Columbia FHA Loans

COLUMBIA, SC

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.

Columbia's 190 lenders originated 5,236 FHA loans during 2021. The total origination value was $983,690,000, with an average FHA loan value of $187,871.

Columbia FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Columbia averaged 5.39% 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 5.12% and one month ago for the week of 2022-04-08, the average rate was 4.88%.

The average rate one year ago was 2.89%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.01%.

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

Columbia 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 Columbia level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
GUILD MORTGAGE COMPANY 558 3.12% $7,646
QUICKEN LOANS, LLC 484 2.76% $5,877
FREEDOM MORTGAGE CORPORATION 201 2.86% $5,108
LENDUS, LLC 186 3.30% $7,366
BROKER SOLUTIONS, INC. 174 3.29% $7,434
Ameris Bank 160 2.93% $7,162
MOVEMENT MORTGAGE, LLC 141 3.14% $6,698
CALIBER HOME LOANS, INC. 126 2.93% $5,970
MIDLAND MORTGAGE CORPORATION 121 3.17% $6,201
LAKEVIEW LOAN SERVICING, LLC 112 3.05% $4,271
Mr. Cooper ( Nationstar Mortgage ) 105 3.33% $3,636
UNITED WHOLESALE MORTGAGE, LLC 100 2.80% $7,351
GUARANTEED RATE AFFINITY, LLC 93 3.02% $7,024
PENNYMAC LOAN SERVICES, LLC 89 3.12% $3,931
LOANDEPOT.COM, LLC 88 3.63% $7,766
VANDERBILT MORTGAGE AND FINANCE, INC. 86 3.05% $8,096
SUCCESS MORTGAGE PARTNERS, INC. 84 3.06% $7,246
ANGEL OAK HOME LOANS LLC 76 3.10% $7,703
Carrington Mortgage Services, LLC 63 3.56% $7,505
RESOURCE FINANCIAL SERVICES, INC. 59 3.10% $7,219
DHI MORTGAGE COMPANY, LTD. 57 2.72% $7,025
Lakeview Community Capital, LLC 57 3.08% $4,068
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 57 3.25% $7,063
PRIMELENDING, A PLAINSCAPITAL COMPANY 50 3.35% $7,517
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 50 3.31% $8,710
Renasant Bank 48 3.08% $6,491
First Heritage Mortgage, LLC 47 2.99% $8,187
BAY EQUITY LLC 47 3.11% $8,350
VILLAGE CAPITAL & INVESTMENT LLC 44 3.06% $2,127
TOWNE MORTGAGE COMPANY 41 3.31% $6,010
Network Funding, L.P. 36 3.26% $6,757
Assurance Financial Group, L.L.C. 36 3.07% $6,699
Mortgage Network, Inc. 36 3.07% $6,775
First Community Bank 32 2.92% $6,145
AmeriHome Mortgage Company, LLC 32 2.96% $4,657
NEWREZ LLC 29 2.96% $4,355
CMG MORTGAGE, INC. 27 2.91% $8,150
First Palmetto Bank 26 2.83% $6,530
NTFN, INC. 22 3.17% $7,332
Citizens Bank 22 2.85% $7,082
Trustmark National Bank 21 2.78% $5,198
Hometown Equity Mortgage, LLC 21 4.11% $11,297
CROSSCOUNTRY MORTGAGE, LLC 20 3.17% $8,606
CERTAINTY HOME LOANS, LLC 20 3.21% $7,267
NVR Mortgage Finance, Inc. 19 3.32% $8,293
AMERICAN FINANCIAL NETWORK, INC. 19 3.05% $9,911
AMERISAVE MORTGAGE CORPORATION 19 3.09% $8,408
INTERLINC MORTGAGE SERVICES, LLC 19 3.49% $6,801
Magnolia Bank 19 2.92% $5,656
PANORAMA MORTGAGE GROUP, LLC 18 3.28% $8,341
Equity Prime Mortgage LLC 16 3.44% $5,933
HOMEOWNERS FINANCIAL GROUP USA, LLC 16 3.12% $8,226
HOME POINT FINANCIAL CORPORATION 15 2.96% $5,678
Regions Bank 14 2.74% $7,929
GUARANTEED RATE, INC. 14 3.27% $7,684
First-Citizens Bank & Trust Company 13 2.95% $6,134
NATIONS DIRECT MORTGAGE, LLC 12 3.41% $7,284
Nations Lending Corporation 12 3.19% $8,463
First Federal Bank 12 2.93% $8,160
Paramount Residential Mortgage Group, Inc. 11 3.45% $9,375
Synovus Bank 11 2.99% $7,157
South State Bank 10 2.84% $7,053
Colten Mortgage, LLC 9 3.35% $6,966
FINANCE OF AMERICA MORTGAGE LLC 9 3.25% $7,609
SOUTHWEST FUNDING, LP 9 3.72% $8,988
HOMESTAR FINANCIAL CORPORATION 8 3.31% $6,039
GENEVA FINANCIAL, LLC 8 3.28% $7,802
Bank of America 8 2.81% $3,742
HOMESIDE FINANCIAL, LLC 8 3.23% $7,517
MORTGAGE SOLUTIONS OF COLORADO, LLC 8 3.23% $7,192
KELLER MORTGAGE, LLC 7 2.77% $6,025
AMERICAN FINANCIAL RESOURCES, INC. 7 3.41% $6,436
ARK-LA-TEX FINANCIAL SERVICES, LLC. 7 2.80% $6,930
SUMMIT FUNDING, INC. 6 3.42% $10,427
MUTUAL OF OMAHA MORTGAGE, INC. 6 3.13% $7,497
FAMILY FIRST FUNDING LLC 6 3.56% $7,905
TD Bank 6 2.88% $4,645
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 5 3.20% $7,237
PRIMARY RESIDENTIAL MORTGAGE, INC. 5 3.98% $8,878
Barrington Bank & Trust Company, N.A. 5 3.73% $6,293
First Guaranty Mortgage Corporation 5 2.93% $6,136
SUN WEST MORTGAGE COMPANY, INC. 5 3.15% $7,331
MID AMERICA MORTGAGE, INC. 5 2.98% $4,338
Southern First Bank 5 2.63% $6,753
RESIDENTIAL MORTGAGE SERVICES, INC. 5 2.80% $7,513
RELIANCE FIRST CAPITAL, LLC 5 3.05% $8,252
OCEANSIDE MORTGAGE COMPANY 5 3.00% $2,204
First Reliance Bank 5 2.93% $6,772
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 5 3.12% $8,957
LOANPAL, LLC 4 3.09% $6,750
1ST SIGNATURE LENDING, LLC 4 3.00% $8,108
The Federal Savings Bank 4 2.94% $9,134
AMERICAN FINANCING CORPORATION 4 3.03% $8,620
Flagstar Bank, FSB 4 2.88% $6,654
CHURCHILL MORTGAGE CORPORATION 4 3.50% $6,287
PLANET HOME LENDING, LLC 4 3.00% $5,600
Mortgage Research Center, LLC 4 3.15% $5,590
American Security Mortgage Corp. 4 2.97% $8,520
Servion, Inc. 4 3.16% $7,828
InterContinental Capital Group, Inc 4 2.94% $5,711
PLAZA HOME MORTGAGE, INC. 3 3.04% $9,387
JPMorgan Chase Bank 3 3.16% $3,084
Wells Fargo Bank 3 3.38% $6,095
T2 FINANCIAL LLC 3 3.71% $8,025
LOANLEADERS OF AMERICA, INC. 3 3.17% $11,875
SOVEREIGN LENDING GROUP INCORPORATED 3 3.33% $7,657
Manufacturers and Traders Trust Company 3 3.04% $8,813
SOUTHERN TRUST MORTGAGE, LLC 3 3.04% $4,713
NATIONWIDE MORTGAGE BANKERS, INC. 3 3.58% $8,772
PHH Mortgage Corporation 3 3.54% $3,001
EVERETT FINANCIAL, INC. 3 3.17% $5,681
INTERCOASTAL MORTGAGE COMPANY 3 3.42% $7,354
CALCON MUTUAL MORTGAGE LLC 2 3.94% $9,606
Bank of England 2 3.06% $9,503
ZILLOW HOME LOANS, LLC 2 2.88% $7,342
Security Federal Bank 2 2.75% $7,907
INLAND BANK & TRUST 2 3.44% $6,501
RUOFF MORTGAGE COMPANY, INC. 2 3.19% $4,672
Alcova Mortgage LLC 2 3.06% $6,467
LIBERTY HOME MORTGAGE CORPORATION 2 3.50% $6,237
North American Savings Bank, F.S.B. 2 3.06% $7,446
Northpointe Bank 2 3.00% $7,522
ROSS MORTGAGE CORPORATION 2 2.69% $9,162
CAROLINA ONE MORTGAGE, LLC 2 3.25% $6,557
Prosperity Home Mortgage, LLC 2 3.06% $7,362
POLARIS HOME FUNDING CORP. 2 2.75% $11,068
Uwharrie Bank 2 3.50% $6,829
1ST PREFERENCE MORTGAGE CORP. 2 3.56% $9,651
CONTOUR MORTGAGE CORPORATION 2 2.81% $9,430
ACOPIA, LLC 2 3.13% $8,107
SOUTHEAST MORTGAGE OF GEORGIA, INC. 2 2.69% $8,613
MORIA DEVELOPMENT, INC. 2 3.31% $7,958
RAPID MORTGAGE COMPANY 2 3.13% $7,745
ON Q FINANCIAL, INC. 2 3.13% $7,703
LAND HOME FINANCIAL SERVICES, INC. 1 3.75% $14,441
ABSOLUTE HOME MORTGAGE CORPORATION 1 2.63% $10,690
Allen Tate Mortgage Partners, LLC 1 3.50% $5,967
AMERICAN HERITAGE FCU 1 3.88% $6,739
AMERIFIRST FINANCIAL CORPORATION 1 3.00% $7,068
Amerifirst Financial, Inc. 1 3.00% $3,462
ARC HOME LLC 1 2.88% $3,391
AUGUSTA MORTGAGE CO. 1 3.25% $6,717
Austin Capital Bank SSB 1 4.38% $8,087
BAYSHORE MORTGAGE FUNDING, LLC 1 3.38% $7,430
BETTER MORTGAGE CORPORATION 1 2.88% $9,339
CAPITAL CENTER, L.L.C. 1 2.75% $4,629
CELEBRITY HOME LOANS, LLC 1 3.25% $11,304
CHERRY CREEK MORTGAGE, LLC 1 3.75% $7,910
Colonial Savings, F.A. 1 3.75% $8,464
CORNERSTONE HOME LENDING, INC. 1 3.63% $12,266
EMBRACE HOME LOANS, INC. 1 3.13% $7,842
Encompass Lending Group, LP 1 3.00% $7,626
Evolve Bank & Trust 1 2.88% $6,645
FIRST CHOICE MORTGAGE, INC. 1 3.38% $4,766
FIRST COMMUNITY MORTGAGE, INC. 1 3.25% $7,119
First Horizon Bank 1 2.63% $7,504
Florida Capital Bank 1 2.38% $9,520
Gateway First Bank 1 3.50% $1,860
GMFS LLC 1 3.25% $8,202
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 2.63% $11,044
GSF Mortgage Corporation 1 2.38% $8,337
GUARANTY HOME MORTGAGE CORPORATION 1 3.00% $4,984
HAMILTON HOME LOANS, INC. 1 3.50% $8,079
INSPIRE HOME LOANS INC. 1 2.63% $6,431
KeyBank 1 3.38% $10,266
Loan Simple, Inc. 1 3.75% $8,910
MEMBER ADVANTAGE MORTGAGE, LLC 1 3.50% $6,020
NFM, INC. 1 4.75% $10,162
NORWICH COMMERCIAL GROUP, INC. 1 3.13% $16,874
NP, Inc. 1 2.50% $9,042
Peoples Bank 1 3.00% $13,756
ROUNDPOINT MORTGAGE SERVICING CORPORATION 1 2.88% $6,228
SECURITYNATIONAL MORTGAGE COMPANY 1 4.38% $8,809
Sierra Pacific Mortgage Company, Inc. 1 3.00% $8,796
SIRVA MORTGAGE, INC. 1 3.00% $8,482
SOUTHWEST STAGE FUNDING, LLC 1 2.75% $4,385
SRP Federal Credit Union 1 3.25% $8,212
SWBC MORTGAGE CORPORATION 1 3.63% $13,903
THE MORTGAGE FIRM, INC. 1 3.63% $6,068
The Union Bank Company 1 2.25% $8,212
TIAA, FSB 1 2.75% $9,658
Towne Bank 1 2.63% $6,372
United Bank 1 3.25% $6,049
United Community Bank 1 3.00% $6,258
United Fidelity Funding Corp. 1 2.75% $5,314
UNITED SECURITY FINANCIAL CORP 1 3.38% $13,267
US MORTGAGE CORPORATION 1 2.75% $2,819
VERITAS FUNDING, LLC 1 3.25% $11,612
Wolfe Financial, Inc 1 3.13% $7,387
Wyndham Capital Mortgage, Inc. 1 3.38% $6,410

The top Columbia FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 558 FHA loans originated. Their average total fees are $7,646, which is $1,769 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Columbia FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,127), Mr. Cooper ( Nationstar Mortgage ) ($3,636), PENNYMAC LOAN SERVICES, LLC ($3,931), Lakeview Community Capital, LLC ($4,068) and LAKEVIEW LOAN SERVICING, LLC ($4,271).

The lowest rate Columbia FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (2.72%), Regions Bank (2.74%), QUICKEN LOANS, LLC (2.76%), Trustmark National Bank (2.78%) and UNITED WHOLESALE MORTGAGE, LLC (2.80%).

Columbia FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
COLUMBIA, SC CALHOUN 2022 $420,680 $538,650 $651,050 $809,150
COLUMBIA, SC FAIRFIELD 2022 $420,680 $538,650 $651,050 $809,150
COLUMBIA, SC KERSHAW 2022 $420,680 $538,650 $651,050 $809,150
COLUMBIA, SC LEXINGTON 2022 $420,680 $538,650 $651,050 $809,150
COLUMBIA, SC RICHLAND 2022 $420,680 $538,650 $651,050 $809,150
COLUMBIA, SC SALUDA 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Columbia (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 $198,450 (5.5%) $248,447 (5.7%) 0.73 3,391
2018-02-01 $197,750 (8.4%) $250,266 (-4.6%) 0.71 3,342
2018-03-01 $199,990 (9.1%) $258,713 (14.0%) 0.69 3,391
2018-04-01 $210,950 (8.2%) $262,507 (6.6%) 0.71 3,441
2018-05-01 $215,450 (8.2%) $270,357 (8.5%) 0.72 3,393
2018-06-01 $225,000 (13.1%) $276,496 (10.7%) 0.75 3,411
2018-07-01 $224,900 (13.0%) $276,982 (10.2%) 0.75 3,574
2018-08-01 $220,995 (10.8%) $272,867 (7.8%) 0.74 3,521
2018-09-01 $222,192 (11.8%) $272,157 (7.7%) 0.74 3,465
2018-10-01 $220,750 (10.4%) $296,439 (17.2%) 0.74 3,455
2018-11-01 $226,695 (13.4%) $272,252 (8.7%) 0.76 3,378
2018-12-01 $229,900 (15.5%) $274,385 (10.5%) 0.79 3,187
2019-01-01 $228,200 (15.0%) $268,546 (8.1%) 0.79 3,058
2019-02-01 $226,945 (14.8%) $269,062 (7.5%) 0.76 3,089
2019-03-01 $234,134 (17.1%) $276,127 (6.7%) 0.76 3,023
2019-04-01 $239,843 (13.7%) $284,484 (8.4%) 0.76 2,974
2019-05-01 $239,000 (10.9%) $284,953 (5.4%) 0.74 3,020
2019-06-01 $239,000 (6.2%) $284,559 (2.9%) 0.74 3,067
2019-07-01 $234,950 (4.5%) $281,304 (1.6%) 0.73 3,161
2019-08-01 $232,710 (5.3%) $280,076 (2.6%) 0.73 3,084
2019-09-01 $229,945 (3.5%) $278,642 (2.4%) 0.73 2,957
2019-10-01 $227,250 (2.9%) $278,544 (-6.0%) 0.72 3,013
2019-11-01 $228,000 (0.6%) $279,808 (2.8%) 0.74 2,939
2019-12-01 $227,188 (-1.2%) $279,069 (1.7%) 0.76 2,823
2020-01-01 $228,240 (0.0%) $277,050 (3.2%) 0.76 2,632
2020-02-01 $232,935 (2.6%) $278,901 (3.7%) 0.75 2,533
2020-03-01 $239,500 (2.3%) $287,698 (4.2%) 0.75 2,376
2020-04-01 $242,080 (0.9%) $291,562 (2.5%) 0.75 2,423
2020-05-01 $247,000 (3.4%) $298,988 (4.9%) 0.75 2,206
2020-06-01 $249,450 (4.4%) $300,869 (5.7%) 0.73 1,905
2020-07-01 $249,950 (6.4%) $304,497 (8.2%) 0.72 1,755
2020-08-01 $250,000 (7.4%) $309,396 (10.5%) 0.71 1,623
2020-09-01 $249,900 (8.7%) $303,892 (9.1%) 0.71 1,575
2020-10-01 $244,990 (7.8%) $295,854 (6.2%) 0.70 1,549
2020-11-01 $249,900 (9.6%) $301,054 (7.6%) 0.72 1,481
2020-12-01 $249,945 (10.0%) $301,164 (7.9%) 0.73 1,355
2021-01-01 $247,889 (8.6%) $302,994 (9.4%) 0.73 1,210
2021-02-01 $249,595 (7.2%) $305,268 (9.5%) 0.72 1,051
2021-03-01 $251,042 (4.8%) $313,746 (9.1%) 0.70 900
2021-04-01 $262,650 (8.5%) $324,662 (11.4%) 0.71 805
2021-05-01 $256,900 (4.0%) $320,652 (7.3%) 0.68 770
2021-06-01 $254,900 (2.2%) $318,235 (5.8%) 0.66 840
2021-07-01 $262,500 (5.0%) $325,587 (6.9%) 0.68 995
2021-08-01 $271,245 (8.5%) $333,236 (7.7%) 0.71 1,148
2021-09-01 $274,950 (10.0%) $342,313 (12.6%) 0.72 1,184
2021-10-01 $279,900 (14.3%) $344,233 (16.4%) 0.74 1,225
2021-11-01 $289,925 (16.0%) $351,777 (16.9%) 0.76 1,123
2021-12-01 $296,000 (18.4%) $357,909 (18.8%) 0.79 1,083
2022-01-01 $299,900 (21.0%) $362,473 (19.6%) 0.80 921
2022-02-01 $300,110 (20.2%) $364,732 (19.5%) 0.76 818
2022-03-01 $303,900 (21.1%) $358,293 (14.2%) 0.75 809
2022-04-01 $305,900 (16.5%) $363,784 (12.1%) 0.72 813
Columbia's median listing price for 2022-04-01 was $305,900, a difference of $43,250 (16.5%) versus the prior year and $2,000 versus the prior month.

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

Columbia's average listing price for 2022-04-01 was $363,784, a difference of $39,122 (12.1%) versus the prior year and $5,491 versus the prior month.

For the 2022-04-01 period, Columbia had 813 MLS listings, a difference of 4 listings (0%) versus the prior month and 8 listings (1%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Columbia (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 79 days 2,150 sqft
2018-02-01 73 days 2,155 sqft
2018-03-01 59 days 2,206 sqft
2018-04-01 56 days 2,239 sqft
2018-05-01 54 days 2,246 sqft
2018-06-01 56 days 2,278 sqft
2018-07-01 58 days 2,277 sqft
2018-08-01 60 days 2,247 sqft
2018-09-01 66 days 2,227 sqft
2018-10-01 72 days 2,228 sqft
2018-11-01 77 days 2,249 sqft
2018-12-01 83 days 2,261 sqft
2019-01-01 83 days 2,241 sqft
2019-02-01 71 days 2,233 sqft
2019-03-01 58 days 2,246 sqft
2019-04-01 56 days 2,257 sqft
2019-05-01 54 days 2,246 sqft
2019-06-01 53 days 2,254 sqft
2019-07-01 51 days 2,241 sqft
2019-08-01 56 days 2,229 sqft
2019-09-01 57 days 2,230 sqft
2019-10-01 57 days 2,216 sqft
2019-11-01 60 days 2,213 sqft
2019-12-01 69 days 2,205 sqft
2020-01-01 70 days 2,200 sqft
2020-02-01 60 days 2,225 sqft
2020-03-01 50 days 2,241 sqft
2020-04-01 46 days 2,249 sqft
2020-05-01 55 days 2,250 sqft
2020-06-01 51 days 2,251 sqft
2020-07-01 46 days 2,247 sqft
2020-08-01 41 days 2,246 sqft
2020-09-01 39 days 2,236 sqft
2020-10-01 37 days 2,197 sqft
2020-11-01 43 days 2,220 sqft
2020-12-01 45 days 2,207 sqft
2021-01-01 43 days 2,120 sqft
2021-02-01 33 days 2,065 sqft
2021-03-01 24 days 2,037 sqft
2021-04-01 21 days 2,049 sqft
2021-05-01 19 days 2,017 sqft
2021-06-01 16 days 1,988 sqft
2021-07-01 18 days 2,016 sqft
2021-08-01 22 days 2,054 sqft
2021-09-01 26 days 2,076 sqft
2021-10-01 29 days 2,125 sqft
2021-11-01 33 days 2,172 sqft
2021-12-01 39 days 2,199 sqft
2022-01-01 44 days 2,168 sqft
2022-02-01 27 days 2,080 sqft
2022-03-01 21 days 2,015 sqft
2022-04-01 18 days 2,000 sqft
Columbia's median listing age (time on market) for 2022-04-01 was 18 days. This is -12% shorter than the same period one year ago.

Columbia's median square footage for active listings during the 2022-04-01 period was 2,000 sqft. One year prior, the average listing was 2,049 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).