Allentown FHA Loans

ALLENTOWN-BETHLEHEM-EASTON, PA-NJ

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.

Allentown's 183 lenders originated 4,492 FHA loans during 2021. The total origination value was $931,790,000, with an average FHA loan value of $207,433.

Allentown FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Allentown averaged 5.43% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

The average rate for the prior week (2022-05-13) was 5.54% and one month ago for the week of 2022-04-15, the average rate was 5.23%.

The average rate one year ago was 3.4%.

For refis of the same type during the week of 2022-05-20, the average rate was 5.3%.

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

Allentown FHA Loan Lenders by Rates & Fees

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

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
CROSSCOUNTRY MORTGAGE, LLC 413 3.19% $8,795
QUICKEN LOANS, LLC 410 2.78% $6,673
CALIBER HOME LOANS, INC. 247 2.92% $7,333
FINANCE OF AMERICA MORTGAGE LLC 183 3.16% $7,541
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 153 3.20% $9,134
Prosperity Home Mortgage, LLC 115 3.40% $8,525
LAKEVIEW LOAN SERVICING, LLC 113 3.09% $5,613
PENNYMAC LOAN SERVICES, LLC 104 2.96% $5,157
Atlantic Home Loans, Inc. 97 3.16% $8,538
FREEDOM MORTGAGE CORPORATION 95 3.01% $5,577
NEWREZ LLC 89 2.99% $6,870
Mr. Cooper ( Nationstar Mortgage ) 87 3.30% $4,747
Quaint Oak Mortgage, LLC 79 3.01% $7,428
MOVEMENT MORTGAGE, LLC 68 3.06% $8,041
Mortgage America, Inc. 65 3.02% $6,904
UNITED WHOLESALE MORTGAGE, LLC 63 2.65% $9,508
Carrington Mortgage Services, LLC 60 3.62% $8,227
LOANDEPOT.COM, LLC 52 3.16% $8,801
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 52 3.23% $9,935
ALLIED MORTGAGE GROUP, INC. 51 3.18% $8,582
Hometown Lenders, Inc. 49 3.29% $8,448
AMERICAN FINANCIAL NETWORK, INC. 47 3.15% $14,246
EMBRACE HOME LOANS, INC. 45 3.10% $8,151
ABSOLUTE HOME MORTGAGE CORPORATION 42 3.19% $9,112
VILLAGE CAPITAL & INVESTMENT LLC 41 2.83% $2,573
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 40 3.40% $8,167
AmeriHome Mortgage Company, LLC 39 2.81% $5,646
FAMILY FIRST FUNDING LLC 38 3.13% $10,620
Paramount Residential Mortgage Group, Inc. 38 3.33% $9,994
Lakeview Community Capital, LLC 36 3.11% $5,285
GUARANTEED RATE, INC. 36 3.16% $8,790
PRIMELENDING, A PLAINSCAPITAL COMPANY 31 3.27% $8,688
MORTGAGE ACCESS CORP. 31 3.37% $9,414
HOME POINT FINANCIAL CORPORATION 29 2.73% $7,211
T2 FINANCIAL LLC 29 3.17% $8,887
Bank of America 28 2.89% $3,617
BROKER SOLUTIONS, INC. 23 3.20% $8,294
NJ LENDERS CORP. 21 2.84% $9,293
PANORAMA MORTGAGE GROUP, LLC 21 3.31% $8,685
Univest Bank and Trust Co. 21 2.99% $7,525
Plains Commerce Bank 20 3.11% $7,574
ARK-LA-TEX FINANCIAL SERVICES, LLC. 17 3.38% $7,736
InterContinental Capital Group, Inc 16 3.02% $9,773
AMERISAVE MORTGAGE CORPORATION 16 2.83% $9,047
First Guaranty Mortgage Corporation 15 2.83% $8,225
FIRST HERITAGE FINANCIAL, LLC 15 3.03% $6,923
UNITED MORTGAGE CORP. 15 3.37% $9,139
RESIDENTIAL HOME MORTGAGE CORPORATION 13 3.38% $6,279
NATIONWIDE MORTGAGE BANKERS, INC. 13 3.28% $10,867
HOMESIDE FINANCIAL, LLC 13 3.12% $8,496
HOMEBRIDGE FINANCIAL SERVICES, INC. 13 2.86% $9,339
Advisors Mortgage Group, L.L.C. 12 3.18% $9,899
Fulton Bank 11 2.92% $7,249
Northpointe Bank 11 3.20% $9,214
Manufacturers and Traders Trust Company 11 2.78% $6,785
CHURCHILL MORTGAGE CORPORATION 11 3.18% $10,538
ENVOY MORTGAGE, LTD 11 3.16% $10,882
PNC Bank 10 2.90% $7,090
Equity Prime Mortgage LLC 9 3.14% $9,267
Princeton Mortgage Corporation 9 3.25% $8,123
OCEANSIDE MORTGAGE COMPANY 9 2.71% $3,233
AMERICAN FINANCING CORPORATION 8 2.89% $9,851
EVERETT FINANCIAL, INC. 8 3.64% $7,578
RESIDENTIAL MORTGAGE SERVICES, INC. 7 3.13% $6,205
Century Mortgage Company DBA Century Lending Company 7 2.86% $8,196
Gateway First Bank 7 3.11% $7,074
TOP FLITE FINANCIAL, INC. 7 3.43% $13,374
Huntingdon Valley Bank 7 3.07% $8,057
PLANET HOME LENDING, LLC 7 2.71% $5,110
MLB RESIDENTIAL LENDING, LLC 7 3.18% $10,004
SUN WEST MORTGAGE COMPANY, INC. 6 3.29% $11,547
Acre Mortgage and Financial Inc 6 3.58% $10,814
FIRST ALLIANCE HOME MORTGAGE, LLC 6 3.23% $10,195
EMM LOANS LLC 6 2.92% $9,352
Victorian Finance, LLC 6 3.23% $10,450
PHH Mortgage Corporation 6 3.17% $6,615
GUARANTEED RATE AFFINITY, LLC 5 2.73% $8,793
ROUNDPOINT MORTGAGE SERVICING CORPORATION 5 3.13% $7,533
SUCCESS MORTGAGE PARTNERS, INC. 5 2.83% $8,929
RELIANCE FIRST CAPITAL, LLC 5 2.93% $12,303
Nations Lending Corporation 5 3.03% $8,764
GREENTREE MORTGAGE COMPANY, L.P. 5 2.73% $9,682
UNITED NORTHERN MORTGAGE BANKERS LIMITED 4 3.13% $8,123
Mortgage Research Center, LLC 4 3.00% $6,460
RESIDENTIAL HOME FUNDING CORP. 4 3.13% $10,727
Alcova Mortgage LLC 4 2.94% $4,551
STEARNS LENDING, LLC 4 3.19% $5,764
Bank of England 4 3.66% $9,989
ZILLOW HOME LOANS, LLC 4 3.16% $6,682
SOVEREIGN LENDING GROUP INCORPORATED 4 2.72% $8,896
PRIMARY RESIDENTIAL MORTGAGE, INC. 4 3.47% $6,284
Citizens Bank 4 3.03% $5,377
JERSEY MORTGAGE COMPANY OF NEW JERSEY, INC. 4 3.19% $10,433
Florida Capital Bank 3 2.54% $11,918
MUTUAL OF OMAHA MORTGAGE, INC. 3 3.13% $9,483
SWBC MORTGAGE CORPORATION 3 3.67% $4,498
Unity Bank 3 2.88% $7,890
Customers Bank 3 3.08% $6,895
Summit Mortgage Corporation 3 3.04% $8,496
PLAZA HOME MORTGAGE, INC. 3 3.04% $12,605
MILLENIUM HOME MORTGAGE, LLC 3 3.13% $9,605
CMG MORTGAGE, INC. 3 3.58% $7,743
NVR Mortgage Finance, Inc. 3 2.91% $13,323
LOANLEADERS OF AMERICA, INC. 3 2.63% $11,775
Evesham Mortgage, LLC 3 3.00% $9,703
Wells Fargo Bank 3 3.38% $4,412
1st Constitution Bank 2 2.56% $8,514
ACADEMY MORTGAGE CORPORATION 2 2.75% $7,927
BOND STREET MORTGAGE, LLC 2 2.94% $11,271
CONTOUR MORTGAGE CORPORATION 2 3.25% $7,823
East Coast Capital Corp. 2 3.06% $12,531
EQUITY RESOURCES, INC. 2 2.75% $6,164
FAY SERVICING, LLC 2 3.06% $4,745
Financial Freedom Mortgage, LLC 2 2.75% $13,075
First Federal Bank 2 2.75% $7,572
GENNEXT FUNDING, LLC 2 3.50% $14,666
GUILD MORTGAGE COMPANY 2 3.63% $5,684
HOMESPIRE MORTGAGE CORPORATION 2 3.06% $8,381
HOWARD HANNA FINANCIAL SERVICES, INC. 2 3.38% $6,673
JPMorgan Chase Bank 2 2.75% $2,805
Lakeland Bank 2 3.00% $7,571
LEADERONE FINANCIAL CORPORATION 2 3.81% $10,549
MEMBER FIRST MORTGAGE, LLC 2 2.94% $10,470
Meridian Bank Corporation 2 3.25% $10,218
MORIA DEVELOPMENT, INC. 2 3.38% $7,297
NATION ONE MORTGAGE CORPORATION 2 3.44% $13,889
NFM, INC. 2 3.00% $8,590
Presidential Bank, FSB 2 2.88% $8,328
Sierra Pacific Mortgage Company, Inc. 2 2.69% $8,179
The Federal Savings Bank 2 2.81% $10,380
The Huntington National Bank 2 2.63% $9,719
TIDEWATER MORTGAGE SERVICES, INC. 2 3.13% $8,978
TOTAL MORTGAGE SERVICES, LLC 2 3.69% $8,869
TOWNE MORTGAGE COMPANY 2 3.50% $15,440
Truist Bank 2 2.88% $6,417
UNITED SECURITY FINANCIAL CORP 2 2.69% $6,336
U.S. Bank 2 2.69% $11,139
US MORTGAGE CORPORATION 2 3.38% $11,083
Valley National Bank 2 2.81% $11,726
Wyndham Capital Mortgage, Inc. 2 2.75% $8,546
Quontic Bank 1 3.25% $10,564
MDE Home Loans, LLC 1 3.25% $14,795
Keystone Funding, Inc. 1 3.25% $0
GUARANTY HOME MORTGAGE CORPORATION 1 3.00% $17,498
GREENWAY MORTGAGE FUNDING CORP. 1 3.25% $11,095
Residential Mortgage Solutions, Inc. 1 2.38% $10,339
FM Home Loans, LLC 1 2.63% $11,967
Santander Bank, N.A. 1 2.75% $11,150
SEVERN SAVINGS BANK, FSB DBA SEVERN BANK 1 3.50% $8,616
BAYSHORE MORTGAGE FUNDING, LLC 1 3.25% $8,924
Flagstar Bank, FSB 1 3.02% $6,058
Firstrust Savings Bank 1 2.75% $8,546
Stifel Bank and Trust 1 2.88% $6,323
Stride Bank 1 3.25% $7,534
First National Bank of Pennsylvania 1 2.50% $7,782
First Home Bank 1 4.25% $9,194
Fifth Third Bank 1 2.88% $7,087
DRAPER AND KRAMER MORTGAGE CORP. 1 2.75% $9,664
DHI MORTGAGE COMPANY, LTD. 1 3.50% $8,689
The Central Trust Bank 1 2.88% $7,691
Barrington Bank & Trust Company, N.A. 1 3.14% $5,860
ARC HOME LLC 1 2.75% $9,343
AMERICAN PACIFIC MORTGAGE CORPORATION 1 2.75% $9,062
CLIFFCO, INC. 1 3.13% $9,449
AMERICAN FINANCIAL RESOURCES, INC. 1 3.38% $7,604
AFFORDABLE MORTGAGE ADVISORS, LLC. 1 2.88% $8,798
VAN DYK MORTGAGE CORPORATION 1 3.25% $12,886
UNION HOME MORTGAGE CORP. 1 2.75% $10,721
CityWorth Mortgage LLC 1 3.00% $6,429
BETTER MORTGAGE CORPORATION 1 3.63% $5,886
OCMBC, INC. 1 2.75% $7,936
NP, Inc. 1 3.13% $9,695
Northeast Equitable Mortgage, LLC 1 3.50% $8,636
North American Savings Bank, F.S.B. 1 3.00% $7,282
NEW DAY FINANCIAL, LLC 1 3.75% $15,637
AmRes Corporation 1 2.63% $11,549
NETWORK CAPITAL FUNDING CORPORATION 1 2.75% $14,882
Prime Choice Funding Inc. 1 2.75% $6,563
Mortgage Unlimited, L.L.C. 1 2.75% $11,653
MLD MORTGAGE INC. 1 2.88% $5,544
MILEND, INC. 1 3.50% $4,646
Mid Penn Bank 1 3.38% $6,378
MID AMERICA MORTGAGE, INC. 1 2.88% $2,478

The top Allentown FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 413 FHA loans originated. Their average total fees are $8,795, which is $2,122 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Allentown FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,573), Bank of America ($3,617), Mr. Cooper ( Nationstar Mortgage ) ($4,747), PENNYMAC LOAN SERVICES, LLC ($5,157) and Lakeview Community Capital, LLC ($5,285).

The lowest rate Allentown FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (2.65%), HOME POINT FINANCIAL CORPORATION (2.73%), QUICKEN LOANS, LLC (2.78%), Manufacturers and Traders Trust Company (2.78%) and AmeriHome Mortgage Company, LLC (2.81%).

Allentown FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ WARREN 2022 $420,680 $538,650 $651,050 $809,150
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ CARBON 2022 $420,680 $538,650 $651,050 $809,150
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ LEHIGH 2022 $420,680 $538,650 $651,050 $809,150
ALLENTOWN-BETHLEHEM-EASTON, PA-NJ NORTHAMPTON 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Allentown (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 $214,900 (13.2%) $287,075 (14.1%) 0.79 3,225
2018-02-01 $217,000 (12.7%) $290,018 (14.8%) 0.78 3,143
2018-03-01 $229,500 (13.4%) $297,542 (13.9%) 0.79 3,133
2018-04-01 $230,000 (7.0%) $297,718 (10.9%) 0.77 3,273
2018-05-01 $237,000 (7.8%) $301,458 (7.7%) 0.79 3,532
2018-06-01 $236,000 (4.9%) $304,260 (6.3%) 0.79 3,737
2018-07-01 $239,450 (6.5%) $301,140 (5.1%) 0.80 3,935
2018-08-01 $230,000 (2.3%) $296,911 (3.1%) 0.77 4,083
2018-09-01 $229,000 (1.8%) $295,598 (2.1%) 0.77 4,275
2018-10-01 $227,000 (0.0%) $296,094 (1.2%) 0.76 4,258
2018-11-01 $224,900 (0.0%) $294,917 (1.8%) 0.75 4,083
2018-12-01 $220,000 (-0.9%) $294,339 (1.5%) 0.75 3,696
2019-01-01 $219,450 (2.1%) $287,255 (0.1%) 0.76 3,432
2019-02-01 $225,000 (3.7%) $290,863 (0.3%) 0.75 3,348
2019-03-01 $222,429 (-3.1%) $287,309 (-3.4%) 0.72 3,560
2019-04-01 $219,879 (-4.4%) $285,166 (-4.2%) 0.69 3,891
2019-05-01 $222,250 (-6.2%) $286,356 (-5.0%) 0.69 4,040
2019-06-01 $225,000 (-4.7%) $287,737 (-5.4%) 0.69 4,158
2019-07-01 $229,450 (-4.2%) $286,985 (-4.7%) 0.71 4,252
2019-08-01 $225,000 (-2.2%) $286,369 (-3.6%) 0.71 4,160
2019-09-01 $225,000 (-1.8%) $289,474 (-2.1%) 0.71 4,010
2019-10-01 $224,950 (-0.9%) $293,251 (-1.0%) 0.72 4,029
2019-11-01 $244,000 (8.5%) $310,452 (5.3%) 0.79 3,215
2019-12-01 $239,450 (8.8%) $312,418 (6.1%) 0.80 2,861
2020-01-01 $239,900 (9.3%) $315,020 (9.7%) 0.80 2,504
2020-02-01 $249,900 (11.1%) $318,619 (9.5%) 0.81 2,299
2020-03-01 $263,950 (18.7%) $321,156 (11.8%) 0.82 2,317
2020-04-01 $264,950 (20.5%) $325,786 (14.2%) 0.83 2,090
2020-05-01 $265,000 (19.2%) $325,607 (13.7%) 0.80 2,042
2020-06-01 $269,450 (19.8%) $333,983 (16.1%) 0.79 2,014
2020-07-01 $279,450 (21.8%) $344,166 (19.9%) 0.80 1,811
2020-08-01 $279,900 (24.4%) $351,953 (22.9%) 0.80 1,729
2020-09-01 $284,998 (26.7%) $360,785 (24.6%) 0.81 1,687
2020-10-01 $275,000 (22.3%) $359,069 (22.4%) 0.79 1,753
2020-11-01 $278,950 (14.3%) $366,934 (18.2%) 0.80 1,590
2020-12-01 $279,450 (16.7%) $372,493 (19.2%) 0.82 1,387
2021-01-01 $285,000 (18.8%) $389,794 (23.7%) 0.84 1,149
2021-02-01 $308,945 (23.6%) $408,060 (28.1%) 0.89 994
2021-03-01 $296,950 (12.5%) $397,485 (23.8%) 0.83 1,034
2021-04-01 $299,190 (12.9%) $389,455 (19.5%) 0.80 1,152
2021-05-01 $310,000 (17.0%) $395,909 (21.6%) 0.82 1,242
2021-06-01 $299,900 (11.3%) $402,213 (20.4%) 0.78 1,409
2021-07-01 $298,450 (6.8%) $402,360 (16.9%) 0.78 1,571
2021-08-01 $299,450 (7.0%) $394,043 (12.0%) 0.79 1,592
2021-09-01 $299,900 (5.2%) $389,420 (7.9%) 0.79 1,567
2021-10-01 $299,000 (8.7%) $382,245 (6.5%) 0.79 1,525
2021-11-01 $299,900 (7.5%) $385,320 (5.0%) 0.79 1,349
2021-12-01 $299,900 (7.3%) $389,022 (4.4%) 0.80 1,093
2022-01-01 $319,900 (12.3%) $402,493 (3.3%) 0.85 894
2022-02-01 $299,450 (-3.1%) $396,254 (-2.9%) 0.76 850
2022-03-01 $315,000 (6.1%) $408,723 (2.8%) 0.78 842
2022-04-01 $329,000 (10.0%) $428,111 (9.9%) 0.77 892
Allentown's median listing price for 2022-04-01 was $329,000, a difference of $29,810 (10.0%) versus the prior year and $14,000 versus the prior month.

Allentown's median listing price comes in at 77% of the national average.

Allentown's average listing price for 2022-04-01 was $428,111, a difference of $38,656 (9.9%) versus the prior year and $19,388 versus the prior month.

For the 2022-04-01 period, Allentown had 892 MLS listings, a difference of 50 listings (6%) versus the prior month and -260 listings (-23%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Allentown (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 90 days 1,845 sqft
2018-02-01 88 days 1,865 sqft
2018-03-01 71 days 1,908 sqft
2018-04-01 60 days 1,912 sqft
2018-05-01 51 days 1,912 sqft
2018-06-01 52 days 1,920 sqft
2018-07-01 56 days 1,921 sqft
2018-08-01 59 days 1,886 sqft
2018-09-01 62 days 1,868 sqft
2018-10-01 69 days 1,851 sqft
2018-11-01 73 days 1,847 sqft
2018-12-01 80 days 1,850 sqft
2019-01-01 87 days 1,847 sqft
2019-02-01 83 days 1,848 sqft
2019-03-01 71 days 1,871 sqft
2019-04-01 59 days 1,910 sqft
2019-05-01 55 days 1,978 sqft
2019-06-01 60 days 2,000 sqft
2019-07-01 64 days 2,002 sqft
2019-08-01 65 days 1,978 sqft
2019-09-01 71 days 1,976 sqft
2019-10-01 68 days 1,987 sqft
2019-11-01 63 days 1,984 sqft
2019-12-01 75 days 1,962 sqft
2020-01-01 84 days 1,956 sqft
2020-02-01 73 days 1,941 sqft
2020-03-01 49 days 1,972 sqft
2020-04-01 63 days 1,977 sqft
2020-05-01 74 days 1,980 sqft
2020-06-01 42 days 1,956 sqft
2020-07-01 34 days 1,958 sqft
2020-08-01 33 days 1,927 sqft
2020-09-01 34 days 1,914 sqft
2020-10-01 31 days 1,892 sqft
2020-11-01 42 days 1,832 sqft
2020-12-01 51 days 1,837 sqft
2021-01-01 60 days 1,864 sqft
2021-02-01 54 days 1,961 sqft
2021-03-01 27 days 1,966 sqft
2021-04-01 24 days 1,985 sqft
2021-05-01 22 days 2,000 sqft
2021-06-01 23 days 2,009 sqft
2021-07-01 26 days 1,975 sqft
2021-08-01 31 days 1,948 sqft
2021-09-01 37 days 1,942 sqft
2021-10-01 38 days 1,920 sqft
2021-11-01 39 days 1,887 sqft
2021-12-01 49 days 1,901 sqft
2022-01-01 51 days 1,921 sqft
2022-02-01 30 days 1,874 sqft
2022-03-01 25 days 1,946 sqft
2022-04-01 18 days 2,027 sqft
Allentown's median listing age (time on market) for 2022-04-01 was 18 days. This is -23% shorter than the same period one year ago.

Allentown's median square footage for active listings during the 2022-04-01 period was 2,027 sqft. One year prior, the average listing was 1,985 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).