Cleveland FHA Loans

CLEVELAND-ELYRIA, OH

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.

Cleveland's 189 lenders originated 10,579 FHA loans during 2021. The total origination value was $1,834,935,000, with an average FHA loan value of $173,451.

Cleveland FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Cleveland averaged 5.51% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.35% and one month ago for the week of 2022-04-08, the average rate was 5.11%.

The average rate one year ago was 3.22%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.16%.

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

Cleveland 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 Cleveland level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
CROSSCOUNTRY MORTGAGE, LLC 1,581 3.07% $7,431
QUICKEN LOANS, LLC 1,418 2.78% $5,996
The Huntington National Bank 436 3.07% $6,493
LENDUS, LLC 325 3.24% $6,940
LIBERTY HOME MORTGAGE CORPORATION 297 3.31% $7,766
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 279 3.33% $5,582
FREEDOM MORTGAGE CORPORATION 236 2.95% $4,608
Nations Lending Corporation 232 3.29% $6,465
American Midwest Mortgage Corporation 226 3.15% $7,256
UNION HOME MORTGAGE CORP. 224 3.33% $7,237
Mr. Cooper ( Nationstar Mortgage ) 199 3.31% $3,307
HOWARD HANNA FINANCIAL SERVICES, INC. 199 2.89% $7,371
PENNYMAC LOAN SERVICES, LLC 188 3.15% $3,822
CALIBER HOME LOANS, INC. 156 2.97% $5,654
UNITED WHOLESALE MORTGAGE, LLC 148 2.83% $6,759
RELIANCE FIRST CAPITAL, LLC 129 3.20% $6,642
LOANDEPOT.COM, LLC 125 3.04% $7,584
VILLAGE CAPITAL & INVESTMENT LLC 119 2.99% $2,104
NVR Mortgage Finance, Inc. 106 3.03% $10,466
LAKEVIEW LOAN SERVICING, LLC 105 3.11% $4,117
RAPID MORTGAGE COMPANY 104 3.35% $7,326
YOUR HOME FINANCIAL LLC 89 3.56% $6,790
RUOFF MORTGAGE COMPANY, INC. 89 3.22% $4,955
Paramount Residential Mortgage Group, Inc. 88 3.52% $7,627
Fifth Third Bank 80 2.95% $5,699
NEWREZ LLC 71 3.03% $5,024
GUARANTEED RATE, INC. 64 2.92% $7,099
AMERIFIRST FINANCIAL CORPORATION 60 3.31% $8,568
HOME POINT FINANCIAL CORPORATION 59 2.98% $5,533
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 55 3.13% $8,460
Waterstone Mortgage Corporation 54 3.25% $8,068
NORTHERN MORTGAGE SERVICES, LLC 52 3.11% $4,345
Dollar Bank, Federal Savings Bank 48 2.92% $5,510
Citizens Bank 48 2.70% $5,931
AMERISAVE MORTGAGE CORPORATION 46 3.11% $7,447
UNION CAPITAL MORTGAGE CORPORATION 46 2.99% $6,407
First Federal Savings and Loan Association of Lakewood 44 2.80% $6,405
Carrington Mortgage Services, LLC 43 3.49% $6,974
FIRST CENTENNIAL MORTGAGE CORPORATION 41 3.16% $7,460
PNC Bank 39 2.80% $5,278
Bank of England 39 3.31% $7,386
PRIMARY RESIDENTIAL MORTGAGE, INC. 38 3.66% $7,538
KeyBank 38 2.93% $6,488
BROKER SOLUTIONS, INC. 37 3.22% $7,296
NATIONS DIRECT MORTGAGE, LLC 35 3.05% $7,678
PRIMELENDING, A PLAINSCAPITAL COMPANY 33 3.60% $7,883
First Guaranty Mortgage Corporation 32 2.99% $5,405
HOMEBRIDGE FINANCIAL SERVICES, INC. 31 2.60% $5,499
LEADERONE FINANCIAL CORPORATION 28 3.35% $6,849
JPMorgan Chase Bank 27 3.00% $3,785
T2 FINANCIAL LLC 27 3.15% $9,175
AmeriHome Mortgage Company, LLC 27 3.08% $3,877
TCF National Bank 24 2.54% $5,341
DELMAR FINANCIAL COMPANY 24 3.19% $7,225
Goldwater Bank, N.A. 24 3.32% $7,749
MUTUAL OF OMAHA MORTGAGE, INC. 24 2.93% $7,934
POLARIS HOME FUNDING CORP. 23 3.35% $8,932
MID AMERICA MORTGAGE, INC. 23 3.01% $4,971
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 22 2.95% $9,498
RESIDENTIAL MORTGAGE SERVICES, INC. 22 2.95% $7,071
Equity Prime Mortgage LLC 21 3.43% $5,324
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 21 3.33% $7,178
Northpointe Bank 21 2.98% $7,575
DRAPER AND KRAMER MORTGAGE CORP. 20 3.29% $7,681
SUN WEST MORTGAGE COMPANY, INC. 20 3.01% $5,720
NATIONWIDE MORTGAGE BANKERS, INC. 20 3.28% $7,607
InterContinental Capital Group, Inc 20 2.93% $7,197
Lakeview Community Capital, LLC 20 3.10% $4,225
CELEBRITY HOME LOANS, LLC 20 3.63% $7,174
MYCUMORTGAGE, LLC 19 2.82% $6,256
U.S. Bank 19 3.41% $5,768
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 18 3.03% $7,141
Flagstar Bank, FSB 18 2.97% $6,702
The Federal Savings Bank 17 2.85% $8,224
HOMESIDE FINANCIAL, LLC 17 3.24% $7,253
Mortgage Research Center, LLC 16 3.07% $4,597
Magnolia Bank 15 3.25% $6,564
KELLER MORTGAGE, LLC 15 3.02% $6,354
MORIA DEVELOPMENT, INC. 15 3.72% $7,419
TOP FLITE FINANCIAL, INC. 14 3.36% $9,575
AMERICAN FINANCIAL NETWORK, INC. 14 3.29% $10,984
First Federal Bank of the Midwest 14 3.00% $6,407
PLANET HOME LENDING, LLC 13 3.21% $6,123
ARK-LA-TEX FINANCIAL SERVICES, LLC. 13 2.91% $6,427
ABSOLUTE HOME MORTGAGE CORPORATION 12 2.75% $8,930
NFM, INC. 11 3.49% $8,432
CMG MORTGAGE, INC. 10 3.05% $10,790
US MORTGAGE CORPORATION 10 3.78% $6,677
Paramount Bank 10 3.04% $7,560
PLAZA HOME MORTGAGE, INC. 9 2.96% $6,267
The Cortland Savings and Banking Company 9 3.07% $8,431
WEST PENN FINANCIAL SERVICE CENTER, INC. 9 2.74% $5,330
SIGNATURE MORTGAGE CORPORATION 9 3.08% $7,296
GUILD MORTGAGE COMPANY 8 3.28% $9,329
Manufacturers and Traders Trust Company 8 3.39% $6,094
OCEANSIDE MORTGAGE COMPANY 7 2.66% $2,104
TOWNE MORTGAGE COMPANY 7 3.57% $5,963
DAS Acquisition Company, LLC 7 4.09% $7,609
Hometown Equity Mortgage, LLC 7 3.13% $6,687
First National Bank of Pennsylvania 7 2.64% $7,478
ROYAL UNITED MORTGAGE LLC 7 3.02% $8,483
LAND HOME FINANCIAL SERVICES, INC. 7 2.79% $7,031
Victorian Finance, LLC 7 3.09% $6,306
PULTE MORTGAGE LLC 6 2.79% $9,057
Evolve Bank & Trust 6 3.25% $8,283
First Commonwealth Bank 6 2.58% $7,654
AMERICAN FINANCING CORPORATION 6 2.69% $7,004
MOVEMENT MORTGAGE, LLC 5 3.43% $3,589
GENEVA FINANCIAL, LLC 5 3.35% $8,613
ZILLOW HOME LOANS, LLC 5 3.18% $6,407
Plains Commerce Bank 4 2.69% $5,242
Independent Bank 4 3.03% $6,459
ALLIED MORTGAGE GROUP, INC. 4 3.41% $7,663
Bank of America 4 3.13% $4,631
SOUTHWEST FUNDING, LP 4 3.81% $10,217
Ixonia Bank 4 3.34% $5,612
CHURCHILL MORTGAGE CORPORATION 4 2.78% $7,968
Northwest Bank 3 2.63% $4,576
JLB CORPORATION 3 3.25% $6,849
HALLMARK HOME MORTGAGE, LLC 3 3.33% $6,812
First Federal Bank 3 2.83% $6,217
FINANCE OF AMERICA MORTGAGE LLC 3 3.13% $5,468
ENDEAVOR CAPITAL, LLC. 3 3.21% $4,998
CityWorth Mortgage LLC 3 3.17% $5,838
STOCKTON MORTGAGE CORPORATION 3 3.17% $6,863
BAYSHORE MORTGAGE FUNDING, LLC 3 3.25% $5,539
Barrington Bank & Trust Company, N.A. 3 3.38% $7,466
Austin Capital Bank SSB 3 3.29% $7,727
ARC HOME LLC 3 2.96% $10,071
MIDLAND MORTGAGE CORPORATION 2 3.50% $8,160
AMCAP MORTGAGE, LTD. 2 3.44% $8,723
FAY SERVICING, LLC 2 3.19% $6,461
PHH Mortgage Corporation 2 3.38% $3,559
1st National Bank 2 2.81% $5,683
EMBRACE HOME LOANS, INC. 2 3.00% $7,524
CREDIT UNION MORTGAGE ASSOCIATION, INC. 2 2.88% $6,022
Civista Bank 2 2.88% $4,912
Wells Fargo Bank 2 3.44% $2,087
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 3.25% $7,063
Servion, Inc. 2 3.44% $4,759
Western Ohio Mortgage Corporation 2 2.88% $9,920
Wyndham Capital Mortgage, Inc. 2 3.13% $4,984
MORTGAGE 1 INCORPORATED 2 3.50% $7,915
THE EQUITABLE MORTGAGE CORPORATION 2 2.56% $6,393
1ST SIGNATURE LENDING, LLC 2 2.94% $9,649
Union Savings Bank 2 2.81% $6,404
AMERICAN FINANCIAL RESOURCES, INC. 2 3.50% $10,193
Hometown Lenders, Inc. 2 3.38% $7,735
HAMILTON HOME LOANS, INC. 2 2.56% $9,819
GUARANTEED RATE AFFINITY, LLC 2 2.50% $7,624
UNITED SECURITY FINANCIAL CORP 1 3.13% $8,685
AMERICAN PACIFIC MORTGAGE CORPORATION 1 3.13% $7,083
AMERICAN MORTGAGE SERVICE COMPANY 1 3.75% $7,211
First Home Bank 1 2.63% $6,720
Sierra Pacific Mortgage Company, Inc. 1 2.75% $8,501
CALCON MUTUAL MORTGAGE LLC 1 3.88% $8,373
SIRVA MORTGAGE, INC. 1 2.75% $10,909
SOUTHPOINT FINANCIAL SERVICES, INC. 1 3.25% $4,332
MORTGAGE CENTER L.C 1 3.38% $5,445
STEARNS LENDING, LLC 1 3.15% $13,639
INOVA FEDERAL CREDIT UNION 1 3.13% $2,497
SUCCESS MORTGAGE PARTNERS, INC. 1 3.63% $8,571
BETTER MORTGAGE CORPORATION 1 3.13% $3,887
ACADEMY MORTGAGE CORPORATION 1 3.63% $6,887
Florida Capital Bank 1 3.13% $7,859
First Savings Bank 1 2.63% $8,898
VERITAS FUNDING, LLC 1 2.75% $8,985
The Farmers National Bank of Canfield 1 3.13% $6,618
Axos Bank 1 3.13% $9,689
First Financial Bank 1 2.63% $6,728
Guardian Savings Bank, A Federal Savings Bank 1 3.63% $6,827
Midwest BankCentre 1 3.00% $9,207
MICHIGAN MUTUAL, INC. 1 3.50% $4,953
Peoples Bank 1 3.50% $6,700
ANGEL OAK HOME LOANS LLC 1 3.50% $7,891
Ameris Bank 1 3.00% $5,284
EVERETT FINANCIAL, INC. 1 3.00% $5,518
EVANSVILLE TEACHERS 1 3.25% $3,864
EQUITY RESOURCES, INC. 1 3.88% $4,469
AHL FUNDING 1 2.88% $12,282
EMM LOANS LLC 1 3.63% $6,530
AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 2.50% $5,850
PRIORITY MORTGAGE CORP. 1 3.25% $8,066
Prosperity Home Mortgage, LLC 1 3.63% $9,055
DHI MORTGAGE COMPANY, LTD. 1 3.75% $6,809
GUARANTY HOME MORTGAGE CORPORATION 1 3.13% $6,653
Comerica Bank 1 2.88% $8,308
Colonial Savings, F.A. 1 3.75% $4,959
RESIDENTIAL BANCORP. 1 2.75% $5,252

The top Cleveland FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 1,581 FHA loans originated. Their average total fees are $7,431, which is $1,436 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Cleveland FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,104), Mr. Cooper ( Nationstar Mortgage ) ($3,307), JPMorgan Chase Bank ($3,785), PENNYMAC LOAN SERVICES, LLC ($3,822) and AmeriHome Mortgage Company, LLC ($3,877).

The lowest rate Cleveland FHA lenders (with over 10 loans originated) are TCF National Bank (2.54%), HOMEBRIDGE FINANCIAL SERVICES, INC. (2.60%), Citizens Bank (2.70%), ABSOLUTE HOME MORTGAGE CORPORATION (2.75%) and QUICKEN LOANS, LLC (2.78%).

Cleveland FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
CLEVELAND-ELYRIA, OH CUYAHOGA 2022 $420,680 $538,650 $651,050 $809,150
CLEVELAND-ELYRIA, OH GEAUGA 2022 $420,680 $538,650 $651,050 $809,150
CLEVELAND-ELYRIA, OH LAKE 2022 $420,680 $538,650 $651,050 $809,150
CLEVELAND-ELYRIA, OH LORAIN 2022 $420,680 $538,650 $651,050 $809,150
CLEVELAND-ELYRIA, OH MEDINA 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Cleveland (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 $161,450 (13.7%) $249,865 (7.8%) 0.59 5,631
2018-02-01 $165,250 (13.3%) $258,192 (7.7%) 0.60 5,417
2018-03-01 $173,900 (10.8%) $266,777 (6.6%) 0.60 5,310
2018-04-01 $184,995 (16.4%) $277,638 (10.6%) 0.62 5,313
2018-05-01 $191,445 (16.1%) $283,914 (9.7%) 0.64 5,508
2018-06-01 $198,000 (14.3%) $285,130 (9.0%) 0.66 5,963
2018-07-01 $190,000 (8.6%) $278,620 (6.0%) 0.63 6,441
2018-08-01 $189,450 (11.5%) $273,689 (5.1%) 0.63 6,822
2018-09-01 $185,000 (8.9%) $271,815 (5.7%) 0.62 6,867
2018-10-01 $185,000 (10.5%) $269,349 (7.3%) 0.62 6,837
2018-11-01 $184,175 (11.5%) $271,189 (8.8%) 0.62 6,683
2018-12-01 $179,900 (10.4%) $269,474 (9.0%) 0.62 6,023
2019-01-01 $179,900 (11.4%) $270,975 (8.5%) 0.62 5,623
2019-02-01 $187,000 (13.2%) $280,065 (8.5%) 0.63 5,372
2019-03-01 $198,471 (14.1%) $291,374 (9.2%) 0.65 5,355
2019-04-01 $208,471 (12.7%) $299,212 (7.8%) 0.66 5,403
2019-05-01 $202,450 (5.8%) $292,803 (3.1%) 0.62 5,560
2019-06-01 $209,950 (6.0%) $294,370 (3.2%) 0.65 5,893
2019-07-01 $206,600 (8.7%) $290,780 (4.4%) 0.64 6,219
2019-08-01 $199,571 (5.3%) $287,473 (5.0%) 0.63 6,349
2019-09-01 $198,950 (7.5%) $281,945 (3.7%) 0.63 6,365
2019-10-01 $194,500 (5.1%) $281,892 (4.7%) 0.62 6,463
2019-11-01 $189,900 (3.1%) $283,822 (4.7%) 0.61 6,179
2019-12-01 $182,400 (1.4%) $280,897 (4.2%) 0.61 5,522
2020-01-01 $181,500 (0.9%) $282,745 (4.3%) 0.61 4,936
2020-02-01 $189,900 (1.6%) $298,935 (6.7%) 0.61 4,391
2020-03-01 $205,481 (3.5%) $311,106 (6.8%) 0.64 4,203
2020-04-01 $202,400 (-2.9%) $306,686 (2.5%) 0.63 4,082
2020-05-01 $224,900 (11.1%) $334,070 (14.1%) 0.68 3,718
2020-06-01 $239,900 (14.3%) $346,563 (17.7%) 0.70 3,457
2020-07-01 $239,450 (15.9%) $346,278 (19.1%) 0.69 3,300
2020-08-01 $235,000 (17.8%) $338,903 (17.9%) 0.67 3,211
2020-09-01 $226,950 (14.1%) $335,133 (18.9%) 0.65 3,234
2020-10-01 $209,999 (8.0%) $322,477 (14.4%) 0.60 3,352
2020-11-01 $205,000 (8.0%) $320,400 (12.9%) 0.59 3,231
2020-12-01 $199,900 (9.6%) $317,060 (12.9%) 0.59 2,914
2021-01-01 $197,900 (9.0%) $319,128 (12.9%) 0.58 2,436
2021-02-01 $202,450 (6.6%) $342,772 (14.7%) 0.58 1,983
2021-03-01 $207,450 (1.0%) $339,275 (9.1%) 0.58 1,899
2021-04-01 $223,950 (10.7%) $340,583 (11.1%) 0.60 1,863
2021-05-01 $219,900 (-2.2%) $332,954 (-0.3%) 0.58 2,238
2021-06-01 $219,000 (-8.7%) $319,926 (-7.7%) 0.57 2,644
2021-07-01 $211,950 (-11.5%) $314,481 (-9.2%) 0.55 2,970
2021-08-01 $199,950 (-14.9%) $305,355 (-9.9%) 0.53 3,216
2021-09-01 $199,450 (-12.1%) $302,895 (-9.6%) 0.52 3,152
2021-10-01 $189,900 (-9.6%) $292,825 (-9.2%) 0.50 3,190
2021-11-01 $189,900 (-7.4%) $295,257 (-7.9%) 0.50 2,916
2021-12-01 $183,750 (-8.1%) $289,302 (-8.8%) 0.49 2,541
2022-01-01 $177,000 (-10.6%) $297,829 (-6.7%) 0.47 2,034
2022-02-01 $176,950 (-12.6%) $308,516 (-10.0%) 0.45 1,825
2022-03-01 $189,900 (-8.5%) $316,698 (-6.7%) 0.47 1,789
2022-04-01 $194,000 (-13.4%) $316,524 (-7.1%) 0.46 1,860
Cleveland's median listing price for 2022-04-01 was $194,000, a difference of $-29,950 (-13.4%) versus the prior year and $4,100 versus the prior month.

Cleveland's median listing price comes in at 46% of the national average.

Cleveland's average listing price for 2022-04-01 was $316,524, a difference of $-24,059 (-7.1%) versus the prior year and $-174 versus the prior month.

For the 2022-04-01 period, Cleveland had 1,860 MLS listings, a difference of 71 listings (4%) versus the prior month and -3 listings (0%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Cleveland (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 91 days 1,713 sqft
2018-02-01 89 days 1,728 sqft
2018-03-01 65 days 1,768 sqft
2018-04-01 57 days 1,796 sqft
2018-05-01 53 days 1,819 sqft
2018-06-01 52 days 1,868 sqft
2018-07-01 53 days 2,102 sqft
2018-08-01 55 days 2,075 sqft
2018-09-01 60 days 2,072 sqft
2018-10-01 65 days 2,053 sqft
2018-11-01 66 days 2,039 sqft
2018-12-01 74 days 2,000 sqft
2019-01-01 83 days 2,000 sqft
2019-02-01 84 days 2,013 sqft
2019-03-01 63 days 2,061 sqft
2019-04-01 52 days 2,088 sqft
2019-05-01 53 days 1,851 sqft
2019-06-01 55 days 1,868 sqft
2019-07-01 55 days 1,897 sqft
2019-08-01 54 days 1,976 sqft
2019-09-01 59 days 2,028 sqft
2019-10-01 63 days 2,032 sqft
2019-11-01 64 days 2,000 sqft
2019-12-01 73 days 1,946 sqft
2020-01-01 83 days 1,942 sqft
2020-02-01 81 days 1,950 sqft
2020-03-01 60 days 1,988 sqft
2020-04-01 59 days 1,991 sqft
2020-05-01 68 days 2,052 sqft
2020-06-01 58 days 2,072 sqft
2020-07-01 47 days 2,078 sqft
2020-08-01 47 days 2,052 sqft
2020-09-01 46 days 1,998 sqft
2020-10-01 42 days 1,944 sqft
2020-11-01 48 days 1,922 sqft
2020-12-01 57 days 1,884 sqft
2021-01-01 67 days 1,870 sqft
2021-02-01 66 days 1,837 sqft
2021-03-01 48 days 1,832 sqft
2021-04-01 45 days 1,857 sqft
2021-05-01 36 days 1,868 sqft
2021-06-01 35 days 1,900 sqft
2021-07-01 37 days 1,896 sqft
2021-08-01 39 days 1,858 sqft
2021-09-01 43 days 1,865 sqft
2021-10-01 44 days 1,814 sqft
2021-11-01 47 days 1,789 sqft
2021-12-01 55 days 1,779 sqft
2022-01-01 61 days 1,728 sqft
2022-02-01 58 days 1,736 sqft
2022-03-01 45 days 1,765 sqft
2022-04-01 39 days 1,800 sqft
Cleveland's median listing age (time on market) for 2022-04-01 was 39 days. This is -12% shorter than the same period one year ago.

Cleveland's median square footage for active listings during the 2022-04-01 period was 1,800 sqft. One year prior, the average listing was 1,857 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).