Fayetteville FHA Loan Rates, Closing Costs & Stats

FAYETTEVILLE-SPRINGDALE-ROGERS, AR

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.

Fayetteville's 135 lenders originated 1,700 FHA loans during 2023. The total origination value was $460,690,000, with an average FHA loan value of $270,994.

Fayetteville FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Fayetteville averaged 6.7% for the week of 2024-06-14, compared to the national average (all FHA variants) of 6.712% for the same period.

Fayetteville's average FHA mortgage closing costs are $7,044.

The average rate for the prior week (2024-06-07) was 6.69% and one month ago for the week of 2024-05-10, the average rate was 6.67%.

The average rate one year ago was 6.33%.

For refis of the same type during the week of 2024-06-14, the average rate was 6.66%.

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

Fayetteville 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 Fayetteville level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 185 6.19% $11,450
FLAT BRANCH MORTGAGE, INC. 160 6.58% $9,929
Priority Bank 158 6.31% $8,393
Arvest Bank 105 6.39% $8,684
DHI MORTGAGE COMPANY, LTD. 76 6.06% $7,972
GENEVA FINANCIAL, LLC 53 6.86% $12,394
Centennial Bank 45 6.30% $10,701
Gateway First Bank 37 6.59% $10,342
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 36 6.80% $10,546
GERSHMAN INVESTMENT CORP. 35 6.08% $9,508
UNITED WHOLESALE MORTGAGE, LLC 34 6.53% $11,155
OPEN MORTGAGE, LLC 25 6.55% $11,898
LOANDEPOT.COM, LLC 23 6.11% $11,072
FREEDOM MORTGAGE CORPORATION 23 6.93% $14,469
BROKER SOLUTIONS, INC. 23 6.62% $11,700
EVERETT FINANCIAL, INC. 22 6.76% $10,353
AMERISAVE MORTGAGE CORPORATION 21 5.96% $15,079
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 21 6.79% $12,038
ZILLOW HOME LOANS, LLC 20 6.05% $12,484
PENNYMAC LOAN SERVICES, LLC 20 6.14% $12,267
Mr. Cooper ( Nationstar Mortgage ) 19 6.08% $15,913
Regions Bank 19 6.38% $9,323
Eagle Bank and Trust Company 16 6.29% $9,501
S1L, Inc. 14 6.11% $10,724
ASSOCIATED MORTGAGE CORPORATION 14 6.71% $11,266
ENCORE BANK 14 6.54% $9,466
CROSSCOUNTRY MORTGAGE, LLC 13 6.86% $11,088
The Central Trust Bank 13 6.94% $8,145
Bank of England 12 6.44% $7,494
BOKF 12 6.61% $10,073
First Financial Bank 11 6.40% $11,748
Plains Commerce Bank 11 6.15% $10,638
Firstar Bank 11 6.24% $8,983
UNITED 10 6.90% $10,967
MUTUAL OF OMAHA MORTGAGE, INC. 9 6.51% $14,701
ENDEAVOR CAPITAL, LLC. 9 6.50% $8,750
Carrington Mortgage Services, LLC 9 6.25% $11,041
CORNERSTONE HOME LENDING, INC. 9 6.38% $10,679
LEADERONE FINANCIAL CORPORATION 8 6.66% $12,104
NEWREZ LLC 7 6.79% $10,141
First Horizon Bank 7 6.70% $8,217
MID AMERICA MORTGAGE, INC. 6 6.92% $6,923
VERITAS FUNDING, LLC 6 6.85% $17,708
Network Funding, L.P. 6 6.98% $10,320
FirstTrust Home Loans, Inc. 6 6.71% $10,208
GMFS LLC 6 6.63% $8,240
COMMUNITY MORTGAGE CORPORATION 5 6.52% $9,247
Citizens Bank 5 6.15% $9,144
FIRST WESTERN MORTGAGE, INC. 5 6.28% $6,317
LAKEVIEW LOAN SERVICING, LLC 5 5.95% $12,462
PENTAGON FEDERAL CREDIT UNION 5 5.45% $11,161
GUARANTEED RATE, INC. 5 6.68% $12,994
LOANPAL, LLC 5 6.05% $10,240
BancorpSouth 4 6.03% $8,801
Paramount Residential Mortgage Group, Inc. 4 7.03% $9,047
Bank of America 4 5.97% $7,172
CARDINAL FINANCIAL 4 6.50% $9,565
TOP FLITE FINANCIAL, INC. 4 7.06% $12,482
DAS Acquisition Company, LLC 4 6.72% $11,617
Sierra Pacific Mortgage Company, Inc. 4 6.63% $12,302
RELIANCE FIRST CAPITAL, LLC 4 6.53% $11,172
First Security Bank 4 6.00% $9,330
Flagstar Bank, FSB 4 6.44% $8,877
HOMESIDE FINANCIAL, LLC 4 6.65% $14,217
AmeriHome Mortgage Company, LLC 4 6.41% $11,742
Mortgage Research Center, LLC 4 6.97% $7,095
First Community Bank 3 5.96% $16,076
PLAZA HOME MORTGAGE, INC. 3 6.42% $9,820
FIRST COLONY MORTGAGE CORPORATION 3 5.75% $13,439
Simmons Bank 3 6.46% $8,551
The Federal Savings Bank 3 6.29% $15,531
The First National Bank of Fort Smith 3 6.38% $10,996
TOWNE MORTGAGE COMPANY 3 6.79% $9,815
AMERICAN FINANCING CORPORATION 3 6.54% $10,833
Wells Fargo Bank 3 6.71% $10,178
PLANET HOME LENDING, LLC 3 5.63% $8,261
NBKC BANK 3 6.54% $8,011
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.75% $15,137
United Fidelity Funding Corp. 3 6.54% $12,716
Chambers Bank 3 6.33% $8,950
Century Mortgage Company DBA Century Lending Company 3 6.29% $19,367
HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.38% $9,471
BANK OF LITTLE ROCK MORTGAGE CORPORATION 3 6.00% $8,531
GUILD MORTGAGE COMPANY 3 7.08% $9,810
AMERICAN FINANCIAL NETWORK, INC. 2 6.13% $11,416
AMERICAN FINANCIAL RESOURCES, INC. 2 6.00% $16,447
Midwest Mortgage Associates Corporation 2 6.38% $5,898
Mortgage Assurance Inc. 2 5.63% $13,287
MOVEMENT MORTGAGE, LLC 2 6.50% $11,954
Nations Lending Corporation 2 7.44% $7,647
ON Q FINANCIAL, INC. 2 7.19% $10,043
PHH Mortgage Corporation 2 5.56% $11,688
POLARIS HOME FUNDING CORP. 2 6.81% $22,864
PRIMELENDING, A PLAINSCAPITAL COMPANY 2 7.25% $16,479
RESIDENTIAL BANCORP 2 6.13% $19,036
SOUTHWEST STAGE FUNDING, LLC 2 6.25% $16,374
SUN WEST MORTGAGE COMPANY, INC. 2 6.06% $12,286
U.S. Bank 2 6.75% $11,136
VILLAGE CAPITAL MORTGAGE 2 6.38% $13,748
Lakeview Community Capital, LLC 1 6.25% $11,886
US MORTGAGE CORPORATION 1 5.88% $8,543
PREMIA MORTGAGE, LLC 1 6.63% $7,751
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 7.75% $12,762
Assurance Financial Group, L.L.C. 1 7.25% $8,984
JPMorgan Chase Bank 1 6.50% $8,621
Intrust Bank 1 6.00% $5,286
Great Southern Bank 1 6.75% $4,544
First Savings Bank 1 5.25% $14,761
ARC HOME LLC 1 6.13% $10,225
ROYAL UNITED MORTGAGE LLC 1 5.75% $14,106
RUOFF MORTGAGE COMPANY, INC. 1 7.25% $5,011
First Federal Bank 1 6.00% $11,471
SENTE MORTGAGE, INC. 1 6.63% $7,429
EUSTIS AND AMERICAN MORTGAGE COMPANY 1 6.25% $9,463
Equity Bank 1 6.75% $7,550
Waterstone Mortgage Corporation 1 6.63% $14,975
Sunflower Bank 1 5.99% $13,489
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.00% $11,397
SWBC MORTGAGE CORPORATION 1 7.25% $11,253
EMM LOANS LLC 1 5.75% $20,598
Cornerstone First Mortgage, Inc 1 5.75% $10,131
Community First National Bank 1 6.50% $15,624
Commerce Home Mortgage, Inc. 1 6.50% $15,279
Colonial Savings, F.A. 1 6.88% $17,199
CHURCHILL MORTGAGE CORPORATION 1 7.13% $16,209
Chickasaw Community Bank 1 7.13% $8,740
OCEANSIDE MORTGAGE COMPANY 1 6.00% $7,627
CANOPY MORTGAGE, LLC 1 6.50% $18,637
North American Savings Bank, F.S.B. 1 6.75% $785
NFM, INC. 1 6.63% $15,287
NexBank 1 5.50% $9,625
Neighborhood Loans, Inc. 1 6.63% $10,086
Wyndham Capital Mortgage, Inc. 1 6.50% $6,763
NATIONS RELIABLE LENDING, LLC 1 7.25% $15,506
MORTGAGE FINANCIAL SERVICES, LLC 1 6.00% $12,033

The top Fayetteville FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 185 FHA loans originated. Their average total fees are $11,450, which is $1,522 higher than the next largest lender, FLAT BRANCH MORTGAGE, INC..

The lowest fee Fayetteville FHA lenders (with over 10 loans originated) are Bank of England ($7,494), DHI MORTGAGE COMPANY, LTD. ($7,972), The Central Trust Bank ($8,145), Priority Bank ($8,393) and Arvest Bank ($8,684).

The lowest rate Fayetteville FHA lenders (with over 10 loans originated) are AMERISAVE MORTGAGE CORPORATION (5.96%), ZILLOW HOME LOANS, LLC (6.05%), DHI MORTGAGE COMPANY, LTD. (6.06%), GERSHMAN INVESTMENT CORP. (6.08%) and Mr. Cooper ( Nationstar Mortgage ) (6.08%).

Fayetteville FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
FAYETTEVILLE-SPRINGDALE-ROGERS, AR BENTON 2022 $420,680 $538,650 $651,050 $809,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR MADISON 2022 $420,680 $538,650 $651,050 $809,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR WASHINGTON 2022 $420,680 $538,650 $651,050 $809,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR BENTON 2023 $472,030 $604,400 $730,525 $907,900
FAYETTEVILLE-SPRINGDALE-ROGERS, AR MADISON 2023 $472,030 $604,400 $730,525 $907,900
FAYETTEVILLE-SPRINGDALE-ROGERS, AR WASHINGTON 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Fayetteville (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 $267,600 (7.0%) $350,732 (5.3%) 0.99 2,383
2018-02-01 $278,550 (7.6%) $362,025 (7.9%) 1.01 2,270
2018-03-01 $283,900 (5.5%) $369,023 (7.6%) 1.00 2,316
2018-04-01 $289,950 (3.9%) $376,036 (7.7%) 0.98 2,307
2018-05-01 $296,444 (4.8%) $379,752 (5.8%) 0.99 2,338
2018-06-01 $295,000 (4.6%) $378,603 (5.5%) 0.98 2,439
2018-07-01 $299,450 (7.3%) $389,967 (10.5%) 1.00 2,629
2018-08-01 $295,000 (5.9%) $382,739 (9.4%) 0.99 2,716
2018-09-01 $285,000 (3.6%) $371,275 (8.7%) 0.96 2,750
2018-10-01 $279,950 (1.9%) $370,807 (7.2%) 0.95 2,795
2018-11-01 $277,000 (2.6%) $366,236 (6.1%) 0.94 2,792
2018-12-01 $276,675 (4.4%) $362,875 (5.3%) 0.95 2,665
2019-01-01 $276,000 (3.1%) $360,833 (2.9%) 0.95 2,494
2019-02-01 $277,950 (-0.2%) $366,605 (1.3%) 0.94 2,503
2019-03-01 $286,929 (1.1%) $376,658 (2.1%) 0.94 2,450
2019-04-01 $291,304 (0.5%) $382,483 (1.7%) 0.92 2,405
2019-05-01 $297,300 (0.3%) $391,374 (3.1%) 0.93 2,407
2019-06-01 $299,000 (1.4%) $396,469 (4.7%) 0.93 2,435
2019-07-01 $299,900 (0.2%) $397,506 (1.9%) 0.94 2,419
2019-08-01 $295,545 (0.2%) $389,400 (1.7%) 0.94 2,427
2019-09-01 $291,864 (2.4%) $383,919 (3.4%) 0.93 2,414
2019-10-01 $289,859 (3.5%) $383,598 (3.5%) 0.94 2,364
2019-11-01 $285,000 (2.9%) $382,073 (4.3%) 0.93 2,213
2019-12-01 $283,400 (2.4%) $382,725 (5.5%) 0.95 2,002
2020-01-01 $284,500 (3.1%) $384,916 (6.7%) 0.95 1,840
2020-02-01 $294,500 (6.0%) $401,831 (9.6%) 0.96 1,665
2020-03-01 $299,950 (4.5%) $410,871 (9.1%) 0.94 1,580
2020-04-01 $295,000 (1.3%) $403,379 (5.5%) 0.92 1,701
2020-05-01 $299,900 (0.9%) $418,025 (6.8%) 0.91 1,564
2020-06-01 $312,500 (4.5%) $435,840 (9.9%) 0.92 1,354
2020-07-01 $309,250 (3.1%) $435,530 (9.6%) 0.90 1,258
2020-08-01 $315,000 (6.6%) $443,059 (13.8%) 0.90 1,099
2020-09-01 $312,508 (7.1%) $441,675 (15.0%) 0.90 1,064
2020-10-01 $299,900 (3.5%) $425,941 (11.0%) 0.86 1,053
2020-11-01 $294,790 (3.4%) $427,831 (12.0%) 0.86 956
2020-12-01 $287,450 (1.4%) $425,526 (11.2%) 0.85 869
2021-01-01 $289,900 (1.9%) $433,667 (12.7%) 0.87 727
2021-02-01 $297,870 (1.1%) $449,224 (11.8%) 0.87 587
2021-03-01 $299,231 (-0.2%) $484,332 (17.9%) 0.85 562
2021-04-01 $312,225 (5.8%) $489,503 (21.4%) 0.85 587
2021-05-01 $329,900 (10.0%) $506,396 (21.1%) 0.88 578
2021-06-01 $333,250 (6.6%) $506,679 (16.3%) 0.88 681
2021-07-01 $339,999 (9.9%) $498,293 (14.4%) 0.90 809
2021-08-01 $349,947 (11.1%) $505,851 (14.2%) 0.93 904
2021-09-01 $350,032 (12.0%) $519,440 (17.6%) 0.93 894
2021-10-01 $350,000 (16.7%) $528,404 (24.1%) 0.93 916
2021-11-01 $363,737 (23.4%) $551,515 (28.9%) 0.97 835
2021-12-01 $369,416 (28.5%) $569,483 (33.8%) 1.00 726
2022-01-01 $385,000 (32.8%) $616,318 (42.1%) 1.04 541
2022-02-01 $400,000 (34.3%) $639,990 (42.5%) 1.04 471
2022-03-01 $410,950 (37.3%) $649,346 (34.1%) 1.03 479
2022-04-01 $429,900 (37.7%) $656,448 (34.1%) 1.02 510
2022-05-01 $424,125 (28.6%) $618,518 (22.1%) 0.97 701
2022-06-01 $435,000 (30.5%) $600,955 (18.6%) 0.97 919
2022-07-01 $425,000 (25.0%) $579,193 (16.2%) 0.96 1,309
2022-08-01 $415,105 (18.6%) $577,589 (14.2%) 0.96 1,411
2022-09-01 $407,500 (16.4%) $579,203 (11.5%) 0.95 1,436
2022-10-01 $415,000 (18.6%) $580,573 (9.9%) 0.98 1,583
2022-11-01 $403,475 (10.9%) $580,480 (5.3%) 0.97 1,773
2022-12-01 $396,282 (7.3%) $564,660 (-0.9%) 0.98 1,724
2023-01-01 $399,450 (3.8%) $557,892 (-9.5%) 0.99 1,671
2023-02-01 $402,488 (0.6%) $567,041 (-11.4%) 0.97 1,580
2023-03-01 $407,250 (-0.9%) $571,536 (-12.0%) 0.96 1,529
2023-04-01 $412,000 (-4.2%) $579,990 (-11.7%) 0.96 1,513
2023-05-01 $420,100 (-1.0%) $591,657 (-4.3%) 0.95 1,547
2023-06-01 $423,150 (-2.7%) $584,233 (-2.8%) 0.95 1,613
2023-07-01 $426,289 (0.3%) $580,677 (0.3%) 0.97 1,678
2023-08-01 $433,500 (4.4%) $582,112 (0.8%) 1.00 1,770
2023-09-01 $425,000 (4.3%) $577,840 (-0.2%) 0.99 1,802
2023-10-01 $421,475 (1.6%) $566,011 (-2.5%) 0.99 1,902
2023-11-01 $417,888 (3.6%) $551,830 (-4.9%) 1.00 2,039
2023-12-01 $418,848 (5.7%) $551,097 (-2.4%) 1.02 2,032
2024-01-01 $416,761 (4.3%) $558,632 (0.1%) 1.02 1,869
2024-02-01 $429,150 (6.6%) $585,622 (3.3%) 1.03 1,662
2024-03-01 $430,000 (5.6%) $587,711 (2.8%) 1.01 1,698
2024-04-01 $441,900 (7.3%) $590,062 (1.7%) 1.03 1,780
2024-05-01 $449,999 (7.1%) $612,557 (3.5%) 1.02 1,811
Fayetteville's median listing price for 2024-05-01 was $449,999, a difference of $29,899 (7.1%) versus the prior year and $8,099 versus the prior month.

Fayetteville's median listing price comes in at 102% of the national average.

Fayetteville's average listing price for 2024-05-01 was $612,557, a difference of $20,900 (3.5%) versus the prior year and $22,495 versus the prior month.

For the 2024-05-01 period, Fayetteville had 1,811 MLS listings, a difference of 31 listings (2%) versus the prior month and 264 listings (17%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Fayetteville (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 85 days 2,254 sqft
2018-02-01 82 days 2,306 sqft
2018-03-01 62 days 2,291 sqft
2018-04-01 58 days 2,326 sqft
2018-05-01 60 days 2,381 sqft
2018-06-01 60 days 2,388 sqft
2018-07-01 53 days 2,401 sqft
2018-08-01 58 days 2,369 sqft
2018-09-01 65 days 2,320 sqft
2018-10-01 68 days 2,280 sqft
2018-11-01 71 days 2,245 sqft
2018-12-01 80 days 2,231 sqft
2019-01-01 85 days 2,221 sqft
2019-02-01 78 days 2,233 sqft
2019-03-01 68 days 2,279 sqft
2019-04-01 60 days 2,315 sqft
2019-05-01 56 days 2,346 sqft
2019-06-01 59 days 2,355 sqft
2019-07-01 64 days 2,361 sqft
2019-08-01 65 days 2,314 sqft
2019-09-01 65 days 2,282 sqft
2019-10-01 66 days 2,261 sqft
2019-11-01 70 days 2,231 sqft
2019-12-01 87 days 2,210 sqft
2020-01-01 90 days 2,225 sqft
2020-02-01 80 days 2,275 sqft
2020-03-01 60 days 2,292 sqft
2020-04-01 54 days 2,232 sqft
2020-05-01 60 days 2,270 sqft
2020-06-01 57 days 2,298 sqft
2020-07-01 51 days 2,225 sqft
2020-08-01 52 days 2,232 sqft
2020-09-01 60 days 2,198 sqft
2020-10-01 64 days 2,130 sqft
2020-11-01 66 days 2,067 sqft
2020-12-01 68 days 2,027 sqft
2021-01-01 61 days 2,009 sqft
2021-02-01 53 days 1,977 sqft
2021-03-01 44 days 1,968 sqft
2021-04-01 34 days 1,976 sqft
2021-05-01 37 days 2,013 sqft
2021-06-01 35 days 2,073 sqft
2021-07-01 35 days 2,074 sqft
2021-08-01 34 days 2,024 sqft
2021-09-01 39 days 2,048 sqft
2021-10-01 40 days 2,037 sqft
2021-11-01 45 days 2,142 sqft
2021-12-01 51 days 2,133 sqft
2022-01-01 59 days 2,142 sqft
2022-02-01 48 days 2,200 sqft
2022-03-01 38 days 2,159 sqft
2022-04-01 34 days 2,112 sqft
2022-05-01 31 days 2,102 sqft
2022-06-01 31 days 2,171 sqft
2022-07-01 33 days 2,141 sqft
2022-08-01 42 days 2,093 sqft
2022-09-01 49 days 2,084 sqft
2022-10-01 51 days 2,100 sqft
2022-11-01 47 days 2,073 sqft
2022-12-01 60 days 2,052 sqft
2023-01-01 77 days 2,052 sqft
2023-02-01 72 days 2,065 sqft
2023-03-01 60 days 2,070 sqft
2023-04-01 54 days 2,075 sqft
2023-05-01 50 days 2,080 sqft
2023-06-01 49 days 2,081 sqft
2023-07-01 52 days 2,089 sqft
2023-08-01 52 days 2,093 sqft
2023-09-01 54 days 2,066 sqft
2023-10-01 60 days 2,055 sqft
2023-11-01 58 days 2,036 sqft
2023-12-01 64 days 2,015 sqft
2024-01-01 75 days 2,014 sqft
2024-02-01 76 days 2,030 sqft
2024-03-01 55 days 2,030 sqft
2024-04-01 51 days 2,031 sqft
2024-05-01 51 days 2,083 sqft
Fayetteville's median listing age (time on market) for 2024-05-01 was 51 days. This is 4% longer than the same period one year ago.

Fayetteville's median square footage for active listings during the 2024-05-01 period was 2,083 sqft. One year prior, the average listing was 2,080 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).