Colorado Springs FHA Loans

COLORADO SPRINGS, CO

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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.

    Colorado Springs's 169 lenders originated 3,607 FHA loans during 2021. The total origination value was $1,038,975,000, with an average FHA loan value of $288,044.

    Colorado Springs FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Colorado Springs averaged 6.12% for the week of 2022-09-30, compared to the national average (all FHA variants) of 6.428% for the same period.

    The average rate for the prior week (2022-09-23) was 6% and one month ago for the week of 2022-08-26, the average rate was 5.35%.

    The average rate one year ago was 2.86%.

    For refis of the same type during the week of 2022-09-30, the average rate was 6.03%.

    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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Colorado Springs level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 213 2.67% $7,721
    UNITED WHOLESALE MORTGAGE, LLC 135 2.70% $8,966
    Ent Credit Union 126 2.62% $7,342
    PRIMARY RESIDENTIAL MORTGAGE, INC. 125 3.13% $11,602
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 123 3.24% $11,725
    CALIBER HOME LOANS, INC. 122 2.87% $8,809
    UNIVERSAL LENDING CORPORATION 98 3.08% $11,117
    FREEDOM MORTGAGE CORPORATION 95 2.75% $5,730
    CHERRY CREEK MORTGAGE, LLC 91 3.00% $5,718
    NBH Bank 90 3.04% $9,714
    LAKEVIEW LOAN SERVICING, LLC 83 2.90% $5,716
    Northpointe Bank 70 3.13% $11,305
    BAY EQUITY LLC 66 3.06% $10,514
    AMERICAN FINANCING CORPORATION 58 2.95% $10,155
    LOANDEPOT.COM, LLC 54 3.17% $10,487
    GUILD MORTGAGE COMPANY 54 3.13% $11,372
    NEST HOME LENDING, LLC 45 3.12% $10,629
    PENNYMAC LOAN SERVICES, LLC 44 2.87% $6,615
    BROKER SOLUTIONS, INC. 44 3.19% $10,806
    HOME POINT FINANCIAL CORPORATION 43 2.62% $8,329
    Mr. Cooper ( Nationstar Mortgage ) 42 3.24% $5,515
    AMERICAN FINANCIAL NETWORK, INC. 41 3.03% $13,348
    S1L, Inc. 36 2.99% $11,717
    Carrington Mortgage Services, LLC 34 3.17% $9,894
    MORTGAGE SOLUTIONS OF COLORADO, LLC 32 3.35% $11,786
    DRAPER AND KRAMER MORTGAGE CORP. 32 3.04% $9,997
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 28 3.25% $9,473
    GUARANTEED RATE, INC. 27 2.91% $10,157
    SECURITYNATIONAL MORTGAGE COMPANY 25 3.10% $12,311
    Midwest Mortgage Associates Corporation 24 2.94% $11,325
    HOMEBRIDGE FINANCIAL SERVICES, INC. 24 2.77% $8,434
    T2 FINANCIAL LLC 23 3.05% $10,403
    ACADEMY MORTGAGE CORPORATION 23 3.01% $9,468
    VILLAGE CAPITAL MORTGAGE 21 2.96% $3,304
    V.I.P. MORTGAGE, INC. 21 3.18% $11,477
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 20 3.18% $9,503
    CROSSCOUNTRY MORTGAGE, LLC 18 3.15% $9,668
    Lakeview Community Capital, LLC 18 2.88% $5,759
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 18 2.94% $11,452
    Financial Funding Solutions, Inc. 18 3.00% $8,691
    Loan Simple, Inc. 17 2.90% $10,896
    NEWREZ LLC 17 3.01% $5,903
    INTEGRITY MORTGAGE & FINANCIAL INCORPORATED 16 2.91% $9,988
    AmeriHome Mortgage Company, LLC 15 2.75% $5,478
    CORNERSTONE HOME LENDING, INC. 15 3.17% $10,476
    NFM, INC. 15 3.06% $10,304
    The Central Trust Bank 15 3.16% $12,351
    NP, Inc. 14 3.09% $9,755
    Paramount Residential Mortgage Group, Inc. 14 3.03% $10,734
    AMERISAVE MORTGAGE CORPORATION 13 2.97% $8,948
    MOVEMENT MORTGAGE, LLC 13 3.11% $10,551
    PLANET HOME LENDING, LLC 13 2.80% $7,145
    Hometown Lenders, Inc. 13 3.11% $10,600
    Plains Commerce Bank 12 2.91% $8,898
    Farmers & Stockmens Bank 12 2.39% $7,280
    Nations Lending Corporation 10 3.04% $11,242
    CELEBRITY HOME LOANS, LLC 10 3.23% $10,051
    NOVA FINANCIAL & INVESTMENT CORPORATION 9 2.85% $7,559
    Independent Bank 9 3.07% $9,875
    InterContinental Capital Group, Inc 9 2.64% $7,982
    GUARANTEED RATE AFFINITY, LLC 9 3.22% $9,375
    FINANCE OF AMERICA MORTGAGE LLC 9 3.17% $10,049
    Hometown Equity Mortgage, LLC 8 4.13% $12,232
    THRIVE MORTGAGE, LLC 8 3.06% $13,364
    U.S. Bank 8 3.22% $9,723
    MANN FINANCIAL INC. 8 2.97% $9,744
    CHURCHILL MORTGAGE CORPORATION 7 2.98% $10,591
    First Guaranty Mortgage Corporation 7 2.66% $8,071
    INSPIRE HOME LOANS INC. 7 3.36% $10,065
    Equity Prime Mortgage LLC 7 3.45% $9,269
    Commerce Home Mortgage, Inc. 7 3.25% $8,652
    LEADERONE FINANCIAL CORPORATION 6 3.19% $10,462
    GROUP MORTGAGE, LLC 6 3.06% $10,595
    Network Funding, L.P. 6 3.04% $13,108
    LOANPAL, LLC 6 2.52% $11,460
    The Federal Savings Bank 5 2.88% $13,569
    SUN WEST MORTGAGE COMPANY, INC. 5 2.75% $9,875
    HUNT MORTGAGE CORPORATION 5 2.68% $9,739
    CITYWIDE HOME LOANS, LLC 5 3.03% $11,268
    FBC MORTGAGE, LLC 5 3.12% $7,443
    Colten Mortgage, LLC 5 3.28% $10,355
    EVERETT FINANCIAL, INC. 5 3.28% $9,462
    CONTOUR MORTGAGE CORPORATION 5 3.68% $10,214
    DAS Acquisition Company, LLC 4 3.39% $9,310
    AIR ACADEMY 4 3.50% $12,895
    Amerifirst Financial, Inc. 4 3.13% $11,835
    CMG MORTGAGE, INC. 4 2.59% $14,426
    DHI MORTGAGE COMPANY, LTD. 4 2.81% $12,138
    Elevations Credit Union 4 3.13% $11,245
    Gateway First Bank 4 3.31% $10,854
    GENEVA FINANCIAL, LLC 4 2.97% $10,447
    MEGASTAR FINANCIAL CORP. 4 3.09% $9,280
    STEARNS LENDING, LLC 4 3.06% $8,222
    TOP FLITE FINANCIAL, INC. 4 3.28% $17,506
    MOUNTAIN WEST FINANCIAL, INC. 3 2.96% $13,094
    OCEANSIDE MORTGAGE COMPANY 3 2.58% $4,986
    Flagstar Bank, FSB 3 3.08% $7,408
    LAND HOME FINANCIAL SERVICES, INC. 3 3.46% $12,024
    SOUTHWEST FUNDING, LP 3 3.13% $12,099
    BOKF 3 3.33% $8,114
    Armed Forces Bank 3 2.96% $9,015
    HOME MORTGAGE ALLIANCE, LLC 3 3.04% $11,162
    PLAZA HOME MORTGAGE, INC. 3 2.92% $8,502
    HOMEAMERICAN MORTGAGE CORPORATION 3 2.63% $7,223
    UNITED SECURITY FINANCIAL CORP 2 2.50% $7,546
    HOMESIDE FINANCIAL, LLC 2 2.68% $11,485
    MID AMERICA MORTGAGE, INC. 2 2.69% $2,890
    NATIONS DIRECT MORTGAGE, LLC 2 3.00% $14,784
    First National Bank of Omaha 2 3.06% $9,110
    PHH Mortgage Corporation 2 3.56% $5,377
    PLUS RELOCATION MORTGAGE, LLC 2 3.69% $9,508
    Century Mortgage Company DBA Century Lending Company 2 3.19% $8,848
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 3.44% $11,180
    Residential Mortgage Solutions, Inc. 2 3.56% $9,427
    RESIDENTIAL WHOLESALE MORTGAGE, INC. 2 3.06% $10,008
    SOVEREIGN LENDING GROUP INCORPORATED 2 2.75% $9,533
    SUMMIT FUNDING, INC. 2 3.31% $11,925
    Sunflower Bank 2 3.75% $12,201
    Bank of England 2 3.44% $13,052
    THE MORTGAGE COMPANY 2 2.63% $10,493
    ZILLOW HOME LOANS, LLC 2 2.69% $8,863
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 2.44% $9,320
    AMERICAN FINANCIAL RESOURCES, INC. 2 2.75% $11,719
    AMCAP MORTGAGE, LTD. 2 4.19% $11,866
    LOANLEADERS OF AMERICA, INC. 2 3.06% $11,486
    THOMPSON KANE & COMPANY, LLC 1 2.63% $9,002
    Citizens Bank 1 3.13% $7,114
    CERTAINTY HOME LOANS, LLC 1 2.63% $9,094
    Mortgage Research Center, LLC 1 2.75% $6,154
    ARC HOME LLC 1 2.50% $14,254
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 3.25% $6,196
    INTERCAP LENDING INC. 1 3.50% $11,123
    TOWNE MORTGAGE COMPANY 1 2.75% $9,176
    Wells Fargo Bank 1 3.00% $4,460
    RANLIFE, INC. 1 2.88% $7,962
    UNION HOME MORTGAGE CORP. 1 2.25% $10,210
    UNITED MORTGAGE CORP. 1 3.13% $9,586
    RUOFF MORTGAGE COMPANY, INC. 1 3.63% $7,685
    BETTER MORTGAGE CORPORATION 1 3.00% $7,778
    Barrington Bank & Trust Company, N.A. 1 3.25% $7,125
    Manufacturers and Traders Trust Company 1 3.25% $8,101
    INLANTA MORTGAGE, INC. 1 2.88% $7,550
    Wyndham Capital Mortgage, Inc. 1 2.25% $7,509
    Strong Home Mortgage, LLC 1 2.25% $8,457
    ABSOLUTE HOME MORTGAGE CORPORATION 1 3.00% $8,250
    American Mortgage & Equity Consultants, Inc. 1 4.25% $14,479
    M2 Lending Solutions, LLC 1 2.88% $8,238
    SWBC MORTGAGE CORPORATION 1 3.25% $10,811
    Bank of Colorado 1 3.00% $12,164
    Austin Capital Bank SSB 1 3.88% $11,963
    Magnolia Bank 1 2.62% $13,877
    MUTUAL OF OMAHA MORTGAGE, INC. 1 2.25% $10,390
    VAN DYK MORTGAGE CORPORATION 1 2.88% $14,649
    Goldwater Bank, N.A. 1 2.25% $7,559
    GREAT WESTERN FINANCIAL SERVICES, INC. 1 3.13% $10,227
    First Western Trust Bank 1 2.63% $9,464
    The Union Bank Company 1 2.63% $7,202
    NEW DAY FINANCIAL, LLC 1 3.38% $17,658
    FIRST COLONY MORTGAGE CORPORATION 1 2.75% $9,205
    EMBRACE HOME LOANS, INC. 1 2.88% $11,744
    NMSI, INC. 1 2.25% $12,848
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 1 3.50% $12,622
    DEVELOPER'S MORTGAGE COMPANY 1 3.75% $7,170
    DATA MORTGAGE, INC. 1 4.63% $8,831
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 3.00% $7,082
    ON Q FINANCIAL, INC. 1 3.13% $10,577
    1ST SIGNATURE LENDING, LLC 1 3.25% $12,196
    COUNTRYPLACE MORTGAGE, LTD. 1 3.25% $12,292
    Peoples Bank 1 3.13% $13,640

    The top Colorado Springs FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 213 FHA loans originated. Their average total fees are $7,721, which is $1,245 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Colorado Springs FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($3,304), AmeriHome Mortgage Company, LLC ($5,478), Mr. Cooper ( Nationstar Mortgage ) ($5,515), LAKEVIEW LOAN SERVICING, LLC ($5,716) and CHERRY CREEK MORTGAGE, LLC ($5,718).

    The lowest rate Colorado Springs FHA lenders (with over 10 loans originated) are Farmers & Stockmens Bank (2.39%), HOME POINT FINANCIAL CORPORATION (2.62%), Ent Credit Union (2.62%), QUICKEN LOANS, LLC (2.67%) and UNITED WHOLESALE MORTGAGE, LLC (2.70%).

    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

    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 $396,321 (11.6%) $508,251 (5.2%) 1.46 1,534
    2018-02-01 $410,215 (11.0%) $528,033 (6.6%) 1.48 1,444
    2018-03-01 $419,888 (10.2%) $532,038 (7.8%) 1.45 1,554
    2018-04-01 $409,825 (7.9%) $526,881 (6.4%) 1.38 1,772
    2018-05-01 $398,750 (4.3%) $519,857 (6.4%) 1.33 1,975
    2018-06-01 $390,000 (4.0%) $536,234 (12.2%) 1.30 2,410
    2018-07-01 $381,500 (3.1%) $509,148 (6.9%) 1.27 2,752
    2018-08-01 $374,900 (2.0%) $483,022 (2.0%) 1.25 2,912
    2018-09-01 $371,887 (-0.5%) $480,149 (0.7%) 1.24 2,918
    2018-10-01 $372,894 (-0.6%) $487,216 (0.5%) 1.25 2,869
    2018-11-01 $375,750 (-0.8%) $493,545 (-2.0%) 1.26 2,765
    2018-12-01 $382,892 (-0.6%) $501,736 (-0.5%) 1.31 2,270
    2019-01-01 $392,492 (-1.0%) $508,963 (0.1%) 1.35 1,909
    2019-02-01 $396,595 (-3.3%) $515,884 (-2.3%) 1.33 1,774
    2019-03-01 $405,471 (-3.4%) $524,606 (-1.4%) 1.32 1,774
    2019-04-01 $413,950 (1.0%) $530,070 (0.6%) 1.30 1,850
    2019-05-01 $427,500 (7.2%) $553,235 (6.4%) 1.32 1,977
    2019-06-01 $425,590 (9.1%) $552,006 (2.9%) 1.31 2,307
    2019-07-01 $429,000 (12.5%) $548,835 (7.8%) 1.33 2,578
    2019-08-01 $425,505 (13.5%) $541,041 (12.0%) 1.34 2,579
    2019-09-01 $425,455 (14.4%) $536,196 (11.7%) 1.35 2,517
    2019-10-01 $426,450 (14.4%) $541,841 (11.2%) 1.36 2,371
    2019-11-01 $435,000 (15.8%) $554,981 (12.5%) 1.40 2,015
    2019-12-01 $438,235 (14.5%) $566,481 (12.9%) 1.46 1,661
    2020-01-01 $444,825 (13.3%) $567,949 (11.6%) 1.48 1,358
    2020-02-01 $465,000 (17.3%) $596,922 (15.7%) 1.50 1,205
    2020-03-01 $467,872 (15.4%) $596,042 (13.6%) 1.46 1,290
    2020-04-01 $472,450 (14.1%) $593,995 (12.1%) 1.47 1,452
    2020-05-01 $474,900 (11.1%) $591,922 (7.0%) 1.44 1,683
    2020-06-01 $477,309 (12.2%) $600,784 (8.8%) 1.39 1,715
    2020-07-01 $479,900 (11.9%) $605,889 (10.4%) 1.38 1,627
    2020-08-01 $470,000 (10.5%) $627,172 (15.9%) 1.34 1,512
    2020-09-01 $452,250 (6.3%) $611,122 (14.0%) 1.29 1,320
    2020-10-01 $452,051 (6.0%) $630,229 (16.3%) 1.29 1,120
    2020-11-01 $471,765 (8.5%) $655,889 (18.2%) 1.35 874
    2020-12-01 $472,435 (7.8%) $685,236 (21.0%) 1.39 719
    2021-01-01 $477,000 (7.2%) $691,241 (21.7%) 1.40 568
    2021-02-01 $466,077 (0.2%) $655,978 (9.9%) 1.34 543
    2021-03-01 $449,950 (-3.8%) $624,332 (4.8%) 1.26 603
    2021-04-01 $465,000 (-1.6%) $657,992 (10.8%) 1.25 678
    2021-05-01 $479,900 (1.1%) $672,349 (13.6%) 1.26 759
    2021-06-01 $492,500 (3.2%) $701,004 (16.7%) 1.28 923
    2021-07-01 $492,500 (2.6%) $682,041 (12.6%) 1.28 1,103
    2021-08-01 $495,000 (5.3%) $680,181 (8.5%) 1.30 1,215
    2021-09-01 $493,417 (9.1%) $676,717 (10.7%) 1.30 1,234
    2021-10-01 $495,000 (9.5%) $692,353 (9.9%) 1.30 1,258
    2021-11-01 $493,696 (4.7%) $707,685 (7.9%) 1.30 1,066
    2021-12-01 $492,531 (4.3%) $722,124 (5.4%) 1.31 841
    2022-01-01 $494,401 (3.7%) $718,293 (3.9%) 1.32 686
    2022-02-01 $488,515 (4.8%) $737,419 (12.4%) 1.24 666
    2022-03-01 $498,000 (10.7%) $717,152 (14.9%) 1.23 706
    2022-04-01 $525,000 (12.9%) $725,565 (10.3%) 1.24 876
    2022-05-01 $550,000 (14.6%) $721,177 (7.3%) 1.23 1,386
    2022-06-01 $549,950 (11.7%) $710,993 (1.4%) 1.22 2,021
    2022-07-01 $530,000 (7.6%) $677,351 (-0.7%) 1.18 2,857
    2022-08-01 $525,500 (6.2%) $663,489 (-2.5%) 1.21 3,124
    Colorado Springs's median listing price for 2022-08-01 was $525,500, a difference of $30,500 (6.2%) versus the prior year and $-4,500 versus the prior month.

    Colorado Springs's median listing price comes in at 121% of the national average.

    Colorado Springs's average listing price for 2022-08-01 was $663,489, a difference of $-16,692 (-2.5%) versus the prior year and $-13,862 versus the prior month.

    For the 2022-08-01 period, Colorado Springs had 3,124 MLS listings, a difference of 267 listings (9%) versus the prior month and 1,909 listings (157%) 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 3,102 sqft
    2018-02-01 43 days 3,115 sqft
    2018-03-01 33 days 3,171 sqft
    2018-04-01 29 days 3,110 sqft
    2018-05-01 29 days 3,041 sqft
    2018-06-01 29 days 2,984 sqft
    2018-07-01 32 days 2,874 sqft
    2018-08-01 37 days 2,805 sqft
    2018-09-01 40 days 2,817 sqft
    2018-10-01 46 days 2,866 sqft
    2018-11-01 50 days 2,882 sqft
    2018-12-01 60 days 2,874 sqft
    2019-01-01 63 days 2,919 sqft
    2019-02-01 44 days 2,919 sqft
    2019-03-01 42 days 2,935 sqft
    2019-04-01 32 days 2,941 sqft
    2019-05-01 28 days 3,052 sqft
    2019-06-01 29 days 3,030 sqft
    2019-07-01 32 days 3,060 sqft
    2019-08-01 41 days 3,005 sqft
    2019-09-01 48 days 2,956 sqft
    2019-10-01 45 days 2,935 sqft
    2019-11-01 50 days 3,026 sqft
    2019-12-01 60 days 3,031 sqft
    2020-01-01 63 days 2,972 sqft
    2020-02-01 38 days 3,111 sqft
    2020-03-01 28 days 3,106 sqft
    2020-04-01 31 days 3,117 sqft
    2020-05-01 35 days 3,128 sqft
    2020-06-01 32 days 3,147 sqft
    2020-07-01 35 days 3,136 sqft
    2020-08-01 33 days 3,090 sqft
    2020-09-01 34 days 2,890 sqft
    2020-10-01 32 days 2,796 sqft
    2020-11-01 34 days 2,868 sqft
    2020-12-01 38 days 2,843 sqft
    2021-01-01 35 days 2,763 sqft
    2021-02-01 16 days 2,597 sqft
    2021-03-01 12 days 2,492 sqft
    2021-04-01 11 days 2,635 sqft
    2021-05-01 9 days 2,672 sqft
    2021-06-01 12 days 2,637 sqft
    2021-07-01 15 days 2,606 sqft
    2021-08-01 16 days 2,585 sqft
    2021-09-01 21 days 2,522 sqft
    2021-10-01 24 days 2,508 sqft
    2021-11-01 31 days 2,482 sqft
    2021-12-01 35 days 2,413 sqft
    2022-01-01 35 days 2,397 sqft
    2022-02-01 21 days 2,326 sqft
    2022-03-01 12 days 2,312 sqft
    2022-04-01 10 days 2,509 sqft
    2022-05-01 13 days 2,598 sqft
    2022-06-01 18 days 2,613 sqft
    2022-07-01 25 days 2,550 sqft
    2022-08-01 33 days 2,497 sqft
    Colorado Springs's median listing age (time on market) for 2022-08-01 was 33 days. This is 113% longer than the same period one year ago.

    Colorado Springs's median square footage for active listings during the 2022-08-01 period was 2,497 sqft. One year prior, the average listing was 2,585 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).