Baton Rouge FHA Loan Rates, Closing Costs & Stats

BATON ROUGE, LA

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.

Baton Rouge's 118 lenders originated 2,540 FHA loans during 2023. The total origination value was $596,350,000, with an average FHA loan value of $234,783.

Baton Rouge FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Baton Rouge averaged 6.86% for the week of 2024-04-12, compared to the national average (all FHA variants) of 6.739% for the same period.

Baton Rouge's average FHA mortgage closing costs are $7,385.

The average rate for the prior week (2024-04-05) was 6.39% and one month ago for the week of 2024-03-08, the average rate was 6.33%.

The average rate one year ago was 5.96%.

For refis of the same type during the week of 2024-04-12, the average rate was 6.43%.

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

Baton Rouge 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 Baton Rouge level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
GMFS LLC 340 6.60% $7,457
UNITED WHOLESALE MORTGAGE, LLC 265 6.46% $11,448
DSLD MORTGAGE, LLC 190 6.26% $5,580
QUICKEN LOANS, LLC 155 6.27% $10,537
DHI MORTGAGE COMPANY, LTD. 129 5.35% $7,651
CARDINAL FINANCIAL 88 6.90% $9,832
Assurance Financial Group, L.L.C. 84 6.82% $11,533
ARK-LA-TEX FINANCIAL SERVICES, LLC. 56 6.86% $7,224
MOVEMENT MORTGAGE, LLC 55 6.58% $11,003
EUSTIS AND AMERICAN MORTGAGE COMPANY 53 6.72% $10,996
FIDELITY BANK 52 6.54% $10,750
FREEDOM MORTGAGE CORPORATION 45 6.92% $10,870
LOANDEPOT.COM, LLC 42 6.38% $10,368
SUN WEST MORTGAGE COMPANY, INC. 40 6.55% $9,566
Gulf Coast Bank and Trust Company 40 6.56% $9,081
NEWREZ LLC 36 6.41% $10,693
Paramount Residential Mortgage Group, Inc. 36 7.27% $11,020
PRIMARY RESIDENTIAL MORTGAGE, INC. 25 7.01% $10,254
Equity Prime Mortgage LLC 24 6.96% $10,478
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 24 7.07% $10,488
PENNYMAC LOAN SERVICES, LLC 22 6.41% $10,691
PLAZA HOME MORTGAGE, INC. 21 6.11% $10,690
AMERICAN FINANCIAL NETWORK, INC. 21 6.77% $10,534
CMG MORTGAGE, INC. 19 7.24% $11,826
AMCAP MORTGAGE, LTD. 17 6.84% $10,897
Hancock Whitney Bank 17 6.05% $9,472
SUMMIT FUNDING, INC. 16 6.53% $9,880
MID AMERICA MORTGAGE, INC. 16 7.16% $8,488
Red River Bank 16 6.29% $7,887
CROSSCOUNTRY MORTGAGE, LLC 16 7.08% $10,732
Nations Lending Corporation 15 6.86% $7,458
Regions Bank 15 5.99% $11,494
STANDARD MORTGAGE CORPORATION 13 6.24% $8,175
Carrington Mortgage Services, LLC 13 6.41% $13,690
OCMBC, INC. 13 7.24% $14,642
Republic State Mortgage Co. 13 6.87% $10,860
Gateway First Bank 12 6.36% $6,876
Mr. Cooper ( Nationstar Mortgage ) 12 6.25% $11,961
GUILD MORTGAGE COMPANY 12 6.65% $11,230
First Option Mortgage, LLC 11 6.89% $11,531
Plains Commerce Bank 11 6.68% $11,916
AMERISAVE MORTGAGE CORPORATION 11 6.06% $11,883
THE MORTGAGE FIRM, INC. 11 6.55% $12,099
PLANET HOME LENDING, LLC 9 6.47% $9,781
HOMESIDE FINANCIAL, LLC 9 6.88% $7,724
MUTUAL OF OMAHA MORTGAGE, INC. 9 6.72% $10,168
Wolfe Financial, Inc 9 6.63% $13,986
HOMEBRIDGE FINANCIAL SERVICES, INC. 9 6.21% $15,457
US MORTGAGE CORPORATION 8 6.98% $9,941
BROKER SOLUTIONS, INC. 8 6.84% $8,951
LEGEND LENDING CORPORATION 7 6.89% $12,537
GUARANTEED RATE, INC. 6 6.93% $9,169
Flagstar Bank, FSB 6 6.77% $11,073
ZILLOW HOME LOANS, LLC 6 6.33% $10,974
PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.75% $16,722
GENEVA FINANCIAL, LLC 5 6.75% $15,856
BECKAM FUNDING CORP. 5 6.50% $10,820
DRAPER AND KRAMER MORTGAGE CORP. 5 7.05% $10,889
HOMESPIRE MORTGAGE CORPORATION 5 5.95% $7,534
Hometown Equity Mortgage, LLC 5 6.60% $11,992
NATIONS DIRECT MORTGAGE, LLC 5 5.75% $12,511
Network Funding, L.P. 5 6.78% $8,720
UNION HOME MORTGAGE CORP. 5 6.65% $8,865
V.I.P. MORTGAGE, INC. 5 7.08% $12,836
VILLAGE CAPITAL MORTGAGE 4 6.69% $5,295
Prosperity Home Mortgage, LLC 4 6.06% $10,617
FIRST COMMUNITY MORTGAGE, INC. 4 7.03% $7,668
BETTER MORTGAGE CORPORATION 4 6.22% $10,292
M&T Bank 3 6.92% $8,542
Citizens Bank 3 6.92% $14,689
Century Mortgage Company DBA Century Lending Company 3 6.42% $7,157
RELIANCE FIRST CAPITAL, LLC 3 6.54% $11,643
Lakeview Community Capital, LLC 3 6.71% $10,109
EVERETT FINANCIAL, INC. 3 6.79% $13,256
Mortgage Research Center, LLC 3 6.79% $5,200
AMERICAN FINANCIAL RESOURCES, INC. 3 7.08% $11,551
Cornerstone First Mortgage, Inc 3 6.99% $10,947
PNC Bank 2 6.50% $9,772
PENTAGON FEDERAL CREDIT UNION 2 5.63% $8,339
The Federal Savings Bank 2 5.88% $12,015
JPMorgan Chase Bank 2 6.87% $6,714
PREMIA MORTGAGE, LLC 2 6.38% $10,705
Towne Bank 2 7.00% $9,301
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 7.50% $7,802
America's Mortgage Resource, Inc. 2 3.85% $2,842
CITYWIDE HOME LOANS, LLC 2 7.75% $13,170
ROYAL UNITED MORTGAGE LLC 2 6.44% $16,323
MORTGAGE FINANCIAL SERVICES, LLC 2 6.56% $15,513
BankPlus 2 6.38% $6,538
Evolve Bank & Trust 2 6.75% $8,534
LIBERTY HOME MORTGAGE CORPORATION 1 6.88% $21,277
Magnolia Bank 1 6.63% $8,031
LAKEVIEW LOAN SERVICING, LLC 1 6.25% $10,568
Merchants & Marine Bank 1 6.63% $9,704
GUARANTEED RATE AFFINITY, LLC 1 6.25% $6,046
1ST SIGNATURE LENDING, LLC 1 7.13% $11,980
First United Bank and Trust Company 1 7.13% $16,851
NATIONS RELIABLE LENDING, LLC 1 6.25% $15,272
NBKC BANK 1 5.63% $11,984
NETWORK CAPITAL FUNDING CORPORATION 1 5.25% $18,837
ALLIED MORTGAGE GROUP, INC. 1 6.63% $4,315
FBC MORTGAGE, LLC 1 6.13% $13,327
EMM LOANS LLC 1 5.88% $12,871
CORNERSTONE HOME LENDING, INC. 1 7.25% $17,406
PREMIER MORTGAGE RESOURCES, L.L.C. 1 7.25% $10,762
CHURCHILL MORTGAGE CORPORATION 1 6.25% $17,814
BAY EQUITY LLC 1 5.75% $7,803
SECURITYNATIONAL MORTGAGE COMPANY 1 6.75% $8,269
Barrington Bank & Trust Company, N.A. 1 6.25% $11,700
STOCKTON MORTGAGE CORPORATION 1 6.75% $17,990
BANK OF LITTLE ROCK MORTGAGE CORPORATION 1 7.00% $13,509
SWBC MORTGAGE CORPORATION 1 8.00% $3,312
T2 FINANCIAL LLC 1 7.00% $9,434
BancorpSouth 1 6.38% $10,707
TOP FLITE FINANCIAL, INC. 1 7.25% $16,256
AMERICAN FINANCING CORPORATION 1 6.75% $9,510
LEADERONE FINANCIAL CORPORATION 1 6.25% $8,647
LAND HOME FINANCIAL SERVICES, INC. 1 6.25% $11,548

The top Baton Rouge FHA lender as defined by loan originations is GMFS LLC, with 340 FHA loans originated. Their average total fees are $7,457, which is $3,991 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Baton Rouge FHA lenders (with over 10 loans originated) are DSLD MORTGAGE, LLC ($5,580), Gateway First Bank ($6,876), ARK-LA-TEX FINANCIAL SERVICES, LLC. ($7,224), GMFS LLC ($7,457) and Nations Lending Corporation ($7,458).

The lowest rate Baton Rouge FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.35%), Regions Bank (5.99%), Hancock Whitney Bank (6.05%), AMERISAVE MORTGAGE CORPORATION (6.06%) and PLAZA HOME MORTGAGE, INC. (6.11%).

Baton Rouge FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
BATON ROUGE, LA ASCENSION 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA ASSUMPTION 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA EAST BATON ROUG 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA EAST FELICIANA 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA IBERVILLE 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA LIVINGSTON 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA POINTE COUPEE 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA ST. HELENA 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA WEST BATON ROUG 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA WEST FELICIANA 2022 $420,680 $538,650 $651,050 $809,150
BATON ROUGE, LA ASCENSION 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA ASSUMPTION 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA EAST BATON ROUG 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA EAST FELICIANA 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA IBERVILLE 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA LIVINGSTON 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA POINTE COUPEE 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA ST. HELENA 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA WEST BATON ROUG 2023 $472,030 $604,400 $730,525 $907,900
BATON ROUGE, LA WEST FELICIANA 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Baton Rouge (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 $225,000 (2.8%) $302,742 (3.0%) 0.83 3,170
2018-02-01 $225,725 (5.0%) $303,581 (3.2%) 0.82 3,191
2018-03-01 $234,900 (6.8%) $310,732 (3.3%) 0.82 3,427
2018-04-01 $238,375 (5.9%) $313,803 (2.4%) 0.81 3,504
2018-05-01 $240,400 (5.0%) $315,434 (1.1%) 0.80 3,662
2018-06-01 $244,900 (7.0%) $315,969 (2.3%) 0.82 3,881
2018-07-01 $239,900 (4.8%) $309,749 (0.8%) 0.80 4,009
2018-08-01 $239,900 (5.6%) $308,155 (1.7%) 0.80 4,035
2018-09-01 $239,900 (5.9%) $305,962 (1.1%) 0.81 4,012
2018-10-01 $236,400 (3.5%) $303,358 (-0.1%) 0.80 4,090
2018-11-01 $237,520 (4.6%) $302,216 (-0.8%) 0.81 4,064
2018-12-01 $236,150 (5.0%) $299,404 (-1.3%) 0.81 4,016
2019-01-01 $238,370 (5.9%) $302,018 (-0.2%) 0.82 3,860
2019-02-01 $239,700 (6.2%) $301,445 (-0.7%) 0.81 3,954
2019-03-01 $242,123 (3.1%) $307,675 (-1.0%) 0.79 3,997
2019-04-01 $247,000 (3.6%) $314,723 (0.3%) 0.78 4,056
2019-05-01 $249,900 (4.0%) $316,332 (0.3%) 0.78 4,090
2019-06-01 $249,999 (2.1%) $317,157 (0.4%) 0.78 4,188
2019-07-01 $248,691 (3.7%) $313,625 (1.3%) 0.78 4,245
2019-08-01 $246,836 (2.9%) $312,385 (1.4%) 0.78 4,264
2019-09-01 $245,241 (2.2%) $310,440 (1.5%) 0.78 4,226
2019-10-01 $243,475 (3.0%) $309,143 (1.9%) 0.79 4,201
2019-11-01 $241,095 (1.5%) $307,892 (1.9%) 0.79 4,153
2019-12-01 $239,950 (1.6%) $305,009 (1.9%) 0.80 3,980
2020-01-01 $239,900 (0.6%) $307,134 (1.7%) 0.80 3,806
2020-02-01 $240,950 (0.5%) $309,674 (2.7%) 0.79 3,821
2020-03-01 $248,975 (2.8%) $316,539 (2.9%) 0.78 3,836
2020-04-01 $245,975 (-0.4%) $314,725 (0.0%) 0.77 3,832
2020-05-01 $252,285 (1.0%) $324,546 (2.6%) 0.77 3,655
2020-06-01 $259,950 (4.0%) $336,885 (6.2%) 0.77 3,393
2020-07-01 $263,400 (5.9%) $338,836 (8.0%) 0.76 3,276
2020-08-01 $268,060 (8.6%) $346,779 (11.0%) 0.77 3,006
2020-09-01 $275,000 (12.1%) $354,372 (14.2%) 0.79 2,849
2020-10-01 $273,900 (12.5%) $355,012 (14.8%) 0.78 2,578
2020-11-01 $270,495 (12.2%) $356,804 (15.9%) 0.79 2,518
2020-12-01 $270,495 (12.7%) $360,342 (18.1%) 0.80 2,433
2021-01-01 $269,900 (12.5%) $366,043 (19.2%) 0.81 2,234
2021-02-01 $280,000 (16.2%) $383,660 (23.9%) 0.82 1,946
2021-03-01 $287,945 (15.7%) $387,907 (22.6%) 0.82 1,776
2021-04-01 $300,400 (22.1%) $407,532 (29.5%) 0.81 1,625
2021-05-01 $310,000 (22.9%) $418,791 (29.0%) 0.82 1,536
2021-06-01 $306,830 (18.0%) $419,574 (24.6%) 0.81 1,530
2021-07-01 $300,000 (13.9%) $412,993 (21.9%) 0.79 1,593
2021-08-01 $299,445 (11.7%) $405,705 (17.0%) 0.80 1,613
2021-09-01 $299,947 (9.1%) $406,804 (14.8%) 0.80 1,511
2021-10-01 $299,000 (9.2%) $404,565 (14.0%) 0.80 1,444
2021-11-01 $315,000 (16.5%) $414,970 (16.3%) 0.84 1,347
2021-12-01 $326,168 (20.6%) $422,717 (17.3%) 0.88 1,220
2022-01-01 $329,995 (22.3%) $433,119 (18.3%) 0.89 1,100
2022-02-01 $337,225 (20.4%) $456,064 (18.9%) 0.88 1,012
2022-03-01 $346,275 (20.3%) $476,550 (22.9%) 0.87 995
2022-04-01 $340,000 (13.2%) $479,521 (17.7%) 0.81 1,049
2022-05-01 $325,700 (5.1%) $453,946 (8.4%) 0.74 1,234
2022-06-01 $326,900 (6.5%) $444,522 (6.0%) 0.73 1,429
2022-07-01 $325,000 (8.3%) $427,133 (3.4%) 0.73 1,739
2022-08-01 $322,995 (7.9%) $421,934 (4.0%) 0.75 1,906
2022-09-01 $324,879 (8.3%) $420,370 (3.3%) 0.76 1,976
2022-10-01 $324,724 (8.6%) $418,464 (3.4%) 0.76 2,034
2022-11-01 $320,719 (1.8%) $415,353 (0.1%) 0.77 2,136
2022-12-01 $320,000 (-1.9%) $416,382 (-1.5%) 0.79 2,053
2023-01-01 $323,245 (-2.1%) $415,489 (-4.1%) 0.80 1,885
2023-02-01 $324,350 (-3.8%) $417,156 (-8.5%) 0.78 1,901
2023-03-01 $325,000 (-6.1%) $416,064 (-12.7%) 0.77 1,915
2023-04-01 $329,000 (-3.2%) $417,726 (-12.9%) 0.77 1,937
2023-05-01 $334,000 (2.6%) $435,291 (-4.1%) 0.76 2,010
2023-06-01 $335,000 (2.5%) $441,301 (-0.7%) 0.75 2,034
2023-07-01 $325,000 (0.0%) $434,272 (1.7%) 0.74 2,145
2023-08-01 $319,950 (-0.9%) $426,371 (1.1%) 0.73 2,285
2023-09-01 $310,000 (-4.6%) $415,492 (-1.2%) 0.72 2,384
2023-10-01 $301,954 (-7.0%) $403,445 (-3.6%) 0.71 2,549
2023-11-01 $299,990 (-6.5%) $399,473 (-3.8%) 0.71 2,576
2023-12-01 $299,000 (-6.6%) $395,653 (-5.0%) 0.73 2,531
2024-01-01 $294,900 (-8.8%) $393,136 (-5.4%) 0.72 2,460
2024-02-01 $299,450 (-7.7%) $400,653 (-4.0%) 0.72 2,373
2024-03-01 $305,000 (-6.2%) $406,012 (-2.4%) 0.72 2,435
Baton Rouge's median listing price for 2024-03-01 was $305,000, a difference of $-20,000 (-6.2%) versus the prior year and $5,550 versus the prior month.

Baton Rouge's median listing price comes in at 72% of the national average.

Baton Rouge's average listing price for 2024-03-01 was $406,012, a difference of $-10,052 (-2.4%) versus the prior year and $5,359 versus the prior month.

For the 2024-03-01 period, Baton Rouge had 2,435 MLS listings, a difference of 62 listings (3%) versus the prior month and 520 listings (27%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Baton Rouge (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 82 days 1,881 sqft
2018-02-01 80 days 1,878 sqft
2018-03-01 57 days 1,908 sqft
2018-04-01 56 days 1,941 sqft
2018-05-01 59 days 1,947 sqft
2018-06-01 59 days 1,965 sqft
2018-07-01 63 days 1,954 sqft
2018-08-01 68 days 1,951 sqft
2018-09-01 72 days 1,942 sqft
2018-10-01 77 days 1,931 sqft
2018-11-01 81 days 1,927 sqft
2018-12-01 87 days 1,910 sqft
2019-01-01 91 days 1,911 sqft
2019-02-01 83 days 1,913 sqft
2019-03-01 72 days 1,930 sqft
2019-04-01 66 days 1,949 sqft
2019-05-01 66 days 1,971 sqft
2019-06-01 69 days 1,973 sqft
2019-07-01 72 days 1,943 sqft
2019-08-01 73 days 1,933 sqft
2019-09-01 77 days 1,928 sqft
2019-10-01 80 days 1,921 sqft
2019-11-01 86 days 1,914 sqft
2019-12-01 94 days 1,902 sqft
2020-01-01 97 days 1,880 sqft
2020-02-01 87 days 1,912 sqft
2020-03-01 68 days 1,925 sqft
2020-04-01 75 days 1,914 sqft
2020-05-01 85 days 1,943 sqft
2020-06-01 85 days 1,982 sqft
2020-07-01 69 days 1,989 sqft
2020-08-01 66 days 2,006 sqft
2020-09-01 68 days 2,051 sqft
2020-10-01 73 days 2,014 sqft
2020-11-01 72 days 2,005 sqft
2020-12-01 72 days 1,992 sqft
2021-01-01 75 days 1,974 sqft
2021-02-01 74 days 2,010 sqft
2021-03-01 58 days 2,011 sqft
2021-04-01 55 days 2,055 sqft
2021-05-01 51 days 2,069 sqft
2021-06-01 47 days 2,035 sqft
2021-07-01 43 days 2,032 sqft
2021-08-01 47 days 2,020 sqft
2021-09-01 60 days 2,022 sqft
2021-10-01 65 days 2,012 sqft
2021-11-01 59 days 2,059 sqft
2021-12-01 66 days 2,075 sqft
2022-01-01 71 days 2,069 sqft
2022-02-01 61 days 2,079 sqft
2022-03-01 44 days 2,111 sqft
2022-04-01 37 days 2,077 sqft
2022-05-01 37 days 2,045 sqft
2022-06-01 37 days 2,038 sqft
2022-07-01 38 days 2,012 sqft
2022-08-01 49 days 2,010 sqft
2022-09-01 58 days 2,010 sqft
2022-10-01 65 days 2,010 sqft
2022-11-01 67 days 2,010 sqft
2022-12-01 80 days 2,010 sqft
2023-01-01 88 days 2,002 sqft
2023-02-01 86 days 2,007 sqft
2023-03-01 65 days 2,004 sqft
2023-04-01 61 days 2,013 sqft
2023-05-01 60 days 2,033 sqft
2023-06-01 61 days 2,023 sqft
2023-07-01 58 days 1,993 sqft
2023-08-01 58 days 1,984 sqft
2023-09-01 60 days 1,961 sqft
2023-10-01 63 days 1,931 sqft
2023-11-01 69 days 1,915 sqft
2023-12-01 80 days 1,894 sqft
2024-01-01 90 days 1,884 sqft
2024-02-01 87 days 1,909 sqft
2024-03-01 64 days 1,930 sqft
Baton Rouge's median listing age (time on market) for 2024-03-01 was 64 days. This is -1% shorter than the same period one year ago.

Baton Rouge's median square footage for active listings during the 2024-03-01 period was 1,930 sqft. One year prior, the average listing was 2,004 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).