El Paso FHA Loan Rates, Closing Costs & Stats

EL PASO, TX

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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.

    El Paso's 105 lenders originated 2,911 FHA loans during 2024. The total origination value was $788,535,000, with an average FHA loan value of $270,881.

    El Paso FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in El Paso averaged 6.4% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

    El Paso's average FHA mortgage closing costs are $7,938.

    The average rate for the prior week (2025-03-28) was 6.19% and one month ago for the week of 2025-02-28, the average rate was 6.08%.

    The average rate one year ago was 6.6%.

    For refis of the same type during the week of 2025-04-04, the average rate was 6%.

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

    El Paso 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 El Paso level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    Commerce Home Mortgage, Inc. 332 6.42% $12,212
    UNITED WHOLESALE MORTGAGE, LLC 246 6.15% $12,453
    Rocky Mountain Mortgage Company 215 5.91% $6,874
    CMG MORTGAGE, INC. 178 6.27% $13,221
    First National Bank Texas 171 6.14% $9,834
    PATRIOT MORTGAGE COMPANY 154 5.71% $12,388
    CADENCE LENDING GROUP, INC. 147 6.20% $14,426
    LOANPEOPLE, LLC 146 6.58% $14,362
    MOVEMENT MORTGAGE, LLC 90 6.46% $12,348
    AMERICAN PACIFIC MORTGAGE CORPORATION 77 6.19% $14,224
    CROSSCOUNTRY MORTGAGE, LLC 76 5.38% $13,059
    CARDINAL FINANCIAL 60 6.33% $14,271
    QUICKEN LOANS, LLC 60 6.31% $12,640
    Sunflower Bank 59 5.99% $13,258
    SECURITYNATIONAL MORTGAGE COMPANY 45 6.78% $11,363
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 43 6.70% $9,307
    BROKER SOLUTIONS, INC. 41 7.00% $11,057
    THE MORTGAGE LINK, INC. 41 6.67% $16,095
    Flagstar Bank, FSB 41 6.58% $8,888
    GUILD MORTGAGE COMPANY 31 6.85% $8,513
    Century Mortgage Company DBA Century Lending Company 29 6.29% $11,104
    Plains Commerce Bank 24 6.43% $11,709
    FREEDOM MORTGAGE CORPORATION 21 6.33% $8,709
    MORTGAGE FINANCIAL SERVICES, LLC 20 6.58% $10,665
    EUSTIS AND AMERICAN MORTGAGE COMPANY 19 6.45% $8,534
    City Bank 17 6.35% $13,300
    WILLOW BEND MORTGAGE COMPANY, LLC 15 6.43% $11,698
    Sierra Pacific Mortgage Company, Inc. 14 6.10% $14,558
    SOUTHWEST FUNDING, LP 14 7.18% $9,600
    GENEVA FINANCIAL, LLC 14 6.64% $12,708
    Equity Prime Mortgage LLC 14 6.80% $10,191
    SUMMIT FUNDING, INC. 14 6.76% $11,266
    Waterstone Mortgage Corporation 14 6.94% $12,267
    First Option Mortgage, LLC 12 6.46% $12,869
    Paramount Residential Mortgage Group, Inc. 11 6.62% $11,593
    SUN WEST MORTGAGE COMPANY, INC. 10 6.59% $11,712
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 10 6.78% $10,801
    CANOPY MORTGAGE, LLC 9 6.15% $16,625
    VILLAGE CAPITAL MORTGAGE 8 6.45% $5,613
    AmeriHome Mortgage Company, LLC 8 6.53% $7,010
    PLAZA HOME MORTGAGE, INC. 8 6.38% $10,681
    PLANET HOME LENDING, LLC 8 6.22% $6,208
    DIRECTIONS EQUITY, LLC 7 5.93% $8,302
    MID AMERICA MORTGAGE, INC. 7 7.32% $5,348
    PENNYMAC LOAN SERVICES, LLC 7 5.75% $9,681
    SeaTrust Mortgage Company 7 6.73% $10,024
    AMERICAN FINANCIAL NETWORK, INC. 7 7.30% $13,425
    LOANDEPOT.COM, LLC 6 6.90% $12,077
    GUARANTEED RATE, INC. 6 6.54% $10,088
    HOMEBRIDGE FINANCIAL SERVICES, INC. 6 6.73% $9,959
    NEWREZ LLC 5 6.12% $9,970
    CASTLE & COOKE MORTGAGE, LLC 5 6.12% $12,739
    Mortgage Research Center, LLC 5 6.58% $9,797
    Network Funding, L.P. 5 6.70% $13,654
    UNION HOME MORTGAGE CORP. 5 6.55% $15,180
    The Loan Store, Inc. 4 6.34% $9,508
    US MORTGAGE CORPORATION 4 6.81% $10,301
    TOWNE MORTGAGE COMPANY 4 6.34% $6,742
    CITY FIRST MORTGAGE SERVICES, L.L.C. 3 6.46% $9,462
    V.I.P. MORTGAGE, INC. 3 6.25% $10,443
    OCMBC, INC. 3 6.54% $15,297
    Princeton Mortgage Corporation 3 6.46% $11,995
    FirstLight Federal Credit Union 2 5.63% $6,911
    EVERETT FINANCIAL, INC. 2 6.75% $11,774
    American National Bank & Trust 2 6.31% $8,169
    Lakeview Community Capital, LLC 2 6.69% $7,619
    Citizens Bank of Las Cruces 2 5.81% $16,102
    MUTUAL OF OMAHA MORTGAGE, INC. 2 6.25% $7,963
    CALCON MUTUAL MORTGAGE LLC 2 7.69% $12,730
    BOKF 2 6.88% $11,564
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 6.00% $10,190
    GARDNER FINANCIAL SERVICES, LTD. 2 7.81% $10,926
    NBKC BANK 2 5.75% $9,188
    S1L, Inc. 1 5.75% $11,711
    Encompass Lending Group, LP 1 6.75% $9,574
    Strong Home Mortgage, LLC 1 5.75% $9,367
    Carrington Mortgage Services, LLC 1 6.13% $15,206
    SWBC MORTGAGE CORPORATION 1 7.00% $9,364
    BM Real Estate Services, Inc. 1 7.00% $12,229
    Town Square Mortgage & Investments, Inc. 1 7.13% $7,083
    ZILLOW HOME LOANS, LLC 1 6.13% $7,765
    BETTER MORTGAGE CORPORATION 1 6.38% $8,231
    U.S. Bank 1 6.63% $9,467
    BAY EQUITY LLC 1 7.63% $12,877
    Loan Simple, Inc. 1 6.50% $11,276
    LOANPAL, LLC 1 4.99% $22,023
    LAKEVIEW LOAN SERVICING, LLC 1 6.25% $8,714
    MLB RESIDENTIAL LENDING, LLC 1 8.25% $9,230
    AXIA FINANCIAL, LLC 1 6.75% $15,655
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.25% $22,359
    Mr. Cooper ( Nationstar Mortgage ) 1 6.63% $9,081
    NATIONS RELIABLE LENDING, LLC 1 7.13% $10,671
    NBH Bank 1 7.63% $8,902
    JPMorgan Chase Bank 1 7.25% $7,738
    NFM, INC. 1 7.38% $9,540
    NOVA FINANCIAL & INVESTMENT CORPORATION 1 7.25% $7,573
    OPEN MORTGAGE, LLC 1 7.38% $11,451
    PACIFIC RESIDENTIAL MORTGAGE, LLC 1 6.63% $8,707
    Ixonia Bank 1 7.13% $14,387
    INTERLINC MORTGAGE SERVICES, LLC 1 6.50% $7,127
    INTELLILOAN, INC. 1 6.88% $7,591
    HOMEXPRESS MORTGAGE CORP. 1 6.99% $7,955
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 7.38% $13,182
    GUARANTEED RATE AFFINITY, LLC 1 6.25% $8,862
    RB MORTGAGE LLC 1 5.50% $13,127

    The top El Paso FHA lender as defined by loan originations is Commerce Home Mortgage, Inc., with 332 FHA loans originated. Their average total fees are $12,212, which is $241 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee El Paso FHA lenders (with over 10 loans originated) are Rocky Mountain Mortgage Company ($6,874), GUILD MORTGAGE COMPANY ($8,513), EUSTIS AND AMERICAN MORTGAGE COMPANY ($8,534), FREEDOM MORTGAGE CORPORATION ($8,709) and Flagstar Bank, FSB ($8,888).

    The lowest rate El Paso FHA lenders (with over 10 loans originated) are CROSSCOUNTRY MORTGAGE, LLC (5.38%), PATRIOT MORTGAGE COMPANY (5.71%), Rocky Mountain Mortgage Company (5.91%), Sunflower Bank (5.99%) and Sierra Pacific Mortgage Company, Inc. (6.10%).

    El Paso FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    EL PASO, TX EL PASO 2022 $420,680 $538,650 $651,050 $809,150
    EL PASO, TX HUDSPETH 2022 $420,680 $538,650 $651,050 $809,150
    EL PASO, TX EL PASO 2023 $472,030 $604,400 $730,525 $907,900
    EL PASO, TX HUDSPETH 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - El Paso (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 $167,950 (2.2%) $197,104 (-3.2%) 0.62 3,504
    2018-02-01 $168,238 (2.0%) $196,696 (-3.7%) 0.61 3,530
    2018-03-01 $169,800 (2.3%) $198,811 (-3.0%) 0.60 3,448
    2018-04-01 $172,225 (3.8%) $200,820 (-3.6%) 0.58 3,258
    2018-05-01 $173,823 (4.1%) $201,283 (-3.3%) 0.58 3,213
    2018-06-01 $175,000 (4.2%) $203,373 (-4.6%) 0.58 3,162
    2018-07-01 $176,663 (5.2%) $205,447 (-3.6%) 0.59 3,158
    2018-08-01 $177,250 (5.5%) $204,237 (-3.5%) 0.59 3,067
    2018-09-01 $177,450 (5.7%) $203,739 (-3.9%) 0.60 3,076
    2018-10-01 $176,975 (5.5%) $202,715 (-3.2%) 0.60 3,189
    2018-11-01 $178,475 (6.0%) $203,765 (-3.3%) 0.61 3,145
    2018-12-01 $179,900 (6.8%) $206,749 (4.5%) 0.62 2,988
    2019-01-01 $183,725 (9.4%) $208,978 (6.0%) 0.63 2,797
    2019-02-01 $184,975 (10.0%) $210,193 (6.9%) 0.62 2,784
    2019-03-01 $187,629 (10.5%) $214,423 (7.9%) 0.61 2,692
    2019-04-01 $189,925 (10.3%) $218,823 (9.0%) 0.60 2,621
    2019-05-01 $191,475 (10.2%) $222,261 (10.4%) 0.60 2,623
    2019-06-01 $191,950 (9.7%) $222,354 (9.3%) 0.60 2,598
    2019-07-01 $191,450 (8.4%) $222,094 (8.1%) 0.60 2,654
    2019-08-01 $191,727 (8.2%) $223,539 (9.5%) 0.61 2,638
    2019-09-01 $190,755 (7.5%) $224,757 (10.3%) 0.61 2,611
    2019-10-01 $190,583 (7.7%) $226,490 (11.7%) 0.61 2,594
    2019-11-01 $195,000 (9.3%) $228,928 (12.4%) 0.64 2,576
    2019-12-01 $193,450 (7.5%) $226,399 (9.5%) 0.65 2,442
    2020-01-01 $192,950 (5.0%) $226,825 (8.5%) 0.64 2,381
    2020-02-01 $192,950 (4.3%) $228,575 (8.8%) 0.63 2,408
    2020-03-01 $195,975 (4.5%) $230,152 (7.3%) 0.61 2,308
    2020-04-01 $193,950 (2.1%) $228,213 (4.3%) 0.61 2,249
    2020-05-01 $202,950 (6.0%) $233,740 (5.2%) 0.62 1,944
    2020-06-01 $210,470 (9.7%) $243,421 (9.5%) 0.62 1,598
    2020-07-01 $217,088 (13.4%) $245,834 (10.7%) 0.63 1,458
    2020-08-01 $216,066 (12.7%) $248,534 (11.2%) 0.62 1,478
    2020-09-01 $215,700 (13.1%) $251,572 (11.9%) 0.62 1,413
    2020-10-01 $225,950 (18.6%) $256,073 (13.1%) 0.65 1,413
    2020-11-01 $232,100 (19.0%) $262,264 (14.6%) 0.68 1,340
    2020-12-01 $228,107 (17.9%) $261,980 (15.7%) 0.68 1,353
    2021-01-01 $230,000 (19.2%) $267,421 (17.9%) 0.69 1,265
    2021-02-01 $230,462 (19.4%) $269,435 (17.9%) 0.67 1,188
    2021-03-01 $234,975 (19.9%) $267,420 (16.2%) 0.67 1,148
    2021-04-01 $237,611 (22.5%) $268,856 (17.8%) 0.64 1,073
    2021-05-01 $245,000 (20.7%) $277,518 (18.7%) 0.65 1,027
    2021-06-01 $248,950 (18.3%) $287,782 (18.2%) 0.66 1,016
    2021-07-01 $249,900 (15.1%) $285,176 (16.0%) 0.66 1,061
    2021-08-01 $247,950 (14.8%) $284,989 (14.7%) 0.66 1,122
    2021-09-01 $247,950 (15.0%) $286,008 (13.7%) 0.66 1,098
    2021-10-01 $250,000 (10.6%) $292,552 (14.3%) 0.67 1,161
    2021-11-01 $253,588 (9.3%) $293,015 (11.7%) 0.68 1,104
    2021-12-01 $255,950 (12.2%) $300,425 (14.7%) 0.69 1,022
    2022-01-01 $261,500 (13.7%) $306,624 (14.7%) 0.71 911
    2022-02-01 $267,656 (16.1%) $310,205 (15.1%) 0.70 881
    2022-03-01 $275,000 (17.0%) $317,585 (18.8%) 0.69 870
    2022-04-01 $280,000 (17.8%) $320,751 (19.3%) 0.67 931
    2022-05-01 $282,600 (15.4%) $329,216 (18.6%) 0.65 1,014
    2022-06-01 $281,600 (13.1%) $332,242 (15.5%) 0.63 1,171
    2022-07-01 $284,950 (14.0%) $333,165 (16.8%) 0.64 1,498
    2022-08-01 $285,475 (15.1%) $329,146 (15.5%) 0.66 1,538
    2022-09-01 $291,225 (17.5%) $334,289 (16.9%) 0.68 1,576
    2022-10-01 $291,725 (16.7%) $333,290 (13.9%) 0.69 1,840
    2022-11-01 $290,975 (14.7%) $328,828 (12.2%) 0.70 1,890
    2022-12-01 $291,250 (13.8%) $329,155 (9.6%) 0.72 1,884
    2023-01-01 $293,475 (12.2%) $333,079 (8.6%) 0.73 1,876
    2023-02-01 $296,963 (11.0%) $336,693 (8.5%) 0.72 1,826
    2023-03-01 $298,651 (8.6%) $342,427 (7.8%) 0.70 1,819
    2023-04-01 $300,030 (7.2%) $350,990 (9.4%) 0.70 1,661
    2023-05-01 $310,000 (9.7%) $355,655 (8.0%) 0.70 1,741
    2023-06-01 $303,888 (7.9%) $352,426 (6.1%) 0.68 1,951
    2023-07-01 $304,800 (7.0%) $352,411 (5.8%) 0.69 2,110
    2023-08-01 $300,950 (5.4%) $352,712 (7.2%) 0.69 2,187
    2023-09-01 $299,500 (2.8%) $352,175 (5.4%) 0.70 2,253
    2023-10-01 $294,950 (1.1%) $348,420 (4.5%) 0.69 2,414
    2023-11-01 $294,213 (1.1%) $345,927 (5.2%) 0.70 2,501
    2023-12-01 $295,000 (1.3%) $344,035 (4.5%) 0.72 2,330
    2024-01-01 $295,000 (0.5%) $339,830 (2.0%) 0.72 2,303
    2024-02-01 $298,570 (0.5%) $340,766 (1.2%) 0.72 2,435
    2024-03-01 $299,500 (0.3%) $345,633 (0.9%) 0.70 2,449
    2024-04-01 $300,125 (0.0%) $350,940 (0.0%) 0.70 2,462
    2024-05-01 $299,950 (-3.2%) $350,782 (-1.4%) 0.68 2,544
    2024-06-01 $299,950 (-1.3%) $352,414 (0.0%) 0.68 2,638
    2024-07-01 $299,995 (-1.6%) $351,920 (-0.1%) 0.69 2,604
    2024-08-01 $299,995 (-0.3%) $351,649 (-0.3%) 0.70 2,552
    2024-09-01 $298,125 (-0.5%) $349,048 (-0.9%) 0.70 2,555
    2024-10-01 $295,000 (0.0%) $344,743 (-1.1%) 0.69 2,696
    2024-11-01 $294,975 (0.3%) $343,630 (-0.7%) 0.71 2,695
    2024-12-01 $293,950 (-0.4%) $343,202 (-0.2%) 0.73 2,565
    2025-01-01 $293,950 (-0.4%) $340,882 (0.3%) 0.73 2,453
    2025-02-01 $291,450 (-2.4%) $339,116 (-0.5%) 0.71 2,626
    2025-03-01 $294,950 (-1.5%) $336,970 (-2.5%) 0.00 2,721
    El Paso's median listing price for 2025-03-01 was $294,950, a difference of $-4,550 (-1.5%) versus the prior year and $3,500 versus the prior month.

    El Paso's median listing price comes in at 0% of the national average.

    El Paso's average listing price for 2025-03-01 was $336,970, a difference of $-8,663 (-2.5%) versus the prior year and $-2,146 versus the prior month.

    For the 2025-03-01 period, El Paso had 2,721 MLS listings, a difference of 95 listings (4%) versus the prior month and 272 listings (11%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - El Paso (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 97 days 1,800 sqft
    2018-02-01 100 days 1,800 sqft
    2018-03-01 86 days 1,804 sqft
    2018-04-01 79 days 1,824 sqft
    2018-05-01 79 days 1,824 sqft
    2018-06-01 80 days 1,844 sqft
    2018-07-01 78 days 1,848 sqft
    2018-08-01 71 days 1,861 sqft
    2018-09-01 71 days 1,862 sqft
    2018-10-01 66 days 1,858 sqft
    2018-11-01 70 days 1,857 sqft
    2018-12-01 73 days 1,856 sqft
    2019-01-01 83 days 1,840 sqft
    2019-02-01 74 days 1,841 sqft
    2019-03-01 69 days 1,869 sqft
    2019-04-01 67 days 1,888 sqft
    2019-05-01 65 days 1,905 sqft
    2019-06-01 64 days 1,913 sqft
    2019-07-01 58 days 1,899 sqft
    2019-08-01 60 days 1,908 sqft
    2019-09-01 65 days 1,899 sqft
    2019-10-01 67 days 1,900 sqft
    2019-11-01 72 days 1,913 sqft
    2019-12-01 79 days 1,892 sqft
    2020-01-01 81 days 1,886 sqft
    2020-02-01 70 days 1,874 sqft
    2020-03-01 66 days 1,884 sqft
    2020-04-01 76 days 1,855 sqft
    2020-05-01 83 days 1,892 sqft
    2020-06-01 76 days 1,903 sqft
    2020-07-01 66 days 1,936 sqft
    2020-08-01 57 days 1,952 sqft
    2020-09-01 46 days 1,909 sqft
    2020-10-01 54 days 1,937 sqft
    2020-11-01 65 days 1,967 sqft
    2020-12-01 68 days 1,954 sqft
    2021-01-01 67 days 1,954 sqft
    2021-02-01 50 days 1,916 sqft
    2021-03-01 50 days 1,925 sqft
    2021-04-01 56 days 1,913 sqft
    2021-05-01 44 days 1,987 sqft
    2021-06-01 42 days 1,987 sqft
    2021-07-01 43 days 1,975 sqft
    2021-08-01 38 days 1,932 sqft
    2021-09-01 44 days 1,937 sqft
    2021-10-01 45 days 1,960 sqft
    2021-11-01 52 days 1,964 sqft
    2021-12-01 65 days 1,959 sqft
    2022-01-01 55 days 1,945 sqft
    2022-02-01 33 days 1,935 sqft
    2022-03-01 36 days 1,907 sqft
    2022-04-01 37 days 1,937 sqft
    2022-05-01 30 days 1,938 sqft
    2022-06-01 34 days 1,930 sqft
    2022-07-01 32 days 1,930 sqft
    2022-08-01 48 days 1,930 sqft
    2022-09-01 52 days 1,941 sqft
    2022-10-01 52 days 1,954 sqft
    2022-11-01 60 days 1,941 sqft
    2022-12-01 68 days 1,941 sqft
    2023-01-01 73 days 1,935 sqft
    2023-02-01 68 days 1,938 sqft
    2023-03-01 60 days 1,930 sqft
    2023-04-01 54 days 1,941 sqft
    2023-05-01 50 days 1,950 sqft
    2023-06-01 53 days 1,941 sqft
    2023-07-01 57 days 1,953 sqft
    2023-08-01 63 days 1,953 sqft
    2023-09-01 64 days 1,941 sqft
    2023-10-01 61 days 1,914 sqft
    2023-11-01 65 days 1,899 sqft
    2023-12-01 74 days 1,896 sqft
    2024-01-01 76 days 1,878 sqft
    2024-02-01 67 days 1,884 sqft
    2024-03-01 58 days 1,899 sqft
    2024-04-01 57 days 1,894 sqft
    2024-05-01 54 days 1,874 sqft
    2024-06-01 59 days 1,868 sqft
    2024-07-01 66 days 1,876 sqft
    2024-08-01 71 days 1,873 sqft
    2024-09-01 69 days 1,873 sqft
    2024-10-01 62 days 1,854 sqft
    2024-11-01 64 days 1,843 sqft
    2024-12-01 76 days 1,841 sqft
    2025-01-01 81 days 1,838 sqft
    2025-02-01 67 days 1,830 sqft
    2025-03-01 0 days 1,833 sqft
    El Paso'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.

    El Paso's median square footage for active listings during the 2025-03-01 period was 1,833 sqft. One year prior, the average listing was 1,899 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).