Durham FHA Loan Rates, Closing Costs & Stats

DURHAM-CHAPEL HILL, NC

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 142 lenders originated 1,004 FHA loans during 2022. The total origination value was $274,840,000, with an average FHA loan value of $273,745.

Durham FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Durham averaged 6.49% for the week of 2023-12-01, compared to the national average (all FHA variants) of 6.949% for the same period.

Durham's average FHA mortgage closing costs are $7,616.

The average rate for the prior week (2023-11-24) was 6.3% and one month ago for the week of 2023-10-27, the average rate was 6.81%.

The average rate one year ago was 5.83%.

For refis of the same type during the week of 2023-12-01, the average rate was 5.04%.

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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
QUICKEN LOANS, LLC 114 4.33% $12,210
LOANDEPOT.COM, LLC 44 4.98% $9,872
UNITED WHOLESALE MORTGAGE, LLC 36 4.94% $11,653
CALIBER HOME LOANS, INC. 29 4.66% $10,745
MOVEMENT MORTGAGE, LLC 28 5.09% $11,245
BROKER SOLUTIONS, INC. 24 5.35% $12,038
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 22 5.46% $9,298
AMERISAVE MORTGAGE CORPORATION 21 4.56% $10,945
CARDINAL FINANCIAL 19 4.87% $11,910
CORNERSTONE HOME LENDING, INC. 18 5.12% $11,155
Mr. Cooper ( Nationstar Mortgage ) 16 4.33% $14,741
FREEDOM MORTGAGE CORPORATION 15 4.84% $11,969
NVR Mortgage Finance, Inc. 15 4.18% $12,837
NFM, INC. 14 5.42% $11,451
PENNYMAC LOAN SERVICES, LLC 12 4.05% $11,379
Victorian Finance, LLC 12 4.98% $10,116
GoPrime Mortgage, Inc. 11 5.26% $9,727
Alcova Mortgage LLC 10 5.68% $7,202
Carrington Mortgage Services, LLC 9 4.58% $9,557
UNION HOME MORTGAGE CORP. 9 5.29% $9,377
AMERICAN FINANCIAL RESOURCES, INC. 9 4.01% $9,679
AMERICAN FINANCING CORPORATION 9 4.56% $11,958
MORTGAGE SOLUTIONS OF COLORADO, LLC 9 4.83% $7,981
RELIANCE FIRST CAPITAL, LLC 9 4.53% $9,218
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 8 5.88% $10,743
LAKEVIEW LOAN SERVICING, LLC 8 3.61% $7,321
Blue Ridge Bank 8 5.44% $10,314
PRIMELENDING, A PLAINSCAPITAL COMPANY 8 5.06% $13,404
PRIMARY RESIDENTIAL MORTGAGE, INC. 8 4.41% $10,018
NEWREZ LLC 7 4.25% $6,125
Prosperity Home Mortgage, LLC 7 6.03% $12,266
CROSSCOUNTRY MORTGAGE, LLC 7 5.00% $13,946
HOME POINT FINANCIAL CORPORATION 7 4.14% $7,897
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 4.75% $13,377
Nations Lending Corporation 6 5.73% $10,441
PANORAMA MORTGAGE GROUP, LLC 6 5.31% $14,057
RAPID MORTGAGE COMPANY 6 4.50% $10,761
PNC Bank 5 3.80% $5,164
Shamrock Home Loans, Inc. 5 5.68% $10,199
VANDERBILT MORTGAGE AND FINANCE, INC. 5 4.73% $12,166
DHI MORTGAGE COMPANY, LTD. 5 3.32% $9,429
PLANET HOME LENDING, LLC 5 4.72% $8,487
PULTE MORTGAGE LLC 5 4.10% $11,178
KBHS HOME LOANS, LLC 5 4.77% $15,271
Corporate Investors Mortgage Group, Inc. 5 5.08% $9,468
HOMESIDE FINANCIAL, LLC 5 5.27% $10,794
First Heritage Mortgage, LLC 5 5.28% $9,142
Lakeview Community Capital, LLC 5 3.80% $6,428
Flagstar Bank, FSB 4 4.15% $9,424
Hometown Lenders, Inc. 4 4.06% $10,519
EAGLE HOME MORTGAGE, LLC 4 5.47% $9,037
LOANPAL, LLC 4 3.56% $16,909
T2 FINANCIAL LLC 4 4.94% $11,566
CMG MORTGAGE, INC. 4 5.25% $8,241
Equity Prime Mortgage LLC 4 5.41% $12,988
Ameris Bank 4 4.69% $7,849
ALLIED MORTGAGE GROUP, INC. 4 4.59% $8,445
GUARANTEED RATE, INC. 4 5.00% $11,388
North State Bank 3 5.54% $8,351
SOUTHERN TRUST MORTGAGE, LLC 3 4.96% $13,749
The Federal Savings Bank 3 5.42% $15,130
TOP FLITE FINANCIAL, INC. 3 6.33% $15,875
Truist 3 4.78% $9,829
United Community Bank 3 4.46% $11,959
U.S. Bank 3 3.92% $7,002
EQUITY RESOURCES, INC. 3 3.92% $7,976
EVERETT FINANCIAL, INC. 3 5.04% $7,621
VILLAGE CAPITAL MORTGAGE 3 4.54% $9,357
Wells Fargo Bank 3 4.75% $6,332
First-Citizens Bank & Trust Company 3 3.42% $8,419
GENEVA FINANCIAL, LLC 3 5.33% $8,851
GUILD MORTGAGE COMPANY 3 5.63% $13,340
INTERCOASTAL MORTGAGE COMPANY 3 5.38% $13,629
JPMorgan Chase Bank 3 4.38% $7,725
CAPITAL CENTER, L.L.C. 3 3.63% $6,063
Mortgage Research Center, LLC 3 6.12% $6,522
1ST SIGNATURE LENDING, LLC 3 4.25% $10,656
HOMESTAR FINANCIAL CORPORATION 2 4.00% $10,187
FIRST HOME MORTGAGE CORPORATION 2 4.63% $15,202
MUTUAL OF OMAHA MORTGAGE, INC. 2 4.81% $11,739
MYCUMORTGAGE, LLC 2 5.56% $4,414
MY MORTGAGE, INC. 2 4.81% $8,346
Bank of England 2 5.38% $17,722
First Federal Bank 2 4.69% $12,323
ZILLOW HOME LOANS, LLC 2 4.69% $8,916
Wyndham Capital Mortgage, Inc. 2 4.13% $19,145
Citizens Bank 2 3.88% $6,071
POLARIS HOME FUNDING CORP. 2 5.25% $10,989
RESIDENTIAL BANCORP 2 5.31% $12,220
VERITAS FUNDING, LLC 2 4.25% $12,187
Towne Mortgage of the Carolinas, LLC 2 4.13% $9,937
Towne Bank 2 4.81% $11,798
THE MORTGAGE FIRM, INC. 2 4.63% $12,865
The Fidelity Bank 2 4.75% $9,736
American Security Mortgage Corp. 2 4.63% $8,318
The Central Trust Bank 2 6.19% $8,896
SUN WEST MORTGAGE COMPANY, INC. 2 3.50% $8,316
ANGEL OAK HOME LOANS LLC 2 5.06% $9,228
SOUTHPOINT FINANCIAL SERVICES, INC. 2 3.94% $16,487
CALCON MUTUAL MORTGAGE LLC 2 4.69% $9,862
NORWICH COMMERCIAL GROUP, INC. 1 4.75% $11,319
Alpha Mortgage Corporation 1 6.13% $8,905
American Mortgage Bank, LLC 1 4.88% $10,712
American National Bank and Trust Company 1 5.00% $10,626
AMERICAN PACIFIC MORTGAGE CORPORATION 1 5.75% $11,384
Atlantic Coast Mortgage, LLC 1 5.75% $13,208
Bank of America 1 4.75% $5,320
BETTER MORTGAGE CORPORATION 1 2.75% $7,197
CBM Mortgage, Inc. 1 3.63% $4,614
Credence Funding Corporation 1 3.00% $7,412
CREDIT UNION MORTGAGE ASSOCIATION, INC. 1 4.63% $9,741
DAS Acquisition Company, LLC 1 6.50% $7,857
DATA MORTGAGE, INC. 1 3.88% $9,263
Encompass Lending Group, LP 1 5.63% $6,757
FBC MORTGAGE, LLC 1 6.25% $12,361
Fifth Third Bank 1 3.00% $8,514
First Home Bank 1 3.38% $8,232
First Palmetto Bank 1 6.13% $7,362
GSF Mortgage Corporation 1 4.25% $7,760
HOMESPIRE MORTGAGE CORPORATION 1 3.75% $9,600
HUNT MORTGAGE CORPORATION 1 3.63% $9,253
LEADERONE FINANCIAL CORPORATION 1 5.75% $7,607
LIBERTY HOME MORTGAGE CORPORATION 1 6.63% $11,256
MIDLAND MORTGAGE CORPORATION 1 7.13% $8,131
M/I FINANCIAL, LLC 1 3.88% $20,203
NEW DAY FINANCIAL, LLC 1 3.25% $7,140
Northpointe Bank 1 4.25% $12,916
OCEANSIDE MORTGAGE COMPANY 1 5.75% $5,102
OCMBC, INC. 1 6.25% $21,386
OPEN MORTGAGE, LLC 1 4.63% $9,868
Paramount Residential Mortgage Group, Inc. 1 4.75% $10,671
Peoples Bank 1 4.88% $15,577
Plains Commerce Bank 1 5.25% $8,021
Residential Mortgage Solutions, Inc. 1 4.50% $15,353
SOVEREIGN LENDING GROUP INCORPORATED 1 6.63% $19,788
Strong Home Mortgage, LLC 1 3.63% $7,901
SUCCESS MORTGAGE PARTNERS, INC. 1 4.13% $7,466
TJC Mortgage, Inc. 1 5.00% $15,626
UNITED MORTGAGE CORP 1 4.75% $10,228
VAN DYK MORTGAGE CORPORATION 1 4.63% $8,893
VELOCIO MORTGAGE L.L.C. 1 5.63% $5,374
Willamette Valley Bank 1 3.25% $6,787

The top Durham FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 114 FHA loans originated. Their average total fees are $12,210, which is $2,338 higher than the next largest lender, LOANDEPOT.COM, LLC.

The lowest fee Durham FHA lenders (with over 10 loans originated) are Alcova Mortgage LLC ($7,202), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,298), GoPrime Mortgage, Inc. ($9,727), LOANDEPOT.COM, LLC ($9,872) and Victorian Finance, LLC ($10,116).

The lowest rate Durham FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (4.05%), NVR Mortgage Finance, Inc. (4.18%), QUICKEN LOANS, LLC (4.33%), Mr. Cooper ( Nationstar Mortgage ) (4.33%) and AMERISAVE MORTGAGE CORPORATION (4.56%).

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
DURHAM-CHAPEL HILL, NC CHATHAM 2023 $602,600 $771,450 $932,500 $1,158,850
DURHAM-CHAPEL HILL, NC DURHAM 2023 $602,600 $771,450 $932,500 $1,158,850
DURHAM-CHAPEL HILL, NC GRANVILLE 2023 $602,600 $771,450 $932,500 $1,158,850
DURHAM-CHAPEL HILL, NC ORANGE 2023 $602,600 $771,450 $932,500 $1,158,850
DURHAM-CHAPEL HILL, NC PERSON 2023 $602,600 $771,450 $932,500 $1,158,850

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%) 1.28 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 1,585
2019-04-01 $399,950 (0.0%) $499,408 (-0.3%) 1.27 1,685
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%) 1.31 1,403
2020-03-01 $415,900 (7.3%) $497,560 (1.9%) 1.30 1,421
2020-04-01 $395,000 (-1.2%) $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%) 1.23 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 $441,500 (10.7%) $593,181 (24.0%) 1.17 483
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%) 1.19 626
2021-09-01 $449,950 (7.4%) $589,751 (12.0%) 1.20 669
2021-10-01 $466,760 (12.5%) $608,972 (12.7%) 1.24 674
2021-11-01 $450,475 (10.7%) $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 $486,500 (7.3%) $673,449 (10.2%) 1.16 438
2022-05-01 $495,350 (12.2%) $689,920 (16.3%) 1.13 614
2022-06-01 $499,450 (13.4%) $667,240 (10.6%) 1.11 810
2022-07-01 $499,999 (12.9%) $660,607 (11.0%) 1.13 992
2022-08-01 $495,000 (11.1%) $655,493 (11.6%) 1.14 1,105
2022-09-01 $462,068 (2.7%) $622,116 (5.5%) 1.08 1,232
2022-10-01 $465,000 (-0.4%) $638,182 (4.8%) 1.09 1,331
2022-11-01 $467,638 (3.8%) $653,794 (9.2%) 1.12 1,274
2022-12-01 $460,000 (-0.1%) $655,911 (7.5%) 1.14 1,142
2023-01-01 $470,435 (2.4%) $667,482 (5.4%) 1.17 972
2023-02-01 $490,750 (3.4%) $699,034 (7.5%) 1.19 909
2023-03-01 $522,975 (9.4%) $732,463 (6.9%) 1.23 890
2023-04-01 $543,450 (11.7%) $744,086 (10.5%) 1.26 892
2023-05-01 $533,750 (7.8%) $755,283 (9.5%) 1.21 932
2023-06-01 $529,425 (6.0%) $757,369 (13.5%) 1.19 973
2023-07-01 $535,000 (7.0%) $762,481 (15.4%) 1.22 988
2023-08-01 $532,450 (7.6%) $758,485 (15.7%) 1.22 1,010
2023-09-01 $499,000 (8.0%) $734,130 (18.0%) 1.16 1,132
2023-10-01 $496,725 (6.8%) $733,628 (15.0%) 1.17 1,205
2023-11-01 $489,831 (4.8%) $722,235 (10.5%) 1.17 1,179
Durham's median listing price for 2023-11-01 was $489,831, a difference of $22,193 (4.8%) versus the prior year and $-6,894 versus the prior month.

Durham's median listing price comes in at 117% of the national average.

Durham's average listing price for 2023-11-01 was $722,235, a difference of $68,441 (10.5%) versus the prior year and $-11,393 versus the prior month.

For the 2023-11-01 period, Durham had 1,179 MLS listings, a difference of -26 listings (-2%) versus the prior month and -95 listings (-7%) 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 87 days 2,463 sqft
2018-02-01 72 days 2,472 sqft
2018-03-01 44 days 2,468 sqft
2018-04-01 47 days 2,504 sqft
2018-05-01 50 days 2,484 sqft
2018-06-01 50 days 2,446 sqft
2018-07-01 53 days 2,433 sqft
2018-08-01 56 days 2,401 sqft
2018-09-01 66 days 2,376 sqft
2018-10-01 68 days 2,361 sqft
2018-11-01 74 days 2,327 sqft
2018-12-01 82 days 2,302 sqft
2019-01-01 89 days 2,245 sqft
2019-02-01 79 days 2,304 sqft
2019-03-01 58 days 2,364 sqft
2019-04-01 46 days 2,423 sqft
2019-05-01 47 days 2,414 sqft
2019-06-01 50 days 2,371 sqft
2019-07-01 56 days 2,306 sqft
2019-08-01 59 days 2,258 sqft
2019-09-01 62 days 2,258 sqft
2019-10-01 65 days 2,256 sqft
2019-11-01 68 days 2,275 sqft
2019-12-01 79 days 2,237 sqft
2020-01-01 82 days 2,207 sqft
2020-02-01 72 days 2,243 sqft
2020-03-01 48 days 2,340 sqft
2020-04-01 49 days 2,208 sqft
2020-05-01 56 days 2,207 sqft
2020-06-01 58 days 2,315 sqft
2020-07-01 52 days 2,309 sqft
2020-08-01 50 days 2,286 sqft
2020-09-01 52 days 2,342 sqft
2020-10-01 51 days 2,277 sqft
2020-11-01 49 days 2,251 sqft
2020-12-01 53 days 2,226 sqft
2021-01-01 58 days 2,187 sqft
2021-02-01 38 days 2,189 sqft
2021-03-01 24 days 2,156 sqft
2021-04-01 25 days 2,223 sqft
2021-05-01 20 days 2,122 sqft
2021-06-01 16 days 2,071 sqft
2021-07-01 22 days 2,059 sqft
2021-08-01 27 days 2,085 sqft
2021-09-01 28 days 2,046 sqft
2021-10-01 30 days 2,120 sqft
2021-11-01 31 days 1,995 sqft
2021-12-01 40 days 1,935 sqft
2022-01-01 52 days 1,904 sqft
2022-02-01 38 days 1,902 sqft
2022-03-01 17 days 1,986 sqft
2022-04-01 16 days 2,013 sqft
2022-05-01 16 days 2,018 sqft
2022-06-01 18 days 2,047 sqft
2022-07-01 24 days 2,073 sqft
2022-08-01 32 days 2,090 sqft
2022-09-01 44 days 2,071 sqft
2022-10-01 50 days 2,095 sqft
2022-11-01 58 days 2,101 sqft
2022-12-01 69 days 2,097 sqft
2023-01-01 74 days 2,094 sqft
2023-02-01 62 days 2,137 sqft
2023-03-01 45 days 2,204 sqft
2023-04-01 42 days 2,236 sqft
2023-05-01 39 days 2,203 sqft
2023-06-01 40 days 2,151 sqft
2023-07-01 44 days 2,178 sqft
2023-08-01 44 days 2,200 sqft
2023-09-01 43 days 2,148 sqft
2023-10-01 47 days 2,159 sqft
2023-11-01 52 days 2,125 sqft
Durham's median listing age (time on market) for 2023-11-01 was 52 days. This is -11% shorter than the same period one year ago.

Durham's median square footage for active listings during the 2023-11-01 period was 2,125 sqft. One year prior, the average listing was 2,101 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).