Durham FHA Loan Rates, Closing Costs & Stats

DURHAM-CHAPEL HILL, NC

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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.

    Durham's 154 lenders originated 1,533 FHA loans during 2021. The total origination value was $349,915,000, with an average FHA loan value of $228,255.

    Durham FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Durham averaged 6.45% for the week of 2023-03-17, compared to the national average (all FHA variants) of 6.45% for the same period.

    Durham's average FHA mortgage closing costs are $7,020.

    The average rate for the prior week (2023-03-10) was 6.69% and one month ago for the week of 2023-02-10, the average rate was 6.21%.

    The average rate one year ago was 4.39%.

    For refis of the same type during the week of 2023-03-17, the average rate was 6.29%.

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

    Durham 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 Durham level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
    QUICKEN LOANS, LLC 213 2.65% $6,991
    Mr. Cooper ( Nationstar Mortgage ) 49 3.22% $4,399
    PENNYMAC LOAN SERVICES, LLC 44 2.85% $5,435
    FREEDOM MORTGAGE CORPORATION 43 2.81% $5,185
    LAKEVIEW LOAN SERVICING, LLC 39 2.91% $4,808
    BROKER SOLUTIONS, INC. 37 3.13% $8,323
    CALIBER HOME LOANS, INC. 32 3.06% $7,641
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 30 3.28% $7,864
    MOVEMENT MORTGAGE, LLC 29 3.11% $8,541
    VILLAGE CAPITAL MORTGAGE 25 3.00% $2,707
    NVR Mortgage Finance, Inc. 25 3.02% $10,206
    NEWREZ LLC 21 2.96% $5,218
    DHI MORTGAGE COMPANY, LTD. 19 2.63% $8,834
    UNION HOME MORTGAGE CORP. 19 3.01% $8,095
    Lakeview Community Capital, LLC 19 2.89% $4,568
    Carrington Mortgage Services, LLC 19 3.47% $8,770
    HOMEBRIDGE FINANCIAL SERVICES, INC. 17 2.70% $5,971
    First Guaranty Mortgage Corporation 17 3.04% $6,466
    Alcova Mortgage LLC 14 3.04% $6,417
    UNITED WHOLESALE MORTGAGE, LLC 13 2.71% $6,532
    Prosperity Home Mortgage, LLC 13 3.10% $7,589
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 13 2.98% $9,112
    Ameris Bank 13 3.12% $8,034
    Victorian Finance, LLC 13 2.84% $7,349
    Corporate Investors Mortgage Group, Inc. 12 2.78% $8,111
    LOANDEPOT.COM, LLC 12 3.17% $8,137
    Hometown Lenders, Inc. 12 3.63% $7,656
    GoPrime Mortgage, Inc. 11 3.30% $8,693
    PRIMELENDING, A PLAINSCAPITAL COMPANY 11 3.28% $10,365
    HOME POINT FINANCIAL CORPORATION 11 2.72% $6,292
    EAGLE HOME MORTGAGE, LLC 10 3.13% $6,666
    CORNERSTONE HOME LENDING, INC. 10 3.31% $8,524
    CMG MORTGAGE, INC. 10 3.69% $8,807
    RAPID MORTGAGE COMPANY 9 2.99% $8,184
    NFM, INC. 9 3.29% $8,359
    Atlantic Coast Mortgage, LLC 8 3.16% $7,049
    AmeriHome Mortgage Company, LLC 8 2.92% $4,390
    CROSSCOUNTRY MORTGAGE, LLC 8 2.98% $7,719
    American Security Mortgage Corp. 8 2.84% $8,316
    MORTGAGE SOLUTIONS OF COLORADO, LLC 8 3.92% $9,500
    AMERISAVE MORTGAGE CORPORATION 8 2.98% $9,418
    PULTE MORTGAGE LLC 7 3.18% $6,318
    ANGEL OAK HOME LOANS LLC 7 3.16% $8,686
    Truist 7 2.73% $8,127
    North State Bank 7 2.95% $6,717
    INSPIRE HOME LOANS INC. 7 3.23% $6,924
    EQUITY RESOURCES, INC. 7 3.30% $7,857
    InterContinental Capital Group, Inc 7 2.36% $7,917
    First Heritage Mortgage, LLC 7 3.09% $9,016
    Blue Ridge Bank 7 3.25% $8,971
    AMERICAN FINANCIAL NETWORK, INC. 7 2.98% $11,896
    Nations Lending Corporation 6 3.54% $9,492
    CALCON MUTUAL MORTGAGE LLC 6 3.77% $9,178
    HOMESIDE FINANCIAL, LLC 6 3.06% $7,564
    KBHS HOME LOANS, LLC 6 3.62% $9,120
    United Community Bank 5 3.05% $9,898
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 5 3.20% $9,270
    RELIANCE FIRST CAPITAL, LLC 5 3.05% $7,758
    Shamrock Home Loans, Inc. 5 3.30% $8,847
    SOUTHERN TRUST MORTGAGE, LLC 5 3.13% $8,030
    The Central Trust Bank 5 3.15% $9,339
    PANORAMA MORTGAGE GROUP, LLC 5 3.28% $7,922
    MUTUAL OF OMAHA MORTGAGE, INC. 4 3.00% $9,864
    Towne Bank 4 2.69% $9,114
    PLANET HOME LENDING, LLC 4 2.91% $5,957
    Paramount Residential Mortgage Group, Inc. 4 3.69% $10,835
    GUARANTEED RATE, INC. 4 2.78% $8,703
    South Pacific Financial Corporation 4 2.72% $10,499
    SUN WEST MORTGAGE COMPANY, INC. 4 2.81% $7,365
    AMERIFIRST FINANCIAL CORPORATION 4 2.75% $8,671
    RESIDENTIAL MORTGAGE SERVICES, INC. 3 2.96% $10,448
    AMERICAN FINANCING CORPORATION 3 3.25% $6,392
    T2 FINANCIAL LLC 3 3.38% $10,090
    GUILD MORTGAGE COMPANY 3 3.04% $12,160
    PHH Mortgage Corporation 3 3.17% $6,463
    The Federal Savings Bank 3 2.75% $8,845
    The Fidelity Bank 3 3.33% $7,759
    HOMESPIRE MORTGAGE CORPORATION 3 3.13% $6,477
    UNITED SECURITY FINANCIAL CORP 3 2.88% $5,079
    VANDERBILT MORTGAGE AND FINANCE, INC. 3 3.38% $7,976
    Austin Capital Bank SSB 3 3.63% $10,752
    M/I FINANCIAL, LLC 3 3.00% $9,812
    GENEVA FINANCIAL, LLC 2 3.44% $11,505
    AMCAP MORTGAGE, LTD. 2 3.06% $6,105
    AMERICAN FINANCIAL RESOURCES, INC. 2 2.75% $9,410
    Barrington Bank & Trust Company, N.A. 2 3.69% $5,276
    CERTAINTY HOME LOANS, LLC 2 3.50% $10,268
    EMBRACE HOME LOANS, INC. 2 3.49% $7,462
    Equity Prime Mortgage LLC 2 4.56% $14,949
    1ST SIGNATURE LENDING, LLC 2 3.38% $8,663
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 2 3.00% $8,305
    INTERCOASTAL MORTGAGE COMPANY 2 2.56% $6,888
    LOANPAL, LLC 2 3.00% $10,413
    MIDLAND MORTGAGE CORPORATION 2 3.56% $6,177
    Northpointe Bank 2 3.06% $10,188
    NTFN, INC. 2 2.63% $6,900
    OCEANSIDE MORTGAGE COMPANY 2 3.00% $2,383
    PLAZA HOME MORTGAGE, INC. 2 2.31% $7,050
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 3.88% $7,430
    Sierra Pacific Mortgage Company, Inc. 2 3.00% $7,799
    Towne Mortgage of the Carolinas, LLC 2 2.81% $8,572
    Bank of England 1 3.88% $6,683
    OVM FINANCIAL, INC. 1 2.75% $6,453
    JPMorgan Chase Bank 1 2.75% $5,568
    HOMESTAR FINANCIAL CORPORATION 1 2.75% $3,378
    Home Loan Investment Bank, F.S.B. 1 2.25% $8,599
    HAMILTON HOME LOANS, INC. 1 3.25% $6,389
    GSF Mortgage Corporation 1 2.63% $7,067
    Bank of America 1 3.25% $10,974
    PNC Bank 1 2.88% $5,156
    POLARIS HOME FUNDING CORP. 1 3.50% $11,689
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 4.63% $7,417
    Goldwater Bank, N.A. 1 3.63% $6,078
    Princeton Mortgage Corporation 1 2.50% $6,485
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 2.63% $7,550
    Flagstar Bank, FSB 1 3.09% $4,939
    First Savings Bank 1 3.75% $7,646
    RADIUS FINANCIAL GROUP INC. 1 3.25% $5,040
    First Home Bank 1 2.63% $14,893
    FIRST COMMUNITY MORTGAGE, INC. 1 2.50% $10,931
    Renasant Bank 1 3.00% $13,835
    RESIDENTIAL HOME FUNDING CORP. 1 3.38% $14,090
    First-Citizens Bank & Trust Company 1 2.50% $7,813
    RESOURCE FINANCIAL SERVICES, INC. 1 3.25% $7,927
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 1 3.38% $4,895
    ROYAL UNITED MORTGAGE LLC 1 2.63% $6,477
    FINANCE OF AMERICA MORTGAGE LLC 1 3.25% $6,697
    ACADEMY MORTGAGE CORPORATION 1 2.88% $10,401
    FBC MORTGAGE, LLC 1 2.75% $8,302
    DATA MORTGAGE, INC. 1 3.38% $5,218
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 2.75% $13,695
    SOVEREIGN LENDING GROUP INCORPORATED 1 2.25% $10,957
    STEARNS LENDING, LLC 1 2.88% $4,760
    Sunflower Bank 1 3.49% $9,185
    Credence Funding Corporation 1 2.63% $7,522
    CONTOUR MORTGAGE CORPORATION 1 2.38% $9,994
    Colten Mortgage, LLC 1 3.00% $8,765
    Colonial Savings, F.A. 1 3.00% $4,779
    CLEARPATH LENDING 1 3.00% $3,502
    The Huntington National Bank 1 3.13% $7,365
    THE MORTGAGE FIRM, INC. 1 3.00% $11,041
    The Union Bank Company 1 2.38% $8,109
    CHURCHILL MORTGAGE CORPORATION 1 3.13% $11,916
    ZILLOW HOME LOANS, LLC 1 2.88% $6,235
    Chickasaw Community Bank 1 2.88% $10,241
    CAPITAL CENTER, L.L.C. 1 2.63% $7,228
    CANOPY MORTGAGE, LLC 1 2.25% $14,263
    M&T Bank 1 3.25% $7,075
    Mortgage Research Center, LLC 1 2.75% $7,782
    MILEND, INC. 1 2.38% $9,451
    UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 3.50% $11,042
    LIBERTY HOME MORTGAGE CORPORATION 1 4.25% $6,207
    BETTER MORTGAGE CORPORATION 1 3.38% $5,877
    LENOX FINANCIAL MORTGAGE CORPORATION 1 2.75% $12,269

    The top Durham FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 213 FHA loans originated. Their average total fees are $6,991, which is $2,592 higher than the next largest lender, Mr. Cooper ( Nationstar Mortgage ).

    The lowest fee Durham FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,707), Mr. Cooper ( Nationstar Mortgage ) ($4,399), Lakeview Community Capital, LLC ($4,568), LAKEVIEW LOAN SERVICING, LLC ($4,808) and FREEDOM MORTGAGE CORPORATION ($5,185).

    The lowest rate Durham FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (2.63%), QUICKEN LOANS, LLC (2.65%), HOMEBRIDGE FINANCIAL SERVICES, INC. (2.70%), UNITED WHOLESALE MORTGAGE, LLC (2.71%) and HOME POINT FINANCIAL CORPORATION (2.72%).

    Durham FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    DURHAM-CHAPEL HILL, NC CHATHAM 2022 $506,000 $647,750 $783,000 $973,100
    DURHAM-CHAPEL HILL, NC DURHAM 2022 $506,000 $647,750 $783,000 $973,100
    DURHAM-CHAPEL HILL, NC GRANVILLE 2022 $506,000 $647,750 $783,000 $973,100
    DURHAM-CHAPEL HILL, NC ORANGE 2022 $506,000 $647,750 $783,000 $973,100
    DURHAM-CHAPEL HILL, NC PERSON 2022 $506,000 $647,750 $783,000 $973,100

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Durham (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 $377,532 (10.1%) $476,276 (13.4%) 1.40 1,369
    2018-02-01 $392,588 (11.6%) $487,332 (13.7%) 1.43 1,336
    2018-03-01 $395,000 (7.6%) $487,595 (10.4%) 1.39 1,508
    2018-04-01 $399,950 (5.2%) $500,921 (8.7%) 1.36 1,563
    2018-05-01 $399,415 (2.6%) $510,173 (8.9%) 1.33 1,627
    2018-06-01 $390,000 (0.1%) $501,438 (7.0%) 1.30 1,698
    2018-07-01 $384,700 (-0.1%) $486,423 (3.2%) 1.28 1,793
    2018-08-01 $380,020 (-0.5%) $480,476 (2.6%) 1.27 1,824
    2018-09-01 $379,700 (-0.3%) $480,632 (1.6%) 1.27 1,870
    2018-10-01 $378,611 (-0.1%) $478,565 (1.4%) 1.28 1,900
    2018-11-01 $375,000 (-1.3%) $473,202 (0.1%) 1.27 1,826
    2018-12-01 $374,000 (-0.3%) $470,997 (-1.0%) 1.29 1,682
    2019-01-01 $360,120 (-4.6%) $460,393 (-3.3%) 1.24 1,534
    2019-02-01 $375,000 (-4.5%) $473,152 (-2.9%) 1.27 1,484
    2019-03-01 $387,720 (-1.8%) $488,255 (0.1%) 1.27 1,586
    2019-04-01 $400,000 (0.0%) $499,408 (-0.3%) 1.27 1,687
    2019-05-01 $399,650 (0.1%) $493,043 (-3.4%) 1.25 1,746
    2019-06-01 $399,900 (2.5%) $485,810 (-3.1%) 1.25 1,873
    2019-07-01 $397,000 (3.2%) $474,669 (-2.4%) 1.24 1,937
    2019-08-01 $382,727 (0.7%) $464,977 (-3.2%) 1.21 1,985
    2019-09-01 $375,568 (-1.1%) $459,089 (-4.5%) 1.20 2,013
    2019-10-01 $369,995 (-2.3%) $453,720 (-5.2%) 1.19 2,028
    2019-11-01 $373,865 (-0.3%) $453,904 (-4.1%) 1.23 1,914
    2019-12-01 $379,769 (1.5%) $456,347 (-3.1%) 1.27 1,702
    2020-01-01 $386,325 (7.3%) $461,127 (0.2%) 1.29 1,504
    2020-02-01 $399,000 (6.4%) $474,379 (0.3%) 1.30 1,403
    2020-03-01 $415,900 (7.3%) $497,560 (1.9%) 1.30 1,421
    2020-04-01 $395,000 (-1.3%) $476,631 (-4.6%) 1.24 1,462
    2020-05-01 $399,000 (-0.2%) $478,299 (-3.0%) 1.21 1,471
    2020-06-01 $416,225 (4.1%) $503,466 (3.6%) 1.22 1,358
    2020-07-01 $417,713 (5.2%) $507,183 (6.9%) 1.21 1,290
    2020-08-01 $419,900 (9.7%) $511,656 (10.0%) 1.20 1,219
    2020-09-01 $418,845 (11.5%) $526,682 (14.7%) 1.20 1,121
    2020-10-01 $415,000 (12.2%) $540,514 (19.1%) 1.19 1,067
    2020-11-01 $407,000 (8.9%) $536,685 (18.2%) 1.19 1,032
    2020-12-01 $411,581 (8.4%) $549,717 (20.5%) 1.22 917
    2021-01-01 $399,900 (3.5%) $538,911 (16.9%) 1.19 784
    2021-02-01 $411,950 (3.3%) $564,052 (18.9%) 1.20 618
    2021-03-01 $427,350 (2.8%) $568,363 (14.2%) 1.21 579
    2021-04-01 $453,518 (14.8%) $611,076 (28.2%) 1.23 512
    2021-05-01 $440,000 (10.3%) $593,181 (24.0%) 1.16 483
    2021-06-01 $440,375 (5.8%) $603,385 (19.9%) 1.16 528
    2021-07-01 $442,974 (6.1%) $594,948 (17.3%) 1.17 593
    2021-08-01 $445,713 (6.2%) $587,493 (14.8%) 1.18 626
    2021-09-01 $449,950 (7.4%) $589,751 (12.0%) 1.20 669
    2021-10-01 $466,760 (12.5%) $609,343 (12.7%) 1.24 674
    2021-11-01 $450,000 (10.6%) $598,485 (11.5%) 1.20 620
    2021-12-01 $460,450 (11.9%) $609,959 (11.0%) 1.25 564
    2022-01-01 $459,500 (14.9%) $633,140 (17.5%) 1.24 479
    2022-02-01 $474,450 (15.2%) $650,055 (15.3%) 1.23 376
    2022-03-01 $478,000 (11.9%) $685,468 (20.6%) 1.20 399
    2022-04-01 $485,000 (6.9%) $672,593 (10.1%) 1.16 438
    2022-05-01 $494,000 (12.3%) $689,581 (16.3%) 1.13 613
    2022-06-01 $497,450 (13.0%) $667,739 (10.7%) 1.11 808
    2022-07-01 $499,900 (12.9%) $659,927 (10.9%) 1.12 989
    2022-08-01 $495,000 (11.1%) $655,039 (11.5%) 1.14 1,103
    2022-09-01 $461,500 (2.6%) $620,653 (5.2%) 1.08 1,226
    2022-10-01 $464,198 (-0.6%) $637,175 (4.6%) 1.09 1,326
    2022-11-01 $465,500 (3.4%) $652,563 (9.0%) 1.12 1,269
    2022-12-01 $460,000 (-0.1%) $655,239 (7.4%) 1.14 1,138
    2023-01-01 $467,450 (1.7%) $666,415 (5.3%) 1.15 967
    2023-02-01 $489,000 (3.1%) $700,614 (7.8%) 1.18 903
    Durham's median listing price for 2023-02-01 was $489,000, a difference of $14,550 (3.1%) versus the prior year and $21,550 versus the prior month.

    Durham's median listing price comes in at 118% of the national average.

    Durham's average listing price for 2023-02-01 was $700,614, a difference of $50,559 (7.8%) versus the prior year and $34,199 versus the prior month.

    For the 2023-02-01 period, Durham had 903 MLS listings, a difference of -64 listings (-7%) versus the prior month and 527 listings (140%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Durham (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 94 days 2,463 sqft
    2018-02-01 82 days 2,472 sqft
    2018-03-01 50 days 2,468 sqft
    2018-04-01 52 days 2,504 sqft
    2018-05-01 54 days 2,484 sqft
    2018-06-01 56 days 2,446 sqft
    2018-07-01 59 days 2,433 sqft
    2018-08-01 60 days 2,401 sqft
    2018-09-01 72 days 2,376 sqft
    2018-10-01 74 days 2,361 sqft
    2018-11-01 80 days 2,327 sqft
    2018-12-01 88 days 2,302 sqft
    2019-01-01 93 days 2,245 sqft
    2019-02-01 85 days 2,304 sqft
    2019-03-01 66 days 2,364 sqft
    2019-04-01 51 days 2,423 sqft
    2019-05-01 51 days 2,414 sqft
    2019-06-01 53 days 2,371 sqft
    2019-07-01 59 days 2,306 sqft
    2019-08-01 62 days 2,258 sqft
    2019-09-01 65 days 2,258 sqft
    2019-10-01 69 days 2,256 sqft
    2019-11-01 73 days 2,275 sqft
    2019-12-01 84 days 2,237 sqft
    2020-01-01 90 days 2,208 sqft
    2020-02-01 80 days 2,243 sqft
    2020-03-01 53 days 2,340 sqft
    2020-04-01 53 days 2,208 sqft
    2020-05-01 60 days 2,207 sqft
    2020-06-01 63 days 2,315 sqft
    2020-07-01 58 days 2,307 sqft
    2020-08-01 56 days 2,286 sqft
    2020-09-01 57 days 2,342 sqft
    2020-10-01 57 days 2,277 sqft
    2020-11-01 54 days 2,250 sqft
    2020-12-01 58 days 2,226 sqft
    2021-01-01 64 days 2,178 sqft
    2021-02-01 47 days 2,188 sqft
    2021-03-01 29 days 2,156 sqft
    2021-04-01 30 days 2,223 sqft
    2021-05-01 22 days 2,122 sqft
    2021-06-01 18 days 2,071 sqft
    2021-07-01 24 days 2,059 sqft
    2021-08-01 29 days 2,085 sqft
    2021-09-01 30 days 2,046 sqft
    2021-10-01 30 days 2,120 sqft
    2021-11-01 33 days 1,992 sqft
    2021-12-01 42 days 1,935 sqft
    2022-01-01 58 days 1,904 sqft
    2022-02-01 44 days 1,902 sqft
    2022-03-01 19 days 1,986 sqft
    2022-04-01 16 days 2,017 sqft
    2022-05-01 16 days 2,016 sqft
    2022-06-01 19 days 2,037 sqft
    2022-07-01 25 days 2,063 sqft
    2022-08-01 34 days 2,084 sqft
    2022-09-01 45 days 2,062 sqft
    2022-10-01 50 days 2,094 sqft
    2022-11-01 60 days 2,093 sqft
    2022-12-01 71 days 2,091 sqft
    2023-01-01 78 days 2,073 sqft
    2023-02-01 67 days 2,135 sqft
    Durham's median listing age (time on market) for 2023-02-01 was 67 days. This is 54% longer than the same period one year ago.

    Durham's median square footage for active listings during the 2023-02-01 period was 2,135 sqft. One year prior, the average listing was 1,902 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).