Albuquerque FHA Loan Rates, Closing Costs & Stats

ALBUQUERQUE, NM

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.

Albuquerque's 127 lenders originated 3,057 FHA loans during 2023. The total origination value was $828,585,000, with an average FHA loan value of $271,045.

Albuquerque FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Albuquerque averaged 6.2% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

Albuquerque's average FHA mortgage closing costs are $7,845.

The average rate for the prior week (2024-07-12) was 6.45% and one month ago for the week of 2024-06-14, the average rate was 6.61%.

The average rate one year ago was 6.8%.

For refis of the same type during the week of 2024-07-19, the average rate was 6.72%.

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

Albuquerque 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 Albuquerque level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
Waterstone Mortgage Corporation 309 6.33% $10,221
GUILD MORTGAGE COMPANY 227 6.43% $11,754
QUICKEN LOANS, LLC 199 6.07% $11,960
UNITED WHOLESALE MORTGAGE, LLC 197 6.37% $10,986
DHI MORTGAGE COMPANY, LTD. 175 5.33% $9,302
PRIMARY RESIDENTIAL MORTGAGE, INC. 126 6.67% $12,383
LOANDEPOT.COM, LLC 106 6.44% $10,231
BOKF 95 6.24% $11,966
DIRECTORS MORTGAGE, INC. 88 6.51% $11,646
CARDINAL FINANCIAL 61 6.25% $15,186
PRIMELENDING, A PLAINSCAPITAL COMPANY 53 6.51% $11,577
NUSENDA 48 6.30% $10,362
GUARANTEED RATE, INC. 41 6.56% $11,642
PLAZA HOME MORTGAGE, INC. 39 6.37% $13,171
MORTGAGE SOLUTIONS OF COLORADO, LLC 38 6.63% $13,126
Nations Lending Corporation 37 6.10% $10,498
FREEDOM MORTGAGE CORPORATION 36 6.91% $14,796
HOMETRUST MORTGAGE COMPANY 35 6.31% $12,647
Century Mortgage Company DBA Century Lending Company 32 6.43% $11,895
PULTE MORTGAGE LLC 29 5.75% $10,123
CALCON MUTUAL MORTGAGE LLC 28 7.35% $13,821
Sunflower Bank 28 6.15% $10,013
Mr. Cooper ( Nationstar Mortgage ) 26 6.08% $15,306
Plains Commerce Bank 25 6.30% $13,174
PENNYMAC LOAN SERVICES, LLC 24 6.03% $13,806
BROKER SOLUTIONS, INC. 24 6.59% $12,009
MID AMERICA MORTGAGE, INC. 24 7.00% $7,383
AMERICAN PACIFIC MORTGAGE CORPORATION 24 6.68% $12,035
Carrington Mortgage Services, LLC 23 6.22% $12,394
Commerce Home Mortgage, Inc. 23 6.10% $9,920
CMG MORTGAGE, INC. 22 7.00% $11,108
ACADEMY MORTGAGE CORPORATION 21 6.85% $13,510
AMERISAVE MORTGAGE CORPORATION 20 6.09% $15,614
Wallick & Volk, Inc. 19 6.03% $10,777
LOANPAL, LLC 19 5.94% $13,411
NEWREZ LLC 19 6.37% $13,598
MASON MCDUFFIE MORTGAGE CORPORATION 18 6.47% $13,831
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 18 6.40% $9,014
Flagstar Bank, FSB 18 6.37% $10,766
Equity Prime Mortgage LLC 16 6.85% $13,013
VAN DYK MORTGAGE CORPORATION 15 6.65% $11,272
BAY EQUITY LLC 14 6.17% $9,637
HOMEAMERICAN MORTGAGE CORPORATION 11 5.56% $8,725
HOMEBRIDGE FINANCIAL SERVICES, INC. 11 6.31% $13,585
LAKEVIEW LOAN SERVICING, LLC 10 6.16% $13,642
MUTUAL OF OMAHA MORTGAGE, INC. 10 6.65% $15,233
UNION HOME MORTGAGE CORP. 10 6.79% $9,501
SUN WEST MORTGAGE COMPANY, INC. 9 6.62% $9,281
Loan Simple, Inc. 8 7.11% $16,805
POLARIS HOME FUNDING CORP. 8 6.67% $13,136
RELIANCE FIRST CAPITAL, LLC 8 6.33% $12,297
Mortgage Research Center, LLC 7 6.57% $8,551
FIRST COMMUNITY MORTGAGE, INC. 7 6.80% $9,944
CROSSCOUNTRY MORTGAGE, LLC 7 6.39% $14,967
Bank of America 5 6.20% $13,327
Sierra Pacific Mortgage Company, Inc. 5 6.07% $15,629
EVERETT FINANCIAL, INC. 5 6.90% $10,494
SIRVA MORTGAGE, INC. 4 6.81% $7,975
OCMBC, INC. 4 7.53% $12,092
AMCAP MORTGAGE, LTD. 4 6.78% $13,365
AMERICAN FINANCIAL NETWORK, INC. 4 6.81% $12,195
VERITAS FUNDING, LLC 4 6.72% $18,476
SECURITYNATIONAL MORTGAGE COMPANY 4 6.19% $10,651
MOVEMENT MORTGAGE, LLC 4 5.91% $11,505
Wells Fargo Bank 4 6.22% $12,602
ROYAL UNITED MORTGAGE LLC 4 6.50% $13,243
DAS Acquisition Company, LLC 3 6.96% $9,574
NTFN, INC. 3 6.42% $10,729
PNC Bank 3 6.67% $8,443
HOMESIDE FINANCIAL, LLC 3 6.25% $16,205
Neighborhood Loans, Inc. 3 7.04% $10,967
TOP FLITE FINANCIAL, INC. 3 7.00% $14,213
FBC MORTGAGE, LLC 3 5.75% $11,477
Bell Bank 3 7.08% $8,996
Chickasaw Community Bank 3 6.71% $11,734
HOME FUNDING CORPORATION 3 6.83% $19,663
PHH Mortgage Corporation 3 6.00% $9,696
Barrington Bank & Trust Company, N.A. 2 6.25% $10,322
ZILLOW HOME LOANS, LLC 2 6.63% $10,131
First American Bank 2 6.50% $8,838
Kirtland Federal Credit Union 2 6.56% $10,678
EMBRACE HOME LOANS, INC. 2 6.50% $12,515
MEMBER FIRST MORTGAGE, LLC 2 5.88% $10,287
MICHIGAN MUTUAL, INC. 2 7.00% $10,743
CORNERSTONE HOME LENDING, INC. 2 6.06% $11,184
M&T Bank 2 6.75% $10,425
NBKC BANK 2 5.81% $7,699
CASTLE & COOKE MORTGAGE, LLC 2 6.38% $10,620
Paramount Residential Mortgage Group, Inc. 2 6.44% $12,635
PENTAGON FEDERAL CREDIT UNION 2 5.56% $9,487
PLANET HOME LENDING, LLC 2 5.69% $9,895
Prosperity Home Mortgage, LLC 2 6.12% $15,323
AMERICAN FINANCING CORPORATION 2 6.25% $9,152
The Federal Savings Bank 2 6.56% $15,424
TJC Mortgage, Inc. 2 6.50% $15,003
VILLAGE CAPITAL MORTGAGE 2 6.32% $12,105
V.I.P. MORTGAGE, INC. 1 6.25% $13,038
NFM, INC. 1 6.63% $13,901
AmeriHome Mortgage Company, LLC 1 6.63% $12,028
RANLIFE, INC. 1 7.00% $9,130
NEW DAY FINANCIAL, LLC 1 6.75% $12,526
Colonial Savings, F.A. 1 6.63% $12,188
MORIA DEVELOPMENT, INC. 1 6.63% $14,884
Servion, Inc. 1 7.25% $8,555
MANN FINANCIAL INC. 1 7.38% $9,072
Lend Smart Mortgage, LLC 1 6.25% $17,069
SOVEREIGN LENDING GROUP INCORPORATED 1 6.63% $15,554
Strong Home Mortgage, LLC 1 7.25% $12,035
SUMMIT FUNDING, INC. 1 7.25% $12,391
GENEVA FINANCIAL, LLC 1 6.63% $6,477
LEGEND LENDING CORPORATION 1 6.13% $21,164
The Central Trust Bank 1 6.00% $11,021
Gateway First Bank 1 6.25% $8,640
First Liberty Bank 1 6.25% $10,851
LADERA LENDING, INC. 1 5.63% $10,152
TruHome Solutions, LLC 1 4.88% $14,743
INTERNATIONAL CITY MORTGAGE, INC. 1 6.75% $11,562
AMERICAN FINANCIAL RESOURCES, INC. 1 7.25% $9,564
U.S. Bank 1 7.25% $9,155
HOMESTAR FINANCIAL CORPORATION 1 6.25% $13,340
Goldwater Bank, N.A. 1 7.63% $11,898
FirstLight Federal Credit Union 1 5.75% $8,372
BMO Harris Bank 1 7.25% $9,706
NOVA FINANCIAL & INVESTMENT CORPORATION 1 5.75% $22,051
PREMIA MORTGAGE, LLC 1 5.00% $17,899
First National Bank Texas 1 5.25% $12,198
Bank of England 1 7.50% $19,086

The top Albuquerque FHA lender as defined by loan originations is Waterstone Mortgage Corporation, with 309 FHA loans originated. Their average total fees are $10,221, which is $1,533 lower than the next largest lender, GUILD MORTGAGE COMPANY.

The lowest fee Albuquerque FHA lenders (with over 10 loans originated) are MID AMERICA MORTGAGE, INC. ($7,383), HOMEAMERICAN MORTGAGE CORPORATION ($8,725), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,014), DHI MORTGAGE COMPANY, LTD. ($9,302) and UNION HOME MORTGAGE CORP. ($9,501).

The lowest rate Albuquerque FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.33%), HOMEAMERICAN MORTGAGE CORPORATION (5.56%), PULTE MORTGAGE LLC (5.75%), LOANPAL, LLC (5.94%) and PENNYMAC LOAN SERVICES, LLC (6.03%).

Albuquerque FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
ALBUQUERQUE, NM BERNALILLO 2022 $420,680 $538,650 $651,050 $809,150
ALBUQUERQUE, NM SANDOVAL 2022 $420,680 $538,650 $651,050 $809,150
ALBUQUERQUE, NM TORRANCE 2022 $420,680 $538,650 $651,050 $809,150
ALBUQUERQUE, NM VALENCIA 2022 $420,680 $538,650 $651,050 $809,150
ALBUQUERQUE, NM BERNALILLO 2023 $472,030 $604,400 $730,525 $907,900
ALBUQUERQUE, NM SANDOVAL 2023 $472,030 $604,400 $730,525 $907,900
ALBUQUERQUE, NM TORRANCE 2023 $472,030 $604,400 $730,525 $907,900
ALBUQUERQUE, NM VALENCIA 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Albuquerque (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 $239,000 (3.9%) $309,398 (2.6%) 0.89 2,764
2018-02-01 $242,900 (2.9%) $316,882 (3.8%) 0.88 2,688
2018-03-01 $245,000 (2.1%) $322,196 (5.0%) 0.86 2,614
2018-04-01 $250,000 (2.2%) $325,360 (4.2%) 0.85 2,726
2018-05-01 $258,838 (4.0%) $327,541 (3.3%) 0.86 2,915
2018-06-01 $259,900 (4.0%) $326,481 (1.7%) 0.87 3,143
2018-07-01 $252,450 (1.4%) $320,215 (-0.7%) 0.84 3,328
2018-08-01 $249,945 (2.0%) $315,470 (-2.2%) 0.84 3,385
2018-09-01 $246,895 (1.7%) $313,914 (-1.6%) 0.83 3,330
2018-10-01 $248,079 (3.4%) $318,151 (0.1%) 0.84 3,307
2018-11-01 $249,500 (4.0%) $316,601 (1.3%) 0.85 3,106
2018-12-01 $249,000 (5.1%) $314,653 (1.0%) 0.86 2,839
2019-01-01 $247,850 (3.7%) $314,277 (1.6%) 0.86 2,466
2019-02-01 $250,486 (3.1%) $323,390 (2.1%) 0.85 2,368
2019-03-01 $261,745 (6.8%) $336,380 (4.4%) 0.86 2,286
2019-04-01 $269,850 (7.9%) $344,436 (5.9%) 0.86 2,311
2019-05-01 $269,945 (4.3%) $346,574 (5.8%) 0.84 2,430
2019-06-01 $273,500 (5.2%) $349,731 (7.1%) 0.85 2,623
2019-07-01 $272,450 (7.9%) $349,829 (9.3%) 0.85 2,648
2019-08-01 $273,427 (9.4%) $350,050 (11.0%) 0.87 2,637
2019-09-01 $271,218 (9.9%) $349,311 (11.3%) 0.87 2,622
2019-10-01 $269,745 (8.7%) $348,211 (9.5%) 0.87 2,606
2019-11-01 $269,000 (7.8%) $344,694 (8.9%) 0.88 2,388
2019-12-01 $267,475 (7.4%) $344,538 (9.5%) 0.89 2,072
2020-01-01 $271,046 (9.4%) $351,054 (11.7%) 0.91 1,777
2020-02-01 $280,697 (12.1%) $360,132 (11.4%) 0.92 1,706
2020-03-01 $289,400 (10.6%) $367,039 (9.1%) 0.91 1,670
2020-04-01 $288,000 (6.7%) $361,445 (4.9%) 0.90 1,770
2020-05-01 $300,000 (11.1%) $372,626 (7.5%) 0.91 1,693
2020-06-01 $316,495 (15.7%) $393,346 (12.5%) 0.93 1,465
2020-07-01 $313,605 (15.1%) $390,251 (11.6%) 0.91 1,353
2020-08-01 $319,900 (17.0%) $396,875 (13.4%) 0.92 1,329
2020-09-01 $317,750 (17.2%) $394,212 (12.9%) 0.91 1,304
2020-10-01 $307,980 (14.2%) $392,516 (12.7%) 0.88 1,291
2020-11-01 $305,000 (13.4%) $383,831 (11.4%) 0.89 1,268
2020-12-01 $309,450 (15.7%) $390,401 (13.3%) 0.92 1,052
2021-01-01 $310,775 (14.7%) $395,687 (12.7%) 0.93 850
2021-02-01 $315,500 (12.4%) $395,511 (9.8%) 0.92 744
2021-03-01 $318,500 (10.1%) $401,596 (9.4%) 0.90 703
2021-04-01 $325,000 (12.9%) $420,196 (16.3%) 0.88 688
2021-05-01 $329,900 (10.0%) $430,949 (15.7%) 0.88 721
2021-06-01 $344,975 (9.0%) $434,355 (10.4%) 0.91 861
2021-07-01 $340,000 (8.4%) $432,695 (10.9%) 0.90 959
2021-08-01 $340,000 (6.3%) $438,447 (10.5%) 0.91 1,002
2021-09-01 $346,184 (9.0%) $448,161 (13.7%) 0.92 1,028
2021-10-01 $359,900 (16.9%) $460,879 (17.4%) 0.96 953
2021-11-01 $362,450 (18.8%) $464,487 (21.0%) 0.97 833
2021-12-01 $350,000 (13.1%) $459,248 (17.6%) 0.95 687
2022-01-01 $369,000 (18.7%) $465,663 (17.7%) 1.00 593
2022-02-01 $371,870 (17.9%) $477,367 (20.7%) 0.97 566
2022-03-01 $369,595 (16.0%) $475,091 (18.3%) 0.93 550
2022-04-01 $379,000 (16.6%) $485,254 (15.5%) 0.90 600
2022-05-01 $393,581 (19.3%) $482,938 (12.1%) 0.90 784
2022-06-01 $392,500 (13.8%) $478,435 (10.2%) 0.87 998
2022-07-01 $390,000 (14.7%) $485,200 (12.1%) 0.88 1,248
2022-08-01 $394,688 (16.1%) $487,927 (11.3%) 0.91 1,296
2022-09-01 $385,283 (11.3%) $480,629 (7.2%) 0.90 1,396
2022-10-01 $385,000 (7.0%) $485,713 (5.4%) 0.91 1,422
2022-11-01 $379,000 (4.6%) $480,438 (3.4%) 0.91 1,454
2022-12-01 $375,000 (7.1%) $486,774 (6.0%) 0.93 1,227
2023-01-01 $377,450 (2.3%) $496,781 (6.7%) 0.94 1,067
2023-02-01 $386,498 (3.9%) $513,554 (7.6%) 0.93 908
2023-03-01 $399,500 (8.1%) $525,550 (10.6%) 0.94 870
2023-04-01 $400,000 (5.5%) $528,442 (8.9%) 0.93 871
2023-05-01 $412,920 (4.9%) $527,112 (9.2%) 0.94 912
2023-06-01 $417,012 (6.3%) $524,218 (9.6%) 0.94 1,037
2023-07-01 $414,495 (6.3%) $521,163 (7.4%) 0.94 1,106
2023-08-01 $400,223 (1.4%) $510,514 (4.6%) 0.92 1,185
2023-09-01 $399,000 (3.6%) $491,157 (2.2%) 0.93 1,309
2023-10-01 $399,950 (3.9%) $496,992 (2.3%) 0.94 1,400
2023-11-01 $398,500 (5.2%) $489,133 (1.8%) 0.95 1,440
2023-12-01 $399,500 (6.5%) $496,016 (1.9%) 0.97 1,376
2024-01-01 $410,000 (8.6%) $499,005 (0.5%) 1.00 1,185
2024-02-01 $412,500 (6.7%) $511,875 (-0.3%) 0.99 1,122
2024-03-01 $414,495 (3.8%) $510,977 (-2.8%) 0.98 1,132
2024-04-01 $410,788 (2.7%) $508,645 (-3.8%) 0.96 1,271
2024-05-01 $423,913 (2.7%) $522,158 (-0.9%) 0.96 1,391
2024-06-01 $422,500 (1.3%) $515,724 (-1.6%) 0.95 1,509
Albuquerque's median listing price for 2024-06-01 was $422,500, a difference of $5,488 (1.3%) versus the prior year and $-1,413 versus the prior month.

Albuquerque's median listing price comes in at 95% of the national average.

Albuquerque's average listing price for 2024-06-01 was $515,724, a difference of $-8,494 (-1.6%) versus the prior year and $-6,434 versus the prior month.

For the 2024-06-01 period, Albuquerque had 1,509 MLS listings, a difference of 118 listings (8%) versus the prior month and 472 listings (46%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Albuquerque (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 72 days 1,994 sqft
2018-02-01 62 days 2,023 sqft
2018-03-01 49 days 2,053 sqft
2018-04-01 44 days 2,075 sqft
2018-05-01 44 days 2,078 sqft
2018-06-01 46 days 2,078 sqft
2018-07-01 49 days 2,057 sqft
2018-08-01 52 days 2,037 sqft
2018-09-01 57 days 2,018 sqft
2018-10-01 58 days 2,020 sqft
2018-11-01 60 days 2,019 sqft
2018-12-01 67 days 2,020 sqft
2019-01-01 70 days 2,009 sqft
2019-02-01 61 days 2,022 sqft
2019-03-01 51 days 2,080 sqft
2019-04-01 45 days 2,120 sqft
2019-05-01 47 days 2,116 sqft
2019-06-01 51 days 2,110 sqft
2019-07-01 45 days 2,096 sqft
2019-08-01 48 days 2,088 sqft
2019-09-01 50 days 2,068 sqft
2019-10-01 54 days 2,068 sqft
2019-11-01 64 days 2,039 sqft
2019-12-01 75 days 2,034 sqft
2020-01-01 72 days 2,053 sqft
2020-02-01 58 days 2,093 sqft
2020-03-01 49 days 2,078 sqft
2020-04-01 50 days 2,050 sqft
2020-05-01 54 days 2,100 sqft
2020-06-01 59 days 2,147 sqft
2020-07-01 57 days 2,126 sqft
2020-08-01 51 days 2,153 sqft
2020-09-01 53 days 2,137 sqft
2020-10-01 50 days 2,099 sqft
2020-11-01 54 days 2,064 sqft
2020-12-01 59 days 2,095 sqft
2021-01-01 66 days 2,078 sqft
2021-02-01 62 days 2,015 sqft
2021-03-01 53 days 2,041 sqft
2021-04-01 49 days 2,050 sqft
2021-05-01 42 days 2,052 sqft
2021-06-01 33 days 2,047 sqft
2021-07-01 36 days 2,000 sqft
2021-08-01 39 days 2,016 sqft
2021-09-01 47 days 2,018 sqft
2021-10-01 52 days 2,092 sqft
2021-11-01 62 days 2,033 sqft
2021-12-01 57 days 1,976 sqft
2022-01-01 69 days 2,001 sqft
2022-02-01 37 days 1,973 sqft
2022-03-01 35 days 2,000 sqft
2022-04-01 32 days 2,000 sqft
2022-05-01 28 days 2,049 sqft
2022-06-01 30 days 2,038 sqft
2022-07-01 32 days 2,070 sqft
2022-08-01 44 days 2,083 sqft
2022-09-01 52 days 2,048 sqft
2022-10-01 56 days 2,025 sqft
2022-11-01 60 days 2,015 sqft
2022-12-01 67 days 2,003 sqft
2023-01-01 75 days 2,004 sqft
2023-02-01 67 days 2,030 sqft
2023-03-01 55 days 2,034 sqft
2023-04-01 48 days 2,067 sqft
2023-05-01 46 days 2,093 sqft
2023-06-01 43 days 2,085 sqft
2023-07-01 45 days 2,073 sqft
2023-08-01 49 days 2,022 sqft
2023-09-01 50 days 1,999 sqft
2023-10-01 52 days 2,045 sqft
2023-11-01 55 days 2,028 sqft
2023-12-01 64 days 2,010 sqft
2024-01-01 73 days 2,022 sqft
2024-02-01 65 days 2,028 sqft
2024-03-01 52 days 2,026 sqft
2024-04-01 51 days 2,010 sqft
2024-05-01 44 days 2,081 sqft
2024-06-01 47 days 2,046 sqft
Albuquerque's median listing age (time on market) for 2024-06-01 was 47 days. This is 9% longer than the same period one year ago.

Albuquerque's median square footage for active listings during the 2024-06-01 period was 2,046 sqft. One year prior, the average listing was 2,085 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).