Bakersfield FHA Loan Rates, Closing Costs & Stats

BAKERSFIELD, CA

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.

Bakersfield's 176 lenders originated 5,921 FHA loans during 2021. The total origination value was $1,455,135,000, with an average FHA loan value of $245,758.

Bakersfield FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Bakersfield averaged 6.14% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Bakersfield's average FHA mortgage closing costs are $8,587.

The average rate for the prior week (2023-01-20) was 6.31% and one month ago for the week of 2022-12-23, the average rate was 6.2%.

The average rate one year ago was 3.59%.

For refis of the same type during the week of 2023-01-27, the average rate was 6.1%.

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

Bakersfield 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 Bakersfield level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
QUICKEN LOANS, LLC 367 2.64% $6,834
Sierra Pacific Mortgage Company, Inc. 355 2.91% $10,587
UNITED WHOLESALE MORTGAGE, LLC 293 2.73% $9,651
FREEDOM MORTGAGE CORPORATION 206 2.77% $5,451
CALIBER HOME LOANS, INC. 193 2.78% $8,496
Golden Empire Mortgage, Inc. 181 3.27% $11,616
PENNYMAC LOAN SERVICES, LLC 152 3.06% $5,301
GUILD MORTGAGE COMPANY 146 3.01% $9,583
DIGNIFIED HOME LOANS, LLC 143 2.90% $9,382
HOME POINT FINANCIAL CORPORATION 140 2.79% $9,138
SUMMIT FUNDING, INC. 113 3.30% $12,457
HOMEBRIDGE FINANCIAL SERVICES, INC. 107 2.84% $8,498
LOANDEPOT.COM, LLC 107 3.16% $10,469
Nations Lending Corporation 102 3.27% $10,805
Equity Prime Mortgage LLC 99 3.24% $9,504
Mr. Cooper ( Nationstar Mortgage ) 95 3.21% $4,659
RESIDENTIAL BANCORP. 92 3.07% $12,244
LAKEVIEW LOAN SERVICING, LLC 92 2.92% $4,801
Lakeview Community Capital, LLC 79 2.96% $4,912
Platinum Home Mortgage Corporation 79 3.12% $12,117
Hometown Lenders, Inc. 65 3.18% $10,385
AMERICAN PACIFIC MORTGAGE CORPORATION 64 3.06% $10,328
MLD MORTGAGE INC. 63 3.09% $9,685
BROKER SOLUTIONS, INC. 59 3.11% $8,797
FBC MORTGAGE, LLC 57 3.18% $10,489
CMG MORTGAGE, INC. 52 2.85% $9,340
OCMBC, INC. 51 2.91% $9,735
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 51 3.28% $10,103
Paramount Residential Mortgage Group, Inc. 50 3.13% $9,345
AMERICAN FINANCIAL NETWORK, INC. 49 2.98% $11,594
VILLAGE CAPITAL MORTGAGE 48 2.78% $3,055
Carrington Mortgage Services, LLC 47 3.26% $9,111
CROSSCOUNTRY MORTGAGE, LLC 46 3.25% $10,466
NATIONS DIRECT MORTGAGE, LLC 42 3.09% $9,487
FINANCE OF AMERICA MORTGAGE LLC 38 3.05% $10,722
BECKAM FUNDING CORP. 37 3.64% $14,197
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 37 3.48% $11,183
Commerce Home Mortgage, Inc. 33 3.13% $8,870
MOUNTAIN WEST FINANCIAL, INC. 32 3.28% $12,190
SUN WEST MORTGAGE COMPANY, INC. 30 2.97% $8,699
LENDUS, LLC 29 2.73% $10,015
EAGLE HOME MORTGAGE, LLC 28 3.24% $10,526
MICHIGAN MUTUAL, INC. 27 2.93% $8,524
DHI MORTGAGE COMPANY, LTD. 26 2.70% $10,166
CAMPOS FINANCIAL CORP. 24 3.13% $10,372
SECURITYNATIONAL MORTGAGE COMPANY 24 3.35% $10,564
Hometown Equity Mortgage, LLC 22 3.24% $10,964
AmeriHome Mortgage Company, LLC 22 2.90% $4,270
NEWREZ LLC 21 2.87% $5,764
PLAZA HOME MORTGAGE, INC. 20 3.13% $8,692
MORTGAGE MANAGEMENT CONSULTANTS, INC. 19 3.14% $8,045
PRIMELENDING, A PLAINSCAPITAL COMPANY 19 3.25% $9,483
PANORAMA MORTGAGE GROUP, LLC 19 3.26% $11,239
AMERISAVE MORTGAGE CORPORATION 19 2.96% $9,176
PRIMARY RESIDENTIAL MORTGAGE, INC. 15 3.44% $11,976
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 15 2.78% $11,083
InterContinental Capital Group, Inc 14 2.90% $7,133
MOVEMENT MORTGAGE, LLC 14 3.08% $8,564
DAS Acquisition Company, LLC 14 3.31% $10,743
KINGS MORTGAGE SERVICES, INC. 14 2.69% $7,700
CORNERSTONE HOME LENDING, INC. 13 2.89% $9,304
STEARNS LENDING, LLC 13 2.99% $8,511
LOANPAL, LLC 13 2.72% $8,663
DRAPER AND KRAMER MORTGAGE CORP. 12 3.32% $10,201
ON Q FINANCIAL, INC. 12 3.53% $9,507
ARK-LA-TEX FINANCIAL SERVICES, LLC. 11 2.69% $9,212
MORIA DEVELOPMENT, INC. 11 3.32% $10,100
GUARANTEED RATE, INC. 10 3.03% $10,294
WESTERN EXPRESS LENDING 10 2.51% $7,755
COUNTRY CLUB MORTGAGE, INC. 10 3.09% $9,305
PLANET HOME LENDING, LLC 10 2.73% $4,905
HOME APPROVALS DIRECT, INC. 9 3.01% $9,901
CELEBRITY HOME LOANS, LLC 9 3.13% $10,390
First Guaranty Mortgage Corporation 9 2.85% $5,781
CALCON MUTUAL MORTGAGE LLC 9 3.81% $10,533
CALCULATED RISK ANALYTICS LLC 9 3.01% $10,261
HighTechLending Inc 9 3.47% $10,429
TOP FLITE FINANCIAL, INC. 8 3.56% $11,668
ROUNDPOINT MORTGAGE SERVICING CORPORATION 8 3.47% $11,587
HOMESIDE FINANCIAL, LLC 8 3.05% $10,430
WALL FINANCIAL, INC. 7 2.86% $11,638
AUGUSTA FINANCIAL, INC. 7 2.71% $10,344
LOANLEADERS OF AMERICA, INC. 7 3.05% $13,838
First Standard Financial Corp. 6 3.06% $10,991
Bank of America 6 2.96% $7,339
ML Mortgage Corp. 6 3.15% $9,403
NMSI, INC. 6 3.06% $10,998
Home Mortgage Alliance Corp 6 2.73% $9,633
DATA MORTGAGE, INC. 5 4.00% $10,944
ALAMEDA MORTGAGE CORPORATION 5 3.00% $9,457
PARKSIDE LENDING, LLC 5 2.73% $9,272
Mortgage Research Center, LLC 5 2.75% $8,690
JMJ FINANCIAL GROUP 4 3.22% $9,088
United Fidelity Funding Corp. 4 2.88% $9,918
AMERICAN FINANCING CORPORATION 4 2.91% $10,457
INSPIRE HOME LOANS INC. 4 2.91% $12,181
The Federal Savings Bank 4 2.56% $12,687
DEL SUR CORPORATION 4 2.81% $12,977
RANLIFE, INC. 4 2.97% $9,873
VISION ONE MORTGAGE, INC. 4 3.25% $6,815
JPMorgan Chase Bank 3 2.92% $7,218
CHERRY CREEK MORTGAGE, LLC 3 3.21% $3,550
KS StateBank 3 2.46% $7,449
S1L, Inc. 3 3.71% $7,457
SOVEREIGN LENDING GROUP INCORPORATED 3 2.61% $8,517
PHH Mortgage Corporation 3 3.33% $4,456
MASON MCDUFFIE MORTGAGE CORPORATION 3 2.92% $8,617
BEST CAPITAL FUNDING 3 3.21% $7,382
EVERGREEN MONEYSOURCE MORTGAGE COMPANY 3 3.50% $12,170
BAY EQUITY LLC 3 2.95% $10,876
Barrington Bank & Trust Company, N.A. 3 3.25% $8,829
OCEANSIDE MORTGAGE COMPANY 3 3.00% $2,199
KELLER MORTGAGE, LLC 2 2.38% $7,605
AMERICAN FINANCIAL RESOURCES, INC. 2 2.94% $10,055
CHURCHILL MORTGAGE CORPORATION 2 2.88% $9,212
Flagstar Bank, FSB 2 2.81% $9,042
Franklin Loan Corporation 2 3.06% $9,261
INTERNATIONAL CITY MORTGAGE, INC. 2 3.13% $11,845
ACADEMY MORTGAGE CORPORATION 2 3.19% $8,602
LADERA LENDING, INC. 2 2.75% $7,547
MEGA CAPITAL FUNDING, INC. 2 2.56% $8,736
MID AMERICA MORTGAGE, INC. 2 2.75% $3,783
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 3.75% $12,414
M&T Bank 2 3.00% $7,963
MUTUAL OF OMAHA MORTGAGE, INC. 2 2.56% $11,080
PREMIA MORTGAGE, LLC 2 3.00% $7,955
Residential Mortgage Solutions, Inc. 2 2.62% $8,461
UNITED SECURITY FINANCIAL CORP 2 2.69% $4,231
U.S. Bank 2 2.88% $9,567
Watermark Capital, Inc. 2 2.94% $8,685
Wells Fargo Bank 2 2.75% $8,660
OPEN MORTGAGE, LLC 1 3.50% $8,058
LENDING 3, INC. 1 3.00% $12,270
LEADERONE FINANCIAL CORPORATION 1 2.50% $12,306
LAND HOME FINANCIAL SERVICES, INC. 1 3.75% $16,292
KINECTA 1 3.00% $5,735
JMAC LENDING, INC. 1 2.63% $9,119
Plains Commerce Bank 1 2.63% $11,578
INTELLILOAN, INC. 1 2.88% $8,396
iCore Lending, Inc. 1 2.75% $12,960
HomeStreet Bank 1 2.88% $8,764
AmRes Corporation 1 3.00% $9,691
PREMIER MORTGAGE RESOURCES, L.L.C. 1 3.50% $10,856
HOME FUNDING CORPORATION 1 3.75% $12,326
Prime Choice Funding Inc. 1 2.75% $8,829
GRANDE HOMES, INC. 1 2.75% $7,459
GoPrime Mortgage, Inc. 1 3.00% $16,041
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 2.88% $14,523
GENEVA FINANCIAL, LLC 1 2.50% $11,701
Amerifirst Financial, Inc. 1 4.38% $7,206
FISHER FINANCIAL GROUP, INCORPORATED 1 3.00% $6,991
First Home Bank 1 2.50% $18,181
San Diego Funding 1 3.00% $10,009
FAY SERVICING, LLC 1 3.50% $4,157
EMM LOANS LLC 1 3.50% $9,787
SNAPFI, INC. 1 2.88% $9,443
EMBRACE HOME LOANS, INC. 1 3.25% $10,232
Colten Mortgage, LLC 1 2.38% $8,483
Strong Home Mortgage, LLC 1 2.63% $8,518
COASTAL FUNDING SLC, INC. 1 3.25% $7,154
Citibank 1 3.25% $7,338
SWBC MORTGAGE CORPORATION 1 3.25% $4,342
Chickasaw Community Bank 1 3.00% $10,232
Blue Ridge Bank 1 2.88% $12,447
Umpqua Bank 1 2.75% $12,632
BEST FINANCE CAPITAL, INC. 1 2.25% $10,062
AHL FUNDING 1 3.25% $9,147
BAYSHORE MORTGAGE FUNDING, LLC 1 3.13% $12,059
ZILLOW HOME LOANS, LLC 1 2.50% $11,906
AXIA FINANCIAL, LLC 1 3.25% $9,755
NETWORK CAPITAL FUNDING CORPORATION 1 2.88% $8,928
Neighborhood Loans, Inc. 1 3.00% $9,549
NP, Inc. 1 3.50% $10,427
MUFG Union Bank 1 2.50% $6,133
Magnolia Bank 1 3.75% $6,897
Loan Simple, Inc. 1 3.63% $9,873

The top Bakersfield FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 367 FHA loans originated. Their average total fees are $6,834, which is $3,753 lower than the next largest lender, Sierra Pacific Mortgage Company, Inc..

The lowest fee Bakersfield FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($3,055), AmeriHome Mortgage Company, LLC ($4,270), Mr. Cooper ( Nationstar Mortgage ) ($4,659), LAKEVIEW LOAN SERVICING, LLC ($4,801) and PLANET HOME LENDING, LLC ($4,905).

The lowest rate Bakersfield FHA lenders (with over 10 loans originated) are WESTERN EXPRESS LENDING (2.51%), QUICKEN LOANS, LLC (2.64%), KINGS MORTGAGE SERVICES, INC. (2.69%), ARK-LA-TEX FINANCIAL SERVICES, LLC. (2.69%) and DHI MORTGAGE COMPANY, LTD. (2.70%).

Bakersfield FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
BAKERSFIELD, CA KERN 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Bakersfield (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 $236,097 (4.9%) $279,801 (2.8%) 0.88 2,062
2018-02-01 $239,950 (4.8%) $281,183 (1.9%) 0.87 2,098
2018-03-01 $250,000 (5.0%) $289,967 (2.3%) 0.88 2,130
2018-04-01 $259,450 (5.9%) $294,240 (1.4%) 0.88 2,228
2018-05-01 $262,271 (5.1%) $298,099 (2.7%) 0.88 2,230
2018-06-01 $263,000 (5.2%) $296,815 (2.7%) 0.88 2,344
2018-07-01 $259,900 (4.0%) $293,881 (2.1%) 0.87 2,443
2018-08-01 $256,500 (2.8%) $290,491 (1.7%) 0.86 2,511
2018-09-01 $254,900 (2.4%) $290,839 (2.2%) 0.86 2,561
2018-10-01 $250,000 (0.8%) $288,423 (1.0%) 0.84 2,495
2018-11-01 $249,900 (2.5%) $286,879 (1.3%) 0.85 2,437
2018-12-01 $249,000 (4.2%) $285,673 (0.8%) 0.86 2,274
2019-01-01 $245,000 (3.8%) $282,636 (1.0%) 0.85 2,087
2019-02-01 $245,000 (2.1%) $283,973 (1.0%) 0.83 2,072
2019-03-01 $252,400 (1.0%) $292,325 (0.8%) 0.83 2,108
2019-04-01 $261,308 (0.7%) $303,498 (3.2%) 0.83 2,189
2019-05-01 $262,750 (0.2%) $304,559 (2.2%) 0.82 2,273
2019-06-01 $264,900 (0.7%) $304,436 (2.6%) 0.83 2,354
2019-07-01 $266,875 (2.7%) $306,796 (4.4%) 0.84 2,388
2019-08-01 $262,818 (2.5%) $304,049 (4.7%) 0.83 2,345
2019-09-01 $259,545 (1.8%) $303,848 (4.5%) 0.83 2,245
2019-10-01 $258,114 (3.3%) $303,857 (5.4%) 0.83 2,172
2019-11-01 $258,900 (3.6%) $308,654 (7.6%) 0.85 2,034
2019-12-01 $258,500 (3.8%) $377,329 (32.1%) 0.86 1,862
2020-01-01 $259,450 (5.9%) $304,875 (7.9%) 0.87 1,648
2020-02-01 $259,900 (6.1%) $315,069 (11.0%) 0.85 1,584
2020-03-01 $269,950 (7.0%) $324,360 (11.0%) 0.85 1,609
2020-04-01 $269,450 (3.1%) $320,408 (5.6%) 0.84 1,671
2020-05-01 $269,800 (2.7%) $324,818 (6.7%) 0.82 1,597
2020-06-01 $270,850 (2.3%) $333,325 (9.5%) 0.80 1,415
2020-07-01 $279,950 (4.9%) $344,109 (12.2%) 0.81 1,288
2020-08-01 $295,000 (12.2%) $349,076 (14.8%) 0.85 1,141
2020-09-01 $300,000 (15.6%) $362,481 (19.3%) 0.86 1,174
2020-10-01 $299,900 (16.2%) $363,899 (19.8%) 0.86 1,165
2020-11-01 $299,675 (15.8%) $352,980 (14.4%) 0.88 1,076
2020-12-01 $287,000 (11.0%) $337,308 (-10.6%) 0.85 1,004
2021-01-01 $279,000 (7.5%) $329,820 (8.2%) 0.83 893
2021-02-01 $284,500 (9.5%) $344,905 (9.5%) 0.83 775
2021-03-01 $294,873 (9.2%) $353,163 (8.9%) 0.84 723
2021-04-01 $299,750 (11.3%) $353,703 (10.4%) 0.81 752
2021-05-01 $315,000 (16.8%) $373,734 (15.1%) 0.83 743
2021-06-01 $313,300 (15.7%) $380,024 (14.0%) 0.82 839
2021-07-01 $320,000 (14.3%) $380,806 (10.7%) 0.84 983
2021-08-01 $320,000 (8.5%) $379,602 (8.7%) 0.85 1,116
2021-09-01 $318,413 (6.1%) $379,459 (4.7%) 0.85 1,129
2021-10-01 $329,900 (10.0%) $389,568 (7.1%) 0.88 1,175
2021-11-01 $337,000 (12.5%) $399,001 (13.0%) 0.90 1,029
2021-12-01 $339,750 (18.4%) $406,764 (20.6%) 0.92 921
2022-01-01 $339,500 (21.7%) $405,725 (23.0%) 0.92 801
2022-02-01 $349,000 (22.7%) $417,415 (21.0%) 0.91 748
2022-03-01 $358,000 (21.4%) $424,061 (20.1%) 0.90 756
2022-04-01 $365,000 (21.8%) $434,119 (22.7%) 0.87 876
2022-05-01 $389,487 (23.7%) $444,706 (19.0%) 0.89 1,180
2022-06-01 $399,450 (27.5%) $440,530 (15.9%) 0.89 1,396
2022-07-01 $390,000 (21.9%) $434,766 (14.2%) 0.88 1,620
2022-08-01 $389,500 (21.7%) $429,983 (13.3%) 0.90 1,701
2022-09-01 $387,000 (21.5%) $430,834 (13.5%) 0.91 1,749
2022-10-01 $380,000 (15.2%) $426,585 (9.5%) 0.89 1,799
2022-11-01 $375,000 (11.3%) $427,698 (7.2%) 0.90 1,762
2022-12-01 $369,625 (8.8%) $421,594 (3.7%) 0.92 1,514
Bakersfield's median listing price for 2022-12-01 was $369,625, a difference of $29,875 (8.8%) versus the prior year and $-5,375 versus the prior month.

Bakersfield's median listing price comes in at 92% of the national average.

Bakersfield's average listing price for 2022-12-01 was $421,594, a difference of $14,830 (3.7%) versus the prior year and $-6,104 versus the prior month.

For the 2022-12-01 period, Bakersfield had 1,514 MLS listings, a difference of -248 listings (-14%) versus the prior month and 593 listings (64%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Bakersfield (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 63 days 1,708 sqft
2018-02-01 43 days 1,713 sqft
2018-03-01 43 days 1,742 sqft
2018-04-01 44 days 1,758 sqft
2018-05-01 44 days 1,777 sqft
2018-06-01 45 days 1,772 sqft
2018-07-01 47 days 1,768 sqft
2018-08-01 47 days 1,740 sqft
2018-09-01 48 days 1,736 sqft
2018-10-01 55 days 1,703 sqft
2018-11-01 58 days 1,691 sqft
2018-12-01 66 days 1,681 sqft
2019-01-01 68 days 1,667 sqft
2019-02-01 54 days 1,667 sqft
2019-03-01 45 days 1,706 sqft
2019-04-01 43 days 1,745 sqft
2019-05-01 43 days 1,747 sqft
2019-06-01 45 days 1,736 sqft
2019-07-01 46 days 1,745 sqft
2019-08-01 47 days 1,723 sqft
2019-09-01 49 days 1,699 sqft
2019-10-01 52 days 1,687 sqft
2019-11-01 56 days 1,682 sqft
2019-12-01 59 days 1,674 sqft
2020-01-01 63 days 1,673 sqft
2020-02-01 44 days 1,680 sqft
2020-03-01 40 days 1,712 sqft
2020-04-01 48 days 1,699 sqft
2020-05-01 57 days 1,690 sqft
2020-06-01 50 days 1,703 sqft
2020-07-01 37 days 1,704 sqft
2020-08-01 35 days 1,760 sqft
2020-09-01 32 days 1,788 sqft
2020-10-01 36 days 1,759 sqft
2020-11-01 38 days 1,706 sqft
2020-12-01 41 days 1,625 sqft
2021-01-01 42 days 1,605 sqft
2021-02-01 32 days 1,593 sqft
2021-03-01 24 days 1,603 sqft
2021-04-01 23 days 1,615 sqft
2021-05-01 22 days 1,666 sqft
2021-06-01 23 days 1,646 sqft
2021-07-01 22 days 1,634 sqft
2021-08-01 27 days 1,639 sqft
2021-09-01 30 days 1,610 sqft
2021-10-01 31 days 1,645 sqft
2021-11-01 37 days 1,638 sqft
2021-12-01 41 days 1,657 sqft
2022-01-01 40 days 1,633 sqft
2022-02-01 27 days 1,643 sqft
2022-03-01 23 days 1,680 sqft
2022-04-01 22 days 1,702 sqft
2022-05-01 23 days 1,723 sqft
2022-06-01 27 days 1,764 sqft
2022-07-01 31 days 1,750 sqft
2022-08-01 38 days 1,743 sqft
2022-09-01 44 days 1,749 sqft
2022-10-01 46 days 1,730 sqft
2022-11-01 51 days 1,726 sqft
2022-12-01 64 days 1,724 sqft
Bakersfield's median listing age (time on market) for 2022-12-01 was 64 days. This is 57% longer than the same period one year ago.

Bakersfield's median square footage for active listings during the 2022-12-01 period was 1,724 sqft. One year prior, the average listing was 1,657 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).