Hickory FHA Loan Rates, Closing Costs & Stats

HICKORY-LENOIR-MORGANTON, NC

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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.

    Hickory's 137 lenders originated 1,164 FHA loans during 2022. The total origination value was $223,970,000, with an average FHA loan value of $192,414.

    Hickory FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Hickory averaged -0.56% for the week of 2023-11-24, compared to the national average (all FHA variants) of 0% for the same period.

    Hickory's average FHA mortgage closing costs are $6,706.

    The average rate for the prior week (2023-11-17) was 6.74% and one month ago for the week of 2023-10-20, the average rate was 6.84%.

    The average rate one year ago was 5.77%.

    For refis of the same type during the week of 2023-11-24, the average rate was -1.7%.

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

    Hickory 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 Hickory level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    QUICKEN LOANS, LLC 152 4.50% $8,629
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 110 4.96% $10,033
    CROSSCOUNTRY MORTGAGE, LLC 84 5.33% $8,902
    CARDINAL FINANCIAL 70 4.97% $10,910
    MOVEMENT MORTGAGE, LLC 53 4.63% $7,697
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 44 5.26% $8,334
    UNITED WHOLESALE MORTGAGE, LLC 29 5.07% $8,635
    LOANDEPOT.COM, LLC 25 4.52% $8,562
    AMERIFIRST FINANCIAL CORPORATION 21 5.25% $9,126
    FREEDOM MORTGAGE CORPORATION 20 4.89% $10,143
    AMERISAVE MORTGAGE CORPORATION 19 5.14% $10,180
    BROKER SOLUTIONS, INC. 18 4.95% $10,361
    PENNYMAC LOAN SERVICES, LLC 18 4.24% $10,099
    INSPIRE HOME LOANS INC. 17 4.57% $8,881
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 15 5.38% $9,324
    CIS Financial Services, Inc. 14 5.50% $8,888
    HOMESIDE FINANCIAL, LLC 12 5.58% $7,983
    Carrington Mortgage Services, LLC 12 5.38% $9,864
    LAKEVIEW LOAN SERVICING, LLC 11 4.31% $5,996
    Mr. Cooper ( Nationstar Mortgage ) 10 4.90% $9,117
    Alcova Mortgage LLC 10 5.60% $7,917
    RELIANCE FIRST CAPITAL, LLC 9 4.92% $8,083
    HOMEBRIDGE FINANCIAL SERVICES, INC. 9 4.76% $8,172
    NEWREZ LLC 8 4.88% $7,366
    Nations Lending Corporation 8 5.59% $9,824
    Mortgage Research Center, LLC 8 5.17% $4,638
    Truist 8 5.04% $5,798
    GENEVA FINANCIAL, LLC 7 5.23% $9,323
    HOME POINT FINANCIAL CORPORATION 7 4.30% $7,382
    PRIMELENDING, A PLAINSCAPITAL COMPANY 7 5.50% $9,554
    AMERICAN PACIFIC MORTGAGE CORPORATION 7 5.50% $8,492
    First Heritage Mortgage, LLC 6 5.33% $10,502
    Flagstar Bank, FSB 6 5.33% $10,525
    HOMESTAR FINANCIAL CORPORATION 6 4.56% $8,088
    MCLEAN MORTGAGE CORPORATION 6 4.83% $7,690
    GUARANTEED RATE, INC. 6 6.02% $10,805
    PRIMARY RESIDENTIAL MORTGAGE, INC. 6 5.67% $10,577
    T2 FINANCIAL LLC 5 5.65% $11,296
    INTERCOASTAL MORTGAGE COMPANY 5 4.73% $8,237
    LOANPAL, LLC 5 4.75% $11,055
    Renasant Bank 5 5.03% $9,283
    Equity Prime Mortgage LLC 5 5.25% $8,346
    CALIBER HOME LOANS, INC. 5 5.13% $6,831
    Hometown Lenders, Inc. 4 5.34% $12,121
    TOP FLITE FINANCIAL, INC. 4 4.22% $12,935
    Wells Fargo Bank 4 4.13% $9,864
    Citizens Bank 4 5.16% $8,150
    First Federal Bank 3 4.50% $5,943
    VILLAGE CAPITAL MORTGAGE 3 4.41% $2,306
    POLARIS HOME FUNDING CORP. 3 5.67% $9,464
    GoPrime Mortgage, Inc. 3 5.96% $7,350
    PLANET HOME LENDING, LLC 3 3.13% $4,480
    TOWNE MORTGAGE COMPANY 3 4.75% $8,024
    GUILD MORTGAGE COMPANY 3 4.96% $8,475
    Ameris Bank 3 4.33% $10,763
    AMERICAN FINANCING CORPORATION 3 3.96% $9,748
    American Security Mortgage Corp. 3 5.25% $7,648
    SeaTrust Mortgage Company 3 6.00% $7,794
    C & F Mortgage Corporation 3 4.63% $9,057
    First Guaranty Mortgage Corporation 3 4.83% $8,586
    THRIVE MORTGAGE, LLC 3 5.21% $8,681
    CALCON MUTUAL MORTGAGE LLC 2 4.56% $9,198
    Allen Tate Mortgage Partners, LLC 2 5.81% $10,161
    AMERICAN FINANCIAL RESOURCES, INC. 2 3.44% $6,642
    Amerifirst Financial, Inc. 2 4.25% $5,405
    Bank of America 2 3.25% $6,086
    Century Mortgage Company DBA Century Lending Company 2 5.93% $8,979
    CHURCHILL MORTGAGE CORPORATION 2 4.19% $6,175
    DHI MORTGAGE COMPANY, LTD. 2 4.63% $6,963
    EMBRACE HOME LOANS, INC. 2 5.37% $7,022
    EVERETT FINANCIAL, INC. 2 4.38% $7,182
    FINANCE OF AMERICA MORTGAGE LLC 2 3.38% $8,071
    LAND HOME FINANCIAL SERVICES, INC. 2 4.00% $7,167
    MID AMERICA MORTGAGE, INC. 2 5.56% $2,780
    MLD MORTGAGE INC. 2 4.94% $11,369
    Northpointe Bank 2 5.75% $8,697
    PHH Mortgage Corporation 2 4.31% $7,598
    PREMIER LENDING, INC. 2 6.19% $10,570
    Prosperity Home Mortgage, LLC 2 5.62% $10,727
    RAPID MORTGAGE COMPANY 2 6.13% $13,046
    RUOFF MORTGAGE COMPANY, INC. 2 3.94% $5,270
    Shamrock Home Loans, Inc. 2 4.19% $8,818
    Uwharrie Bank 2 5.44% $6,455
    Wyndham Capital Mortgage, Inc. 2 4.06% $6,390
    NATIONWIDE MORTGAGE BANKERS, INC. 1 3.63% $7,867
    Hometown Equity Mortgage, LLC 1 7.38% $13,096
    NFM, INC. 1 3.88% $13,873
    NORTHERN MORTGAGE SERVICES, LLC 1 3.00% $6,021
    United Fidelity Funding Corp. 1 7.00% $13,777
    NTFN, INC. 1 5.13% $8,165
    OCEANSIDE MORTGAGE COMPANY 1 4.88% $6,941
    ON Q FINANCIAL, INC. 1 5.75% $9,437
    Paramount Bank 1 5.63% $10,388
    HOMEOWNERS FINANCIAL GROUP USA, LLC 1 5.13% $8,411
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 5.00% $11,176
    GSF Mortgage Corporation 1 5.63% $13,407
    PNC Bank 1 5.00% $6,404
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 4.63% $7,978
    PREMIA MORTGAGE, LLC 1 6.25% $4,705
    U.S. Bank 1 6.75% $9,090
    GMFS LLC 1 5.25% $7,947
    FLAT BRANCH MORTGAGE, INC. 1 3.63% $10,351
    Princeton Mortgage Corporation 1 4.25% $10,938
    ALLIED MORTGAGE GROUP, INC. 1 4.38% $11,620
    Fifth Third Bank 1 4.88% $8,997
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 4.25% $10,322
    FIDELITY BANK 1 6.13% $8,368
    EMM LOANS LLC 1 5.88% $9,787
    ROYAL UNITED MORTGAGE LLC 1 5.25% $9,924
    Alpha Mortgage Corporation 1 5.63% $9,782
    DIRECT MORTGAGE LOANS, LLC 1 5.38% $8,029
    Waterstone Mortgage Corporation 1 5.63% $9,841
    SOUTHERN TRUST MORTGAGE, LLC 1 6.75% $11,326
    STOCKTON MORTGAGE CORPORATION 1 5.25% $10,719
    SUMMIT FUNDING, INC. 1 5.25% $8,236
    SUN WEST MORTGAGE COMPANY, INC. 1 4.75% $6,955
    CORNERSTONE HOME LENDING, INC. 1 5.25% $7,568
    TD Bank 1 5.25% $8,362
    The Federal Savings Bank 1 5.25% $8,359
    The Huntington National Bank 1 4.63% $8,755
    CONTOUR MORTGAGE CORPORATION 1 2.63% $12,498
    TJC Mortgage, Inc. 1 4.63% $11,938
    CERTAINTY HOME LOANS, LLC 1 5.50% $8,522
    Towne Bank 1 5.25% $7,729
    CAPITAL CENTER, L.L.C. 1 2.88% $2,598
    Bank of England 1 5.25% $10,909
    Magnolia Bank 1 3.63% $10,021
    UNION HOME MORTGAGE CORP. 1 5.75% $5,611
    United Bank 1 6.25% $9,633
    MORIA DEVELOPMENT, INC. 1 3.63% $6,961
    Lakeview Community Capital, LLC 1 3.63% $3,047
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.25% $11,008
    LADERA LENDING, INC. 1 4.25% $12,609
    KELLER MORTGAGE, LLC 1 3.25% $4,870
    M&T Bank 1 3.00% $9,253
    MUTUAL OF OMAHA MORTGAGE, INC. 1 4.50% $11,298
    JLB CORPORATION 1 3.25% $7,610

    The top Hickory FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 152 FHA loans originated. Their average total fees are $8,629, which is $1,404 lower than the next largest lender, ATLANTIC BAY MORTGAGE GROUP, L.L.C..

    The lowest fee Hickory FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($5,996), MOVEMENT MORTGAGE, LLC ($7,697), Alcova Mortgage LLC ($7,917), HOMESIDE FINANCIAL, LLC ($7,983) and FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($8,334).

    The lowest rate Hickory FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (4.24%), LAKEVIEW LOAN SERVICING, LLC (4.31%), QUICKEN LOANS, LLC (4.50%), LOANDEPOT.COM, LLC (4.52%) and INSPIRE HOME LOANS INC. (4.57%).

    Hickory FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    HICKORY-LENOIR-MORGANTON, NC ALEXANDER 2022 $420,680 $538,650 $651,050 $809,150
    HICKORY-LENOIR-MORGANTON, NC BURKE 2022 $420,680 $538,650 $651,050 $809,150
    HICKORY-LENOIR-MORGANTON, NC CALDWELL 2022 $420,680 $538,650 $651,050 $809,150
    HICKORY-LENOIR-MORGANTON, NC CATAWBA 2022 $420,680 $538,650 $651,050 $809,150
    HICKORY-LENOIR-MORGANTON, NC ALEXANDER 2023 $472,030 $604,400 $730,525 $907,900
    HICKORY-LENOIR-MORGANTON, NC BURKE 2023 $472,030 $604,400 $730,525 $907,900
    HICKORY-LENOIR-MORGANTON, NC CALDWELL 2023 $472,030 $604,400 $730,525 $907,900
    HICKORY-LENOIR-MORGANTON, NC CATAWBA 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Hickory (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 $229,250 (27.4%) $314,546 (18.8%) 0.85 1,032
    2018-02-01 $232,175 (25.8%) $322,146 (18.8%) 0.84 1,095
    2018-03-01 $247,198 (28.7%) $342,946 (23.3%) 0.87 1,058
    2018-04-01 $253,680 (23.8%) $349,065 (22.0%) 0.86 1,116
    2018-05-01 $257,400 (19.8%) $353,484 (21.3%) 0.86 1,110
    2018-06-01 $259,900 (19.5%) $359,066 (18.1%) 0.87 1,119
    2018-07-01 $251,950 (14.6%) $353,646 (14.4%) 0.84 1,196
    2018-08-01 $249,500 (10.9%) $355,552 (16.1%) 0.84 1,221
    2018-09-01 $239,900 (6.6%) $341,633 (9.7%) 0.81 1,264
    2018-10-01 $241,150 (6.3%) $338,343 (7.8%) 0.82 1,269
    2018-11-01 $249,000 (6.0%) $341,370 (7.2%) 0.84 1,202
    2018-12-01 $249,000 (6.0%) $340,450 (7.4%) 0.86 1,141
    2019-01-01 $249,950 (9.0%) $346,136 (10.0%) 0.86 1,001
    2019-02-01 $251,768 (8.4%) $342,304 (6.3%) 0.85 984
    2019-03-01 $268,086 (8.5%) $357,528 (4.3%) 0.88 923
    2019-04-01 $281,950 (11.1%) $377,789 (8.2%) 0.90 866
    2019-05-01 $299,575 (16.4%) $392,105 (10.9%) 0.94 860
    2019-06-01 $299,700 (15.3%) $398,534 (11.0%) 0.94 871
    2019-07-01 $299,000 (18.7%) $395,075 (11.7%) 0.94 886
    2019-08-01 $296,382 (18.8%) $392,608 (10.4%) 0.94 873
    2019-09-01 $291,105 (21.3%) $386,320 (13.1%) 0.93 850
    2019-10-01 $281,000 (16.5%) $378,602 (11.9%) 0.91 841
    2019-11-01 $269,900 (8.4%) $365,466 (7.1%) 0.88 836
    2019-12-01 $274,300 (10.2%) $368,974 (8.4%) 0.91 774
    2020-01-01 $267,419 (7.0%) $371,821 (7.4%) 0.89 699
    2020-02-01 $260,000 (3.3%) $370,128 (8.1%) 0.85 683
    2020-03-01 $259,950 (-3.0%) $361,819 (1.2%) 0.81 676
    2020-04-01 $264,900 (-6.1%) $358,474 (-5.1%) 0.83 669
    2020-05-01 $269,900 (-9.9%) $374,733 (-4.4%) 0.82 589
    2020-06-01 $279,675 (-6.7%) $391,134 (-1.9%) 0.82 528
    2020-07-01 $299,500 (0.2%) $398,104 (0.8%) 0.87 490
    2020-08-01 $310,000 (4.6%) $407,588 (3.8%) 0.89 443
    2020-09-01 $299,450 (2.9%) $409,055 (5.9%) 0.86 513
    2020-10-01 $309,900 (10.3%) $414,818 (9.6%) 0.89 423
    2020-11-01 $299,950 (11.1%) $417,739 (14.3%) 0.88 436
    2020-12-01 $294,450 (7.4%) $412,184 (11.7%) 0.88 410
    2021-01-01 $285,000 (6.6%) $421,896 (13.5%) 0.85 364
    2021-02-01 $259,950 (0.0%) $414,522 (12.0%) 0.76 322
    2021-03-01 $264,500 (1.8%) $414,660 (14.6%) 0.75 287
    2021-04-01 $264,700 (-0.1%) $416,582 (16.2%) 0.72 281
    2021-05-01 $264,950 (-1.8%) $433,273 (15.6%) 0.70 297
    2021-06-01 $267,750 (-4.3%) $428,482 (9.6%) 0.70 342
    2021-07-01 $275,000 (-8.2%) $410,979 (3.2%) 0.73 393
    2021-08-01 $271,625 (-12.4%) $391,920 (-3.8%) 0.72 403
    2021-09-01 $272,450 (-9.0%) $399,234 (-2.4%) 0.73 405
    2021-10-01 $269,900 (-12.9%) $403,974 (-2.6%) 0.72 373
    2021-11-01 $281,950 (-6.0%) $407,753 (-2.4%) 0.75 356
    2021-12-01 $274,950 (-6.6%) $417,807 (1.4%) 0.75 311
    2022-01-01 $296,700 (4.1%) $438,397 (3.9%) 0.80 253
    2022-02-01 $294,350 (13.2%) $427,885 (3.2%) 0.77 233
    2022-03-01 $310,450 (17.4%) $432,407 (4.3%) 0.78 254
    2022-04-01 $300,000 (13.3%) $450,281 (8.1%) 0.72 249
    2022-05-01 $317,450 (19.8%) $485,308 (12.0%) 0.73 335
    2022-06-01 $326,750 (22.0%) $481,784 (12.4%) 0.73 383
    2022-07-01 $339,900 (23.6%) $476,122 (15.9%) 0.77 465
    2022-08-01 $346,895 (27.7%) $478,304 (22.0%) 0.80 504
    2022-09-01 $339,900 (24.8%) $482,860 (21.0%) 0.79 502
    2022-10-01 $339,900 (25.9%) $477,720 (18.3%) 0.80 520
    2022-11-01 $341,248 (21.0%) $468,311 (14.9%) 0.82 574
    2022-12-01 $329,900 (20.0%) $466,320 (11.6%) 0.81 529
    2023-01-01 $343,395 (15.7%) $475,266 (8.4%) 0.85 483
    2023-02-01 $349,925 (18.9%) $480,465 (12.3%) 0.85 436
    2023-03-01 $349,675 (12.6%) $486,667 (12.6%) 0.82 440
    2023-04-01 $369,900 (23.3%) $509,681 (13.2%) 0.86 448
    2023-05-01 $376,495 (18.6%) $523,870 (8.0%) 0.85 488
    2023-06-01 $385,000 (17.8%) $525,487 (9.1%) 0.87 481
    2023-07-01 $373,540 (9.9%) $514,800 (8.1%) 0.85 497
    2023-08-01 $369,900 (6.6%) $504,256 (5.4%) 0.85 552
    2023-09-01 $360,000 (5.9%) $506,685 (4.9%) 0.84 590
    2023-10-01 $349,950 (3.0%) $505,553 (5.8%) 0.82 601
    Hickory's median listing price for 2023-10-01 was $349,950, a difference of $10,050 (3.0%) versus the prior year and $-10,050 versus the prior month.

    Hickory's median listing price comes in at 82% of the national average.

    Hickory's average listing price for 2023-10-01 was $505,553, a difference of $27,833 (5.8%) versus the prior year and $-1,132 versus the prior month.

    For the 2023-10-01 period, Hickory had 601 MLS listings, a difference of 11 listings (2%) versus the prior month and 81 listings (16%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Hickory (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 104 days 2,084 sqft
    2018-02-01 86 days 2,073 sqft
    2018-03-01 73 days 2,113 sqft
    2018-04-01 62 days 2,142 sqft
    2018-05-01 61 days 2,180 sqft
    2018-06-01 64 days 2,109 sqft
    2018-07-01 65 days 2,093 sqft
    2018-08-01 67 days 2,105 sqft
    2018-09-01 73 days 2,032 sqft
    2018-10-01 80 days 2,083 sqft
    2018-11-01 87 days 2,070 sqft
    2018-12-01 95 days 2,052 sqft
    2019-01-01 96 days 2,062 sqft
    2019-02-01 92 days 2,010 sqft
    2019-03-01 79 days 2,125 sqft
    2019-04-01 71 days 2,211 sqft
    2019-05-01 65 days 2,281 sqft
    2019-06-01 64 days 2,353 sqft
    2019-07-01 64 days 2,298 sqft
    2019-08-01 62 days 2,269 sqft
    2019-09-01 65 days 2,247 sqft
    2019-10-01 66 days 2,203 sqft
    2019-11-01 65 days 2,123 sqft
    2019-12-01 74 days 2,110 sqft
    2020-01-01 84 days 2,106 sqft
    2020-02-01 73 days 2,071 sqft
    2020-03-01 55 days 2,045 sqft
    2020-04-01 54 days 2,041 sqft
    2020-05-01 60 days 2,073 sqft
    2020-06-01 60 days 2,105 sqft
    2020-07-01 52 days 2,191 sqft
    2020-08-01 44 days 2,177 sqft
    2020-09-01 38 days 2,110 sqft
    2020-10-01 43 days 2,202 sqft
    2020-11-01 44 days 2,182 sqft
    2020-12-01 50 days 2,080 sqft
    2021-01-01 58 days 1,964 sqft
    2021-02-01 48 days 1,926 sqft
    2021-03-01 41 days 1,893 sqft
    2021-04-01 36 days 1,918 sqft
    2021-05-01 29 days 1,874 sqft
    2021-06-01 29 days 1,827 sqft
    2021-07-01 29 days 1,870 sqft
    2021-08-01 33 days 1,903 sqft
    2021-09-01 39 days 1,893 sqft
    2021-10-01 37 days 1,828 sqft
    2021-11-01 40 days 1,897 sqft
    2021-12-01 42 days 1,809 sqft
    2022-01-01 46 days 1,904 sqft
    2022-02-01 34 days 1,876 sqft
    2022-03-01 27 days 1,902 sqft
    2022-04-01 26 days 1,808 sqft
    2022-05-01 27 days 1,802 sqft
    2022-06-01 33 days 1,902 sqft
    2022-07-01 32 days 1,934 sqft
    2022-08-01 41 days 1,976 sqft
    2022-09-01 43 days 1,969 sqft
    2022-10-01 48 days 1,970 sqft
    2022-11-01 47 days 1,996 sqft
    2022-12-01 57 days 1,927 sqft
    2023-01-01 71 days 1,915 sqft
    2023-02-01 69 days 1,887 sqft
    2023-03-01 43 days 1,884 sqft
    2023-04-01 44 days 1,998 sqft
    2023-05-01 40 days 2,042 sqft
    2023-06-01 44 days 2,038 sqft
    2023-07-01 43 days 1,980 sqft
    2023-08-01 41 days 1,978 sqft
    2023-09-01 44 days 1,933 sqft
    2023-10-01 46 days 1,816 sqft
    Hickory's median listing age (time on market) for 2023-10-01 was 46 days. This is -5% shorter than the same period one year ago.

    Hickory's median square footage for active listings during the 2023-10-01 period was 1,816 sqft. One year prior, the average listing was 1,970 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).