Hagerstown FHA Loan Rates, Closing Costs & Stats

HAGERSTOWN-MARTINSBURG, MD-WV

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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.

    Hagerstown's 148 lenders originated 1,644 FHA loans during 2022. The total origination value was $414,920,000, with an average FHA loan value of $252,384.

    Hagerstown FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Hagerstown averaged 6.19% for the week of 2023-05-26, compared to the national average (all FHA variants) of 6.612% for the same period.

    Hagerstown's average FHA mortgage closing costs are $7,993.

    The average rate for the prior week (2023-05-19) was 6.26% and one month ago for the week of 2023-04-21, the average rate was 5.8%.

    The average rate one year ago was 4.92%.

    For refis of the same type during the week of 2023-05-26, the average rate was 5.06%.

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

    Hagerstown 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 Hagerstown level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    Integrity Home Mortgage Corp 155 4.92% $10,392
    QUICKEN LOANS, LLC 145 4.48% $10,706
    LOANDEPOT.COM, LLC 89 4.96% $10,443
    PRIMELENDING, A PLAINSCAPITAL COMPANY 86 5.09% $9,720
    NVR Mortgage Finance, Inc. 84 4.71% $11,998
    HOMESPIRE MORTGAGE CORPORATION 76 5.11% $12,704
    UNITED WHOLESALE MORTGAGE, LLC 54 4.68% $10,307
    PENNYMAC LOAN SERVICES, LLC 37 4.37% $11,207
    EMBRACE HOME LOANS, INC. 36 5.04% $9,819
    FREEDOM MORTGAGE CORPORATION 34 4.41% $8,966
    Sierra Pacific Mortgage Company, Inc. 26 4.80% $11,712
    Carrington Mortgage Services, LLC 24 5.14% $11,838
    AMERISAVE MORTGAGE CORPORATION 24 4.65% $10,777
    CBM Mortgage, Inc. 22 5.16% $9,456
    DIRECT MORTGAGE LOANS, LLC 20 5.84% $11,161
    FINANCE OF AMERICA MORTGAGE LLC 20 4.49% $10,379
    PLANET HOME LENDING, LLC 19 5.22% $9,480
    CALIBER HOME LOANS, INC. 19 4.82% $9,737
    NFM, INC. 19 4.76% $12,049
    FIRST HOME MORTGAGE CORPORATION 19 5.41% $12,323
    Mr. Cooper ( Nationstar Mortgage ) 19 4.86% $14,749
    MOVEMENT MORTGAGE, LLC 18 4.83% $10,141
    LAKEVIEW LOAN SERVICING, LLC 16 3.92% $6,799
    CROSSCOUNTRY MORTGAGE, LLC 15 4.69% $12,954
    INTERCOASTAL MORTGAGE COMPANY 15 5.04% $7,872
    BROKER SOLUTIONS, INC. 13 4.39% $10,949
    MCLEAN MORTGAGE CORPORATION 12 4.84% $9,822
    SECURITYNATIONAL MORTGAGE COMPANY 12 4.97% $11,015
    George Mason Mortgage, LLC 12 4.81% $11,048
    Towne Bank 12 5.09% $8,729
    Prosperity Home Mortgage, LLC 12 5.20% $10,477
    CARDINAL FINANCIAL 11 4.63% $10,341
    Paramount Residential Mortgage Group, Inc. 11 5.57% $10,203
    DHI MORTGAGE COMPANY, LTD. 11 4.02% $12,008
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 11 5.06% $11,026
    NEWREZ LLC 10 5.10% $9,511
    Shore United Bank 10 5.09% $11,728
    THE MORTGAGE LINK, INC. 10 5.25% $11,241
    UNION HOME MORTGAGE CORP. 10 5.08% $12,049
    TJC Mortgage, Inc. 9 4.93% $11,156
    Fulton Bank 8 5.75% $9,205
    PRIMARY RESIDENTIAL MORTGAGE, INC. 8 4.92% $11,893
    DAS Acquisition Company, LLC 8 5.44% $11,952
    GUILD MORTGAGE COMPANY 8 4.78% $9,922
    Mortgage Research Center, LLC 7 5.11% $8,573
    Atlantic Union Bank 7 4.75% $9,649
    CONTOUR MORTGAGE CORPORATION 7 4.29% $11,559
    Atlantic Coast Mortgage, LLC 7 4.96% $9,432
    First Home Bank 7 4.55% $13,486
    First Heritage Mortgage, LLC 7 4.77% $10,212
    Presidential Bank, FSB 6 5.00% $9,840
    ACADEMY MORTGAGE CORPORATION 6 5.69% $9,748
    T2 FINANCIAL LLC 6 5.48% $11,456
    EVERETT FINANCIAL, INC. 6 5.02% $6,992
    Flagstar Bank, FSB 6 4.48% $8,369
    HOME POINT FINANCIAL CORPORATION 6 4.54% $10,978
    HOMESIDE FINANCIAL, LLC 6 5.44% $10,232
    Sandy Spring Bank 6 5.35% $9,758
    M&T Bank 6 4.04% $7,648
    MICHIGAN MUTUAL, INC. 6 5.31% $12,045
    GUARANTEED RATE, INC. 5 5.28% $9,439
    Citizens Bank 5 4.88% $10,072
    AMERICAN FINANCING CORPORATION 5 4.23% $8,572
    LAND HOME FINANCIAL SERVICES, INC. 5 4.67% $9,203
    HOMEBRIDGE FINANCIAL SERVICES, INC. 5 3.65% $10,228
    Nations Lending Corporation 5 5.60% $8,610
    BAY CAPITAL MORTGAGE CORPORATION 5 4.58% $8,838
    DRAPER AND KRAMER MORTGAGE CORP. 5 4.55% $11,327
    SUN WEST MORTGAGE COMPANY, INC. 4 6.20% $9,986
    Wells Fargo Bank 4 5.22% $8,482
    PENTAGON FEDERAL CREDIT UNION 4 5.34% $7,278
    MILLENNIUM FINANCIAL GROUP, INC. 4 4.78% $6,562
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 5.69% $8,956
    STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED 4 4.66% $3,282
    APEX HOME LOANS, INC. 4 4.22% $10,575
    Plains Commerce Bank 3 5.25% $10,459
    GSF Mortgage Corporation 3 6.42% $12,974
    The Federal Savings Bank 3 5.33% $8,171
    U.S. Bank 3 4.17% $9,486
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 3 5.33% $11,486
    NORWICH COMMERCIAL GROUP, INC. 3 4.21% $18,178
    TIDEWATER MORTGAGE SERVICES, INC. 3 6.08% $11,152
    Meridian Bank Corporation 3 5.33% $10,087
    US MORTGAGE CORPORATION 3 4.46% $15,643
    PNC Bank 3 5.00% $8,156
    1ST FINANCIAL, INC. 2 5.56% $9,942
    ALLIED MORTGAGE GROUP, INC. 2 4.44% $12,419
    Bank of England 2 4.94% $13,400
    CAPITAL CENTER, L.L.C. 2 6.19% $4,789
    C & F Mortgage Corporation 2 5.19% $8,566
    CHERRY CREEK MORTGAGE, LLC 2 6.50% $5,647
    CHURCHILL MORTGAGE CORPORATION 2 5.00% $10,310
    CMG MORTGAGE, INC. 2 3.81% $14,453
    ENVOY MORTGAGE, LTD 2 6.19% $14,962
    FIDELITY DIRECT MORTGAGE, LLC 2 4.94% $14,930
    First Guaranty Mortgage Corporation 2 3.81% $12,675
    First Option Mortgage, LLC 2 5.44% $10,899
    HOMEAMERICAN MORTGAGE CORPORATION 2 4.25% $12,661
    Hometown Equity Mortgage, LLC 2 4.69% $14,268
    KELLER MORTGAGE, LLC 2 4.00% $5,862
    NETWORK CAPITAL FUNDING CORPORATION 2 5.25% $14,951
    RELIANCE FIRST CAPITAL, LLC 2 4.31% $14,101
    SOUTHERN TRUST MORTGAGE, LLC 2 4.06% $10,442
    SWBC MORTGAGE CORPORATION 2 5.75% $14,617
    Truist 2 4.41% $6,581
    Vellum Mortgage, Inc. 2 5.75% $9,384
    WesBanco Bank, Inc. 2 3.31% $10,947
    MUTUAL OF OMAHA MORTGAGE, INC. 1 2.75% $8,494
    MORTGAGE ACCESS CORP. 1 5.63% $18,329
    PLAZA HOME MORTGAGE, INC. 1 6.75% $19,047
    MORIA DEVELOPMENT, INC. 1 5.00% $13,627
    POLARIS HOME FUNDING CORP. 1 5.63% $15,863
    PREMIA MORTGAGE, LLC 1 4.63% $7,203
    MLD MORTGAGE INC. 1 5.63% $7,952
    LIBERTY HOME MORTGAGE CORPORATION 1 5.13% $8,859
    Lakeview Community Capital, LLC 1 2.75% $5,256
    Lakeland Bank 1 4.13% $6,031
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 1 5.38% $7,608
    Wyndham Capital Mortgage, Inc. 1 5.63% $8,377
    INTERLINC MORTGAGE SERVICES, LLC 1 4.63% $7,127
    GUARANTEED RATE AFFINITY, LLC 1 4.75% $11,446
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 2.75% $12,700
    First Federal Bank 1 3.75% $6,947
    Watermark Capital, Inc. 1 6.13% $18,099
    SOVEREIGN LENDING GROUP INCORPORATED 1 4.63% $12,614
    Financial Freedom Mortgage, LLC 1 5.50% $9,970
    STOCKTON MORTGAGE CORPORATION 1 4.50% $13,538
    Strong Home Mortgage, LLC 1 4.75% $4,894
    EQUITY RESOURCES, INC. 1 4.25% $7,661
    Waterstone Mortgage Corporation 1 6.13% $12,326
    Equity Prime Mortgage LLC 1 5.13% $15,596
    EMM LOANS LLC 1 6.50% $5,453
    The Huntington National Bank 1 3.25% $8,943
    EagleBank 1 5.25% $9,155
    CERTAINTY HOME LOANS, LLC 1 6.38% $9,279
    Blue Ridge Bank 1 4.88% $15,912
    BETTER MORTGAGE CORPORATION 1 5.63% $7,899
    Alcova Mortgage LLC 1 3.25% $5,117
    BAYSHORE MORTGAGE FUNDING, LLC 1 6.63% $17,199
    BAY EQUITY LLC 1 5.25% $10,959
    Ameris Bank 1 5.63% $13,914
    AMERICAN HERITAGE FCU 1 5.13% $9,120
    NP, Inc. 1 3.13% $8,869
    OCMBC, INC. 1 6.25% $8,008
    Northpointe Bank 1 3.63% $5,613
    PATRIOT 1 6.13% $6,862
    NBH Bank 1 5.38% $11,026
    NATIONWIDE MORTGAGE BANKERS, INC. 1 7.63% $23,077

    The top Hagerstown FHA lender as defined by loan originations is Integrity Home Mortgage Corp, with 155 FHA loans originated. Their average total fees are $10,392, which is $314 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Hagerstown FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($6,799), INTERCOASTAL MORTGAGE COMPANY ($7,872), Towne Bank ($8,729), FREEDOM MORTGAGE CORPORATION ($8,966) and CBM Mortgage, Inc. ($9,456).

    The lowest rate Hagerstown FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC (3.92%), DHI MORTGAGE COMPANY, LTD. (4.02%), PENNYMAC LOAN SERVICES, LLC (4.37%), BROKER SOLUTIONS, INC. (4.39%) and FREEDOM MORTGAGE CORPORATION (4.41%).

    Hagerstown FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    HAGERSTOWN-MARTINSBURG, MD-WV WASHINGTON 2022 $420,680 $538,650 $651,050 $809,150
    HAGERSTOWN-MARTINSBURG, MD-WV BERKELEY 2022 $420,680 $538,650 $651,050 $809,150
    HAGERSTOWN-MARTINSBURG, MD-WV MORGAN 2022 $420,680 $538,650 $651,050 $809,150
    HAGERSTOWN-MARTINSBURG, MD-WV WASHINGTON 2023 $472,030 $604,400 $730,525 $907,900
    HAGERSTOWN-MARTINSBURG, MD-WV BERKELEY 2023 $472,030 $604,400 $730,525 $907,900
    HAGERSTOWN-MARTINSBURG, MD-WV MORGAN 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Hagerstown (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 $204,945 (7.8%) $226,923 (4.0%) 0.76 1,192
    2018-02-01 $209,990 (9.1%) $231,965 (5.9%) 0.76 1,192
    2018-03-01 $219,000 (10.5%) $239,395 (6.7%) 0.77 1,203
    2018-04-01 $219,900 (10.0%) $239,614 (5.8%) 0.75 1,299
    2018-05-01 $224,900 (8.4%) $246,154 (6.4%) 0.75 1,404
    2018-06-01 $225,000 (7.2%) $249,192 (6.2%) 0.75 1,492
    2018-07-01 $229,900 (10.6%) $250,755 (6.0%) 0.77 1,497
    2018-08-01 $229,450 (10.6%) $250,648 (5.7%) 0.77 1,528
    2018-09-01 $229,000 (9.1%) $251,588 (6.6%) 0.77 1,473
    2018-10-01 $229,900 (9.5%) $249,816 (7.2%) 0.78 1,465
    2018-11-01 $229,900 (11.0%) $251,958 (8.9%) 0.78 1,470
    2018-12-01 $229,900 (15.0%) $250,332 (11.6%) 0.79 1,359
    2019-01-01 $229,900 (12.2%) $251,455 (10.8%) 0.79 1,265
    2019-02-01 $229,998 (9.5%) $256,171 (10.4%) 0.78 1,258
    2019-03-01 $230,000 (5.0%) $255,615 (6.8%) 0.77 1,248
    2019-04-01 $234,900 (6.8%) $261,320 (9.1%) 0.75 1,338
    2019-05-01 $235,000 (4.5%) $262,371 (6.6%) 0.73 1,404
    2019-06-01 $237,945 (5.8%) $265,083 (6.4%) 0.74 1,448
    2019-07-01 $229,950 (0.0%) $262,779 (4.8%) 0.72 1,490
    2019-08-01 $234,900 (2.4%) $264,216 (5.4%) 0.74 1,531
    2019-09-01 $239,945 (4.8%) $269,364 (7.1%) 0.76 1,364
    2019-10-01 $239,900 (4.4%) $267,882 (7.2%) 0.77 1,423
    2019-11-01 $239,900 (4.4%) $268,499 (6.6%) 0.79 1,318
    2019-12-01 $239,900 (4.4%) $272,387 (8.8%) 0.80 1,130
    2020-01-01 $236,223 (2.8%) $270,114 (7.4%) 0.79 1,008
    2020-02-01 $243,900 (6.0%) $276,644 (8.0%) 0.80 963
    2020-03-01 $244,900 (6.5%) $279,653 (9.4%) 0.77 959
    2020-04-01 $246,445 (4.9%) $280,145 (7.2%) 0.77 937
    2020-05-01 $249,000 (6.0%) $285,929 (9.0%) 0.76 849
    2020-06-01 $246,075 (3.4%) $284,390 (7.3%) 0.72 745
    2020-07-01 $249,990 (8.7%) $286,115 (8.9%) 0.72 658
    2020-08-01 $256,445 (9.2%) $291,379 (10.3%) 0.73 587
    2020-09-01 $259,445 (8.1%) $293,291 (8.9%) 0.74 563
    2020-10-01 $252,990 (5.5%) $287,603 (7.4%) 0.72 541
    2020-11-01 $254,470 (6.1%) $288,427 (7.4%) 0.74 498
    2020-12-01 $258,950 (7.9%) $286,298 (5.1%) 0.77 461
    2021-01-01 $267,045 (13.1%) $290,372 (7.5%) 0.80 411
    2021-02-01 $261,675 (7.3%) $292,739 (5.8%) 0.76 304
    2021-03-01 $263,000 (7.4%) $294,755 (5.4%) 0.75 304
    2021-04-01 $274,225 (11.3%) $309,376 (10.4%) 0.74 287
    2021-05-01 $274,995 (10.4%) $325,226 (13.7%) 0.73 299
    2021-06-01 $268,650 (9.2%) $326,492 (14.8%) 0.71 373
    2021-07-01 $279,450 (11.8%) $328,033 (14.7%) 0.74 449
    2021-08-01 $282,500 (10.2%) $343,322 (17.8%) 0.75 479
    2021-09-01 $282,950 (9.1%) $338,296 (15.3%) 0.75 455
    2021-10-01 $280,000 (10.7%) $332,988 (15.8%) 0.75 454
    2021-11-01 $296,910 (16.7%) $339,072 (17.6%) 0.79 476
    2021-12-01 $293,748 (13.4%) $327,511 (14.4%) 0.80 434
    2022-01-01 $305,045 (14.2%) $338,221 (16.5%) 0.82 364
    2022-02-01 $310,623 (18.7%) $343,616 (17.4%) 0.81 314
    2022-03-01 $321,123 (22.1%) $351,510 (19.3%) 0.80 316
    2022-04-01 $324,445 (18.3%) $360,981 (16.7%) 0.77 354
    2022-05-01 $323,445 (17.6%) $361,648 (11.2%) 0.74 455
    2022-06-01 $322,450 (20.0%) $368,048 (12.7%) 0.72 532
    2022-07-01 $315,490 (12.9%) $361,143 (10.1%) 0.71 632
    2022-08-01 $320,945 (13.6%) $357,971 (4.3%) 0.74 654
    2022-09-01 $322,000 (13.8%) $363,479 (7.4%) 0.75 664
    2022-10-01 $316,990 (13.2%) $360,426 (8.2%) 0.75 727
    2022-11-01 $315,000 (6.1%) $352,812 (4.1%) 0.76 707
    2022-12-01 $314,445 (7.1%) $353,724 (8.0%) 0.78 678
    2023-01-01 $324,473 (6.4%) $363,450 (7.5%) 0.80 573
    2023-02-01 $327,450 (5.4%) $376,444 (9.6%) 0.79 528
    2023-03-01 $324,188 (1.0%) $380,657 (8.3%) 0.76 532
    2023-04-01 $329,900 (1.7%) $388,602 (7.7%) 0.77 523
    Hagerstown's median listing price for 2023-04-01 was $329,900, a difference of $5,455 (1.7%) versus the prior year and $5,712 versus the prior month.

    Hagerstown's median listing price comes in at 77% of the national average.

    Hagerstown's average listing price for 2023-04-01 was $388,602, a difference of $27,621 (7.7%) versus the prior year and $7,945 versus the prior month.

    For the 2023-04-01 period, Hagerstown had 523 MLS listings, a difference of -9 listings (-2%) versus the prior month and 169 listings (48%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Hagerstown (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 100 days 1,731 sqft
    2018-02-01 94 days 1,779 sqft
    2018-03-01 71 days 1,791 sqft
    2018-04-01 64 days 1,781 sqft
    2018-05-01 55 days 1,781 sqft
    2018-06-01 58 days 1,890 sqft
    2018-07-01 69 days 1,915 sqft
    2018-08-01 75 days 1,886 sqft
    2018-09-01 81 days 1,900 sqft
    2018-10-01 84 days 1,923 sqft
    2018-11-01 83 days 1,928 sqft
    2018-12-01 93 days 1,901 sqft
    2019-01-01 96 days 1,899 sqft
    2019-02-01 99 days 1,910 sqft
    2019-03-01 74 days 1,902 sqft
    2019-04-01 60 days 1,919 sqft
    2019-05-01 59 days 1,918 sqft
    2019-06-01 65 days 1,926 sqft
    2019-07-01 62 days 1,908 sqft
    2019-08-01 71 days 1,900 sqft
    2019-09-01 82 days 1,920 sqft
    2019-10-01 78 days 1,903 sqft
    2019-11-01 84 days 1,907 sqft
    2019-12-01 103 days 1,923 sqft
    2020-01-01 98 days 1,896 sqft
    2020-02-01 71 days 1,898 sqft
    2020-03-01 54 days 1,906 sqft
    2020-04-01 62 days 1,915 sqft
    2020-05-01 73 days 1,944 sqft
    2020-06-01 75 days 1,951 sqft
    2020-07-01 62 days 1,933 sqft
    2020-08-01 58 days 2,006 sqft
    2020-09-01 58 days 1,990 sqft
    2020-10-01 63 days 1,915 sqft
    2020-11-01 57 days 1,889 sqft
    2020-12-01 64 days 1,845 sqft
    2021-01-01 54 days 1,823 sqft
    2021-02-01 46 days 1,844 sqft
    2021-03-01 51 days 1,799 sqft
    2021-04-01 37 days 1,823 sqft
    2021-05-01 37 days 1,881 sqft
    2021-06-01 34 days 1,810 sqft
    2021-07-01 36 days 1,844 sqft
    2021-08-01 35 days 1,826 sqft
    2021-09-01 42 days 1,831 sqft
    2021-10-01 47 days 1,822 sqft
    2021-11-01 41 days 1,859 sqft
    2021-12-01 46 days 1,839 sqft
    2022-01-01 57 days 1,863 sqft
    2022-02-01 49 days 1,810 sqft
    2022-03-01 41 days 1,851 sqft
    2022-04-01 34 days 1,897 sqft
    2022-05-01 32 days 1,898 sqft
    2022-06-01 33 days 1,915 sqft
    2022-07-01 39 days 1,926 sqft
    2022-08-01 43 days 1,921 sqft
    2022-09-01 50 days 1,905 sqft
    2022-10-01 51 days 1,889 sqft
    2022-11-01 53 days 1,864 sqft
    2022-12-01 63 days 1,859 sqft
    2023-01-01 67 days 1,860 sqft
    2023-02-01 56 days 1,860 sqft
    2023-03-01 45 days 1,832 sqft
    2023-04-01 43 days 1,874 sqft
    Hagerstown's median listing age (time on market) for 2023-04-01 was 43 days. This is 28% longer than the same period one year ago.

    Hagerstown's median square footage for active listings during the 2023-04-01 period was 1,874 sqft. One year prior, the average listing was 1,897 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).