Hilton Head Island FHA Loan Rates, Closing Costs & Stats

HILTON HEAD ISLAND-BLUFFTON, SC

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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.

    Hilton Head Island's 91 lenders originated 560 FHA loans during 2024. The total origination value was $185,280,000, with an average FHA loan value of $330,857.

    Hilton Head Island FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Hilton Head Island averaged 6.96% for the week of 2025-07-11, compared to the national average (all FHA variants) of 6.523% for the same period.

    Hilton Head Island's average FHA mortgage closing costs are $9,077.

    The average rate for the prior week (2025-07-04) was 6.59% and one month ago for the week of 2025-06-06, the average rate was 6.62%.

    The average rate one year ago was 6.76%.

    For refis of the same type during the week of 2025-07-11, the average rate was 6.43%.

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

    Hilton Head Island 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 Hilton Head Island level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 49 6.12% $15,155
    DHI MORTGAGE COMPANY, LTD. 39 5.27% $9,086
    QUICKEN LOANS, LLC 34 6.25% $14,730
    MOVEMENT MORTGAGE, LLC 21 6.81% $12,375
    VANDERBILT MORTGAGE AND FINANCE, INC. 15 5.82% $15,191
    UNION HOME MORTGAGE CORP. 14 6.68% $13,592
    Gateway First Bank 14 6.44% $12,202
    FREEDOM MORTGAGE CORPORATION 12 6.43% $14,791
    PENNYMAC LOAN SERVICES, LLC 12 5.97% $11,426
    EAGLE HOME MORTGAGE, LLC 11 6.10% $15,311
    JET HOMELOANS, LLC 10 5.88% $13,213
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 10 6.56% $11,374
    T2 FINANCIAL LLC 10 6.61% $13,071
    Ameris Bank 9 6.25% $14,416
    GUILD MORTGAGE COMPANY 8 6.33% $12,311
    SUN WEST MORTGAGE COMPANY, INC. 8 5.92% $11,610
    CANOPY MORTGAGE, LLC 8 5.91% $18,603
    GUARANTEED RATE, INC. 8 6.55% $13,237
    NEWREZ LLC 7 6.32% $11,147
    MUTUAL OF OMAHA MORTGAGE, INC. 7 6.46% $16,844
    CMG MORTGAGE, INC. 7 6.39% $15,765
    PULTE MORTGAGE LLC 7 5.25% $9,601
    HOMESIDE FINANCIAL, LLC 6 6.19% $14,221
    EMM LOANS LLC 6 6.27% $14,664
    CROSSCOUNTRY MORTGAGE, LLC 6 6.44% $11,747
    FIRST CONTINENTAL MORTGAGE, LTD. 6 6.13% $6,780
    South State Bank 5 6.23% $12,337
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 5 6.25% $15,764
    BROKER SOLUTIONS, INC. 5 6.50% $12,428
    ABSOLUTE HOME MORTGAGE CORPORATION 5 6.63% $14,584
    AMERISAVE MORTGAGE CORPORATION 4 6.22% $16,611
    First Heritage Mortgage, LLC 4 5.28% $11,881
    MORTGAGE EQUITY PARTNERS LLC 3 6.54% $16,395
    Carrington Mortgage Services, LLC 3 6.96% $16,792
    Equity Prime Mortgage LLC 3 7.00% $21,744
    EQUITY RESOURCES, INC. 3 6.67% $17,156
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.38% $12,596
    FIRST COMMUNITY MORTGAGE, INC. 3 6.38% $13,051
    LOANDEPOT.COM, LLC 3 6.62% $14,425
    MILEND, INC. 3 6.25% $22,016
    Mr. Cooper ( Nationstar Mortgage ) 3 6.54% $16,801
    Paramount Residential Mortgage Group, Inc. 3 6.54% $13,130
    PLAZA HOME MORTGAGE, INC. 3 6.21% $15,212
    VILLAGE CAPITAL MORTGAGE 3 6.50% $5,554
    East Coast Capital Corp. 2 7.00% $12,116
    LAKEVIEW LOAN SERVICING, LLC 2 6.00% $10,035
    LOANPAL, LLC 2 5.50% $11,326
    Magnolia Bank 2 6.50% $15,622
    AMERICAN FINANCING CORPORATION 2 5.18% $19,740
    NATION ONE MORTGAGE CORPORATION 2 6.75% $19,157
    Nations Lending Corporation 2 5.63% $15,142
    PLANET HOME LENDING, LLC 2 6.62% $12,478
    Prosperity Home Mortgage, LLC 2 6.87% $12,219
    RELIANCE FIRST CAPITAL, LLC 2 7.06% $14,107
    TOTAL MORTGAGE SERVICES, LLC 2 6.81% $19,974
    FBC MORTGAGE, LLC 2 4.99% $9,547
    HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.12% $17,870
    Mortgage Research Center, LLC 1 6.63% $9,418
    CAPITAL CENTER, L.L.C. 1 6.25% $7,581
    Texana Bank 1 6.25% $12,479
    CALCON MUTUAL MORTGAGE LLC 1 6.13% $18,674
    The Loan Store, Inc. 1 6.63% $18,194
    First-Citizens Bank & Trust Company 1 5.63% $13,446
    BAYCOAST MORTGAGE COMPANY, LLC 1 6.13% $8,002
    AMERICAN FINANCIAL RESOURCES, INC. 1 6.25% $27,264
    Barrington Bank & Trust Company, N.A. 1 6.75% $7,269
    PHH Mortgage Corporation 1 5.99% $17,452
    Plains Commerce Bank 1 5.25% $16,197
    Flagstar Bank, FSB 1 6.52% $7,789
    Wells Fargo Bank 1 6.63% $14,493
    Presidential Bank, FSB 1 5.88% $15,121
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.25% $11,184
    GENEVA FINANCIAL, LLC 1 6.63% $17,269
    BANKSOUTH MORTGAGE COMPANY, LLC 1 6.25% $15,854
    Bank of England 1 6.63% $9,761
    GMFS LLC 1 6.63% $9,543
    Renasant Bank 1 6.75% $9,634
    SeaTrust Mortgage Company 1 6.13% $13,280
    Bank of America 1 5.38% $11,346
    INTERCOASTAL MORTGAGE COMPANY 1 5.75% $12,983
    Century Mortgage Company DBA Century Lending Company 1 6.13% $14,814
    CAROLINA ONE MORTGAGE, LLC 1 6.13% $16,440
    Kwik Mortgage Corporation 1 6.25% $13,378
    Lakeview Community Capital, LLC 1 6.75% $6,900
    SUCCESS MORTGAGE PARTNERS, INC. 1 7.63% $11,911
    LIBERTY HOME MORTGAGE CORPORATION 1 7.13% $10,216
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.13% $14,249
    AXIA FINANCIAL, LLC 1 7.25% $18,364
    Assurance Financial Group, L.L.C. 1 6.75% $8,996
    United Community Bank 1 6.25% $8,051
    CARDINAL FINANCIAL 1 6.75% $8,617

    The top Hilton Head Island FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 49 FHA loans originated. Their average total fees are $15,155, which is $6,069 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Hilton Head Island FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($9,086), ARK-LA-TEX FINANCIAL SERVICES, LLC. ($11,374), PENNYMAC LOAN SERVICES, LLC ($11,426), Gateway First Bank ($12,202) and MOVEMENT MORTGAGE, LLC ($12,375).

    The lowest rate Hilton Head Island FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.27%), VANDERBILT MORTGAGE AND FINANCE, INC. (5.82%), JET HOMELOANS, LLC (5.88%), PENNYMAC LOAN SERVICES, LLC (5.97%) and EAGLE HOME MORTGAGE, LLC (6.10%).

    Hilton Head Island FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    HILTON HEAD ISLAND-BLUFFTON, SC BEAUFORT 2022 $420,680 $538,650 $651,050 $809,150
    HILTON HEAD ISLAND-BLUFFTON, SC JASPER 2022 $420,680 $538,650 $651,050 $809,150
    HILTON HEAD ISLAND-BLUFFTON, SC BEAUFORT 2023 $485,300 $621,250 $750,950 $933,300
    HILTON HEAD ISLAND-BLUFFTON, SC JASPER 2023 $485,300 $621,250 $750,950 $933,300

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Hilton Head Island (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 $399,000 (0.5%) $582,890 (1.5%) 1.48 2,619
    2018-02-01 $399,900 (0.2%) $589,915 (2.6%) 1.45 2,733
    2018-03-01 $413,433 (3.6%) $604,551 (4.9%) 1.45 2,799
    2018-04-01 $421,950 (5.8%) $622,378 (6.4%) 1.43 2,945
    2018-05-01 $419,000 (4.8%) $627,059 (5.7%) 1.40 2,956
    2018-06-01 $419,500 (2.6%) $626,474 (3.7%) 1.40 2,967
    2018-07-01 $424,019 (3.4%) $626,343 (3.7%) 1.42 2,927
    2018-08-01 $426,242 (4.1%) $637,991 (6.7%) 1.43 2,777
    2018-09-01 $419,000 (1.0%) $625,990 (5.1%) 1.41 2,908
    2018-10-01 $426,000 (3.0%) $644,773 (9.0%) 1.44 2,889
    2018-11-01 $425,000 (6.3%) $643,945 (10.3%) 1.44 2,918
    2018-12-01 $425,000 (6.5%) $647,340 (11.1%) 1.47 2,822
    2019-01-01 $425,000 (6.5%) $642,125 (10.2%) 1.47 2,805
    2019-02-01 $425,000 (6.3%) $639,931 (8.5%) 1.44 2,843
    2019-03-01 $424,243 (2.6%) $643,930 (6.5%) 1.39 2,925
    2019-04-01 $432,400 (2.5%) $659,020 (5.9%) 1.37 2,994
    2019-05-01 $439,450 (4.9%) $671,827 (7.1%) 1.37 2,989
    2019-06-01 $443,495 (5.7%) $673,962 (7.6%) 1.39 2,869
    2019-07-01 $435,000 (2.6%) $657,348 (5.0%) 1.36 2,858
    2019-08-01 $434,727 (2.0%) $658,280 (3.2%) 1.38 2,838
    2019-09-01 $434,318 (3.7%) $659,134 (5.3%) 1.39 2,780
    2019-10-01 $436,878 (2.6%) $663,724 (2.9%) 1.41 2,724
    2019-11-01 $435,000 (2.4%) $669,793 (4.0%) 1.43 2,681
    2019-12-01 $429,000 (0.9%) $664,157 (2.6%) 1.43 2,594
    2020-01-01 $425,000 (0.0%) $653,388 (1.8%) 1.42 2,491
    2020-02-01 $434,900 (2.3%) $662,261 (3.5%) 1.42 2,514
    2020-03-01 $435,000 (2.5%) $667,773 (3.7%) 1.36 2,581
    2020-04-01 $426,850 (-1.3%) $656,980 (-0.3%) 1.34 2,621
    2020-05-01 $425,000 (-3.3%) $664,289 (-1.1%) 1.29 2,555
    2020-06-01 $429,225 (-3.2%) $681,711 (1.2%) 1.26 2,241
    2020-07-01 $439,350 (1.0%) $697,645 (6.1%) 1.27 1,987
    2020-08-01 $434,000 (-0.2%) $708,463 (7.6%) 1.24 1,818
    2020-09-01 $415,875 (-4.3%) $720,099 (9.3%) 1.19 1,637
    2020-10-01 $400,000 (-8.4%) $723,318 (9.0%) 1.15 1,441
    2020-11-01 $412,000 (-5.3%) $748,196 (11.7%) 1.20 1,311
    2020-12-01 $415,125 (-3.2%) $768,300 (15.7%) 1.23 1,167
    2021-01-01 $440,949 (3.8%) $792,938 (21.4%) 1.32 973
    2021-02-01 $442,000 (1.6%) $813,000 (22.8%) 1.29 784
    2021-03-01 $455,000 (4.6%) $809,143 (21.2%) 1.29 692
    2021-04-01 $449,750 (5.4%) $840,260 (27.9%) 1.22 624
    2021-05-01 $473,500 (11.4%) $821,439 (23.7%) 1.26 586
    2021-06-01 $487,000 (13.5%) $830,170 (21.8%) 1.28 639
    2021-07-01 $499,000 (13.6%) $832,961 (19.4%) 1.32 686
    2021-08-01 $540,564 (24.6%) $841,071 (18.7%) 1.44 705
    2021-09-01 $512,500 (23.2%) $824,698 (14.5%) 1.37 721
    2021-10-01 $524,312 (31.1%) $857,559 (18.6%) 1.40 695
    2021-11-01 $524,700 (27.4%) $853,248 (14.0%) 1.40 597
    2021-12-01 $509,500 (22.7%) $873,876 (13.7%) 1.38 523
    2022-01-01 $499,900 (13.4%) $882,812 (11.3%) 1.35 419
    2022-02-01 $550,000 (24.4%) $918,629 (13.0%) 1.43 380
    2022-03-01 $579,950 (27.5%) $977,672 (20.8%) 1.45 370
    2022-04-01 $599,365 (33.3%) $993,575 (18.3%) 1.43 451
    2022-05-01 $650,000 (37.3%) $1,078,437 (31.3%) 1.49 604
    2022-06-01 $647,807 (33.0%) $1,072,805 (29.2%) 1.44 732
    2022-07-01 $625,000 (25.3%) $1,030,953 (23.8%) 1.41 876
    2022-08-01 $629,500 (16.5%) $1,015,593 (20.8%) 1.46 934
    2022-09-01 $642,450 (25.4%) $1,027,206 (24.6%) 1.50 935
    2022-10-01 $632,500 (20.6%) $1,007,952 (17.5%) 1.49 964
    2022-11-01 $627,408 (19.6%) $1,008,415 (18.2%) 1.51 1,047
    2022-12-01 $628,775 (23.4%) $1,005,863 (15.1%) 1.55 1,022
    2023-01-01 $624,450 (24.9%) $996,950 (12.9%) 1.55 961
    2023-02-01 $634,901 (15.4%) $1,001,611 (9.0%) 1.53 920
    2023-03-01 $649,375 (12.0%) $1,045,973 (7.0%) 1.53 885
    2023-04-01 $645,000 (7.6%) $1,046,806 (5.4%) 1.50 898
    2023-05-01 $648,875 (-0.2%) $1,039,516 (-3.6%) 1.47 889
    2023-06-01 $622,450 (-3.9%) $991,419 (-7.6%) 1.40 947
    2023-07-01 $620,000 (-0.8%) $1,008,721 (-2.2%) 1.41 1,015
    2023-08-01 $601,700 (-4.4%) $1,000,390 (-1.5%) 1.38 1,046
    2023-09-01 $599,450 (-6.7%) $980,978 (-4.5%) 1.40 1,133
    2023-10-01 $599,000 (-5.3%) $1,009,050 (0.1%) 1.41 1,254
    2023-11-01 $589,000 (-6.1%) $991,231 (-1.7%) 1.40 1,364
    2023-12-01 $571,090 (-9.2%) $980,404 (-2.5%) 1.39 1,332
    2024-01-01 $582,250 (-6.8%) $1,010,012 (1.3%) 1.42 1,303
    2024-02-01 $577,125 (-9.1%) $1,029,274 (2.8%) 1.39 1,308
    2024-03-01 $585,000 (-9.9%) $1,034,775 (-1.1%) 1.38 1,426
    2024-04-01 $599,000 (-7.1%) $1,026,338 (-2.0%) 1.39 1,505
    2024-05-01 $577,000 (-11.1%) $1,015,403 (-2.3%) 1.31 1,552
    2024-06-01 $589,000 (-5.4%) $992,451 (0.1%) 1.34 1,553
    2024-07-01 $575,000 (-7.3%) $966,122 (-4.2%) 1.32 1,562
    2024-08-01 $569,000 (-5.4%) $916,731 (-8.4%) 1.32 1,617
    2024-09-01 $571,500 (-4.7%) $918,722 (-6.4%) 1.34 1,645
    2024-10-01 $569,000 (-5.0%) $910,665 (-9.8%) 1.34 1,743
    2024-11-01 $569,000 (-3.4%) $914,345 (-7.8%) 1.37 1,821
    2024-12-01 $569,000 (-0.4%) $930,029 (-5.1%) 1.41 1,722
    2025-01-01 $569,225 (-2.2%) $936,163 (-7.3%) 1.42 1,666
    2025-02-01 $549,000 (-4.9%) $893,840 (-13.2%) 1.33 1,823
    2025-03-01 $559,700 (-4.3%) $934,561 (-9.7%) 1.32 1,875
    2025-04-01 $579,200 (-3.3%) $942,523 (-8.2%) 1.34 2,026
    2025-05-01 $580,000 (0.5%) $949,411 (-6.5%) 1.32 2,089
    2025-06-01 $572,450 (-2.8%) $926,972 (-6.6%) 1.30 2,156
    Hilton Head Island's median listing price for 2025-06-01 was $572,450, a difference of $-16,550 (-2.8%) versus the prior year and $-7,550 versus the prior month.

    Hilton Head Island's median listing price comes in at 130% of the national average.

    Hilton Head Island's average listing price for 2025-06-01 was $926,972, a difference of $-65,479 (-6.6%) versus the prior year and $-22,439 versus the prior month.

    For the 2025-06-01 period, Hilton Head Island had 2,156 MLS listings, a difference of 67 listings (3%) versus the prior month and 603 listings (39%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Hilton Head Island (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 103 days 2,151 sqft
    2018-02-01 102 days 2,174 sqft
    2018-03-01 78 days 2,161 sqft
    2018-04-01 68 days 2,146 sqft
    2018-05-01 74 days 2,142 sqft
    2018-06-01 78 days 2,126 sqft
    2018-07-01 85 days 2,116 sqft
    2018-08-01 89 days 2,155 sqft
    2018-09-01 94 days 2,125 sqft
    2018-10-01 92 days 2,168 sqft
    2018-11-01 88 days 2,155 sqft
    2018-12-01 93 days 2,161 sqft
    2019-01-01 101 days 2,141 sqft
    2019-02-01 103 days 2,139 sqft
    2019-03-01 95 days 2,150 sqft
    2019-04-01 85 days 2,167 sqft
    2019-05-01 91 days 2,188 sqft
    2019-06-01 94 days 2,212 sqft
    2019-07-01 103 days 2,175 sqft
    2019-08-01 106 days 2,176 sqft
    2019-09-01 112 days 2,175 sqft
    2019-10-01 107 days 2,185 sqft
    2019-11-01 98 days 2,200 sqft
    2019-12-01 97 days 2,187 sqft
    2020-01-01 102 days 2,161 sqft
    2020-02-01 104 days 2,174 sqft
    2020-03-01 83 days 2,201 sqft
    2020-04-01 81 days 2,160 sqft
    2020-05-01 89 days 2,131 sqft
    2020-06-01 98 days 2,144 sqft
    2020-07-01 94 days 2,189 sqft
    2020-08-01 71 days 2,186 sqft
    2020-09-01 67 days 2,142 sqft
    2020-10-01 65 days 2,135 sqft
    2020-11-01 66 days 2,122 sqft
    2020-12-01 74 days 2,135 sqft
    2021-01-01 79 days 2,118 sqft
    2021-02-01 67 days 2,038 sqft
    2021-03-01 52 days 2,092 sqft
    2021-04-01 44 days 2,067 sqft
    2021-05-01 43 days 2,032 sqft
    2021-06-01 38 days 1,960 sqft
    2021-07-01 46 days 1,985 sqft
    2021-08-01 50 days 2,026 sqft
    2021-09-01 49 days 1,973 sqft
    2021-10-01 57 days 2,026 sqft
    2021-11-01 59 days 1,966 sqft
    2021-12-01 64 days 1,983 sqft
    2022-01-01 74 days 1,989 sqft
    2022-02-01 46 days 2,020 sqft
    2022-03-01 33 days 2,083 sqft
    2022-04-01 31 days 2,094 sqft
    2022-05-01 32 days 2,169 sqft
    2022-06-01 33 days 2,121 sqft
    2022-07-01 41 days 2,064 sqft
    2022-08-01 50 days 2,093 sqft
    2022-09-01 56 days 2,096 sqft
    2022-10-01 60 days 2,145 sqft
    2022-11-01 58 days 2,120 sqft
    2022-12-01 65 days 2,115 sqft
    2023-01-01 75 days 2,118 sqft
    2023-02-01 72 days 2,162 sqft
    2023-03-01 56 days 2,227 sqft
    2023-04-01 52 days 2,186 sqft
    2023-05-01 50 days 2,134 sqft
    2023-06-01 52 days 2,091 sqft
    2023-07-01 52 days 2,031 sqft
    2023-08-01 53 days 1,986 sqft
    2023-09-01 56 days 1,972 sqft
    2023-10-01 53 days 1,991 sqft
    2023-11-01 56 days 1,980 sqft
    2023-12-01 66 days 1,979 sqft
    2024-01-01 79 days 2,000 sqft
    2024-02-01 70 days 1,964 sqft
    2024-03-01 51 days 1,992 sqft
    2024-04-01 51 days 1,986 sqft
    2024-05-01 52 days 1,950 sqft
    2024-06-01 61 days 1,949 sqft
    2024-07-01 71 days 1,941 sqft
    2024-08-01 73 days 1,906 sqft
    2024-09-01 72 days 1,921 sqft
    2024-10-01 71 days 1,928 sqft
    2024-11-01 70 days 1,918 sqft
    2024-12-01 79 days 1,931 sqft
    2025-01-01 86 days 1,953 sqft
    2025-02-01 83 days 1,857 sqft
    2025-03-01 61 days 1,904 sqft
    2025-04-01 58 days 1,945 sqft
    2025-05-01 64 days 1,938 sqft
    2025-06-01 74 days 1,936 sqft
    Hilton Head Island's median listing age (time on market) for 2025-06-01 was 74 days. This is 20% longer than the same period one year ago.

    Hilton Head Island's median square footage for active listings during the 2025-06-01 period was 1,936 sqft. One year prior, the average listing was 1,949 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).