Bakersfield FHA Loans

BAKERSFIELD, CA

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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.

    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 5.11% 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 5.41% and one month ago for the week of 2022-04-15, the average rate was 5%.

    The average rate one year ago was 2.97%.

    For refis of the same type during the week of 2022-05-20, the average rate was 5.16%.

    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 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. Total Fees
    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
    LOANDEPOT.COM, LLC 107 3.16% $10,469
    HOMEBRIDGE FINANCIAL SERVICES, INC. 107 2.84% $8,498
    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
    LAKEVIEW LOAN SERVICING, LLC 92 2.92% $4,801
    RESIDENTIAL BANCORP. 92 3.07% $12,244
    Platinum Home Mortgage Corporation 79 3.12% $12,117
    Lakeview Community Capital, LLC 79 2.96% $4,912
    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
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 51 3.28% $10,103
    OCMBC, INC. 51 2.91% $9,735
    Paramount Residential Mortgage Group, Inc. 50 3.13% $9,345
    AMERICAN FINANCIAL NETWORK, INC. 49 2.98% $11,594
    VILLAGE CAPITAL & INVESTMENT LLC 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
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 37 3.48% $11,183
    BECKAM FUNDING CORP. 37 3.64% $14,197
    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
    SECURITYNATIONAL MORTGAGE COMPANY 24 3.35% $10,564
    CAMPOS FINANCIAL CORP. 24 3.13% $10,372
    AmeriHome Mortgage Company, LLC 22 2.90% $4,270
    Hometown Equity Mortgage, LLC 22 3.24% $10,964
    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
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 15 2.78% $11,083
    PRIMARY RESIDENTIAL MORTGAGE, INC. 15 3.44% $11,976
    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
    LOANPAL, LLC 13 2.72% $8,663
    CORNERSTONE HOME LENDING, INC. 13 2.89% $9,304
    STEARNS LENDING, LLC 13 2.99% $8,511
    DRAPER AND KRAMER MORTGAGE CORP. 12 3.32% $10,201
    ON Q FINANCIAL, INC. 12 3.53% $9,507
    MORIA DEVELOPMENT, INC. 11 3.32% $10,100
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 11 2.69% $9,212
    COUNTRY CLUB MORTGAGE, INC. 10 3.09% $9,305
    WESTERN EXPRESS LENDING 10 2.51% $7,755
    GUARANTEED RATE, INC. 10 3.03% $10,294
    PLANET HOME LENDING, LLC 10 2.73% $4,905
    CELEBRITY HOME LOANS, LLC 9 3.13% $10,390
    HighTechLending Inc 9 3.47% $10,429
    HOME APPROVALS DIRECT, INC. 9 3.01% $9,901
    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
    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
    LOANLEADERS OF AMERICA, INC. 7 3.05% $13,838
    AUGUSTA FINANCIAL, INC. 7 2.71% $10,344
    ML Mortgage Corp. 6 3.15% $9,403
    First Standard Financial Corp. 6 3.06% $10,991
    Home Mortgage Alliance Corp 6 2.73% $9,633
    Bank of America 6 2.96% $7,339
    NMSI, INC. 6 3.06% $10,998
    ALAMEDA MORTGAGE CORPORATION 5 3.00% $9,457
    DATA MORTGAGE, INC. 5 4.00% $10,944
    PARKSIDE LENDING, LLC 5 2.73% $9,272
    Mortgage Research Center, LLC 5 2.75% $8,690
    DEL SUR CORPORATION 4 2.81% $12,977
    VISION ONE MORTGAGE, INC. 4 3.25% $6,815
    JMJ FINANCIAL GROUP 4 3.22% $9,088
    The Federal Savings Bank 4 2.56% $12,687
    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
    RANLIFE, INC. 4 2.97% $9,873
    JPMorgan Chase Bank 3 2.92% $7,218
    CHERRY CREEK MORTGAGE, LLC 3 3.21% $3,550
    KS StateBank 3 2.46% $7,449
    SOVEREIGN LENDING GROUP INCORPORATED 3 2.61% $8,517
    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
    MASON MCDUFFIE MORTGAGE CORPORATION 3 2.92% $8,617
    S1L, Inc. 3 3.71% $7,457
    OCEANSIDE MORTGAGE COMPANY 3 3.00% $2,199
    PHH Mortgage Corporation 3 3.33% $4,456
    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
    Manufacturers and Traders Trust Company 2 3.00% $7,963
    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
    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 & INVESTMENT LLC ($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 $240,000 (6.2%) $295,796 (6.5%) 0.88 2,247
    2018-02-01 $244,975 (6.5%) $295,240 (4.1%) 0.88 2,305
    2018-03-01 $255,000 (6.3%) $295,289 (0.8%) 0.88 2,316
    2018-04-01 $259,925 (6.1%) $307,647 (3.7%) 0.87 2,422
    2018-05-01 $265,000 (6.8%) $313,203 (5.5%) 0.88 2,411
    2018-06-01 $265,000 (5.0%) $310,733 (4.8%) 0.88 2,548
    2018-07-01 $262,975 (5.2%) $309,351 (5.2%) 0.88 2,651
    2018-08-01 $259,000 (3.6%) $304,821 (4.3%) 0.87 2,700
    2018-09-01 $255,000 (2.4%) $305,575 (4.7%) 0.85 2,765
    2018-10-01 $249,999 (0.2%) $302,658 (0.7%) 0.84 2,754
    2018-11-01 $249,900 (0.4%) $298,910 (0.0%) 0.84 2,685
    2018-12-01 $248,000 (1.2%) $294,217 (-1.7%) 0.85 2,509
    2019-01-01 $244,975 (2.1%) $291,910 (-1.3%) 0.84 2,287
    2019-02-01 $246,350 (0.6%) $294,388 (-0.3%) 0.83 2,280
    2019-03-01 $253,614 (-0.5%) $302,030 (2.3%) 0.83 2,304
    2019-04-01 $259,900 (0.0%) $311,793 (1.4%) 0.82 2,365
    2019-05-01 $260,000 (-1.9%) $312,977 (-0.1%) 0.80 2,471
    2019-06-01 $260,000 (-1.9%) $313,655 (0.9%) 0.80 2,566
    2019-07-01 $265,700 (1.0%) $316,337 (2.3%) 0.83 2,603
    2019-08-01 $262,429 (1.3%) $312,738 (2.6%) 0.83 2,494
    2019-09-01 $259,879 (1.9%) $309,710 (1.4%) 0.83 2,321
    2019-10-01 $259,450 (3.8%) $308,221 (1.8%) 0.83 2,340
    2019-11-01 $259,000 (3.6%) $312,153 (4.4%) 0.84 2,246
    2019-12-01 $259,900 (4.8%) $376,444 (28.0%) 0.87 2,048
    2020-01-01 $259,950 (6.1%) $314,712 (7.8%) 0.87 1,809
    2020-02-01 $263,500 (7.0%) $325,188 (10.5%) 0.85 1,725
    2020-03-01 $274,900 (8.4%) $333,579 (10.5%) 0.86 1,750
    2020-04-01 $270,000 (3.9%) $327,870 (5.2%) 0.84 1,814
    2020-05-01 $274,900 (5.7%) $332,344 (6.2%) 0.83 1,732
    2020-06-01 $277,000 (6.5%) $341,697 (8.9%) 0.81 1,527
    2020-07-01 $289,250 (8.9%) $351,848 (11.2%) 0.83 1,401
    2020-08-01 $299,000 (13.9%) $364,756 (16.6%) 0.85 1,241
    2020-09-01 $309,500 (19.1%) $377,520 (21.9%) 0.88 1,275
    2020-10-01 $304,000 (17.2%) $377,877 (22.6%) 0.87 1,253
    2020-11-01 $299,995 (15.8%) $362,591 (16.2%) 0.86 1,165
    2020-12-01 $287,500 (10.6%) $346,097 (-8.1%) 0.84 1,075
    2021-01-01 $279,999 (7.7%) $334,823 (6.4%) 0.82 944
    2021-02-01 $282,450 (7.2%) $347,616 (6.9%) 0.81 829
    2021-03-01 $297,000 (8.0%) $362,198 (8.6%) 0.83 758
    2021-04-01 $303,450 (12.4%) $361,245 (10.2%) 0.82 791
    2021-05-01 $315,000 (14.6%) $380,733 (14.6%) 0.83 800
    2021-06-01 $319,000 (15.2%) $389,167 (13.9%) 0.83 901
    2021-07-01 $326,700 (13.0%) $388,080 (10.3%) 0.85 1,044
    2021-08-01 $322,500 (7.9%) $386,555 (6.0%) 0.85 1,229
    2021-09-01 $325,000 (5.0%) $394,767 (4.6%) 0.86 1,245
    2021-10-01 $339,000 (11.5%) $401,576 (6.3%) 0.89 1,311
    2021-11-01 $340,000 (13.3%) $411,311 (13.4%) 0.90 1,135
    2021-12-01 $345,000 (20.0%) $434,307 (25.5%) 0.92 1,019
    2022-01-01 $345,000 (23.2%) $432,152 (29.1%) 0.92 867
    2022-02-01 $349,900 (23.9%) $447,854 (28.8%) 0.89 823
    2022-03-01 $359,500 (21.0%) $452,716 (25.0%) 0.89 821
    2022-04-01 $370,000 (21.9%) $445,450 (23.3%) 0.87 951
    Bakersfield's median listing price for 2022-04-01 was $370,000, a difference of $66,550 (21.9%) versus the prior year and $10,500 versus the prior month.

    Bakersfield's median listing price comes in at 87% of the national average.

    Bakersfield's average listing price for 2022-04-01 was $445,450, a difference of $84,205 (23.3%) versus the prior year and $-7,266 versus the prior month.

    For the 2022-04-01 period, Bakersfield had 951 MLS listings, a difference of 130 listings (16%) versus the prior month and 160 listings (20%) 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 1,721 sqft
    2018-02-01 43 days 1,721 sqft
    2018-03-01 43 days 1,750 sqft
    2018-04-01 45 days 1,768 sqft
    2018-05-01 44 days 1,789 sqft
    2018-06-01 45 days 1,787 sqft
    2018-07-01 46 days 1,772 sqft
    2018-08-01 47 days 1,748 sqft
    2018-09-01 47 days 1,740 sqft
    2018-10-01 53 days 1,713 sqft
    2018-11-01 57 days 1,695 sqft
    2018-12-01 66 days 1,688 sqft
    2019-01-01 68 days 1,680 sqft
    2019-02-01 54 days 1,682 sqft
    2019-03-01 47 days 1,715 sqft
    2019-04-01 43 days 1,743 sqft
    2019-05-01 43 days 1,752 sqft
    2019-06-01 46 days 1,736 sqft
    2019-07-01 47 days 1,754 sqft
    2019-08-01 49 days 1,731 sqft
    2019-09-01 49 days 1,714 sqft
    2019-10-01 50 days 1,698 sqft
    2019-11-01 53 days 1,689 sqft
    2019-12-01 57 days 1,685 sqft
    2020-01-01 62 days 1,690 sqft
    2020-02-01 44 days 1,700 sqft
    2020-03-01 40 days 1,741 sqft
    2020-04-01 46 days 1,729 sqft
    2020-05-01 55 days 1,715 sqft
    2020-06-01 49 days 1,731 sqft
    2020-07-01 38 days 1,751 sqft
    2020-08-01 34 days 1,795 sqft
    2020-09-01 30 days 1,816 sqft
    2020-10-01 33 days 1,797 sqft
    2020-11-01 35 days 1,727 sqft
    2020-12-01 38 days 1,645 sqft
    2021-01-01 36 days 1,612 sqft
    2021-02-01 31 days 1,602 sqft
    2021-03-01 22 days 1,627 sqft
    2021-04-01 23 days 1,630 sqft
    2021-05-01 22 days 1,680 sqft
    2021-06-01 23 days 1,661 sqft
    2021-07-01 22 days 1,671 sqft
    2021-08-01 29 days 1,658 sqft
    2021-09-01 30 days 1,639 sqft
    2021-10-01 31 days 1,673 sqft
    2021-11-01 37 days 1,657 sqft
    2021-12-01 40 days 1,685 sqft
    2022-01-01 39 days 1,655 sqft
    2022-02-01 29 days 1,674 sqft
    2022-03-01 25 days 1,706 sqft
    2022-04-01 22 days 1,736 sqft
    Bakersfield's median listing age (time on market) for 2022-04-01 was 22 days. This is -2% shorter than the same period one year ago.

    Bakersfield's median square footage for active listings during the 2022-04-01 period was 1,736 sqft. One year prior, the average listing was 1,630 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).