Des Moines FHA Loan Rates, Closing Costs & Stats

DES MOINES-WEST DES MOINES, IA

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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.

    Des Moines's 95 lenders originated 1,824 FHA loans during 2024. The total origination value was $451,130,000, with an average FHA loan value of $247,330.

    Des Moines FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Des Moines averaged 6.37% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

    Des Moines's average FHA mortgage closing costs are $6,771.

    The average rate for the prior week (2025-03-28) was 6.26% and one month ago for the week of 2025-02-28, the average rate was 6.25%.

    The average rate one year ago was 6.77%.

    For refis of the same type during the week of 2025-04-04, the average rate was 5.9%.

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

    Des Moines 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 Des Moines level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    DHI MORTGAGE COMPANY, LTD. 175 5.30% $10,558
    BROKER SOLUTIONS, INC. 113 6.81% $9,037
    QUICKEN LOANS, LLC 112 6.29% $11,041
    Fortress Bank 104 6.62% $7,667
    GREENSTATE CREDIT UNION 95 5.98% $6,602
    GERSHMAN INVESTMENT CORP. 87 6.20% $8,352
    HOMESERVICES LENDING, LLC 80 6.42% $8,744
    UNITED WHOLESALE MORTGAGE, LLC 62 6.20% $11,073
    Barrington Bank & Trust Company, N.A. 50 6.71% $8,507
    STOCKTON MORTGAGE CORPORATION 46 6.50% $9,535
    GUILD MORTGAGE COMPANY 39 6.81% $8,652
    FREEDOM MORTGAGE CORPORATION 36 6.50% $11,346
    NEWREZ LLC 36 6.43% $8,302
    AmeriHome Mortgage Company, LLC 29 6.56% $9,418
    PENNYMAC LOAN SERVICES, LLC 29 6.32% $8,633
    COMPASS MORTGAGE, INC. 29 6.60% $7,891
    AMERICAN PACIFIC MORTGAGE CORPORATION 27 6.75% $12,249
    MOVEMENT MORTGAGE, LLC 27 6.67% $9,095
    HOMESIDE FINANCIAL, LLC 27 6.71% $10,058
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 26 6.76% $7,745
    Plains Commerce Bank 23 6.55% $6,875
    GUARANTEED RATE, INC. 23 6.56% $10,696
    CARDINAL FINANCIAL 22 7.02% $13,235
    FRONTIER FINANCIAL, INC. 19 6.68% $6,205
    Flagstar Bank, FSB 18 6.43% $7,798
    ENDEAVOR CAPITAL, LLC. 16 6.31% $8,994
    CMG MORTGAGE, INC. 16 6.80% $9,149
    The Central Trust Bank 16 6.66% $7,846
    Mr. Cooper ( Nationstar Mortgage ) 16 6.34% $12,434
    LAND HOME FINANCIAL SERVICES, INC. 16 6.41% $8,146
    PLAZA HOME MORTGAGE, INC. 14 6.71% $7,585
    LOANDEPOT.COM, LLC 14 6.06% $10,624
    Lincoln Savings Bank 11 6.75% $7,197
    FIRST COMMUNITY MORTGAGE, INC. 11 6.42% $9,563
    Servion, Inc. 10 6.41% $6,413
    Mortgage Research Center, LLC 8 6.92% $5,634
    ENVOY MORTGAGE, LTD 8 6.67% $6,952
    U.S. Bank 8 6.83% $5,971
    Carrington Mortgage Services, LLC 7 6.52% $9,541
    VILLAGE CAPITAL MORTGAGE 7 6.71% $6,150
    MUTUAL OF OMAHA MORTGAGE, INC. 6 6.25% $14,059
    Equity Prime Mortgage LLC 6 6.29% $10,741
    Northwest Bank 6 6.40% $8,872
    MID AMERICA MORTGAGE, INC. 5 6.60% $9,770
    LAKEVIEW LOAN SERVICING, LLC 5 6.53% $8,246
    The Loan Store, Inc. 5 6.38% $11,936
    AMERISAVE MORTGAGE CORPORATION 4 5.97% $13,154
    ROYAL UNITED MORTGAGE LLC 4 6.50% $13,311
    Paramount Residential Mortgage Group, Inc. 4 6.47% $9,064
    RESIDENTIAL MORTGAGE NETWORK, INC. 4 6.59% $6,558
    Central Bank 3 5.79% $7,701
    AMERICAN FINANCING CORPORATION 3 6.58% $7,577
    CITY FIRST MORTGAGE SERVICES, L.L.C. 3 6.88% $10,298
    EMM LOANS LLC 3 6.20% $15,251
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.17% $5,382
    IOWA BANKERS MORTGAGE CORPORATION 3 6.50% $7,632
    MICHIGAN MUTUAL, INC. 3 5.83% $7,094
    PRIMARY RESIDENTIAL MORTGAGE, INC. 3 7.50% $10,519
    TruHome Solutions, LLC 3 6.29% $7,029
    Great Southern Bank 2 6.50% $5,141
    Ixonia Bank 2 6.88% $11,532
    JPMorgan Chase Bank 2 6.19% $9,165
    CROSSCOUNTRY MORTGAGE, LLC 2 6.25% $8,050
    POLARIS HOME FUNDING CORP. 2 6.25% $12,554
    PREMIA MORTGAGE, LLC 2 6.31% $6,057
    Wells Fargo Bank 2 6.94% $8,096
    Lakeview Community Capital, LLC 2 6.44% $9,812
    Century Mortgage Company DBA Century Lending Company 2 5.69% $11,078
    GENEVA FINANCIAL, LLC 1 7.25% $9,631
    Flanagan State Bank 1 6.63% $9,460
    RESIDENTIAL BANCORP 1 5.00% $16,998
    Extraco Banks 1 6.00% $9,233
    Encompass Lending Group, LP 1 6.25% $10,206
    Sierra Pacific Mortgage Company, Inc. 1 5.63% $8,430
    Community Choice Credit Union 1 7.13% $8,803
    Texana Bank 1 6.63% $6,313
    CHURCHILL MORTGAGE CORPORATION 1 6.25% $10,349
    TOWNE MORTGAGE COMPANY 1 7.75% $8,181
    ZILLOW HOME LOANS, LLC 1 5.88% $12,510
    AMERICAN FINANCIAL NETWORK, INC. 1 7.13% $13,752
    Bank of America 1 6.38% $9,918
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.25% $9,499
    V.I.P. MORTGAGE, INC. 1 5.75% $11,317
    Waterstone Mortgage Corporation 1 6.50% $8,577
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 5.75% $4,907
    M&T Bank 1 7.13% $6,550
    MLD MORTGAGE INC. 1 8.13% $8,247
    LIBERTY HOME MORTGAGE CORPORATION 1 5.88% $17,372
    NBKC BANK 1 5.63% $12,658
    NEXERA HOLDING LLC 1 5.88% $6,050
    Northpointe Bank 1 5.25% $15,059
    OCEANSIDE MORTGAGE COMPANY 1 6.50% $3,833
    GUARANTEED RATE AFFINITY, LLC 1 6.70% $6,780
    PENTAGON FEDERAL CREDIT UNION 1 5.63% $10,826
    PLANET HOME LENDING, LLC 1 5.88% $12,092

    The top Des Moines FHA lender as defined by loan originations is DHI MORTGAGE COMPANY, LTD., with 175 FHA loans originated. Their average total fees are $10,558, which is $1,521 higher than the next largest lender, BROKER SOLUTIONS, INC..

    The lowest fee Des Moines FHA lenders (with over 10 loans originated) are FRONTIER FINANCIAL, INC. ($6,205), Servion, Inc. ($6,413), GREENSTATE CREDIT UNION ($6,602), Plains Commerce Bank ($6,875) and Lincoln Savings Bank ($7,197).

    The lowest rate Des Moines FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.30%), GREENSTATE CREDIT UNION (5.98%), LOANDEPOT.COM, LLC (6.06%), GERSHMAN INVESTMENT CORP. (6.20%) and UNITED WHOLESALE MORTGAGE, LLC (6.20%).

    Des Moines FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    DES MOINES-WEST DES MOINES, IA DALLAS 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA GUTHRIE 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA JASPER 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA MADISON 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA POLK 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA WARREN 2022 $420,680 $538,650 $651,050 $809,150
    DES MOINES-WEST DES MOINES, IA DALLAS 2023 $472,030 $604,400 $730,525 $907,900
    DES MOINES-WEST DES MOINES, IA GUTHRIE 2023 $472,030 $604,400 $730,525 $907,900
    DES MOINES-WEST DES MOINES, IA JASPER 2023 $472,030 $604,400 $730,525 $907,900
    DES MOINES-WEST DES MOINES, IA MADISON 2023 $472,030 $604,400 $730,525 $907,900
    DES MOINES-WEST DES MOINES, IA POLK 2023 $472,030 $604,400 $730,525 $907,900
    DES MOINES-WEST DES MOINES, IA WARREN 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Des Moines (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 $281,250 (6.1%) $296,297 (-0.3%) 1.04 2,919
    2018-02-01 $289,178 (5.7%) $306,338 (-0.4%) 1.05 2,845
    2018-03-01 $289,500 (5.1%) $310,723 (0.0%) 1.02 2,833
    2018-04-01 $292,416 (3.7%) $317,787 (0.0%) 0.99 2,836
    2018-05-01 $291,225 (2.0%) $321,301 (0.7%) 0.97 2,906
    2018-06-01 $289,900 (3.6%) $317,875 (2.0%) 0.97 3,149
    2018-07-01 $289,900 (5.3%) $316,746 (3.0%) 0.97 3,261
    2018-08-01 $283,950 (5.2%) $313,014 (4.0%) 0.95 3,396
    2018-09-01 $279,975 (3.7%) $308,391 (4.5%) 0.94 3,576
    2018-10-01 $281,359 (3.2%) $308,992 (5.6%) 0.95 3,554
    2018-11-01 $281,118 (2.2%) $307,995 (5.1%) 0.95 3,506
    2018-12-01 $279,900 (1.1%) $303,759 (3.3%) 0.97 3,320
    2019-01-01 $283,235 (0.7%) $306,573 (3.5%) 0.98 3,163
    2019-02-01 $287,400 (-0.6%) $310,791 (1.5%) 0.97 3,073
    2019-03-01 $288,862 (-0.2%) $314,410 (1.2%) 0.94 3,006
    2019-04-01 $288,762 (-1.3%) $317,532 (-0.1%) 0.92 3,013
    2019-05-01 $283,210 (-2.8%) $318,433 (-0.9%) 0.89 3,143
    2019-06-01 $279,900 (-3.5%) $317,190 (-0.2%) 0.87 3,288
    2019-07-01 $277,200 (-4.4%) $314,707 (-0.6%) 0.87 3,411
    2019-08-01 $271,743 (-4.3%) $310,815 (-0.7%) 0.86 3,538
    2019-09-01 $264,007 (-5.7%) $303,716 (-1.5%) 0.84 3,671
    2019-10-01 $259,705 (-7.7%) $299,411 (-3.1%) 0.84 3,735
    2019-11-01 $255,000 (-9.3%) $296,106 (-3.9%) 0.84 3,505
    2019-12-01 $255,000 (-8.9%) $294,538 (-3.0%) 0.85 3,322
    2020-01-01 $258,900 (-8.6%) $294,736 (-3.9%) 0.87 3,148
    2020-02-01 $264,900 (-7.8%) $301,303 (-3.1%) 0.87 3,034
    2020-03-01 $268,305 (-7.1%) $307,230 (-2.3%) 0.84 3,032
    2020-04-01 $268,302 (-7.1%) $306,904 (-3.4%) 0.84 3,073
    2020-05-01 $274,500 (-3.1%) $315,196 (-1.0%) 0.83 2,887
    2020-06-01 $277,643 (-0.8%) $324,120 (2.2%) 0.82 2,624
    2020-07-01 $274,763 (-0.9%) $325,272 (3.4%) 0.80 2,472
    2020-08-01 $272,760 (0.4%) $321,963 (3.6%) 0.78 2,435
    2020-09-01 $270,979 (2.6%) $317,172 (4.4%) 0.78 2,366
    2020-10-01 $270,096 (4.0%) $315,795 (5.5%) 0.77 2,365
    2020-11-01 $269,950 (5.9%) $313,238 (5.8%) 0.79 2,311
    2020-12-01 $272,450 (6.8%) $316,629 (7.5%) 0.81 2,112
    2021-01-01 $275,000 (6.2%) $324,924 (10.2%) 0.82 1,811
    2021-02-01 $280,750 (6.0%) $332,447 (10.3%) 0.82 1,652
    2021-03-01 $284,950 (6.2%) $337,577 (9.9%) 0.81 1,508
    2021-04-01 $298,777 (11.4%) $350,707 (14.3%) 0.81 1,450
    2021-05-01 $299,450 (9.1%) $357,764 (13.5%) 0.80 1,456
    2021-06-01 $302,400 (8.9%) $356,851 (10.1%) 0.80 1,563
    2021-07-01 $304,900 (11.0%) $350,167 (7.7%) 0.80 1,601
    2021-08-01 $301,991 (10.7%) $354,250 (10.0%) 0.81 1,754
    2021-09-01 $302,123 (11.5%) $356,685 (12.5%) 0.81 1,786
    2021-10-01 $303,275 (12.3%) $355,552 (12.6%) 0.81 1,807
    2021-11-01 $308,851 (14.4%) $357,397 (14.1%) 0.83 1,816
    2021-12-01 $314,140 (15.3%) $354,893 (12.1%) 0.85 1,725
    2022-01-01 $327,183 (19.0%) $365,520 (12.5%) 0.88 1,466
    2022-02-01 $349,900 (24.6%) $387,334 (16.5%) 0.91 1,295
    2022-03-01 $351,450 (23.3%) $391,829 (16.1%) 0.88 1,302
    2022-04-01 $359,900 (20.5%) $398,719 (13.7%) 0.86 1,346
    2022-05-01 $355,256 (18.6%) $402,431 (12.5%) 0.81 1,530
    2022-06-01 $357,123 (18.1%) $407,087 (14.1%) 0.80 1,692
    2022-07-01 $350,100 (14.8%) $401,042 (14.5%) 0.79 1,996
    2022-08-01 $351,000 (16.2%) $405,725 (14.5%) 0.81 2,098
    2022-09-01 $357,025 (18.2%) $409,243 (14.7%) 0.83 2,217
    2022-10-01 $350,000 (15.4%) $403,980 (13.6%) 0.82 2,432
    2022-11-01 $349,900 (13.3%) $398,805 (11.6%) 0.84 2,519
    2022-12-01 $349,000 (11.1%) $400,955 (13.0%) 0.86 2,321
    2023-01-01 $357,450 (9.3%) $407,763 (11.6%) 0.89 2,115
    2023-02-01 $369,945 (5.7%) $420,672 (8.6%) 0.89 1,965
    2023-03-01 $369,950 (5.3%) $425,373 (8.6%) 0.87 1,971
    2023-04-01 $374,900 (4.2%) $432,892 (8.6%) 0.87 1,922
    2023-05-01 $375,000 (5.6%) $444,501 (10.5%) 0.85 1,937
    2023-06-01 $374,990 (5.0%) $449,446 (10.4%) 0.84 2,090
    2023-07-01 $374,900 (7.1%) $449,220 (12.0%) 0.85 2,198
    2023-08-01 $369,995 (5.4%) $441,557 (8.8%) 0.85 2,358
    2023-09-01 $369,900 (3.6%) $440,075 (7.5%) 0.86 2,383
    2023-10-01 $365,495 (4.4%) $436,716 (8.1%) 0.86 2,554
    2023-11-01 $359,900 (2.9%) $426,797 (7.0%) 0.86 2,580
    2023-12-01 $357,990 (2.6%) $423,676 (5.7%) 0.87 2,414
    2024-01-01 $363,245 (1.6%) $429,964 (5.4%) 0.89 2,157
    2024-02-01 $364,950 (-1.4%) $437,850 (4.1%) 0.88 2,062
    2024-03-01 $368,000 (-0.5%) $439,472 (3.3%) 0.87 2,221
    2024-04-01 $375,698 (0.2%) $449,647 (3.9%) 0.87 2,347
    2024-05-01 $377,130 (0.6%) $451,046 (1.5%) 0.86 2,453
    2024-06-01 $371,990 (-0.8%) $443,919 (-1.2%) 0.85 2,629
    2024-07-01 $369,990 (-1.3%) $438,365 (-2.4%) 0.85 2,734
    2024-08-01 $369,900 (0.0%) $434,297 (-1.6%) 0.86 2,743
    2024-09-01 $359,990 (-2.7%) $418,334 (-4.9%) 0.85 2,836
    2024-10-01 $359,450 (-1.7%) $413,532 (-5.3%) 0.85 2,930
    2024-11-01 $354,900 (-1.4%) $418,536 (-1.9%) 0.85 3,048
    2024-12-01 $354,990 (-0.8%) $418,309 (-1.3%) 0.88 2,847
    2025-01-01 $354,495 (-2.4%) $417,441 (-2.9%) 0.89 2,683
    2025-02-01 $358,075 (-1.9%) $422,599 (-3.5%) 0.87 2,667
    2025-03-01 $356,250 (-3.2%) $423,053 (-3.7%) 0.00 2,626
    Des Moines's median listing price for 2025-03-01 was $356,250, a difference of $-11,750 (-3.2%) versus the prior year and $-1,825 versus the prior month.

    Des Moines's median listing price comes in at 0% of the national average.

    Des Moines's average listing price for 2025-03-01 was $423,053, a difference of $-16,419 (-3.7%) versus the prior year and $454 versus the prior month.

    For the 2025-03-01 period, Des Moines had 2,626 MLS listings, a difference of -41 listings (-2%) versus the prior month and 405 listings (18%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Des Moines (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 93 days 1,619 sqft
    2018-02-01 88 days 1,627 sqft
    2018-03-01 73 days 1,630 sqft
    2018-04-01 66 days 1,634 sqft
    2018-05-01 59 days 1,642 sqft
    2018-06-01 57 days 1,633 sqft
    2018-07-01 57 days 1,632 sqft
    2018-08-01 61 days 1,620 sqft
    2018-09-01 64 days 1,610 sqft
    2018-10-01 68 days 1,608 sqft
    2018-11-01 77 days 1,607 sqft
    2018-12-01 87 days 1,596 sqft
    2019-01-01 91 days 1,589 sqft
    2019-02-01 95 days 1,596 sqft
    2019-03-01 83 days 1,599 sqft
    2019-04-01 64 days 1,602 sqft
    2019-05-01 52 days 1,606 sqft
    2019-06-01 53 days 1,610 sqft
    2019-07-01 59 days 1,599 sqft
    2019-08-01 60 days 1,586 sqft
    2019-09-01 63 days 1,568 sqft
    2019-10-01 64 days 1,556 sqft
    2019-11-01 65 days 1,544 sqft
    2019-12-01 74 days 1,537 sqft
    2020-01-01 82 days 1,528 sqft
    2020-02-01 86 days 1,546 sqft
    2020-03-01 67 days 1,564 sqft
    2020-04-01 62 days 1,557 sqft
    2020-05-01 61 days 1,579 sqft
    2020-06-01 62 days 1,596 sqft
    2020-07-01 58 days 1,595 sqft
    2020-08-01 56 days 1,575 sqft
    2020-09-01 60 days 1,552 sqft
    2020-10-01 59 days 1,532 sqft
    2020-11-01 64 days 1,519 sqft
    2020-12-01 71 days 1,516 sqft
    2021-01-01 78 days 1,512 sqft
    2021-02-01 74 days 1,510 sqft
    2021-03-01 57 days 1,515 sqft
    2021-04-01 49 days 1,518 sqft
    2021-05-01 43 days 1,518 sqft
    2021-06-01 50 days 1,522 sqft
    2021-07-01 51 days 1,514 sqft
    2021-08-01 52 days 1,512 sqft
    2021-09-01 51 days 1,503 sqft
    2021-10-01 54 days 1,498 sqft
    2021-11-01 58 days 1,494 sqft
    2021-12-01 62 days 1,494 sqft
    2022-01-01 81 days 1,501 sqft
    2022-02-01 73 days 1,511 sqft
    2022-03-01 49 days 1,514 sqft
    2022-04-01 46 days 1,534 sqft
    2022-05-01 44 days 1,534 sqft
    2022-06-01 46 days 1,545 sqft
    2022-07-01 46 days 1,540 sqft
    2022-08-01 52 days 1,554 sqft
    2022-09-01 56 days 1,552 sqft
    2022-10-01 57 days 1,540 sqft
    2022-11-01 60 days 1,550 sqft
    2022-12-01 73 days 1,550 sqft
    2023-01-01 89 days 1,552 sqft
    2023-02-01 93 days 1,562 sqft
    2023-03-01 72 days 1,566 sqft
    2023-04-01 65 days 1,566 sqft
    2023-05-01 58 days 1,598 sqft
    2023-06-01 51 days 1,601 sqft
    2023-07-01 53 days 1,605 sqft
    2023-08-01 57 days 1,601 sqft
    2023-09-01 61 days 1,598 sqft
    2023-10-01 61 days 1,586 sqft
    2023-11-01 61 days 1,567 sqft
    2023-12-01 71 days 1,563 sqft
    2024-01-01 81 days 1,564 sqft
    2024-02-01 76 days 1,566 sqft
    2024-03-01 52 days 1,558 sqft
    2024-04-01 46 days 1,580 sqft
    2024-05-01 47 days 1,590 sqft
    2024-06-01 53 days 1,577 sqft
    2024-07-01 58 days 1,578 sqft
    2024-08-01 60 days 1,560 sqft
    2024-09-01 61 days 1,545 sqft
    2024-10-01 60 days 1,537 sqft
    2024-11-01 61 days 1,542 sqft
    2024-12-01 72 days 1,530 sqft
    2025-01-01 80 days 1,529 sqft
    2025-02-01 78 days 1,522 sqft
    2025-03-01 0 days 1,522 sqft
    Des Moines's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

    Des Moines's median square footage for active listings during the 2025-03-01 period was 1,522 sqft. One year prior, the average listing was 1,558 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).