Colorado Springs FHA Loan Rates, Closing Costs & Stats

COLORADO SPRINGS, CO

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.

Colorado Springs's 134 lenders originated 1,959 FHA loans during 2023. The total origination value was $704,985,000, with an average FHA loan value of $359,870.

Colorado Springs FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Colorado Springs averaged 6.37% for the week of 2024-06-07, compared to the national average (all FHA variants) of 6.692% for the same period.

Colorado Springs's average FHA mortgage closing costs are $9,584.

The average rate for the prior week (2024-05-31) was 6.46% and one month ago for the week of 2024-05-03, the average rate was 6.46%.

The average rate one year ago was 6.33%.

For refis of the same type during the week of 2024-06-07, the average rate was 6.34%.

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

Colorado Springs 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 Colorado Springs level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 312 6.02% $15,822
QUICKEN LOANS, LLC 104 6.06% $13,716
Ent Credit Union 72 5.99% $9,138
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 62 6.78% $14,856
NFM, INC. 46 6.65% $14,391
UNIVERSAL LENDING CORPORATION 40 6.64% $12,851
BROKER SOLUTIONS, INC. 40 6.61% $13,404
Loan Simple, Inc. 37 6.78% $13,692
MORTGAGE SOLUTIONS OF COLORADO, LLC 37 6.09% $15,262
GUILD MORTGAGE COMPANY 33 5.99% $11,035
PRIMARY RESIDENTIAL MORTGAGE, INC. 32 6.80% $13,169
GUARANTEED RATE, INC. 31 6.38% $16,068
Paramount Residential Mortgage Group, Inc. 31 6.71% $13,297
ARK-LA-TEX FINANCIAL SERVICES, LLC. 30 6.67% $13,188
NBH Bank 28 6.30% $10,222
BAY EQUITY LLC 27 6.64% $14,064
HOMEAMERICAN MORTGAGE CORPORATION 27 5.35% $9,822
V.I.P. MORTGAGE, INC. 24 6.76% $14,051
CARDINAL FINANCIAL 21 6.32% $16,833
LOANDEPOT.COM, LLC 20 6.64% $13,850
CHERRY CREEK MORTGAGE, LLC 20 6.10% $6,545
FREEDOM MORTGAGE CORPORATION 19 6.63% $16,366
SECURITYNATIONAL MORTGAGE COMPANY 19 6.61% $15,852
NEWREZ LLC 19 6.59% $15,156
The Central Trust Bank 18 6.50% $10,583
INSPIRE HOME LOANS INC. 18 5.25% $11,636
Northpointe Bank 18 6.44% $14,097
CALIBER HOME LOANS, INC. 18 6.46% $15,526
INTEGRITY MORTGAGE & FINANCIAL INCORPORATED 17 6.63% $16,449
PENNYMAC LOAN SERVICES, LLC 16 6.07% $14,307
S1L, Inc. 16 6.49% $15,326
CORNERSTONE HOME LENDING, INC. 15 4.53% $14,797
AMERICAN FINANCING CORPORATION 15 6.48% $12,838
Ixonia Bank 15 6.89% $12,782
AMERICAN FINANCIAL NETWORK, INC. 13 6.72% $14,453
Equity Prime Mortgage LLC 11 6.53% $19,571
NEST HOME LENDING, LLC 11 5.91% $14,739
Mr. Cooper ( Nationstar Mortgage ) 10 6.11% $22,237
ACADEMY MORTGAGE CORPORATION 9 5.90% $12,560
CROSSCOUNTRY MORTGAGE, LLC 9 6.63% $14,593
DHI MORTGAGE COMPANY, LTD. 9 5.36% $17,581
INTERCAP LENDING INC. 9 6.18% $18,351
EVERETT FINANCIAL, INC. 9 6.69% $17,298
AMERICAN PACIFIC MORTGAGE CORPORATION 9 6.11% $18,725
MOVEMENT MORTGAGE, LLC 8 6.48% $14,268
AMERISAVE MORTGAGE CORPORATION 8 6.19% $13,534
LEADERONE FINANCIAL CORPORATION 8 6.91% $13,668
MID AMERICA MORTGAGE, INC. 8 6.11% $5,375
TOWNE MORTGAGE COMPANY 8 6.31% $14,897
PLANET HOME LENDING, LLC 8 5.92% $12,682
Flagstar Bank, FSB 7 6.43% $14,378
GROUP MORTGAGE, LLC 7 6.20% $13,816
DRAPER AND KRAMER MORTGAGE CORP. 6 6.69% $11,064
The Huntington National Bank 6 6.17% $10,886
MUTUAL OF OMAHA MORTGAGE, INC. 6 6.00% $16,411
GENEVA FINANCIAL, LLC 6 6.42% $16,751
RESIDENTIAL WHOLESALE MORTGAGE, INC. 6 6.63% $13,091
HOMESIDE FINANCIAL, LLC 6 7.33% $14,107
HUNT MORTGAGE CORPORATION 6 6.13% $14,863
Plains Commerce Bank 6 6.06% $15,789
CMG MORTGAGE, INC. 5 6.95% $15,050
HOMEBRIDGE FINANCIAL SERVICES, INC. 5 6.78% $16,548
PRIMELENDING, A PLAINSCAPITAL COMPANY 5 7.03% $16,372
Century Mortgage Company DBA Century Lending Company 4 5.59% $20,636
SUN WEST MORTGAGE COMPANY, INC. 4 6.71% $9,420
T2 FINANCIAL LLC 4 7.16% $14,726
VILLAGE CAPITAL MORTGAGE 4 5.72% $11,831
LAKEVIEW LOAN SERVICING, LLC 4 5.56% $14,815
NATIONS RELIABLE LENDING, LLC 4 6.47% $9,535
FLAT BRANCH MORTGAGE, INC. 4 6.03% $15,641
LOANPAL, LLC 4 6.00% $18,691
Nations Lending Corporation 3 7.04% $14,659
Prosperity Home Mortgage, LLC 3 6.91% $13,473
JPMorgan Chase Bank 3 6.08% $11,780
PLAZA HOME MORTGAGE, INC. 3 6.54% $14,912
Sierra Pacific Mortgage Company, Inc. 3 5.67% $11,421
NOVA FINANCIAL & INVESTMENT CORPORATION 3 6.08% $10,567
MASON MCDUFFIE MORTGAGE CORPORATION 3 6.71% $15,825
MICHIGAN MUTUAL, INC. 3 6.33% $14,367
AMERICAN FINANCIAL RESOURCES, INC. 3 5.67% $15,562
OCMBC, INC. 3 7.75% $15,324
Mortgage Research Center, LLC 3 6.13% $6,590
AmeriHome Mortgage Company, LLC 3 6.54% $13,059
ZILLOW HOME LOANS, LLC 2 6.25% $11,095
Bank of Colorado 2 6.81% $13,003
CALCON MUTUAL MORTGAGE LLC 2 6.75% $26,028
CHURCHILL MORTGAGE CORPORATION 2 6.88% $13,756
CITYWIDE HOME LOANS, LLC 2 6.63% $11,527
GMFS LLC 2 7.19% $12,739
GUARANTEED RATE AFFINITY, LLC 2 6.63% $14,859
MOUNTAIN WEST FINANCIAL, INC. 2 7.25% $8,697
NATIONS DIRECT MORTGAGE, LLC 2 5.81% $18,364
The Federal Savings Bank 2 5.75% $17,729
THE MORTGAGE COMPANY 2 6.50% $15,986
ON Q FINANCIAL, INC. 1 5.25% $8,644
PACIFIC RESIDENTIAL MORTGAGE, LLC 1 7.38% $17,641
MLB RESIDENTIAL LENDING, LLC 1 6.50% $12,451
MEGASTAR FINANCIAL CORP. 1 6.63% $13,330
MANN FINANCIAL INC. 1 6.75% $12,807
M2 Lending Solutions, LLC 1 5.63% $16,289
Lakeview Community Capital, LLC 1 6.13% $16,324
PREMIER MORTGAGE RESOURCES, L.L.C. 1 6.63% $10,651
LADERA LENDING, INC. 1 7.50% $13,725
JMAC LENDING, INC. 1 7.63% $21,166
PRIORITY HOME MORTGAGE, L.P. 1 6.00% $7,833
IDEAL HOME LOANS LLC 1 5.63% $16,261
HOMESTAR FINANCIAL CORPORATION 1 6.75% $10,155
RELIANCE FIRST CAPITAL, LLC 1 6.88% $20,158
RESIDENTIAL BANCORP 1 6.25% $10,665
GREENSTATE CREDIT UNION 1 6.25% $10,215
Gateway First Bank 1 6.25% $12,553
FBC MORTGAGE, LLC 1 6.49% $12,246
SFMC, LP 1 5.50% $7,356
EMM LOANS LLC 1 5.75% $18,661
STOCKTON MORTGAGE CORPORATION 1 8.13% $12,345
Summit Mortgage Corporation 1 6.63% $16,039
Elevations Credit Union 1 6.75% $13,503
DIRECT MORTGAGE, CORP. 1 6.50% $12,133
DAS Acquisition Company, LLC 1 6.25% $15,892
American Mortgage & Equity Consultants, Inc. 1 6.63% $16,712
CONTOUR MORTGAGE CORPORATION 1 7.25% $10,976
The Loan Store, Inc. 1 6.75% $14,825
ALLIED MORTGAGE GROUP, INC. 1 6.13% $10,485
THRIVE MORTGAGE, LLC 1 6.75% $18,556
Towne Bank 1 6.75% $17,892
Carrington Mortgage Services, LLC 1 6.13% $13,164
BECKAM FUNDING CORP. 1 6.25% $20,091
AXIA FINANCIAL, LLC 1 7.00% $23,659
U.S. Bank 1 6.13% $18,688
VAN DYK MORTGAGE CORPORATION 1 7.25% $13,342
VERITAS FUNDING, LLC 1 5.75% $26,838
Armed Forces Bank 1 6.25% $9,382
M&T Bank 1 6.25% $7,064
Mortgage Assurance Inc. 1 5.75% $13,060

The top Colorado Springs FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 312 FHA loans originated. Their average total fees are $15,822, which is $2,106 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Colorado Springs FHA lenders (with over 10 loans originated) are CHERRY CREEK MORTGAGE, LLC ($6,545), Ent Credit Union ($9,138), HOMEAMERICAN MORTGAGE CORPORATION ($9,822), NBH Bank ($10,222) and The Central Trust Bank ($10,583).

The lowest rate Colorado Springs FHA lenders (with over 10 loans originated) are CORNERSTONE HOME LENDING, INC. (4.53%), INSPIRE HOME LOANS INC. (5.25%), HOMEAMERICAN MORTGAGE CORPORATION (5.35%), NEST HOME LENDING, LLC (5.91%) and GUILD MORTGAGE COMPANY (5.99%).

Colorado Springs FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
COLORADO SPRINGS, CO EL PASO 2022 $460,000 $588,850 $711,800 $884,600
COLORADO SPRINGS, CO TELLER 2022 $460,000 $588,850 $711,800 $884,600
COLORADO SPRINGS, CO EL PASO 2023 $517,500 $662,500 $800,800 $995,200
COLORADO SPRINGS, CO TELLER 2023 $517,500 $662,500 $800,800 $995,200

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Colorado Springs (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 $388,291 (12.0%) $486,184 (6.5%) 1.44 1,310
2018-02-01 $397,500 (11.7%) $501,114 (6.4%) 1.44 1,236
2018-03-01 $411,925 (11.0%) $516,447 (8.9%) 1.45 1,314
2018-04-01 $400,397 (8.2%) $504,946 (6.3%) 1.36 1,505
2018-05-01 $390,280 (3.7%) $495,938 (5.2%) 1.30 1,678
2018-06-01 $385,000 (4.5%) $522,888 (13.3%) 1.28 2,056
2018-07-01 $374,292 (2.6%) $490,846 (6.8%) 1.25 2,330
2018-08-01 $365,363 (2.2%) $462,568 (1.0%) 1.22 2,467
2018-09-01 $364,900 (0.0%) $459,296 (-0.6%) 1.23 2,448
2018-10-01 $367,748 (0.3%) $464,228 (-0.8%) 1.25 2,413
2018-11-01 $368,871 (-0.3%) $466,477 (-3.3%) 1.25 2,334
2018-12-01 $375,000 (-1.2%) $474,860 (-2.0%) 1.29 1,924
2019-01-01 $382,450 (-1.5%) $478,022 (-1.7%) 1.32 1,639
2019-02-01 $389,946 (-1.9%) $484,661 (-3.3%) 1.32 1,560
2019-03-01 $397,100 (-3.6%) $496,048 (-4.0%) 1.30 1,525
2019-04-01 $399,900 (-0.1%) $501,607 (-0.7%) 1.27 1,575
2019-05-01 $417,413 (7.0%) $519,425 (4.7%) 1.30 1,678
2019-06-01 $419,000 (8.8%) $518,975 (-0.8%) 1.31 1,948
2019-07-01 $416,500 (11.3%) $516,244 (5.2%) 1.30 2,158
2019-08-01 $412,682 (13.0%) $513,767 (11.1%) 1.31 2,127
2019-09-01 $409,205 (12.1%) $513,370 (11.8%) 1.31 2,062
2019-10-01 $411,136 (11.8%) $513,729 (10.7%) 1.33 2,010
2019-11-01 $420,000 (13.9%) $524,080 (12.4%) 1.38 1,738
2019-12-01 $424,830 (13.3%) $531,509 (11.9%) 1.42 1,449
2020-01-01 $425,000 (11.1%) $534,515 (11.8%) 1.42 1,222
2020-02-01 $445,000 (14.1%) $559,799 (15.5%) 1.46 1,059
2020-03-01 $445,520 (12.2%) $558,616 (12.6%) 1.40 1,164
2020-04-01 $449,558 (12.4%) $556,576 (11.0%) 1.41 1,275
2020-05-01 $457,400 (9.6%) $557,583 (7.4%) 1.39 1,488
2020-06-01 $461,038 (10.0%) $562,367 (8.4%) 1.36 1,473
2020-07-01 $457,500 (9.8%) $572,922 (11.0%) 1.33 1,395
2020-08-01 $450,000 (9.0%) $582,547 (13.4%) 1.29 1,307
2020-09-01 $435,000 (6.3%) $571,837 (11.4%) 1.25 1,171
2020-10-01 $439,900 (7.0%) $578,294 (12.6%) 1.26 1,016
2020-11-01 $453,550 (8.0%) $607,460 (15.9%) 1.33 780
2020-12-01 $451,628 (6.3%) $626,964 (18.0%) 1.34 618
2021-01-01 $450,785 (6.1%) $630,450 (18.0%) 1.35 491
2021-02-01 $444,970 (0.0%) $611,649 (9.3%) 1.30 496
2021-03-01 $435,000 (-2.4%) $597,934 (7.0%) 1.23 544
2021-04-01 $454,950 (1.2%) $618,256 (11.1%) 1.23 612
2021-05-01 $473,000 (3.4%) $634,905 (13.9%) 1.26 685
2021-06-01 $476,588 (3.4%) $661,929 (17.7%) 1.25 817
2021-07-01 $478,900 (4.7%) $640,259 (11.8%) 1.26 972
2021-08-01 $477,450 (6.1%) $638,585 (9.6%) 1.27 1,046
2021-09-01 $477,382 (9.7%) $635,388 (11.1%) 1.27 1,079
2021-10-01 $485,000 (10.3%) $649,980 (12.4%) 1.29 1,113
2021-11-01 $484,324 (6.8%) $660,355 (8.7%) 1.29 935
2021-12-01 $484,948 (7.4%) $674,878 (7.6%) 1.31 739
2022-01-01 $490,763 (8.9%) $678,863 (7.7%) 1.33 602
2022-02-01 $482,765 (8.5%) $679,167 (11.0%) 1.26 593
2022-03-01 $487,654 (12.1%) $658,027 (10.1%) 1.22 635
2022-04-01 $515,000 (13.2%) $671,515 (8.6%) 1.23 775
2022-05-01 $537,709 (13.7%) $677,996 (6.8%) 1.23 1,202
2022-06-01 $537,500 (12.8%) $671,934 (1.5%) 1.20 1,706
2022-07-01 $521,740 (9.0%) $643,884 (0.6%) 1.18 2,352
2022-08-01 $517,700 (8.4%) $634,944 (-0.6%) 1.20 2,536
2022-09-01 $505,000 (5.8%) $627,401 (-1.3%) 1.18 2,419
2022-10-01 $499,999 (3.1%) $618,953 (-4.8%) 1.18 2,462
2022-11-01 $499,700 (3.2%) $612,436 (-7.3%) 1.20 2,319
2022-12-01 $499,000 (2.9%) $614,710 (-8.9%) 1.23 1,938
2023-01-01 $498,779 (1.6%) $623,697 (-8.1%) 1.24 1,562
2023-02-01 $499,000 (3.4%) $629,654 (-7.3%) 1.20 1,375
2023-03-01 $527,500 (8.2%) $654,647 (-0.5%) 1.24 1,270
2023-04-01 $535,000 (3.9%) $672,648 (0.2%) 1.24 1,328
2023-05-01 $550,000 (2.3%) $693,071 (2.2%) 1.25 1,469
2023-06-01 $549,950 (2.3%) $685,762 (2.1%) 1.24 1,657
2023-07-01 $545,000 (4.5%) $694,480 (7.9%) 1.24 1,917
2023-08-01 $534,236 (3.2%) $685,321 (7.9%) 1.23 2,049
2023-09-01 $525,000 (4.0%) $678,648 (8.2%) 1.22 2,178
2023-10-01 $514,087 (2.8%) $676,028 (9.2%) 1.21 2,196
2023-11-01 $499,187 (-0.1%) $660,080 (7.8%) 1.19 2,155
2023-12-01 $490,000 (-1.8%) $653,202 (6.3%) 1.20 1,813
2024-01-01 $487,875 (-2.2%) $652,404 (4.6%) 1.19 1,529
2024-02-01 $489,601 (-1.9%) $651,529 (3.5%) 1.18 1,485
2024-03-01 $495,000 (-6.2%) $638,631 (-2.5%) 1.17 1,523
2024-04-01 $505,028 (-5.6%) $653,376 (-2.9%) 1.17 1,822
2024-05-01 $517,500 (-5.9%) $669,818 (-3.4%) 1.17 2,187
Colorado Springs's median listing price for 2024-05-01 was $517,500, a difference of $-32,500 (-5.9%) versus the prior year and $12,472 versus the prior month.

Colorado Springs's median listing price comes in at 117% of the national average.

Colorado Springs's average listing price for 2024-05-01 was $669,818, a difference of $-23,253 (-3.4%) versus the prior year and $16,442 versus the prior month.

For the 2024-05-01 period, Colorado Springs had 2,187 MLS listings, a difference of 365 listings (20%) versus the prior month and 718 listings (49%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Colorado Springs (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 54 days 3,060 sqft
2018-02-01 43 days 3,087 sqft
2018-03-01 32 days 3,111 sqft
2018-04-01 26 days 3,092 sqft
2018-05-01 28 days 3,007 sqft
2018-06-01 26 days 2,929 sqft
2018-07-01 31 days 2,826 sqft
2018-08-01 37 days 2,770 sqft
2018-09-01 39 days 2,774 sqft
2018-10-01 45 days 2,819 sqft
2018-11-01 47 days 2,839 sqft
2018-12-01 61 days 2,837 sqft
2019-01-01 61 days 2,856 sqft
2019-02-01 42 days 2,880 sqft
2019-03-01 37 days 2,885 sqft
2019-04-01 29 days 2,876 sqft
2019-05-01 25 days 2,947 sqft
2019-06-01 26 days 2,983 sqft
2019-07-01 30 days 2,997 sqft
2019-08-01 36 days 2,923 sqft
2019-09-01 41 days 2,863 sqft
2019-10-01 44 days 2,832 sqft
2019-11-01 47 days 2,866 sqft
2019-12-01 58 days 2,896 sqft
2020-01-01 58 days 2,842 sqft
2020-02-01 35 days 2,959 sqft
2020-03-01 23 days 2,964 sqft
2020-04-01 31 days 3,009 sqft
2020-05-01 31 days 3,065 sqft
2020-06-01 30 days 3,073 sqft
2020-07-01 31 days 3,034 sqft
2020-08-01 31 days 2,971 sqft
2020-09-01 30 days 2,777 sqft
2020-10-01 29 days 2,700 sqft
2020-11-01 29 days 2,707 sqft
2020-12-01 35 days 2,669 sqft
2021-01-01 26 days 2,640 sqft
2021-02-01 13 days 2,482 sqft
2021-03-01 9 days 2,393 sqft
2021-04-01 9 days 2,547 sqft
2021-05-01 8 days 2,613 sqft
2021-06-01 9 days 2,592 sqft
2021-07-01 14 days 2,499 sqft
2021-08-01 15 days 2,535 sqft
2021-09-01 18 days 2,378 sqft
2021-10-01 19 days 2,444 sqft
2021-11-01 27 days 2,348 sqft
2021-12-01 32 days 2,327 sqft
2022-01-01 26 days 2,327 sqft
2022-02-01 15 days 2,284 sqft
2022-03-01 9 days 2,237 sqft
2022-04-01 9 days 2,452 sqft
2022-05-01 12 days 2,527 sqft
2022-06-01 18 days 2,535 sqft
2022-07-01 25 days 2,448 sqft
2022-08-01 33 days 2,414 sqft
2022-09-01 40 days 2,344 sqft
2022-10-01 46 days 2,375 sqft
2022-11-01 51 days 2,393 sqft
2022-12-01 63 days 2,360 sqft
2023-01-01 66 days 2,285 sqft
2023-02-01 48 days 2,331 sqft
2023-03-01 37 days 2,466 sqft
2023-04-01 28 days 2,578 sqft
2023-05-01 26 days 2,629 sqft
2023-06-01 30 days 2,647 sqft
2023-07-01 32 days 2,620 sqft
2023-08-01 37 days 2,510 sqft
2023-09-01 42 days 2,450 sqft
2023-10-01 44 days 2,387 sqft
2023-11-01 49 days 2,359 sqft
2023-12-01 59 days 2,302 sqft
2024-01-01 63 days 2,213 sqft
2024-02-01 41 days 2,166 sqft
2024-03-01 36 days 2,164 sqft
2024-04-01 31 days 2,306 sqft
2024-05-01 30 days 2,328 sqft
Colorado Springs's median listing age (time on market) for 2024-05-01 was 30 days. This is 18% longer than the same period one year ago.

Colorado Springs's median square footage for active listings during the 2024-05-01 period was 2,328 sqft. One year prior, the average listing was 2,629 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).