Huntsville FHA Loan Rates, Closing Costs & Stats

HUNTSVILLE, AL

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.

Huntsville's 149 lenders originated 1,855 FHA loans during 2023. The total origination value was $510,485,000, with an average FHA loan value of $275,194.

Huntsville FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Huntsville averaged 6.23% for the week of 2024-05-17, compared to the national average (all FHA variants) of 6.744% for the same period.

Huntsville's average FHA mortgage closing costs are $8,187.

The average rate for the prior week (2024-05-10) was 6.67% and one month ago for the week of 2024-04-12, the average rate was 6.53%.

The average rate one year ago was 6.28%.

For refis of the same type during the week of 2024-05-17, the average rate was 6.91%.

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

Huntsville 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 Huntsville level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 172 6.23% $10,934
UNITED WHOLESALE MORTGAGE, LLC 151 6.23% $11,960
EAGLE HOME MORTGAGE, LLC 94 5.14% $6,308
DHI MORTGAGE COMPANY, LTD. 94 5.51% $7,462
VANDERBILT MORTGAGE AND FINANCE, INC. 62 6.05% $11,563
FirstBank 60 6.40% $11,756
MOVEMENT MORTGAGE, LLC 49 6.58% $10,426
LOANDEPOT.COM, LLC 47 6.26% $13,793
AMERICAN PORTFOLIO MORTGAGE CORPORATION 40 6.41% $11,537
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 39 6.43% $10,892
GMFS LLC 38 6.58% $7,715
FIRST CONTINENTAL MORTGAGE, LTD. 34 6.47% $6,329
FREEDOM MORTGAGE CORPORATION 32 6.69% $13,358
GUARANTEED RATE, INC. 29 6.19% $10,693
BROKER SOLUTIONS, INC. 28 6.53% $11,038
PENNYMAC LOAN SERVICES, LLC 28 6.35% $12,719
Trustmark National Bank 27 6.52% $11,161
DSLD MORTGAGE, LLC 27 5.87% $6,380
Renasant Bank 26 6.27% $10,471
Victorian Finance, LLC 25 6.80% $13,807
Regions Bank 25 6.11% $9,158
FIRST COMMUNITY MORTGAGE, INC. 23 6.60% $11,397
Mr. Cooper ( Nationstar Mortgage ) 21 6.01% $13,532
FBC MORTGAGE, LLC 21 5.24% $8,149
Carrington Mortgage Services, LLC 20 6.28% $10,488
CARDINAL FINANCIAL 19 6.66% $14,063
CROSSCOUNTRY MORTGAGE, LLC 19 6.37% $14,812
NEWREZ LLC 19 6.45% $12,854
AMERICAN FINANCIAL NETWORK, INC. 17 7.06% $12,189
REDSTONE Federal Credit Union 16 6.15% $7,454
STOCKTON MORTGAGE CORPORATION 16 7.16% $11,345
CANOPY MORTGAGE, LLC 15 6.27% $21,759
TJC Mortgage, Inc. 15 6.41% $13,376
PLANET HOME LENDING, LLC 14 6.58% $8,539
Flagstar Bank, FSB 14 5.97% $13,294
Synovus Bank 14 6.31% $10,398
Century Mortgage Company DBA Century Lending Company 14 6.70% $9,089
BancorpSouth 13 6.36% $7,212
AMERISAVE MORTGAGE CORPORATION 13 5.91% $14,314
Assurance Financial Group, L.L.C. 13 6.60% $11,614
Hamilton Mortgage Corporation 11 6.84% $10,847
UNION HOME MORTGAGE CORP. 10 6.45% $15,408
GUILD MORTGAGE COMPANY 9 6.79% $11,343
Equity Prime Mortgage LLC 8 6.84% $13,801
United Community Bank 8 6.13% $10,827
HOMESTAR FINANCIAL CORPORATION 8 6.44% $9,861
First Federal Bank, A FSB 7 6.38% $10,212
Pinnacle Bank 7 6.18% $11,217
MILEND, INC. 7 6.75% $12,232
Mortgage Research Center, LLC 7 6.73% $6,328
Plains Commerce Bank 7 6.38% $12,585
ISERVE RESIDENTIAL LENDING, LLC 7 7.10% $18,386
Wells Fargo Bank 6 6.60% $8,713
MUTUAL OF OMAHA MORTGAGE, INC. 6 6.56% $15,545
TOWNE MORTGAGE COMPANY 5 6.33% $10,838
South State Bank 5 5.80% $10,047
ACOPIA, LLC 5 6.85% $13,227
Prosperity Home Mortgage, LLC 5 6.30% $10,052
LAKEVIEW LOAN SERVICING, LLC 5 6.13% $10,480
LOANPAL, LLC 5 6.45% $9,303
The Federal Savings Bank 4 6.91% $15,005
Citizens Bank 4 6.47% $10,096
Consumer First Mortgage, Inc. 4 6.38% $9,161
AMERICAN FINANCING CORPORATION 4 6.41% $9,617
VILLAGE CAPITAL MORTGAGE 4 6.10% $12,731
FirstTrust Home Loans, Inc. 4 6.16% $10,259
AmeriHome Mortgage Company, LLC 4 6.03% $8,427
PRIMELENDING, A PLAINSCAPITAL COMPANY 3 7.21% $8,974
SUN WEST MORTGAGE COMPANY, INC. 3 6.83% $11,032
S1L, Inc. 3 7.33% $11,117
AMERICAN FINANCIAL RESOURCES, INC. 3 5.96% $11,468
BAY EQUITY LLC 3 6.29% $11,098
Northpointe Bank 3 6.58% $12,880
SOUTHPOINT FINANCIAL SERVICES, INC. 3 6.88% $16,515
ZILLOW HOME LOANS, LLC 2 6.31% $8,037
Alcova Mortgage LLC 2 7.38% $4,179
Ameris Bank 2 6.63% $15,417
ARC HOME LLC 2 6.19% $11,846
Barrington Bank & Trust Company, N.A. 2 6.50% $7,971
BETTER MORTGAGE CORPORATION 2 6.31% $15,282
CMG MORTGAGE, INC. 2 6.06% $20,841
EMM LOANS LLC 2 6.00% $13,119
First Federal Bank 2 6.00% $11,065
GENEVA FINANCIAL, LLC 2 6.69% $10,048
JPMorgan Chase Bank 2 6.56% $7,475
LIBERTY HOME MORTGAGE CORPORATION 2 7.06% $11,965
MORTGAGE ACCESS CORP. 2 6.69% $7,550
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.94% $10,568
NATIONS DIRECT MORTGAGE, LLC 2 6.50% $11,259
NATIONWIDE MORTGAGE BANKERS, INC. 2 7.50% $17,221
NBKC BANK 2 5.75% $8,946
PNC Bank 2 6.19% $7,345
PREMIA MORTGAGE, LLC 2 6.06% $7,654
RELIANCE FIRST CAPITAL, LLC 2 6.44% $7,898
ROYAL UNITED MORTGAGE LLC 2 7.44% $9,806
SOVEREIGN LENDING GROUP INCORPORATED 2 5.87% $13,191
TOP FLITE FINANCIAL, INC. 2 7.13% $16,796
Total Media Management, LLC 2 6.31% $14,308
Wyndham Capital Mortgage, Inc. 2 7.13% $7,020
PENTAGON FEDERAL CREDIT UNION 1 5.13% $6,185
PHH Mortgage Corporation 1 7.13% $7,801
LEADERONE FINANCIAL CORPORATION 1 6.25% $8,428
KELLER MORTGAGE, LLC 1 5.50% $7,605
INB 1 6.13% $7,733
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.75% $10,356
American Mortgage & Equity Consultants, Inc. 1 6.75% $14,185
HOMEOWNERS FINANCIAL GROUP USA, LLC 1 4.99% $9,387
Princeton Mortgage Corporation 1 7.25% $11,202
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 7.25% $6,837
GUARANTY HOME MORTGAGE CORPORATION 1 6.88% $15,543
GUARANTEED RATE AFFINITY, LLC 1 6.49% $11,515
First Horizon Bank 1 6.50% $12,153
V.I.P. MORTGAGE, INC. 1 6.49% $10,103
FIRST COLONY MORTGAGE CORPORATION 1 6.63% $10,140
ROSS MORTGAGE CORPORATION 1 6.63% $3,523
Watermark Capital, Inc. 1 6.25% $8,041
DAS Acquisition Company, LLC 1 7.00% $19,541
SECURITYNATIONAL MORTGAGE COMPANY 1 5.25% $24,107
SouthPoint Bank 1 7.38% $8,071
CORNERSTONE HOME LENDING, INC. 1 6.75% $10,755
CONTOUR MORTGAGE CORPORATION 1 6.25% $12,012
Waterstone Mortgage Corporation 1 7.00% $11,318
CHURCHILL MORTGAGE CORPORATION 1 6.50% $12,914
SUMMIT FUNDING, INC. 1 6.25% $8,598
Centennial Bank 1 6.63% $8,709
SWBC MORTGAGE CORPORATION 1 7.75% $8,266
CBM Mortgage, Inc. 1 6.75% $9,270
CASTLE & COOKE MORTGAGE, LLC 1 7.13% $18,414
THE MORTGAGE FIRM, INC. 1 5.50% $8,259
BECKAM FUNDING CORP. 1 7.25% $7,157
A&D Mortgage LLC 1 5.75% $15,890
ABSOLUTE HOME MORTGAGE CORPORATION 1 7.50% $9,208
Bank of England 1 7.13% $8,519
Truist 1 6.20% $4,798
Bank of America 1 6.00% $13,944
Bank Independent 1 7.00% $7,320
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 1 7.50% $15,501
Arvest Bank 1 7.00% $9,673
M&T Bank 1 6.75% $10,332
US MORTGAGE CORPORATION 1 6.25% $13,616
Nations Lending Corporation 1 7.25% $10,597
Armed Forces Bank 1 6.25% $8,029
VAN DYK MORTGAGE CORPORATION 1 7.00% $10,060
NETWORK CAPITAL FUNDING CORPORATION 1 5.63% $8,185
MORTGAGE INVESTORS GROUP, INC. 1 6.50% $13,152
NFM, INC. 1 7.63% $12,491
MIDLAND MORTGAGE CORPORATION 1 5.75% $8,827
Paramount Residential Mortgage Group, Inc. 1 7.25% $14,840
MID AMERICA MORTGAGE, INC. 1 7.88% $0

The top Huntsville FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 172 FHA loans originated. Their average total fees are $10,934, which is $1,026 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Huntsville FHA lenders (with over 10 loans originated) are EAGLE HOME MORTGAGE, LLC ($6,308), FIRST CONTINENTAL MORTGAGE, LTD. ($6,329), DSLD MORTGAGE, LLC ($6,380), BancorpSouth ($7,212) and REDSTONE Federal Credit Union ($7,454).

The lowest rate Huntsville FHA lenders (with over 10 loans originated) are EAGLE HOME MORTGAGE, LLC (5.14%), FBC MORTGAGE, LLC (5.24%), DHI MORTGAGE COMPANY, LTD. (5.51%), DSLD MORTGAGE, LLC (5.87%) and AMERISAVE MORTGAGE CORPORATION (5.91%).

Huntsville FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
HUNTSVILLE, AL LIMESTONE 2022 $420,680 $538,650 $651,050 $809,150
HUNTSVILLE, AL MADISON 2022 $420,680 $538,650 $651,050 $809,150
HUNTSVILLE, AL LIMESTONE 2023 $472,030 $604,400 $730,525 $907,900
HUNTSVILLE, AL MADISON 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Huntsville (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 $238,339 (10.1%) $283,711 (8.9%) 0.88 2,205
2018-02-01 $242,899 (11.5%) $289,755 (10.2%) 0.88 2,076
2018-03-01 $246,700 (12.4%) $294,249 (10.3%) 0.87 2,064
2018-04-01 $256,871 (16.8%) $307,046 (13.2%) 0.87 2,045
2018-05-01 $255,139 (12.0%) $307,923 (11.2%) 0.85 2,051
2018-06-01 $249,900 (8.9%) $304,004 (9.2%) 0.83 2,137
2018-07-01 $252,500 (9.8%) $310,309 (10.9%) 0.84 2,121
2018-08-01 $254,950 (12.5%) $308,938 (10.5%) 0.85 2,127
2018-09-01 $259,900 (13.1%) $308,434 (9.1%) 0.87 2,117
2018-10-01 $255,950 (11.3%) $305,787 (8.5%) 0.87 2,087
2018-11-01 $254,925 (9.1%) $304,388 (6.6%) 0.86 2,038
2018-12-01 $254,846 (10.8%) $303,854 (7.7%) 0.88 1,943
2019-01-01 $253,668 (6.4%) $299,407 (5.5%) 0.88 1,782
2019-02-01 $259,233 (6.7%) $306,001 (5.6%) 0.88 1,706
2019-03-01 $264,471 (7.2%) $316,510 (7.6%) 0.86 1,638
2019-04-01 $269,021 (4.7%) $324,829 (5.8%) 0.85 1,551
2019-05-01 $272,889 (7.0%) $326,124 (5.9%) 0.85 1,559
2019-06-01 $274,900 (10.0%) $331,244 (9.0%) 0.86 1,565
2019-07-01 $275,000 (8.9%) $340,522 (9.7%) 0.86 1,532
2019-08-01 $274,973 (7.9%) $338,308 (9.5%) 0.87 1,513
2019-09-01 $274,932 (5.8%) $336,341 (9.1%) 0.88 1,477
2019-10-01 $274,955 (7.4%) $333,720 (9.1%) 0.89 1,459
2019-11-01 $276,910 (8.6%) $336,407 (10.5%) 0.91 1,359
2019-12-01 $274,612 (7.8%) $337,668 (11.1%) 0.92 1,265
2020-01-01 $279,948 (10.4%) $345,806 (15.5%) 0.94 1,181
2020-02-01 $285,000 (9.9%) $352,208 (15.1%) 0.93 1,077
2020-03-01 $289,900 (9.6%) $362,655 (14.6%) 0.91 1,034
2020-04-01 $288,573 (7.3%) $356,918 (9.9%) 0.90 1,105
2020-05-01 $289,950 (6.3%) $358,728 (10.0%) 0.88 1,260
2020-06-01 $296,711 (7.9%) $362,301 (9.4%) 0.87 1,161
2020-07-01 $296,250 (7.7%) $371,433 (9.1%) 0.86 1,109
2020-08-01 $300,000 (9.1%) $373,491 (10.4%) 0.86 1,067
2020-09-01 $299,900 (9.1%) $371,188 (10.4%) 0.86 1,029
2020-10-01 $298,473 (8.6%) $367,364 (10.1%) 0.86 1,017
2020-11-01 $299,450 (8.1%) $371,342 (10.4%) 0.88 980
2020-12-01 $304,549 (10.9%) $375,056 (11.1%) 0.91 967
2021-01-01 $323,700 (15.6%) $385,620 (11.5%) 0.97 834
2021-02-01 $354,450 (24.4%) $411,622 (16.9%) 1.03 656
2021-03-01 $356,399 (22.9%) $419,646 (15.7%) 1.01 575
2021-04-01 $344,650 (19.4%) $414,158 (16.0%) 0.93 518
2021-05-01 $349,000 (20.4%) $419,008 (16.8%) 0.93 499
2021-06-01 $317,250 (6.9%) $402,492 (11.1%) 0.84 386
2021-07-01 $324,075 (9.4%) $414,936 (11.7%) 0.86 457
2021-08-01 $324,125 (8.0%) $418,106 (12.0%) 0.86 551
2021-09-01 $342,600 (14.2%) $439,037 (18.3%) 0.91 537
2021-10-01 $349,900 (17.2%) $446,125 (21.4%) 0.93 535
2021-11-01 $354,582 (18.4%) $464,088 (25.0%) 0.95 511
2021-12-01 $367,400 (20.6%) $483,000 (28.8%) 1.00 440
2022-01-01 $374,494 (15.7%) $489,006 (26.8%) 1.01 358
2022-02-01 $372,499 (5.1%) $487,141 (18.4%) 0.97 351
2022-03-01 $413,297 (16.0%) $479,802 (14.3%) 1.03 499
2022-04-01 $404,950 (17.5%) $478,158 (15.5%) 0.97 592
2022-05-01 $399,900 (14.6%) $475,164 (13.4%) 0.91 792
2022-06-01 $406,221 (28.0%) $476,310 (18.3%) 0.90 955
2022-07-01 $395,000 (21.9%) $464,109 (11.9%) 0.89 1,209
2022-08-01 $391,958 (20.9%) $469,999 (12.4%) 0.91 1,339
2022-09-01 $394,950 (15.3%) $470,435 (7.2%) 0.92 1,433
2022-10-01 $394,900 (12.9%) $469,185 (5.2%) 0.93 1,520
2022-11-01 $395,900 (11.7%) $467,972 (0.8%) 0.95 1,609
2022-12-01 $390,073 (6.2%) $463,518 (-4.0%) 0.96 1,570
2023-01-01 $389,450 (4.0%) $459,969 (-5.9%) 0.96 1,519
2023-02-01 $391,293 (5.1%) $462,716 (-5.0%) 0.94 1,447
2023-03-01 $399,450 (-3.4%) $466,379 (-2.8%) 0.94 1,391
2023-04-01 $412,900 (2.0%) $479,420 (0.3%) 0.96 1,364
2023-05-01 $424,900 (6.3%) $483,081 (1.7%) 0.96 1,444
2023-06-01 $424,950 (4.6%) $485,381 (1.9%) 0.95 1,513
2023-07-01 $406,890 (3.0%) $483,018 (4.1%) 0.92 1,600
2023-08-01 $399,900 (2.0%) $481,084 (2.4%) 0.92 1,633
2023-09-01 $390,000 (-1.3%) $469,893 (-0.1%) 0.91 1,705
2023-10-01 $376,950 (-4.6%) $458,168 (-2.4%) 0.89 1,853
2023-11-01 $370,108 (-6.5%) $449,017 (-4.1%) 0.88 1,911
2023-12-01 $365,000 (-6.4%) $445,725 (-3.8%) 0.89 1,885
2024-01-01 $367,450 (-5.7%) $452,841 (-1.6%) 0.90 1,717
2024-02-01 $371,450 (-5.1%) $452,913 (-2.1%) 0.89 1,692
2024-03-01 $378,900 (-5.1%) $455,442 (-2.3%) 0.89 1,697
2024-04-01 $379,900 (-8.0%) $455,401 (-5.0%) 0.88 1,790
Huntsville's median listing price for 2024-04-01 was $379,900, a difference of $-33,000 (-8.0%) versus the prior year and $1,000 versus the prior month.

Huntsville's median listing price comes in at 88% of the national average.

Huntsville's average listing price for 2024-04-01 was $455,401, a difference of $-24,019 (-5.0%) versus the prior year and $-41 versus the prior month.

For the 2024-04-01 period, Huntsville had 1,790 MLS listings, a difference of 93 listings (5%) versus the prior month and 426 listings (31%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Huntsville (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 89 days 2,452 sqft
2018-02-01 89 days 2,474 sqft
2018-03-01 71 days 2,500 sqft
2018-04-01 65 days 2,546 sqft
2018-05-01 59 days 2,536 sqft
2018-06-01 58 days 2,500 sqft
2018-07-01 61 days 2,515 sqft
2018-08-01 65 days 2,508 sqft
2018-09-01 72 days 2,540 sqft
2018-10-01 77 days 2,521 sqft
2018-11-01 81 days 2,515 sqft
2018-12-01 86 days 2,507 sqft
2019-01-01 92 days 2,493 sqft
2019-02-01 84 days 2,500 sqft
2019-03-01 70 days 2,530 sqft
2019-04-01 52 days 2,545 sqft
2019-05-01 46 days 2,528 sqft
2019-06-01 46 days 2,550 sqft
2019-07-01 51 days 2,583 sqft
2019-08-01 51 days 2,562 sqft
2019-09-01 52 days 2,535 sqft
2019-10-01 51 days 2,520 sqft
2019-11-01 57 days 2,515 sqft
2019-12-01 66 days 2,500 sqft
2020-01-01 73 days 2,500 sqft
2020-02-01 59 days 2,500 sqft
2020-03-01 39 days 2,508 sqft
2020-04-01 39 days 2,491 sqft
2020-05-01 37 days 2,500 sqft
2020-06-01 43 days 2,503 sqft
2020-07-01 45 days 2,500 sqft
2020-08-01 43 days 2,501 sqft
2020-09-01 39 days 2,418 sqft
2020-10-01 40 days 2,401 sqft
2020-11-01 42 days 2,394 sqft
2020-12-01 46 days 2,396 sqft
2021-01-01 50 days 2,448 sqft
2021-02-01 48 days 2,512 sqft
2021-03-01 33 days 2,405 sqft
2021-04-01 25 days 2,423 sqft
2021-05-01 17 days 2,367 sqft
2021-06-01 8 days 2,344 sqft
2021-07-01 9 days 2,304 sqft
2021-08-01 14 days 2,337 sqft
2021-09-01 18 days 2,388 sqft
2021-10-01 18 days 2,377 sqft
2021-11-01 18 days 2,385 sqft
2021-12-01 27 days 2,424 sqft
2022-01-01 30 days 2,448 sqft
2022-02-01 12 days 2,399 sqft
2022-03-01 10 days 2,458 sqft
2022-04-01 14 days 2,449 sqft
2022-05-01 19 days 2,374 sqft
2022-06-01 21 days 2,373 sqft
2022-07-01 29 days 2,352 sqft
2022-08-01 33 days 2,354 sqft
2022-09-01 40 days 2,346 sqft
2022-10-01 42 days 2,357 sqft
2022-11-01 50 days 2,379 sqft
2022-12-01 59 days 2,368 sqft
2023-01-01 67 days 2,352 sqft
2023-02-01 65 days 2,361 sqft
2023-03-01 57 days 2,366 sqft
2023-04-01 52 days 2,376 sqft
2023-05-01 48 days 2,406 sqft
2023-06-01 50 days 2,432 sqft
2023-07-01 50 days 2,383 sqft
2023-08-01 51 days 2,375 sqft
2023-09-01 53 days 2,351 sqft
2023-10-01 52 days 2,285 sqft
2023-11-01 57 days 2,236 sqft
2023-12-01 68 days 2,211 sqft
2024-01-01 77 days 2,215 sqft
2024-02-01 70 days 2,235 sqft
2024-03-01 51 days 2,265 sqft
2024-04-01 48 days 2,272 sqft
Huntsville's median listing age (time on market) for 2024-04-01 was 48 days. This is -8% shorter than the same period one year ago.

Huntsville's median square footage for active listings during the 2024-04-01 period was 2,272 sqft. One year prior, the average listing was 2,376 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).