East Stroudsburg FHA Loan Rates, Closing Costs & Stats

EAST STROUDSBURG, PA

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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.

    East Stroudsburg's 106 lenders originated 677 FHA loans during 2024. The total origination value was $183,775,000, with an average FHA loan value of $271,455.

    East Stroudsburg FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in East Stroudsburg averaged 6.5% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

    East Stroudsburg's average FHA mortgage closing costs are $9,300.

    The average rate for the prior week (2025-03-28) was 6.89% and one month ago for the week of 2025-02-28, the average rate was 6.98%.

    The average rate one year ago was 7%.

    For refis of the same type during the week of 2025-04-04, the average rate was 6.13%.

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

    East Stroudsburg 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 East Stroudsburg level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 109 6.25% $12,605
    CROSSCOUNTRY MORTGAGE, LLC 52 6.72% $14,231
    UNITED WHOLESALE MORTGAGE, LLC 39 6.16% $14,560
    Acre Mortgage and Financial Inc 20 7.11% $18,893
    MOVEMENT MORTGAGE, LLC 20 6.89% $13,311
    PENNYMAC LOAN SERVICES, LLC 20 6.06% $10,487
    FREEDOM MORTGAGE CORPORATION 17 6.40% $13,453
    BROKER SOLUTIONS, INC. 17 6.81% $13,924
    GUILD MORTGAGE COMPANY 13 6.60% $12,183
    LOANDEPOT.COM, LLC 12 6.49% $13,062
    Equity Prime Mortgage LLC 12 6.44% $14,221
    Century Mortgage Company DBA Century Lending Company 11 6.83% $12,599
    Prosperity Home Mortgage, LLC 10 6.26% $10,732
    MUTUAL OF OMAHA MORTGAGE, INC. 10 6.53% $18,170
    CMG MORTGAGE, INC. 10 6.74% $15,357
    Carrington Mortgage Services, LLC 8 6.83% $13,055
    PLANET HOME LENDING, LLC 8 6.52% $10,827
    Ixonia Bank 7 6.57% $12,734
    NEWREZ LLC 7 6.14% $14,244
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 7 6.36% $13,009
    Paramount Residential Mortgage Group, Inc. 7 6.23% $14,081
    AMERICAN FINANCIAL NETWORK, INC. 6 7.13% $16,520
    Mortgage Research Center, LLC 6 6.85% $8,636
    GUARANTEED RATE, INC. 6 6.68% $10,358
    Keystone Funding, Inc. 5 6.58% $11,219
    GREENTREE MORTGAGE COMPANY, L.P. 5 6.30% $13,719
    RELIANCE FIRST CAPITAL, LLC 5 6.78% $13,049
    Mr. Cooper ( Nationstar Mortgage ) 5 6.45% $16,974
    ABSOLUTE HOME MORTGAGE CORPORATION 5 6.80% $14,565
    AMERISAVE MORTGAGE CORPORATION 4 6.31% $13,090
    UNION HOME MORTGAGE CORP. 4 7.13% $12,383
    SWBC MORTGAGE CORPORATION 4 6.44% $7,078
    VILLAGE CAPITAL MORTGAGE 4 6.25% $8,488
    PLAZA HOME MORTGAGE, INC. 4 6.65% $19,652
    EMM LOANS LLC 4 5.84% $17,037
    ALLIED MORTGAGE GROUP, INC. 4 5.81% $14,014
    ZILLOW HOME LOANS, LLC 3 6.29% $13,633
    AMERICAN FINANCIAL RESOURCES, INC. 3 6.88% $10,850
    AMERICAN FINANCING CORPORATION 3 6.08% $14,301
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 6.75% $12,173
    CONTOUR MORTGAGE CORPORATION 3 6.79% $19,388
    EVERETT FINANCIAL, INC. 3 6.58% $16,685
    LOANPAL, LLC 3 5.50% $13,246
    MLD MORTGAGE INC. 3 6.33% $11,603
    NFM, INC. 3 7.00% $12,518
    NJ LENDERS CORP. 3 7.17% $17,870
    POLARIS HOME FUNDING CORP. 3 6.67% $15,679
    Semper Home Loans, Inc. 3 6.63% $12,081
    Summit Mortgage Corporation 3 6.33% $11,155
    T2 FINANCIAL LLC 3 6.50% $12,379
    The Federal Savings Bank 3 6.92% $13,199
    UNITED MORTGAGE CORP 3 6.33% $16,767
    V.I.P. MORTGAGE, INC. 3 6.88% $11,945
    MORIA DEVELOPMENT, INC. 2 6.06% $16,603
    NATIONWIDE MORTGAGE BANKERS, INC. 2 7.13% $10,159
    CARDINAL FINANCIAL 2 6.75% $15,591
    BOND STREET MORTGAGE, LLC 2 6.56% $13,838
    FIRST COLONY MORTGAGE CORPORATION 2 6.13% $18,968
    Cornerstone First Mortgage, Inc 2 6.94% $12,261
    Wells Fargo Bank 2 6.44% $11,749
    MORTGAGE ACCESS CORP. 2 6.00% $8,835
    Plains Commerce Bank 2 7.19% $9,936
    LAKEVIEW LOAN SERVICING, LLC 2 6.50% $6,891
    The Loan Store, Inc. 2 5.62% $18,433
    FIRST ALLIANCE HOME MORTGAGE, LLC 2 6.63% $18,649
    FIDELITY DIRECT MORTGAGE, LLC 1 6.75% $15,025
    Truist 1 6.25% $6,599
    Bank of America 1 7.13% $9,095
    Northpointe Bank 1 6.13% $11,766
    NORWICH COMMERCIAL GROUP, INC. 1 7.25% $17,172
    OCEANSIDE MORTGAGE COMPANY 1 5.88% $6,422
    East Coast Capital Corp. 1 6.25% $14,816
    PENTAGON FEDERAL CREDIT UNION 1 5.75% $18,557
    Citizens Bank 1 6.00% $7,032
    CHURCHILL MORTGAGE CORPORATION 1 6.63% $9,132
    UNITED 1 6.13% $10,044
    Princeton Mortgage Corporation 1 6.63% $8,616
    RADIUS FINANCIAL GROUP INC. 1 7.25% $27,188
    BETTER MORTGAGE CORPORATION 1 4.88% $16,618
    AmeriHome Mortgage Company, LLC 1 6.99% $9,620
    SUN WEST MORTGAGE COMPANY, INC. 1 6.00% $24,615
    Bank of England 1 5.63% $9,060
    American Mortgage & Equity Consultants, Inc. 1 6.63% $11,853
    Advisors Mortgage Group, L.L.C. 1 6.13% $9,729
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.99% $17,266
    Home Mortgage Alliance Corp 1 6.25% $14,419
    INTERSTATE HOME LOAN CENTER, INC. 1 6.75% $17,729
    GSF Mortgage Corporation 1 7.13% $10,522
    JPMorgan Chase Bank 1 6.25% $16,743
    Gateway First Bank 1 5.63% $13,843
    LADERA LENDING, INC. 1 6.13% $12,209
    Lakeview Community Capital, LLC 1 6.75% $10,900
    LEGEND LENDING CORPORATION 1 6.63% $19,925
    LOANLEADERS OF AMERICA, INC. 1 7.13% $10,659
    Fulton Bank 1 5.63% $8,999
    Magnolia Bank 1 6.75% $14,673
    MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 6.25% $18,387
    MICHIGAN MUTUAL, INC. 1 6.63% $6,874
    MID AMERICA MORTGAGE, INC. 1 6.63% $31,562
    MLB RESIDENTIAL LENDING, LLC 1 6.75% $14,902
    TOWNE MORTGAGE COMPANY 1 6.75% $27,785
    Mortgage America, Inc. 1 7.38% $11,039
    Flagstar Bank, FSB 1 6.50% $24,006
    First Citizens Community Bank 1 6.13% $11,728
    M&T Bank 1 5.88% $7,971
    Nations Lending Corporation 1 7.25% $13,821

    The top East Stroudsburg FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 109 FHA loans originated. Their average total fees are $12,605, which is $1,626 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee East Stroudsburg FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC ($10,487), Prosperity Home Mortgage, LLC ($10,732), GUILD MORTGAGE COMPANY ($12,183), Century Mortgage Company DBA Century Lending Company ($12,599) and QUICKEN LOANS, LLC ($12,605).

    The lowest rate East Stroudsburg FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (6.06%), UNITED WHOLESALE MORTGAGE, LLC (6.16%), QUICKEN LOANS, LLC (6.25%), Prosperity Home Mortgage, LLC (6.26%) and FREEDOM MORTGAGE CORPORATION (6.40%).

    East Stroudsburg FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    EAST STROUDSBURG, PA MONROE 2022 $420,680 $538,650 $651,050 $809,150
    EAST STROUDSBURG, PA MONROE 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - East Stroudsburg (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 $159,928 (1.0%) $200,111 (3.9%) 0.59 1,448
    2018-02-01 $159,907 (0.1%) $201,246 (3.3%) 0.58 1,351
    2018-03-01 $163,700 (2.4%) $204,538 (2.7%) 0.57 1,338
    2018-04-01 $168,000 (1.9%) $206,632 (1.4%) 0.57 1,384
    2018-05-01 $169,100 (1.9%) $206,021 (0.4%) 0.56 1,506
    2018-06-01 $168,400 (-0.4%) $206,782 (1.1%) 0.56 1,607
    2018-07-01 $171,525 (1.5%) $209,909 (2.1%) 0.57 1,682
    2018-08-01 $171,375 (0.9%) $209,341 (1.8%) 0.57 1,719
    2018-09-01 $172,350 (1.7%) $211,525 (3.9%) 0.58 1,677
    2018-10-01 $176,450 (4.2%) $215,452 (5.2%) 0.60 1,601
    2018-11-01 $179,450 (7.5%) $215,614 (6.5%) 0.61 1,517
    2018-12-01 $175,000 (6.7%) $211,818 (5.1%) 0.60 1,399
    2019-01-01 $173,738 (8.6%) $208,110 (4.0%) 0.60 1,274
    2019-02-01 $177,000 (10.7%) $213,512 (6.1%) 0.60 1,227
    2019-03-01 $178,914 (9.3%) $215,877 (5.5%) 0.59 1,230
    2019-04-01 $178,914 (6.5%) $217,011 (5.0%) 0.57 1,293
    2019-05-01 $179,900 (6.4%) $218,911 (6.3%) 0.56 1,402
    2019-06-01 $179,900 (6.8%) $218,392 (5.6%) 0.56 1,578
    2019-07-01 $179,900 (4.9%) $216,663 (3.2%) 0.56 1,655
    2019-08-01 $181,337 (5.8%) $218,557 (4.4%) 0.57 1,664
    2019-09-01 $183,397 (6.4%) $218,237 (3.2%) 0.59 1,652
    2019-10-01 $185,450 (5.1%) $217,202 (0.8%) 0.60 1,622
    2019-11-01 $189,000 (5.3%) $223,439 (3.6%) 0.62 1,449
    2019-12-01 $185,450 (6.0%) $221,950 (4.8%) 0.62 1,290
    2020-01-01 $186,175 (7.2%) $224,759 (8.0%) 0.62 1,185
    2020-02-01 $189,900 (7.3%) $230,631 (8.0%) 0.62 1,105
    2020-03-01 $195,000 (9.0%) $232,634 (7.8%) 0.61 1,086
    2020-04-01 $199,000 (11.2%) $236,277 (8.9%) 0.62 1,010
    2020-05-01 $199,900 (11.1%) $237,040 (8.3%) 0.61 1,015
    2020-06-01 $211,500 (17.6%) $247,009 (13.1%) 0.62 965
    2020-07-01 $219,450 (22.0%) $257,046 (18.6%) 0.64 801
    2020-08-01 $225,000 (24.1%) $277,035 (26.8%) 0.64 679
    2020-09-01 $229,900 (25.4%) $290,371 (33.1%) 0.66 622
    2020-10-01 $239,999 (29.4%) $295,459 (36.0%) 0.69 600
    2020-11-01 $242,725 (28.4%) $299,841 (34.2%) 0.71 588
    2020-12-01 $252,246 (36.0%) $310,207 (39.8%) 0.75 549
    2021-01-01 $265,000 (42.3%) $336,217 (49.6%) 0.79 434
    2021-02-01 $279,000 (46.9%) $350,224 (51.9%) 0.81 368
    2021-03-01 $279,000 (43.1%) $349,556 (50.3%) 0.79 367
    2021-04-01 $279,450 (40.4%) $346,233 (46.5%) 0.76 414
    2021-05-01 $279,000 (39.6%) $334,593 (41.2%) 0.74 503
    2021-06-01 $279,950 (32.4%) $341,550 (38.3%) 0.74 577
    2021-07-01 $289,900 (32.1%) $355,055 (38.1%) 0.76 691
    2021-08-01 $289,900 (28.8%) $362,414 (30.8%) 0.77 739
    2021-09-01 $297,000 (29.2%) $373,819 (28.7%) 0.79 713
    2021-10-01 $295,000 (22.9%) $375,002 (26.9%) 0.79 666
    2021-11-01 $298,700 (23.1%) $376,147 (25.5%) 0.80 591
    2021-12-01 $299,900 (18.9%) $396,548 (27.8%) 0.81 491
    2022-01-01 $319,950 (20.7%) $415,145 (23.5%) 0.87 408
    2022-02-01 $324,975 (16.5%) $426,615 (21.8%) 0.85 348
    2022-03-01 $325,000 (16.5%) $416,897 (19.3%) 0.81 366
    2022-04-01 $335,000 (19.9%) $405,225 (17.0%) 0.80 438
    2022-05-01 $349,950 (25.4%) $402,600 (20.3%) 0.80 563
    2022-06-01 $349,900 (25.0%) $399,767 (17.1%) 0.78 690
    2022-07-01 $349,900 (20.7%) $406,466 (14.5%) 0.79 842
    2022-08-01 $349,900 (20.7%) $400,596 (10.5%) 0.81 846
    2022-09-01 $348,750 (17.4%) $398,663 (6.7%) 0.82 859
    2022-10-01 $348,000 (18.0%) $393,578 (5.0%) 0.82 833
    2022-11-01 $336,125 (12.5%) $399,085 (6.1%) 0.81 779
    2022-12-01 $330,000 (10.0%) $395,769 (-0.2%) 0.81 726
    2023-01-01 $329,950 (3.1%) $395,729 (-4.7%) 0.82 643
    2023-02-01 $330,000 (1.6%) $398,484 (-6.6%) 0.80 595
    2023-03-01 $342,250 (5.3%) $404,591 (-3.0%) 0.81 556
    2023-04-01 $350,000 (4.5%) $418,872 (3.4%) 0.81 577
    2023-05-01 $350,000 (0.0%) $423,140 (5.1%) 0.79 629
    2023-06-01 $355,000 (1.5%) $416,751 (4.3%) 0.80 698
    2023-07-01 $359,000 (2.6%) $413,882 (1.8%) 0.82 762
    2023-08-01 $359,498 (2.7%) $424,797 (6.0%) 0.83 776
    2023-09-01 $359,900 (3.2%) $424,013 (6.4%) 0.84 819
    2023-10-01 $355,000 (2.0%) $418,575 (6.4%) 0.84 829
    2023-11-01 $350,000 (4.1%) $417,793 (4.7%) 0.83 821
    2023-12-01 $350,000 (6.1%) $416,332 (5.2%) 0.85 765
    2024-01-01 $349,975 (6.1%) $412,851 (4.3%) 0.85 723
    2024-02-01 $349,900 (6.0%) $408,065 (2.4%) 0.84 693
    2024-03-01 $349,000 (2.0%) $399,814 (-1.2%) 0.82 662
    2024-04-01 $349,900 (0.0%) $401,727 (-4.1%) 0.81 748
    2024-05-01 $352,000 (0.6%) $409,565 (-3.2%) 0.80 816
    2024-06-01 $354,750 (-0.1%) $413,531 (-0.8%) 0.81 918
    2024-07-01 $350,000 (-2.5%) $417,286 (0.8%) 0.80 1,014
    2024-08-01 $355,000 (-1.3%) $419,962 (-1.1%) 0.83 1,023
    2024-09-01 $359,900 (0.0%) $416,808 (-1.7%) 0.85 1,012
    2024-10-01 $360,000 (1.4%) $415,783 (-0.7%) 0.85 1,022
    2024-11-01 $359,900 (2.8%) $417,440 (-0.1%) 0.86 914
    2024-12-01 $357,000 (2.0%) $422,738 (1.5%) 0.89 841
    2025-01-01 $352,450 (0.7%) $422,915 (2.4%) 0.88 767
    2025-02-01 $350,500 (0.2%) $422,926 (3.6%) 0.85 747
    2025-03-01 $355,000 (1.7%) $420,430 (5.2%) 0.00 743
    East Stroudsburg's median listing price for 2025-03-01 was $355,000, a difference of $6,000 (1.7%) versus the prior year and $4,500 versus the prior month.

    East Stroudsburg's median listing price comes in at 0% of the national average.

    East Stroudsburg's average listing price for 2025-03-01 was $420,430, a difference of $20,616 (5.2%) versus the prior year and $-2,496 versus the prior month.

    For the 2025-03-01 period, East Stroudsburg had 743 MLS listings, a difference of -4 listings (-1%) versus the prior month and 81 listings (12%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - East Stroudsburg (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 106 days 1,801 sqft
    2018-02-01 109 days 1,792 sqft
    2018-03-01 100 days 1,789 sqft
    2018-04-01 76 days 1,820 sqft
    2018-05-01 62 days 1,828 sqft
    2018-06-01 66 days 1,820 sqft
    2018-07-01 67 days 1,825 sqft
    2018-08-01 72 days 1,820 sqft
    2018-09-01 83 days 1,836 sqft
    2018-10-01 92 days 1,848 sqft
    2018-11-01 95 days 1,860 sqft
    2018-12-01 105 days 1,838 sqft
    2019-01-01 106 days 1,809 sqft
    2019-02-01 109 days 1,831 sqft
    2019-03-01 94 days 1,835 sqft
    2019-04-01 72 days 1,845 sqft
    2019-05-01 64 days 1,880 sqft
    2019-06-01 61 days 1,875 sqft
    2019-07-01 68 days 1,883 sqft
    2019-08-01 75 days 1,893 sqft
    2019-09-01 82 days 1,897 sqft
    2019-10-01 88 days 1,900 sqft
    2019-11-01 92 days 1,896 sqft
    2019-12-01 100 days 1,874 sqft
    2020-01-01 107 days 1,879 sqft
    2020-02-01 110 days 1,884 sqft
    2020-03-01 91 days 1,889 sqft
    2020-04-01 100 days 1,900 sqft
    2020-05-01 109 days 1,900 sqft
    2020-06-01 100 days 1,940 sqft
    2020-07-01 66 days 1,943 sqft
    2020-08-01 64 days 1,973 sqft
    2020-09-01 54 days 2,017 sqft
    2020-10-01 51 days 1,928 sqft
    2020-11-01 53 days 1,903 sqft
    2020-12-01 68 days 1,950 sqft
    2021-01-01 82 days 2,002 sqft
    2021-02-01 79 days 2,040 sqft
    2021-03-01 65 days 2,016 sqft
    2021-04-01 40 days 1,966 sqft
    2021-05-01 32 days 1,933 sqft
    2021-06-01 39 days 1,919 sqft
    2021-07-01 37 days 1,912 sqft
    2021-08-01 45 days 1,992 sqft
    2021-09-01 52 days 1,981 sqft
    2021-10-01 64 days 1,932 sqft
    2021-11-01 73 days 1,948 sqft
    2021-12-01 89 days 1,924 sqft
    2022-01-01 85 days 1,996 sqft
    2022-02-01 73 days 1,968 sqft
    2022-03-01 39 days 1,955 sqft
    2022-04-01 33 days 1,920 sqft
    2022-05-01 32 days 1,910 sqft
    2022-06-01 35 days 1,967 sqft
    2022-07-01 39 days 1,962 sqft
    2022-08-01 49 days 1,960 sqft
    2022-09-01 58 days 1,960 sqft
    2022-10-01 64 days 1,972 sqft
    2022-11-01 70 days 1,974 sqft
    2022-12-01 80 days 1,972 sqft
    2023-01-01 79 days 1,926 sqft
    2023-02-01 72 days 1,872 sqft
    2023-03-01 62 days 1,882 sqft
    2023-04-01 55 days 1,905 sqft
    2023-05-01 48 days 1,865 sqft
    2023-06-01 49 days 1,871 sqft
    2023-07-01 50 days 1,901 sqft
    2023-08-01 54 days 1,934 sqft
    2023-09-01 57 days 1,950 sqft
    2023-10-01 58 days 1,930 sqft
    2023-11-01 62 days 1,924 sqft
    2023-12-01 74 days 1,920 sqft
    2024-01-01 79 days 1,908 sqft
    2024-02-01 74 days 1,902 sqft
    2024-03-01 64 days 1,873 sqft
    2024-04-01 54 days 1,912 sqft
    2024-05-01 51 days 1,925 sqft
    2024-06-01 51 days 1,955 sqft
    2024-07-01 54 days 1,930 sqft
    2024-08-01 60 days 1,944 sqft
    2024-09-01 67 days 1,929 sqft
    2024-10-01 70 days 1,924 sqft
    2024-11-01 72 days 1,897 sqft
    2024-12-01 84 days 1,897 sqft
    2025-01-01 88 days 1,839 sqft
    2025-02-01 86 days 1,813 sqft
    2025-03-01 0 days 1,800 sqft
    East Stroudsburg'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.

    East Stroudsburg's median square footage for active listings during the 2025-03-01 period was 1,800 sqft. One year prior, the average listing was 1,873 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).