Asheville FHA Loan Rates, Closing Costs & Stats

ASHEVILLE, NC

  • JUMP TO:
  • Trends
  • Rates vs Fees
  • Top Lenders
  • Markets
  • Loan Limits
  • Market Conditions & Pricing
  • Time on Market/Property Size

    • 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.

    Asheville's 92 lenders originated 726 FHA loans during 2024. The total origination value was $215,100,000, with an average FHA loan value of $296,281.

    Asheville FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Asheville averaged 6.87% for the week of 2025-05-23, compared to the national average (all FHA variants) of 6.612% for the same period.

    Asheville's average FHA mortgage closing costs are $8,778.

    The average rate for the prior week (2025-05-16) was 6.9% and one month ago for the week of 2025-04-18, the average rate was 6.72%.

    The average rate one year ago was 7%.

    For refis of the same type during the week of 2025-05-23, the average rate was 6.77%.

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

    Asheville 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 Asheville level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 80 6.24% $13,467
    DHI MORTGAGE COMPANY, LTD. 66 5.19% $7,047
    UNITED WHOLESALE MORTGAGE, LLC 52 6.02% $15,432
    MOVEMENT MORTGAGE, LLC 44 6.73% $12,265
    GoPrime Mortgage, Inc. 27 6.82% $12,464
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 18 6.47% $12,500
    FREEDOM MORTGAGE CORPORATION 17 6.33% $14,785
    LOANDEPOT.COM, LLC 16 6.32% $15,403
    AMERICAN FINANCIAL RESOURCES, INC. 16 5.95% $17,160
    BROKER SOLUTIONS, INC. 12 6.66% $13,225
    UNION HOME MORTGAGE CORP. 12 6.91% $11,533
    HOWARD HANNA FINANCIAL SERVICES, INC. 11 6.60% $11,960
    CARDINAL FINANCIAL 10 6.42% $14,367
    PENNYMAC LOAN SERVICES, LLC 9 5.85% $9,707
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 9 6.29% $13,714
    NEWREZ LLC 9 6.49% $11,861
    GUARANTEED RATE, INC. 8 6.55% $11,374
    T2 FINANCIAL LLC 8 6.59% $15,666
    CROSSCOUNTRY MORTGAGE, LLC 8 6.73% $13,070
    RADIUS FINANCIAL GROUP INC. 7 6.77% $13,155
    Equity Prime Mortgage LLC 7 6.98% $13,910
    RELIANCE FIRST CAPITAL, LLC 6 6.42% $17,285
    United Community Bank 6 6.92% $10,971
    LAKEVIEW LOAN SERVICING, LLC 6 6.52% $7,345
    Alcova Mortgage LLC 6 6.54% $12,045
    American Security Mortgage Corp. 6 6.60% $11,152
    VILLAGE CAPITAL MORTGAGE 5 6.75% $7,714
    SUN WEST MORTGAGE COMPANY, INC. 5 5.93% $18,917
    Nations Lending Corporation 5 6.40% $19,789
    MUTUAL OF OMAHA MORTGAGE, INC. 5 6.35% $17,524
    Carrington Mortgage Services, LLC 5 6.35% $12,864
    AMERISAVE MORTGAGE CORPORATION 4 6.09% $14,300
    HOMESIDE FINANCIAL, LLC 4 6.65% $18,240
    PLANET HOME LENDING, LLC 4 6.12% $7,619
    SeaTrust Mortgage Company 4 6.78% $9,943
    Paramount Bank 3 6.67% $7,981
    CMG MORTGAGE, INC. 3 5.83% $14,852
    PRIMELENDING, A PLAINSCAPITAL COMPANY 3 6.58% $12,823
    BAY EQUITY LLC 3 6.96% $12,326
    ZILLOW HOME LOANS, LLC 3 6.33% $13,092
    Mr. Cooper ( Nationstar Mortgage ) 3 6.29% $12,935
    Mortgage Research Center, LLC 3 6.38% $16,836
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 5.43% $19,475
    ALLIED MORTGAGE GROUP, INC. 2 6.13% $11,589
    Champion Credit Union 2 6.19% $10,414
    Prosperity Home Mortgage, LLC 2 6.25% $14,080
    EVERETT FINANCIAL, INC. 2 6.56% $11,685
    1ST SIGNATURE LENDING, LLC 2 6.50% $19,907
    The Federal Savings Bank 2 6.50% $11,861
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 7.25% $9,765
    First Bank 2 5.94% $12,579
    First-Citizens Bank & Trust Company 2 6.00% $11,312
    VERITAS FUNDING, LLC 2 6.38% $21,243
    ABSOLUTE HOME MORTGAGE CORPORATION 2 6.63% $16,896
    Lakeview Community Capital, LLC 2 6.38% $8,228
    LOANPAL, LLC 2 5.75% $17,060
    Magnolia Bank 2 6.19% $10,042
    NETWORK CAPITAL FUNDING CORPORATION 2 6.88% $10,422
    MILEND, INC. 2 6.13% $19,887
    SWBC MORTGAGE CORPORATION 1 6.63% $12,083
    ACOPIA, LLC 1 6.50% $9,705
    ALLIANT CREDIT UNION 1 6.00% $7,712
    AMERICAN FINANCIAL NETWORK, INC. 1 7.00% $13,597
    American Mortgage & Equity Consultants, Inc. 1 6.13% $17,864
    AmeriHome Mortgage Company, LLC 1 6.13% $5,775
    Barrington Bank & Trust Company, N.A. 1 7.25% $10,638
    Bell Bank 1 6.13% $11,191
    BETTER MORTGAGE CORPORATION 1 6.00% $10,371
    CALCON MUTUAL MORTGAGE LLC 1 7.13% $26,203
    CASTLE & COOKE MORTGAGE, LLC 1 5.75% $11,726
    Century Mortgage Company DBA Century Lending Company 1 6.99% $13,497
    FIRST HOME MORTGAGE CORPORATION 1 5.88% $19,373
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.00% $5,221
    HOMESTEAD FUNDING CORP. 1 6.50% $6,355
    INTERCOASTAL MORTGAGE COMPANY 1 6.75% $9,527
    ISERVE RESIDENTIAL LENDING, LLC 1 6.25% $11,465
    LADERA LENDING, INC. 1 7.75% $16,461
    Loan Simple, Inc. 1 7.13% $19,024
    Mid-Continent Funding, Inc. 1 6.75% $6,601
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.25% $10,254
    NFM, INC. 1 6.75% $11,942
    NP, Inc. 1 7.13% $11,573
    OCEANSIDE MORTGAGE COMPANY 1 6.13% $5,702
    OCMBC, INC. 1 6.75% $10,966
    Plains Commerce Bank 1 6.25% $11,028
    PLAZA HOME MORTGAGE, INC. 1 7.75% $8,683
    POLARIS HOME FUNDING CORP. 1 6.75% $15,132
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.25% $15,653
    Strong Home Mortgage, LLC 1 5.75% $12,486
    TOP FLITE FINANCIAL, INC. 1 6.38% $17,053
    Truist 1 6.13% $16,376
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 7.75% $11,266

    The top Asheville FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 80 FHA loans originated. Their average total fees are $13,467, which is $6,421 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Asheville FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($7,047), UNION HOME MORTGAGE CORP. ($11,533), HOWARD HANNA FINANCIAL SERVICES, INC. ($11,960), MOVEMENT MORTGAGE, LLC ($12,265) and GoPrime Mortgage, Inc. ($12,464).

    The lowest rate Asheville FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.19%), AMERICAN FINANCIAL RESOURCES, INC. (5.95%), UNITED WHOLESALE MORTGAGE, LLC (6.02%), QUICKEN LOANS, LLC (6.24%) and LOANDEPOT.COM, LLC (6.32%).

    Asheville FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    ASHEVILLE, NC BUNCOMBE 2022 $420,680 $538,650 $651,050 $809,150
    ASHEVILLE, NC HAYWOOD 2022 $420,680 $538,650 $651,050 $809,150
    ASHEVILLE, NC HENDERSON 2022 $420,680 $538,650 $651,050 $809,150
    ASHEVILLE, NC MADISON 2022 $420,680 $538,650 $651,050 $809,150
    ASHEVILLE, NC BUNCOMBE 2023 $472,030 $604,400 $730,525 $907,900
    ASHEVILLE, NC HAYWOOD 2023 $472,030 $604,400 $730,525 $907,900
    ASHEVILLE, NC HENDERSON 2023 $472,030 $604,400 $730,525 $907,900
    ASHEVILLE, NC MADISON 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Asheville (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 $381,600 (1.2%) $538,570 (-4.7%) 1.41 1,917
    2018-02-01 $379,000 (-3.3%) $532,851 (-7.5%) 1.38 1,880
    2018-03-01 $379,000 (-2.7%) $538,478 (-6.1%) 1.33 1,930
    2018-04-01 $387,675 (-1.0%) $536,939 (-5.7%) 1.31 2,017
    2018-05-01 $394,875 (-1.0%) $533,969 (-7.6%) 1.32 2,099
    2018-06-01 $399,900 (0.1%) $563,261 (-0.8%) 1.33 2,113
    2018-07-01 $399,450 (0.1%) $552,165 (-2.0%) 1.33 2,171
    2018-08-01 $399,000 (0.0%) $541,769 (-5.1%) 1.34 2,269
    2018-09-01 $399,000 (0.0%) $543,053 (-4.9%) 1.34 2,362
    2018-10-01 $392,500 (-1.4%) $536,655 (-5.2%) 1.33 2,452
    2018-11-01 $389,000 (-2.5%) $527,840 (-6.8%) 1.32 2,382
    2018-12-01 $386,000 (-3.3%) $530,241 (-6.6%) 1.33 2,187
    2019-01-01 $389,900 (2.2%) $537,723 (-0.2%) 1.35 1,946
    2019-02-01 $389,750 (2.8%) $541,289 (1.6%) 1.32 1,872
    2019-03-01 $397,143 (4.8%) $550,958 (2.3%) 1.30 1,952
    2019-04-01 $406,450 (4.8%) $565,975 (5.4%) 1.29 2,060
    2019-05-01 $425,000 (7.6%) $577,895 (8.2%) 1.33 2,184
    2019-06-01 $423,750 (6.0%) $578,972 (2.8%) 1.32 2,309
    2019-07-01 $419,950 (5.1%) $571,738 (3.5%) 1.31 2,302
    2019-08-01 $420,153 (5.3%) $571,568 (5.5%) 1.33 2,320
    2019-09-01 $417,254 (4.6%) $567,861 (4.6%) 1.34 2,325
    2019-10-01 $417,441 (6.4%) $566,948 (5.6%) 1.35 2,327
    2019-11-01 $418,900 (7.7%) $571,330 (8.2%) 1.37 2,174
    2019-12-01 $417,119 (8.1%) $572,148 (7.9%) 1.39 1,889
    2020-01-01 $419,450 (7.6%) $586,619 (9.1%) 1.40 1,642
    2020-02-01 $425,000 (9.0%) $591,224 (9.2%) 1.39 1,502
    2020-03-01 $429,490 (8.1%) $598,102 (8.6%) 1.35 1,551
    2020-04-01 $418,500 (3.0%) $580,394 (2.6%) 1.31 1,690
    2020-05-01 $430,000 (1.2%) $603,773 (4.5%) 1.31 1,684
    2020-06-01 $440,000 (3.8%) $617,715 (6.7%) 1.30 1,634
    2020-07-01 $442,450 (5.4%) $627,880 (9.8%) 1.28 1,546
    2020-08-01 $445,000 (5.9%) $637,424 (11.5%) 1.28 1,413
    2020-09-01 $452,500 (8.5%) $664,980 (17.1%) 1.30 1,358
    2020-10-01 $464,250 (11.2%) $676,761 (19.4%) 1.33 1,324
    2020-11-01 $465,000 (11.0%) $686,866 (20.2%) 1.36 1,215
    2020-12-01 $475,000 (13.9%) $712,129 (24.5%) 1.41 1,080
    2021-01-01 $477,000 (13.7%) $718,749 (22.5%) 1.42 899
    2021-02-01 $467,000 (9.9%) $714,880 (20.9%) 1.36 762
    2021-03-01 $466,500 (8.6%) $724,511 (21.1%) 1.32 687
    2021-04-01 $472,000 (12.8%) $741,808 (27.8%) 1.28 696
    2021-05-01 $489,900 (13.9%) $769,982 (27.5%) 1.30 721
    2021-06-01 $479,250 (8.9%) $743,721 (20.4%) 1.26 901
    2021-07-01 $468,500 (5.9%) $718,865 (14.5%) 1.24 982
    2021-08-01 $452,380 (1.7%) $713,277 (11.9%) 1.21 1,020
    2021-09-01 $471,975 (4.3%) $742,581 (11.7%) 1.26 1,024
    2021-10-01 $481,970 (3.8%) $749,441 (10.7%) 1.29 978
    2021-11-01 $485,510 (4.4%) $770,185 (12.1%) 1.30 849
    2021-12-01 $492,500 (3.7%) $812,544 (14.1%) 1.33 719
    2022-01-01 $525,000 (10.1%) $884,393 (23.1%) 1.42 558
    2022-02-01 $570,175 (22.1%) $971,920 (36.0%) 1.48 454
    2022-03-01 $587,205 (25.9%) $972,728 (34.3%) 1.47 431
    2022-04-01 $579,000 (22.7%) $937,993 (26.5%) 1.38 483
    2022-05-01 $595,000 (21.5%) $902,865 (17.3%) 1.36 673
    2022-06-01 $584,500 (22.0%) $863,864 (16.2%) 1.30 784
    2022-07-01 $550,000 (17.4%) $818,499 (13.9%) 1.24 921
    2022-08-01 $543,250 (20.1%) $791,967 (11.0%) 1.26 940
    2022-09-01 $545,119 (15.5%) $816,071 (9.9%) 1.27 946
    2022-10-01 $550,000 (14.1%) $834,960 (11.4%) 1.29 1,039
    2022-11-01 $573,650 (18.2%) $840,875 (9.2%) 1.38 1,008
    2022-12-01 $575,000 (16.8%) $845,914 (4.1%) 1.42 885
    2023-01-01 $577,850 (10.1%) $841,255 (-4.9%) 1.43 772
    2023-02-01 $599,000 (5.1%) $870,974 (-10.4%) 1.45 660
    2023-03-01 $612,500 (4.3%) $892,262 (-8.3%) 1.44 678
    2023-04-01 $620,000 (7.1%) $907,237 (-3.3%) 1.44 754
    2023-05-01 $625,000 (5.0%) $929,794 (3.0%) 1.42 863
    2023-06-01 $644,000 (10.2%) $939,322 (8.7%) 1.45 905
    2023-07-01 $625,000 (13.6%) $927,648 (13.3%) 1.42 949
    2023-08-01 $628,246 (15.7%) $910,912 (15.0%) 1.44 972
    2023-09-01 $620,000 (13.7%) $890,091 (9.1%) 1.44 1,034
    2023-10-01 $599,125 (8.9%) $883,702 (5.8%) 1.41 1,162
    2023-11-01 $587,655 (2.4%) $866,971 (3.1%) 1.40 1,181
    2023-12-01 $559,000 (-2.8%) $848,294 (0.3%) 1.36 1,078
    2024-01-01 $565,000 (-2.2%) $875,547 (4.1%) 1.38 925
    2024-02-01 $549,938 (-8.2%) $870,453 (-0.1%) 1.32 872
    2024-03-01 $565,500 (-7.7%) $875,884 (-1.8%) 1.33 965
    2024-04-01 $575,000 (-7.3%) $856,686 (-5.6%) 1.34 1,066
    2024-05-01 $635,000 (1.6%) $928,141 (-0.2%) 1.44 1,124
    2024-06-01 $600,000 (-6.8%) $890,164 (-5.2%) 1.36 1,215
    2024-07-01 $586,000 (-6.2%) $887,812 (-4.3%) 1.34 1,329
    2024-08-01 $579,000 (-7.8%) $874,610 (-4.0%) 1.35 1,449
    2024-09-01 $585,000 (-5.7%) $873,180 (-1.9%) 1.38 1,564
    2024-10-01 $583,543 (-2.6%) $854,531 (-3.3%) 1.37 1,441
    2024-11-01 $575,000 (-2.2%) $844,461 (-2.6%) 1.38 1,453
    2024-12-01 $572,225 (2.4%) $839,983 (-1.0%) 1.42 1,352
    2025-01-01 $566,625 (0.3%) $844,317 (-3.6%) 1.41 1,263
    2025-02-01 $575,820 (4.7%) $845,195 (-2.9%) 1.40 1,308
    2025-03-01 $578,800 (2.4%) $846,979 (-3.3%) 1.36 1,444
    2025-04-01 $594,000 (3.3%) $848,485 (-1.0%) 1.38 1,796
    Asheville's median listing price for 2025-04-01 was $594,000, a difference of $19,000 (3.3%) versus the prior year and $15,200 versus the prior month.

    Asheville's median listing price comes in at 138% of the national average.

    Asheville's average listing price for 2025-04-01 was $848,485, a difference of $-8,201 (-1.0%) versus the prior year and $1,506 versus the prior month.

    For the 2025-04-01 period, Asheville had 1,796 MLS listings, a difference of 352 listings (24%) versus the prior month and 730 listings (68%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Asheville (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 102 days 2,246 sqft
    2018-02-01 46 days 2,203 sqft
    2018-03-01 68 days 2,168 sqft
    2018-04-01 78 days 2,195 sqft
    2018-05-01 71 days 2,211 sqft
    2018-06-01 69 days 2,200 sqft
    2018-07-01 70 days 2,220 sqft
    2018-08-01 74 days 2,206 sqft
    2018-09-01 78 days 2,188 sqft
    2018-10-01 81 days 2,153 sqft
    2018-11-01 86 days 2,128 sqft
    2018-12-01 96 days 2,108 sqft
    2019-01-01 109 days 2,095 sqft
    2019-02-01 110 days 2,080 sqft
    2019-03-01 91 days 2,138 sqft
    2019-04-01 62 days 2,186 sqft
    2019-05-01 59 days 2,228 sqft
    2019-06-01 60 days 2,228 sqft
    2019-07-01 66 days 2,221 sqft
    2019-08-01 70 days 2,193 sqft
    2019-09-01 76 days 2,173 sqft
    2019-10-01 78 days 2,169 sqft
    2019-11-01 79 days 2,176 sqft
    2019-12-01 90 days 2,158 sqft
    2020-01-01 106 days 2,154 sqft
    2020-02-01 107 days 2,152 sqft
    2020-03-01 81 days 2,141 sqft
    2020-04-01 72 days 2,094 sqft
    2020-05-01 72 days 2,166 sqft
    2020-06-01 71 days 2,179 sqft
    2020-07-01 63 days 2,197 sqft
    2020-08-01 63 days 2,184 sqft
    2020-09-01 58 days 2,213 sqft
    2020-10-01 57 days 2,179 sqft
    2020-11-01 60 days 2,127 sqft
    2020-12-01 67 days 2,110 sqft
    2021-01-01 78 days 2,043 sqft
    2021-02-01 82 days 1,983 sqft
    2021-03-01 56 days 1,941 sqft
    2021-04-01 46 days 1,947 sqft
    2021-05-01 37 days 2,001 sqft
    2021-06-01 35 days 1,932 sqft
    2021-07-01 42 days 1,892 sqft
    2021-08-01 47 days 1,866 sqft
    2021-09-01 51 days 1,916 sqft
    2021-10-01 52 days 1,955 sqft
    2021-11-01 58 days 1,937 sqft
    2021-12-01 71 days 1,947 sqft
    2022-01-01 79 days 1,943 sqft
    2022-02-01 73 days 1,954 sqft
    2022-03-01 46 days 2,036 sqft
    2022-04-01 30 days 2,037 sqft
    2022-05-01 30 days 2,107 sqft
    2022-06-01 33 days 2,086 sqft
    2022-07-01 37 days 2,040 sqft
    2022-08-01 43 days 2,042 sqft
    2022-09-01 47 days 2,006 sqft
    2022-10-01 48 days 2,080 sqft
    2022-11-01 54 days 2,102 sqft
    2022-12-01 68 days 2,058 sqft
    2023-01-01 82 days 1,975 sqft
    2023-02-01 86 days 2,014 sqft
    2023-03-01 59 days 2,056 sqft
    2023-04-01 46 days 2,074 sqft
    2023-05-01 43 days 2,096 sqft
    2023-06-01 46 days 2,161 sqft
    2023-07-01 51 days 2,124 sqft
    2023-08-01 52 days 2,123 sqft
    2023-09-01 50 days 2,103 sqft
    2023-10-01 51 days 2,082 sqft
    2023-11-01 57 days 2,003 sqft
    2023-12-01 70 days 1,959 sqft
    2024-01-01 83 days 1,907 sqft
    2024-02-01 83 days 1,866 sqft
    2024-03-01 57 days 1,900 sqft
    2024-04-01 43 days 1,931 sqft
    2024-05-01 40 days 2,020 sqft
    2024-06-01 49 days 1,990 sqft
    2024-07-01 50 days 1,967 sqft
    2024-08-01 53 days 1,962 sqft
    2024-09-01 57 days 1,939 sqft
    2024-10-01 72 days 1,950 sqft
    2024-11-01 79 days 1,914 sqft
    2024-12-01 92 days 1,895 sqft
    2025-01-01 81 days 1,887 sqft
    2025-02-01 79 days 1,902 sqft
    2025-03-01 58 days 1,897 sqft
    2025-04-01 50 days 1,944 sqft
    Asheville's median listing age (time on market) for 2025-04-01 was 50 days. This is 15% longer than the same period one year ago.

    Asheville's median square footage for active listings during the 2025-04-01 period was 1,944 sqft. One year prior, the average listing was 1,931 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).