Albuquerque FHA Loan Rates, Closing Costs & Stats

ALBUQUERQUE, NM

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    • 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 6.67% for the week of 2024-04-19, compared to the national average (all FHA variants) of 6.855% for the same period.

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

    The average rate for the prior week (2024-04-12) was 6.66% and one month ago for the week of 2024-03-15, the average rate was 6.62%.

    The average rate one year ago was 6.25%.

    For refis of the same type during the week of 2024-04-19, the average rate was 6.69%.

    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
    Albuquerque's median listing price for 2024-03-01 was $414,495, a difference of $14,995 (3.8%) versus the prior year and $1,995 versus the prior month.

    Albuquerque's median listing price comes in at 98% of the national average.

    Albuquerque's average listing price for 2024-03-01 was $510,977, a difference of $-14,573 (-2.8%) versus the prior year and $-898 versus the prior month.

    For the 2024-03-01 period, Albuquerque had 1,132 MLS listings, a difference of 10 listings (1%) versus the prior month and 262 listings (30%) 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
    Albuquerque's median listing age (time on market) for 2024-03-01 was 52 days. This is -5% shorter than the same period one year ago.

    Albuquerque's median square footage for active listings during the 2024-03-01 period was 2,026 sqft. One year prior, the average listing was 2,034 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).