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 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 -0.01% for the week of 2023-01-20, compared to the national average (all FHA variants) of 0% for the same period.

Colorado Springs's average FHA mortgage closing costs are $8,568.

The average rate for the prior week (2023-01-13) was 5.82% and one month ago for the week of 2022-12-16, the average rate was 6.21%.

The average rate one year ago was 3.6%.

For refis of the same type during the week of 2023-01-20, the average rate was -0.69%.

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 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
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
PLAZA HOME MORTGAGE, INC. 3 2.92% $8,502
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
Armed Forces Bank 3 2.96% $9,015
HOME MORTGAGE ALLIANCE, LLC 3 3.04% $11,162
BOKF 3 3.33% $8,114
HOMEAMERICAN MORTGAGE CORPORATION 3 2.63% $7,223
MOUNTAIN WEST FINANCIAL, INC. 3 2.96% $13,094
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
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 3.00% $7,082
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
Mortgage Research Center, LLC 1 2.75% $6,154
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
Wells Fargo Bank 1 3.00% $4,460
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
M&T Bank 1 3.25% $8,101
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
GREAT WESTERN FINANCIAL SERVICES, INC. 1 3.13% $10,227
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 $387,810 (11.8%) $486,439 (6.4%) 1.44 1,309
2018-02-01 $397,500 (11.8%) $502,005 (6.6%) 1.44 1,235
2018-03-01 $411,850 (10.7%) $516,772 (9.4%) 1.45 1,313
2018-04-01 $399,852 (8.1%) $504,914 (6.2%) 1.36 1,504
2018-05-01 $390,005 (3.5%) $495,580 (5.0%) 1.30 1,677
2018-06-01 $384,975 (4.5%) $522,407 (13.1%) 1.28 2,055
2018-07-01 $374,500 (2.6%) $490,649 (6.6%) 1.25 2,329
2018-08-01 $365,000 (2.1%) $462,263 (0.8%) 1.22 2,465
2018-09-01 $364,500 (-0.1%) $459,054 (-0.6%) 1.22 2,448
2018-10-01 $367,469 (0.2%) $464,048 (-1.0%) 1.24 2,413
2018-11-01 $368,688 (-0.6%) $466,538 (-3.3%) 1.25 2,334
2018-12-01 $375,000 (-1.3%) $474,813 (-2.2%) 1.29 1,923
2019-01-01 $382,475 (-1.4%) $477,392 (-1.9%) 1.32 1,638
2019-02-01 $389,921 (-1.9%) $484,821 (-3.4%) 1.32 1,558
2019-03-01 $397,031 (-3.6%) $496,187 (-4.0%) 1.30 1,524
2019-04-01 $399,869 (0.0%) $502,714 (-0.4%) 1.27 1,577
2019-05-01 $417,075 (6.9%) $519,046 (4.7%) 1.30 1,688
2019-06-01 $418,000 (8.6%) $518,306 (-0.8%) 1.31 1,959
2019-07-01 $415,000 (10.8%) $515,427 (5.1%) 1.30 2,168
2019-08-01 $412,236 (12.9%) $512,937 (11.0%) 1.30 2,137
2019-09-01 $408,166 (12.0%) $512,477 (11.6%) 1.31 2,072
2019-10-01 $410,427 (11.7%) $512,777 (10.5%) 1.32 2,021
2019-11-01 $420,000 (13.9%) $522,960 (12.1%) 1.38 1,750
2019-12-01 $422,000 (12.5%) $529,938 (11.6%) 1.41 1,461
2020-01-01 $425,000 (11.1%) $532,584 (11.6%) 1.42 1,234
2020-02-01 $443,652 (13.8%) $557,415 (15.0%) 1.45 1,071
2020-03-01 $442,500 (11.5%) $556,528 (12.2%) 1.39 1,175
2020-04-01 $448,447 (12.2%) $554,511 (10.3%) 1.40 1,287
2020-05-01 $453,245 (8.7%) $555,940 (7.1%) 1.38 1,500
2020-06-01 $457,764 (9.5%) $560,735 (8.2%) 1.35 1,485
2020-07-01 $455,688 (9.8%) $571,165 (10.8%) 1.32 1,407
2020-08-01 $449,900 (9.1%) $580,443 (13.2%) 1.29 1,319
2020-09-01 $433,700 (6.3%) $569,628 (11.2%) 1.24 1,182
2020-10-01 $438,992 (7.0%) $575,731 (12.3%) 1.26 1,028
2020-11-01 $450,328 (7.2%) $603,900 (15.5%) 1.32 792
2020-12-01 $448,285 (6.2%) $622,575 (17.5%) 1.33 630
2021-01-01 $448,450 (5.5%) $624,847 (17.3%) 1.34 503
2021-02-01 $437,225 (-1.5%) $606,319 (8.8%) 1.27 508
2021-03-01 $429,900 (-2.9%) $593,333 (6.6%) 1.22 556
2021-04-01 $447,500 (-0.2%) $612,582 (10.5%) 1.21 621
2021-05-01 $469,900 (3.7%) $629,181 (13.2%) 1.24 694
2021-06-01 $475,000 (3.8%) $656,914 (17.2%) 1.25 827
2021-07-01 $475,000 (4.2%) $632,486 (10.7%) 1.25 979
2021-08-01 $476,253 (5.9%) $631,819 (8.9%) 1.27 1,053
2021-09-01 $476,524 (9.9%) $629,458 (10.5%) 1.27 1,086
2021-10-01 $481,093 (9.6%) $645,127 (12.1%) 1.28 1,121
2021-11-01 $480,000 (6.6%) $654,696 (8.4%) 1.28 943
2021-12-01 $483,400 (7.8%) $667,942 (7.3%) 1.31 748
2022-01-01 $488,944 (9.0%) $670,504 (7.3%) 1.32 610
2022-02-01 $478,751 (9.5%) $671,205 (10.7%) 1.25 600
2022-03-01 $484,152 (12.6%) $651,741 (9.8%) 1.21 643
2022-04-01 $510,000 (14.0%) $665,844 (8.7%) 1.22 783
2022-05-01 $529,995 (12.8%) $674,627 (7.2%) 1.21 1,212
2022-06-01 $534,343 (12.5%) $669,225 (1.9%) 1.19 1,715
2022-07-01 $520,000 (9.5%) $642,030 (1.5%) 1.18 2,362
2022-08-01 $516,344 (8.4%) $633,655 (0.3%) 1.19 2,546
2022-09-01 $504,475 (5.9%) $626,019 (-0.6%) 1.18 2,431
2022-10-01 $499,900 (3.9%) $615,010 (-4.7%) 1.18 2,473
2022-11-01 $499,000 (4.0%) $608,310 (-7.1%) 1.20 2,330
2022-12-01 $495,000 (2.4%) $606,402 (-9.2%) 1.24 1,985
Colorado Springs's median listing price for 2022-12-01 was $495,000, a difference of $11,600 (2.4%) versus the prior year and $-4,000 versus the prior month.

Colorado Springs's median listing price comes in at 124% of the national average.

Colorado Springs's average listing price for 2022-12-01 was $606,402, a difference of $-61,540 (-9.2%) versus the prior year and $-1,908 versus the prior month.

For the 2022-12-01 period, Colorado Springs had 1,985 MLS listings, a difference of -345 listings (-15%) versus the prior month and 1,237 listings (165%) 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 58 days 3,062 sqft
2018-02-01 48 days 3,089 sqft
2018-03-01 35 days 3,120 sqft
2018-04-01 29 days 3,094 sqft
2018-05-01 29 days 3,005 sqft
2018-06-01 28 days 2,929 sqft
2018-07-01 32 days 2,828 sqft
2018-08-01 37 days 2,767 sqft
2018-09-01 40 days 2,768 sqft
2018-10-01 46 days 2,817 sqft
2018-11-01 50 days 2,836 sqft
2018-12-01 62 days 2,835 sqft
2019-01-01 62 days 2,857 sqft
2019-02-01 44 days 2,882 sqft
2019-03-01 38 days 2,884 sqft
2019-04-01 29 days 2,874 sqft
2019-05-01 25 days 2,942 sqft
2019-06-01 28 days 2,976 sqft
2019-07-01 31 days 2,986 sqft
2019-08-01 38 days 2,920 sqft
2019-09-01 42 days 2,859 sqft
2019-10-01 45 days 2,821 sqft
2019-11-01 50 days 2,854 sqft
2019-12-01 60 days 2,879 sqft
2020-01-01 62 days 2,826 sqft
2020-02-01 37 days 2,911 sqft
2020-03-01 23 days 2,953 sqft
2020-04-01 32 days 2,986 sqft
2020-05-01 33 days 3,054 sqft
2020-06-01 31 days 3,062 sqft
2020-07-01 32 days 3,022 sqft
2020-08-01 32 days 2,942 sqft
2020-09-01 31 days 2,761 sqft
2020-10-01 30 days 2,691 sqft
2020-11-01 31 days 2,698 sqft
2020-12-01 37 days 2,645 sqft
2021-01-01 28 days 2,609 sqft
2021-02-01 15 days 2,446 sqft
2021-03-01 10 days 2,375 sqft
2021-04-01 10 days 2,518 sqft
2021-05-01 9 days 2,586 sqft
2021-06-01 9 days 2,576 sqft
2021-07-01 14 days 2,484 sqft
2021-08-01 15 days 2,517 sqft
2021-09-01 19 days 2,359 sqft
2021-10-01 21 days 2,424 sqft
2021-11-01 28 days 2,339 sqft
2021-12-01 33 days 2,313 sqft
2022-01-01 30 days 2,305 sqft
2022-02-01 16 days 2,266 sqft
2022-03-01 10 days 2,227 sqft
2022-04-01 9 days 2,435 sqft
2022-05-01 12 days 2,508 sqft
2022-06-01 18 days 2,511 sqft
2022-07-01 25 days 2,444 sqft
2022-08-01 34 days 2,408 sqft
2022-09-01 40 days 2,334 sqft
2022-10-01 47 days 2,371 sqft
2022-11-01 52 days 2,387 sqft
2022-12-01 65 days 2,341 sqft
Colorado Springs's median listing age (time on market) for 2022-12-01 was 65 days. This is 97% longer than the same period one year ago.

Colorado Springs's median square footage for active listings during the 2022-12-01 period was 2,341 sqft. One year prior, the average listing was 2,313 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).