4,941), RUOFF MORTGAGE COMPANY, INC. ($5,274) and Citizens Bank ($5,749).

The lowest rate Akron FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC (4.16%), Fifth Third Bank (4.32%), NVR Mortgage Finance, Inc. (4.43%), PENNYMAC LOAN SERVICES, LLC (4.55%) and T2 FINANCIAL LLC (4.57%).

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 $132,450 (5.0%) $213,127 (8.5%) 0.49 1,867
2018-02-01 $133,800 (3.0%) $215,526 (7.0%) 0.49 1,844
2018-03-01 $145,000 (5.1%) $229,294 (9.2%) 0.51 1,792
2018-04-01 $149,950 (7.1%) $236,539 (9.6%) 0.51 1,770
2018-05-01 $162,400 (16.0%) $243,967 (6.9%) 0.54 1,807
2018-06-01 $169,900 (18.7%) $251,718 (9.6%) 0.57 1,920
2018-07-01 $172,875 (16.0%) $253,010 (9.6%) 0.58 1,959
2018-08-01 $165,725 (10.6%) $242,523 (6.5%) 0.56 2,098
2018-09-01 $160,000 (8.1%) $239,124 (5.2%) 0.54 2,130
2018-10-01 $159,900 (11.4%) $235,622 (7.2%) 0.54 2,104
2018-11-01 $154,950 (10.7%) $236,054 (8.9%) 0.53 2,004
2018-12-01 $152,000 (9.6%) $232,712 (8.8%) 0.52 1,789
2019-01-01 $149,900 (13.2%) $234,131 (9.9%) 0.52 1,623
2019-02-01 $152,775 (14.2%) $245,081 (13.7%) 0.52 1,480
2019-03-01 $163,872 (13.0%) $252,014 (9.9%) 0.54 1,485
2019-04-01 $169,125 (12.8%) $258,378 (9.2%) 0.54 1,493
2019-05-01 $174,900 (7.7%) $254,801 (4.4%) 0.55 1,548
2019-06-01 $179,000 (5.4%) $255,767 (1.6%) 0.56 1,692
2019-07-01 $177,450 (2.7%) $256,523 (1.4%) 0.56 1,787
2019-08-01 $172,200 (3.9%) $251,627 (3.8%) 0.55 1,816
2019-09-01 $168,150 (5.1%) $246,166 (2.9%) 0.54 1,868
2019-10-01 $165,000 (3.2%) $241,600 (2.5%) 0.53 1,938
2019-11-01 $154,150 (-0.5%) $224,815 (-4.8%) 0.51 1,873
2019-12-01 $149,900 (-1.4%) $216,795 (-6.8%) 0.50 1,705
2020-01-01 $144,900 (-3.3%) $216,557 (-7.5%) 0.48 1,544
2020-02-01 $149,900 (-1.9%) $225,280 (-8.1%) 0.49 1,388
2020-03-01 $159,950 (-2.4%) $240,318 (-4.6%) 0.50 1,295
2020-04-01 $167,200 (-1.1%) $246,488 (-4.6%) 0.52 1,261
2020-05-01 $179,500 (2.6%) $255,278 (0.2%) 0.55 1,134
2020-06-01 $189,450 (5.8%) $267,833 (4.7%) 0.56 1,062
2020-07-01 $189,950 (7.0%) $271,112 (5.7%) 0.55 1,015
2020-08-01 $189,900 (10.3%) $272,614 (8.3%) 0.54 923
2020-09-01 $179,950 (7.0%) $270,789 (10.0%) 0.52 918
2020-10-01 $179,900 (9.0%) $265,953 (10.1%) 0.52 927
2020-11-01 $166,750 (8.2%) $253,511 (12.8%) 0.49 915
2020-12-01 $158,500 (5.7%) $239,545 (10.5%) 0.47 792
2021-01-01 $149,900 (3.5%) $229,439 (6.0%) 0.45 676
2021-02-01 $153,850 (2.6%) $248,136 (10.2%) 0.45 523
2021-03-01 $167,400 (4.7%) $256,752 (6.8%) 0.48 482
2021-04-01 $179,925 (7.6%) $267,615 (8.6%) 0.49 478
2021-05-01 $189,450 (5.5%) $272,707 (6.8%) 0.50 583
2021-06-01 $187,450 (-1.1%) $272,231 (1.6%) 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 $187,425 (-1.1%) $293,413 (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 $187,594 (10.4%) $266,783 (0.7%) 0.45 1,089
2022-12-01 $179,999 (14.4%) $267,984 (5.3%) 0.44 929
2023-01-01 $177,450 (18.9%) $264,340 (3.9%) 0.44 792
2023-02-01 $180,450 (16.4%) $270,612 (0.2%) 0.44 656
2023-03-01 $179,925 (4.6%) $274,974 (-3.1%) 0.42 612
2023-04-01 $199,900 (11.1%) $290,906 (-1.1%) 0.46 578
2023-05-01 $211,000 (12.6%) $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 $229,925 (21.7%) $323,978 (19.1%) 0.54 900
2023-11-01 $214,993 (14.6%) $316,819 (18.8%) 0.51 884
2023-12-01 $214,995 (19.4%) $317,227 (18.4%) 0.52 786
2024-01-01 $210,500 (18.6%) $322,223 (21.9%) 0.51 701
Akron's median listing price for 2024-01-01 was $210,500, a difference of $33,050 (18.6%) versus the prior year and $-4,495 versus the prior month.

Akron's median listing price comes in at 51% of the national average.

Akron's average listing price for 2024-01-01 was $322,223, a difference of $57,883 (21.9%) versus the prior year and $4,996 versus the prior month.

For the 2024-01-01 period, Akron had 701 MLS listings, a difference of -85 listings (-11%) versus the prior month and -91 listings (-11%) 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 1,548 sqft
2018-03-01 56 days 1,589 sqft
2018-04-01 49 days 1,606 sqft
2018-05-01 47 days 1,666 sqft
2018-06-01 45 days 1,698 sqft
2018-07-01 50 days 1,869 sqft
2018-08-01 48 days 1,800 sqft
2018-09-01 53 days 1,788 sqft
2018-10-01 57 days 1,782 sqft
2018-11-01 59 days 1,738 sqft
2018-12-01 67 days 1,722 sqft
2019-01-01 75 days 1,681 sqft
2019-02-01 72 days 1,707 sqft
2019-03-01 55 days 1,728 sqft
2019-04-01 44 days 1,747 sqft
2019-05-01 42 days 1,703 sqft
2019-06-01 43 days 1,725 sqft
2019-07-01 47 days 1,742 sqft
2019-08-01 51 days 1,733 sqft
2019-09-01 53 days 1,729 sqft
2019-10-01 54 days 1,726 sqft
2019-11-01 61 days 1,679 sqft
2019-12-01 70 days 1,634 sqft
2020-01-01 80 days 1,619 sqft
2020-02-01 77 days 1,645 sqft
2020-03-01 58 days 1,708 sqft
2020-04-01 54 days 1,714 sqft
2020-05-01 72 days 1,750 sqft
2020-06-01 55 days 1,820 sqft
2020-07-01 45 days 1,825 sqft
2020-08-01 48 days 1,800 sqft
2020-09-01 51 days 1,767 sqft
2020-10-01 46 days 1,750 sqft
2020-11-01 50 days 1,658 sqft
2020-12-01 57 days 1,578 sqft
2021-01-01 60 days 1,536 sqft
2021-02-01 50 days 1,559 sqft
2021-03-01 36 days 1,595 sqft
2021-04-01 32 days 1,659 sqft
2021-05-01 26 days 1,702 sqft
2021-06-01 24 days 1,707 sqft
2021-07-01 29 days 1,692 sqft
2021-08-01 31 days 1,657 sqft
2021-09-01 37 days 1,634 sqft
2021-10-01 39 days 1,616 sqft
2021-11-01 42 days 1,623 sqft
2021-12-01 45 days 1,564 sqft
2022-01-01 50 days 1,538 sqft
2022-02-01 46 days 1,547 sqft
2022-03-01 35 days 1,575 sqft
2022-04-01 25 days 1,590 sqft
2022-05-01 28 days 1,636 sqft
2022-06-01 28 days 1,668 sqft
2022-07-01 31 days 1,680 sqft
2022-08-01 36 days 1,670 sqft
2022-09-01 36 days 1,652 sqft
2022-10-01 36 days 1,641 sqft
2022-11-01 39 days 1,665 sqft
2022-12-01 49 days 1,624 sqft
2023-01-01 56 days 1,608 sqft
2023-02-01 48 days 1,621 sqft
2023-03-01 38 days 1,584 sqft
2023-04-01 36 days 1,671 sqft
2023-05-01 36 days 1,686 sqft
2023-06-01 33 days 1,693 sqft
2023-07-01 34 days 1,747 sqft
2023-08-01 32 days 1,743 sqft
2023-09-01 36 days 1,731 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
Akron's median listing age (time on market) for 2024-01-01 was 53 days. This is -5% shorter than the same period one year ago.

Akron's median square footage for active listings during the 2024-01-01 period was 1,672 sqft. One year prior, the average listing was 1,608 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).