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 105 lenders originated 647 FHA loans during 2023. The total origination value was $172,235,000, with an average FHA loan value of $266,206.

    Asheville FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Asheville averaged 6.53% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Asheville's average FHA mortgage closing costs are $8,259.

    The average rate for the prior week (2024-11-01) was 6.1% and one month ago for the week of 2024-10-04, the average rate was 5.82%.

    The average rate one year ago was 7.27%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.16%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 85 6.22% $13,284
    MOVEMENT MORTGAGE, LLC 40 6.69% $11,135
    UNITED WHOLESALE MORTGAGE, LLC 39 6.24% $13,485
    DHI MORTGAGE COMPANY, LTD. 31 5.61% $6,751
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 28 6.70% $13,183
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 21 6.52% $13,872
    LOANDEPOT.COM, LLC 19 6.53% $10,182
    CARDINAL FINANCIAL 17 6.81% $13,665
    AMERICAN FINANCIAL RESOURCES, INC. 15 6.20% $14,071
    GoPrime Mortgage, Inc. 13 6.78% $12,545
    PENNYMAC LOAN SERVICES, LLC 12 6.11% $12,669
    BROKER SOLUTIONS, INC. 12 6.70% $13,866
    CROSSCOUNTRY MORTGAGE, LLC 10 6.74% $11,882
    FREEDOM MORTGAGE CORPORATION 9 7.00% $15,507
    Alcova Mortgage LLC 8 7.08% $10,470
    RADIUS FINANCIAL GROUP INC. 7 6.61% $13,505
    AMERISAVE MORTGAGE CORPORATION 7 5.71% $15,953
    Nations Lending Corporation 7 6.68% $12,620
    HOWARD HANNA FINANCIAL SERVICES, INC. 6 6.52% $10,769
    GUARANTEED RATE, INC. 6 6.30% $12,459
    VANDERBILT MORTGAGE AND FINANCE, INC. 5 7.18% $11,485
    AMERICAN FINANCIAL NETWORK, INC. 5 6.43% $13,160
    EVERETT FINANCIAL, INC. 5 6.98% $11,744
    Equity Prime Mortgage LLC 5 6.10% $10,275
    NEWREZ LLC 4 6.44% $11,654
    PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.47% $12,346
    UNION HOME MORTGAGE CORP. 4 6.38% $12,476
    American Security Mortgage Corp. 3 6.71% $11,534
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.54% $14,166
    SUN WEST MORTGAGE COMPANY, INC. 3 5.92% $15,317
    EMM LOANS LLC 3 6.58% $17,476
    BAY EQUITY LLC 3 6.62% $16,378
    RELIANCE FIRST CAPITAL, LLC 3 6.63% $16,514
    CMG MORTGAGE, INC. 3 5.88% $12,730
    LAKEVIEW LOAN SERVICING, LLC 3 6.42% $12,930
    TOP FLITE FINANCIAL, INC. 2 6.81% $15,293
    PLAZA HOME MORTGAGE, INC. 2 5.81% $22,840
    MICHIGAN MUTUAL, INC. 2 4.75% $19,794
    VILLAGE CAPITAL MORTGAGE 2 6.50% $6,766
    ALLIED MORTGAGE GROUP, INC. 2 6.63% $8,495
    AMERICAN FINANCING CORPORATION 2 6.44% $14,182
    SeaTrust Mortgage Company 2 6.75% $10,749
    INTERCOASTAL MORTGAGE COMPANY 2 6.69% $10,038
    Mortgage Research Center, LLC 2 6.94% $7,728
    Northpointe Bank 2 6.38% $15,878
    Mr. Cooper ( Nationstar Mortgage ) 2 6.25% $20,502
    CALIBER HOME LOANS, INC. 2 5.50% $10,525
    MUTUAL OF OMAHA MORTGAGE, INC. 2 6.63% $14,544
    TD Bank 2 5.88% $8,796
    The Federal Savings Bank 2 6.63% $24,379
    NBKC BANK 1 5.88% $9,765
    NETWORK CAPITAL FUNDING CORPORATION 1 6.50% $9,842
    NEW DAY FINANCIAL, LLC 1 7.99% $10,037
    NEW FED MORTGAGE, CORP. 1 6.25% $11,339
    1ST SIGNATURE LENDING, LLC 1 6.75% $16,108
    NEXERA HOLDING LLC 1 5.50% $8,452
    NP, Inc. 1 7.25% $14,951
    Paramount Bank 1 7.63% $10,079
    Paramount Residential Mortgage Group, Inc. 1 6.50% $13,964
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.25% $15,131
    PENTAGON FEDERAL CREDIT UNION 1 6.00% $13,088
    PHH Mortgage Corporation 1 5.63% $15,547
    PLANET HOME LENDING, LLC 1 5.25% $7,873
    PNC Bank 1 7.00% $7,508
    American Mortgage & Equity Consultants, Inc. 1 6.99% $13,300
    RESOURCE FINANCIAL SERVICES, INC. 1 6.13% $13,663
    SECURITYNATIONAL MORTGAGE COMPANY 1 6.75% $8,177
    Shamrock Home Loans, Inc. 1 6.63% $14,357
    SOVEREIGN LENDING GROUP INCORPORATED 1 5.75% $11,807
    STOCKTON MORTGAGE CORPORATION 1 6.75% $13,106
    Strong Home Mortgage, LLC 1 6.63% $12,978
    T2 FINANCIAL LLC 1 7.63% $8,969
    The Central Trust Bank 1 7.00% $13,567
    THE MORTGAGE FIRM, INC. 1 6.75% $15,981
    TOWNE MORTGAGE COMPANY 1 6.25% $21,651
    Truist 1 6.25% $8,427
    ZILLOW HOME LOANS, LLC 1 7.63% $8,288
    United Community Bank 1 7.25% $7,997
    Uwharrie Bank 1 6.25% $11,320
    ACADEMY MORTGAGE CORPORATION 1 7.25% $11,278
    VERITAS FUNDING, LLC 1 7.13% $15,900
    Citizens Bank 1 5.75% $8,025
    CITY FIRST MORTGAGE SERVICES, L.L.C. 1 5.88% $17,075
    EMBRACE HOME LOANS, INC. 1 6.99% $17,122
    CHURCHILL MORTGAGE CORPORATION 1 6.25% $10,831
    EQUITY RESOURCES, INC. 1 6.99% $9,017
    Carrington Mortgage Services, LLC 1 6.13% $13,529
    Fifth Third Bank 1 6.00% $3,066
    First Bank 1 5.13% $13,514
    FIRST COLONY MORTGAGE CORPORATION 1 7.25% $9,858
    First Federal Bank 1 6.88% $7,225
    First Option Mortgage, LLC 1 7.50% $15,157
    Bell Bank 1 6.75% $14,068
    GUILD MORTGAGE COMPANY 1 6.75% $11,115
    Bank of England 1 7.25% $17,132
    HOMESIDE FINANCIAL, LLC 1 7.25% $15,258
    HOMESTAR FINANCIAL CORPORATION 1 7.25% $7,585
    Bank of America 1 6.38% $24,648
    Lakeview Community Capital, LLC 1 6.75% $9,097
    AmeriHome Mortgage Company, LLC 1 6.63% $8,630
    LOANPAL, LLC 1 5.25% $12,523
    MILEND, INC. 1 6.63% $17,005
    MORTGAGE INVESTORS GROUP, INC. 1 6.63% $10,832
    M&T Bank 1 6.75% $8,976
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.25% $13,045

    The top Asheville FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 85 FHA loans originated. Their average total fees are $13,284, which is $2,149 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

    The lowest fee Asheville FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($6,751), LOANDEPOT.COM, LLC ($10,182), MOVEMENT MORTGAGE, LLC ($11,135), CROSSCOUNTRY MORTGAGE, LLC ($11,882) and GoPrime Mortgage, Inc. ($12,545).

    The lowest rate Asheville FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.61%), PENNYMAC LOAN SERVICES, LLC (6.11%), AMERICAN FINANCIAL RESOURCES, INC. (6.20%), QUICKEN LOANS, LLC (6.22%) and UNITED WHOLESALE MORTGAGE, LLC (6.24%).

    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 $349,998 (0.2%) $496,161 (-3.6%) 1.30 2,448
    2018-02-01 $349,975 (-2.8%) $492,639 (-6.2%) 1.27 2,391
    2018-03-01 $354,900 (-2.5%) $498,344 (-5.2%) 1.25 2,443
    2018-04-01 $358,900 (-3.0%) $495,611 (-5.8%) 1.22 2,575
    2018-05-01 $363,950 (-3.2%) $494,599 (-7.2%) 1.22 2,671
    2018-06-01 $385,000 (1.3%) $530,612 (0.4%) 1.28 2,595
    2018-07-01 $387,000 (2.9%) $524,412 (-0.4%) 1.29 2,679
    2018-08-01 $385,000 (0.7%) $519,359 (-3.1%) 1.29 2,776
    2018-09-01 $380,000 (0.3%) $518,962 (-3.3%) 1.28 2,886
    2018-10-01 $377,200 (0.4%) $514,577 (-3.8%) 1.28 2,982
    2018-11-01 $375,000 (-1.1%) $511,281 (-4.0%) 1.27 2,872
    2018-12-01 $375,000 (-1.1%) $512,127 (-4.1%) 1.29 2,654
    2019-01-01 $379,000 (8.3%) $519,692 (4.7%) 1.31 2,358
    2019-02-01 $375,000 (7.2%) $522,430 (6.1%) 1.27 2,259
    2019-03-01 $383,357 (8.0%) $533,796 (7.1%) 1.25 2,341
    2019-04-01 $396,500 (10.5%) $549,239 (10.8%) 1.26 2,462
    2019-05-01 $399,945 (9.9%) $559,405 (13.1%) 1.25 2,595
    2019-06-01 $399,500 (3.8%) $559,590 (5.5%) 1.25 2,771
    2019-07-01 $399,000 (3.1%) $552,197 (5.3%) 1.25 2,767
    2019-08-01 $399,364 (3.7%) $551,906 (6.3%) 1.26 2,795
    2019-09-01 $399,159 (5.0%) $548,221 (5.6%) 1.28 2,812
    2019-10-01 $399,000 (5.8%) $546,946 (6.3%) 1.29 2,825
    2019-11-01 $399,000 (6.4%) $549,424 (7.5%) 1.31 2,640
    2019-12-01 $398,975 (6.4%) $548,608 (7.1%) 1.33 2,317
    2020-01-01 $399,450 (5.4%) $560,369 (7.8%) 1.33 2,017
    2020-02-01 $400,000 (6.7%) $562,546 (7.7%) 1.31 1,844
    2020-03-01 $404,500 (5.5%) $567,078 (6.2%) 1.27 1,871
    2020-04-01 $399,450 (0.7%) $555,148 (1.1%) 1.25 2,023
    2020-05-01 $419,950 (5.0%) $578,249 (3.4%) 1.28 2,016
    2020-06-01 $427,000 (6.9%) $596,762 (6.6%) 1.26 1,959
    2020-07-01 $428,000 (7.3%) $606,190 (9.8%) 1.24 1,859
    2020-08-01 $429,000 (7.4%) $614,941 (11.4%) 1.23 1,687
    2020-09-01 $442,500 (10.9%) $649,081 (18.4%) 1.27 1,588
    2020-10-01 $449,500 (12.7%) $658,258 (20.4%) 1.29 1,558
    2020-11-01 $454,345 (13.9%) $670,608 (22.1%) 1.33 1,427
    2020-12-01 $469,000 (17.6%) $689,163 (25.6%) 1.39 1,280
    2021-01-01 $464,000 (16.2%) $694,304 (23.9%) 1.39 1,064
    2021-02-01 $449,725 (12.4%) $690,087 (22.7%) 1.31 914
    2021-03-01 $457,500 (13.1%) $698,079 (23.1%) 1.30 821
    2021-04-01 $465,000 (16.4%) $718,303 (29.4%) 1.26 847
    2021-05-01 $479,000 (14.1%) $736,951 (27.5%) 1.27 867
    2021-06-01 $472,475 (10.7%) $713,142 (19.5%) 1.24 1,098
    2021-07-01 $454,880 (6.3%) $689,306 (13.7%) 1.20 1,210
    2021-08-01 $449,500 (4.8%) $690,396 (12.3%) 1.20 1,232
    2021-09-01 $457,105 (3.3%) $715,568 (10.2%) 1.22 1,207
    2021-10-01 $471,320 (4.9%) $728,622 (10.7%) 1.26 1,163
    2021-11-01 $472,475 (4.0%) $743,295 (10.8%) 1.26 1,014
    2021-12-01 $479,950 (2.3%) $770,423 (11.8%) 1.30 870
    2022-01-01 $499,900 (7.7%) $828,819 (19.4%) 1.35 678
    2022-02-01 $537,933 (19.6%) $910,511 (31.9%) 1.40 540
    2022-03-01 $555,925 (21.5%) $919,082 (31.7%) 1.39 520
    2022-04-01 $550,000 (18.3%) $884,179 (23.1%) 1.31 604
    2022-05-01 $567,450 (18.5%) $862,792 (17.1%) 1.30 821
    2022-06-01 $562,233 (19.0%) $826,393 (15.9%) 1.25 965
    2022-07-01 $530,000 (16.5%) $789,064 (14.5%) 1.19 1,139
    2022-08-01 $521,000 (15.9%) $760,825 (10.2%) 1.20 1,154
    2022-09-01 $523,725 (14.6%) $773,395 (8.1%) 1.22 1,188
    2022-10-01 $529,000 (12.2%) $792,464 (8.8%) 1.24 1,292
    2022-11-01 $534,500 (13.1%) $797,589 (7.3%) 1.28 1,231
    2022-12-01 $539,450 (12.4%) $797,555 (3.5%) 1.33 1,098
    2023-01-01 $531,200 (6.3%) $798,957 (-3.6%) 1.32 959
    2023-02-01 $575,000 (6.9%) $832,146 (-8.6%) 1.39 820
    2023-03-01 $575,000 (3.4%) $840,919 (-8.5%) 1.36 837
    2023-04-01 $589,500 (7.2%) $854,280 (-3.4%) 1.37 924
    2023-05-01 $599,000 (5.6%) $875,566 (1.5%) 1.36 1,055
    2023-06-01 $607,185 (8.0%) $887,871 (7.4%) 1.36 1,106
    2023-07-01 $599,000 (13.0%) $880,743 (11.6%) 1.36 1,144
    2023-08-01 $600,000 (15.2%) $874,653 (15.0%) 1.38 1,172
    2023-09-01 $600,000 (14.6%) $857,769 (10.9%) 1.40 1,245
    2023-10-01 $592,225 (12.0%) $853,475 (7.7%) 1.39 1,375
    2023-11-01 $575,000 (7.6%) $840,927 (5.4%) 1.37 1,389
    2023-12-01 $549,900 (1.9%) $823,351 (3.2%) 1.34 1,271
    2024-01-01 $552,475 (4.0%) $851,280 (6.6%) 1.35 1,087
    2024-02-01 $547,000 (-4.9%) $846,333 (1.7%) 1.32 1,022
    2024-03-01 $550,000 (-4.4%) $849,221 (1.0%) 1.29 1,138
    2024-04-01 $570,125 (-3.3%) $837,425 (-2.0%) 1.33 1,249
    2024-05-01 $627,000 (4.7%) $913,529 (4.3%) 1.42 1,319
    2024-06-01 $610,000 (0.5%) $885,502 (-0.3%) 1.37 1,443
    2024-07-01 $575,000 (-4.0%) $852,373 (-3.2%) 1.31 1,592
    2024-08-01 $569,950 (-5.0%) $843,265 (-3.6%) 1.33 1,747
    2024-09-01 $575,000 (-4.2%) $841,121 (-1.9%) 1.35 1,873
    2024-10-01 $573,450 (-3.2%) $821,782 (-3.7%) 1.35 1,751
    Asheville's median listing price for 2024-10-01 was $573,450, a difference of $-18,775 (-3.2%) versus the prior year and $-1,550 versus the prior month.

    Asheville's median listing price comes in at 135% of the national average.

    Asheville's average listing price for 2024-10-01 was $821,782, a difference of $-31,693 (-3.7%) versus the prior year and $-19,339 versus the prior month.

    For the 2024-10-01 period, Asheville had 1,751 MLS listings, a difference of -122 listings (-7%) versus the prior month and 376 listings (27%) 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
    2018-01-01 106 days 2,214 sqft
    2018-02-01 46 days 2,193 sqft
    2018-03-01 68 days 2,153 sqft
    2018-04-01 80 days 2,156 sqft
    2018-05-01 73 days 2,163 sqft
    2018-06-01 72 days 2,160 sqft
    2018-07-01 72 days 2,187 sqft
    2018-08-01 79 days 2,185 sqft
    2018-09-01 81 days 2,172 sqft
    2018-10-01 85 days 2,130 sqft
    2018-11-01 86 days 2,114 sqft
    2018-12-01 99 days 2,089 sqft
    2019-01-01 111 days 2,080 sqft
    2019-02-01 114 days 2,063 sqft
    2019-03-01 93 days 2,113 sqft
    2019-04-01 63 days 2,166 sqft
    2019-05-01 60 days 2,214 sqft
    2019-06-01 60 days 2,216 sqft
    2019-07-01 66 days 2,211 sqft
    2019-08-01 70 days 2,185 sqft
    2019-09-01 75 days 2,163 sqft
    2019-10-01 78 days 2,153 sqft
    2019-11-01 81 days 2,144 sqft
    2019-12-01 92 days 2,130 sqft
    2020-01-01 107 days 2,128 sqft
    2020-02-01 109 days 2,110 sqft
    2020-03-01 91 days 2,112 sqft
    2020-04-01 75 days 2,079 sqft
    2020-05-01 75 days 2,149 sqft
    2020-06-01 72 days 2,172 sqft
    2020-07-01 62 days 2,204 sqft
    2020-08-01 62 days 2,181 sqft
    2020-09-01 59 days 2,211 sqft
    2020-10-01 57 days 2,176 sqft
    2020-11-01 60 days 2,141 sqft
    2020-12-01 68 days 2,110 sqft
    2021-01-01 79 days 2,055 sqft
    2021-02-01 82 days 1,990 sqft
    2021-03-01 57 days 1,941 sqft
    2021-04-01 45 days 1,930 sqft
    2021-05-01 38 days 1,992 sqft
    2021-06-01 35 days 1,941 sqft
    2021-07-01 41 days 1,906 sqft
    2021-08-01 48 days 1,870 sqft
    2021-09-01 52 days 1,898 sqft
    2021-10-01 53 days 1,938 sqft
    2021-11-01 57 days 1,917 sqft
    2021-12-01 67 days 1,930 sqft
    2022-01-01 79 days 1,939 sqft
    2022-02-01 74 days 1,936 sqft
    2022-03-01 48 days 2,023 sqft
    2022-04-01 30 days 2,005 sqft
    2022-05-01 30 days 2,074 sqft
    2022-06-01 33 days 2,054 sqft
    2022-07-01 36 days 2,026 sqft
    2022-08-01 45 days 2,025 sqft
    2022-09-01 49 days 1,988 sqft
    2022-10-01 50 days 2,040 sqft
    2022-11-01 56 days 2,062 sqft
    2022-12-01 71 days 2,046 sqft
    2023-01-01 83 days 1,971 sqft
    2023-02-01 85 days 2,017 sqft
    2023-03-01 61 days 2,030 sqft
    2023-04-01 46 days 2,051 sqft
    2023-05-01 43 days 2,056 sqft
    2023-06-01 46 days 2,102 sqft
    2023-07-01 52 days 2,089 sqft
    2023-08-01 54 days 2,110 sqft
    2023-09-01 50 days 2,105 sqft
    2023-10-01 51 days 2,080 sqft
    2023-11-01 57 days 2,008 sqft
    2023-12-01 69 days 1,987 sqft
    2024-01-01 82 days 1,930 sqft
    2024-02-01 84 days 1,888 sqft
    2024-03-01 57 days 1,902 sqft
    2024-04-01 43 days 1,943 sqft
    2024-05-01 40 days 2,041 sqft
    2024-06-01 45 days 2,015 sqft
    2024-07-01 50 days 1,964 sqft
    2024-08-01 52 days 1,960 sqft
    2024-09-01 57 days 1,944 sqft
    2024-10-01 71 days 1,947 sqft
    Asheville's median listing age (time on market) for 2024-10-01 was 71 days. This is 39% longer than the same period one year ago.

    Asheville's median square footage for active listings during the 2024-10-01 period was 1,947 sqft. One year prior, the average listing was 2,080 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).