Jackson FHA Loan Rates, Closing Costs & Stats

JACKSON, MS

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.

Jackson's 108 lenders originated 2,022 FHA loans during 2024. The total origination value was $474,320,000, with an average FHA loan value of $234,580.

Jackson FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Jackson averaged 6.23% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

Jackson's average FHA mortgage closing costs are $7,067.

The average rate for the prior week (2025-03-28) was 6.73% and one month ago for the week of 2025-02-28, the average rate was 6.41%.

The average rate one year ago was 6.83%.

For refis of the same type during the week of 2025-04-04, the average rate was 6.26%.

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

Jackson 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 Jackson level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
Trustmark National Bank 280 6.37% $8,295
BancorpSouth 170 6.03% $9,325
American Mortgage Bank, LLC 142 6.28% $10,180
QUICKEN LOANS, LLC 129 6.40% $10,444
UNITED WHOLESALE MORTGAGE, LLC 81 6.19% $11,219
GUILD MORTGAGE COMPANY 62 6.59% $10,161
STOCKTON MORTGAGE CORPORATION 53 6.69% $9,700
Community Bank of Mississippi 52 6.16% $9,341
Origin Bank 48 6.29% $7,662
Renasant Bank 36 6.46% $10,056
PLANET HOME LENDING, LLC 35 6.65% $9,387
BankPlus 34 6.08% $7,199
SWBC MORTGAGE CORPORATION 25 6.26% $6,832
PENNYMAC LOAN SERVICES, LLC 24 5.96% $9,707
FREEDOM MORTGAGE CORPORATION 23 6.52% $10,846
Regions Bank 23 6.69% $7,927
MORTGAGE INVESTORS GROUP, INC. 22 6.61% $8,874
ACOPIA, LLC 22 6.64% $9,915
KEESLER 21 5.58% $9,070
Bank of England 21 6.57% $11,391
DHI MORTGAGE COMPANY, LTD. 20 5.03% $7,525
Flagstar Bank, FSB 20 5.86% $10,753
BROKER SOLUTIONS, INC. 19 7.00% $11,730
OPEN MORTGAGE, LLC 17 6.73% $8,624
CROSSCOUNTRY MORTGAGE, LLC 16 6.70% $11,080
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 14 6.45% $9,321
Magnolia Bank 14 6.46% $8,905
LOANDEPOT.COM, LLC 14 6.66% $10,146
TOWNE MORTGAGE COMPANY 14 6.88% $8,978
Carrington Mortgage Services, LLC 14 6.33% $10,707
Equity Prime Mortgage LLC 12 7.32% $12,424
EVANSVILLE TEACHERS 11 6.59% $7,652
FIRST COMMUNITY MORTGAGE, INC. 10 6.53% $10,618
AmeriHome Mortgage Company, LLC 9 6.22% $8,415
Ixonia Bank 8 6.77% $12,843
Mr. Cooper ( Nationstar Mortgage ) 8 6.53% $10,034
Mortgage Research Center, LLC 8 6.64% $8,584
UNION HOME MORTGAGE CORP. 8 6.83% $8,956
Towne Bank 8 6.59% $12,091
CARDINAL FINANCIAL 7 6.45% $16,259
AMERISAVE MORTGAGE CORPORATION 6 6.23% $12,530
FIDELITY BANK 6 6.58% $9,362
EMM LOANS LLC 6 6.63% $12,735
MUTUAL OF OMAHA MORTGAGE, INC. 6 6.50% $13,811
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 7.00% $9,812
American Mortgage & Equity Consultants, Inc. 4 7.28% $11,925
CORNERSTONE HOME LENDING, INC. 4 7.31% $12,641
First Horizon Bank 4 6.56% $7,128
Lakeview Community Capital, LLC 4 6.50% $8,723
ZILLOW HOME LOANS, LLC 4 6.50% $8,924
JPMorgan Chase Bank 3 7.17% $8,896
NBKC BANK 3 6.25% $9,143
NEWREZ LLC 3 6.42% $8,714
LAKEVIEW LOAN SERVICING, LLC 3 6.56% $7,686
Century Mortgage Company DBA Century Lending Company 3 6.92% $17,355
Wells Fargo Bank 3 6.00% $10,424
VILLAGE CAPITAL MORTGAGE 3 7.00% $5,746
Hamilton Mortgage Corporation 3 6.71% $10,703
Residential Acceptance Corporation 3 7.33% $10,095
FIRST COLONY MORTGAGE CORPORATION 2 7.50% $12,328
CIS Financial Services, Inc. 2 6.31% $8,590
AMERICAN FINANCIAL NETWORK, INC. 2 7.69% $12,858
GUARANTEED RATE, INC. 2 6.45% $9,081
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.63% $6,501
ROYAL UNITED MORTGAGE LLC 2 7.13% $8,169
MID AMERICA MORTGAGE, INC. 2 7.06% $6,487
SeaTrust Mortgage Company 2 6.19% $8,253
Eagle Bank and Trust Company 2 6.63% $10,186
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 5.88% $11,650
SUN WEST MORTGAGE COMPANY, INC. 2 5.67% $10,072
Barrington Bank & Trust Company, N.A. 2 7.00% $7,169
MOVEMENT MORTGAGE, LLC 2 6.81% $9,771
RUOFF MORTGAGE COMPANY, INC. 1 5.75% $7,389
SOUTHEAST MORTGAGE OF GEORGIA, INC. 1 6.25% $11,311
SOUTHWEST FUNDING, LP 1 6.13% $14,007
SOUTHWEST STAGE FUNDING, LLC 1 5.38% $9,768
BARTLETT MORTGAGE, INC. 1 6.25% $10,164
Texana Bank 1 6.38% $5,720
The Citizens National Bank of Meridian 1 6.50% $7,212
The Federal Savings Bank 1 5.75% $31,106
The Loan Store, Inc. 1 6.49% $17,243
Bank of America 1 6.13% $9,341
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.63% $8,702
AMERITRUST MORTGAGE CORPORATION 1 7.75% $7,655
AMERICAN FINANCING CORPORATION 1 5.38% $21,027
Hancock Whitney Bank 1 5.63% $12,040
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 6.25% $8,524
Home Mortgage Alliance Corp 1 8.25% $5,477
HOPE FEDERAL CREDIT UNION 1 6.63% $19,478
GUARANTEED RATE AFFINITY, LLC 1 6.13% $4,171
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 6.50% $8,771
Merchants & Marine Bank 1 6.75% $11,296
FLAT BRANCH MORTGAGE, INC. 1 7.13% $8,114
First Federal Bank 1 6.25% $8,492
EVERETT FINANCIAL, INC. 1 6.63% $6,965
Nations Lending Corporation 1 6.75% $7,656
OceanFirst Bank 1 5.75% $10,043
OCMBC, INC. 1 7.13% $8,293
ENVOY MORTGAGE, LTD 1 6.63% $7,145
Paramount Residential Mortgage Group, Inc. 1 5.75% $17,728
COMMUNITY MORTGAGE CORPORATION 1 6.63% $9,264
PENTAGON FEDERAL CREDIT UNION 1 5.50% $8,430
Plains Commerce Bank 1 7.00% $4,888
CMG MORTGAGE, INC. 1 4.99% $18,299
PLAZA HOME MORTGAGE, INC. 1 5.63% $14,829
Citizens Bank 1 6.88% $4,159
Princeton Mortgage Corporation 1 6.25% $13,041
Centennial Bank 1 7.25% $11,585

The top Jackson FHA lender as defined by loan originations is Trustmark National Bank, with 280 FHA loans originated. Their average total fees are $8,295, which is $1,030 lower than the next largest lender, BancorpSouth.

The lowest fee Jackson FHA lenders (with over 10 loans originated) are SWBC MORTGAGE CORPORATION ($6,832), BankPlus ($7,199), DHI MORTGAGE COMPANY, LTD. ($7,525), EVANSVILLE TEACHERS ($7,652) and Origin Bank ($7,662).

The lowest rate Jackson FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.03%), KEESLER (5.58%), Flagstar Bank, FSB (5.86%), PENNYMAC LOAN SERVICES, LLC (5.96%) and BancorpSouth (6.03%).

Jackson FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
JACKSON, MS COPIAH 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS HINDS 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS HOLMES 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS MADISON 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS RANKIN 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS SIMPSON 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS YAZOO 2022 $420,680 $538,650 $651,050 $809,150
JACKSON, MS COPIAH 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS HINDS 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS HOLMES 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS MADISON 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS RANKIN 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS SIMPSON 2023 $472,030 $604,400 $730,525 $907,900
JACKSON, MS YAZOO 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Jackson (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 $229,500 (7.2%) $292,257 (2.0%) 0.85 2,482
2018-02-01 $229,900 (4.5%) $289,342 (-0.1%) 0.83 2,576
2018-03-01 $234,900 (4.4%) $294,719 (0.6%) 0.82 2,715
2018-04-01 $238,950 (4.4%) $300,369 (2.6%) 0.81 2,873
2018-05-01 $250,000 (9.0%) $324,758 (11.8%) 0.83 2,339
2018-06-01 $258,000 (12.2%) $327,869 (12.3%) 0.86 2,353
2018-07-01 $252,400 (9.8%) $326,794 (12.1%) 0.84 2,339
2018-08-01 $249,000 (7.8%) $320,683 (9.5%) 0.83 2,357
2018-09-01 $244,500 (6.1%) $315,391 (6.9%) 0.82 2,355
2018-10-01 $237,625 (3.2%) $303,414 (3.0%) 0.80 2,357
2018-11-01 $236,825 (3.2%) $306,433 (4.9%) 0.80 2,272
2018-12-01 $235,000 (1.3%) $305,109 (3.3%) 0.81 2,199
2019-01-01 $234,925 (2.4%) $305,158 (4.4%) 0.81 2,053
2019-02-01 $239,900 (4.4%) $314,235 (8.6%) 0.81 2,026
2019-03-01 $245,571 (4.5%) $319,671 (8.5%) 0.80 2,052
2019-04-01 $254,000 (6.3%) $324,542 (8.1%) 0.81 2,103
2019-05-01 $256,000 (2.4%) $326,346 (0.5%) 0.80 2,120
2019-06-01 $254,900 (-1.2%) $328,237 (0.1%) 0.80 2,133
2019-07-01 $250,450 (-0.8%) $323,301 (-1.1%) 0.78 2,160
2019-08-01 $249,973 (0.4%) $323,069 (0.7%) 0.79 2,125
2019-09-01 $249,932 (2.2%) $322,598 (2.3%) 0.80 2,086
2019-10-01 $249,450 (5.0%) $320,938 (5.8%) 0.80 2,061
2019-11-01 $246,400 (4.0%) $315,424 (2.9%) 0.81 2,057
2019-12-01 $249,000 (6.0%) $313,456 (2.7%) 0.83 1,979
2020-01-01 $250,000 (6.4%) $316,712 (3.8%) 0.84 1,799
2020-02-01 $250,000 (4.2%) $312,232 (-0.6%) 0.82 1,784
2020-03-01 $259,900 (5.8%) $319,194 (-0.2%) 0.81 1,787
2020-04-01 $261,450 (2.9%) $316,601 (-2.5%) 0.82 1,731
2020-05-01 $269,900 (5.4%) $330,671 (1.3%) 0.82 1,616
2020-06-01 $282,261 (10.7%) $345,101 (5.1%) 0.83 1,494
2020-07-01 $294,975 (17.8%) $352,055 (8.9%) 0.86 1,369
2020-08-01 $299,999 (20.0%) $360,257 (11.5%) 0.86 1,278
2020-09-01 $302,450 (21.0%) $378,265 (17.3%) 0.87 1,171
2020-10-01 $289,450 (16.0%) $374,664 (16.7%) 0.83 1,105
2020-11-01 $284,425 (15.4%) $375,067 (18.9%) 0.83 1,044
2020-12-01 $274,500 (10.2%) $366,836 (17.0%) 0.82 937
2021-01-01 $274,500 (9.8%) $366,004 (15.6%) 0.82 842
2021-02-01 $276,950 (10.8%) $366,343 (17.3%) 0.81 796
2021-03-01 $269,900 (3.9%) $361,449 (13.2%) 0.77 719
2021-04-01 $275,815 (5.5%) $384,678 (21.5%) 0.75 604
2021-05-01 $275,700 (2.2%) $391,577 (18.4%) 0.73 600
2021-06-01 $267,950 (-5.1%) $383,879 (11.2%) 0.71 647
2021-07-01 $274,950 (-6.8%) $374,921 (6.5%) 0.73 719
2021-08-01 $269,900 (-10.0%) $366,702 (1.8%) 0.72 766
2021-09-01 $272,425 (-9.9%) $372,134 (-1.6%) 0.73 741
2021-10-01 $292,400 (1.0%) $399,001 (6.5%) 0.78 724
2021-11-01 $267,900 (-5.8%) $383,975 (2.4%) 0.72 705
2021-12-01 $264,950 (-3.5%) $376,619 (2.7%) 0.72 651
2022-01-01 $270,000 (-1.6%) $378,754 (3.5%) 0.73 574
2022-02-01 $295,175 (6.6%) $381,988 (4.3%) 0.77 549
2022-03-01 $305,000 (13.0%) $398,341 (10.2%) 0.76 597
2022-04-01 $304,999 (10.6%) $405,262 (5.4%) 0.73 632
2022-05-01 $282,000 (2.3%) $385,397 (-1.6%) 0.64 725
2022-06-01 $283,200 (5.7%) $373,593 (-2.7%) 0.63 798
2022-07-01 $306,000 (11.3%) $386,668 (3.1%) 0.69 919
2022-08-01 $299,950 (11.1%) $377,477 (2.9%) 0.69 977
2022-09-01 $296,250 (8.8%) $365,880 (-1.7%) 0.69 1,031
2022-10-01 $298,000 (1.9%) $354,465 (-11.2%) 0.70 1,119
2022-11-01 $301,488 (12.5%) $354,378 (-7.7%) 0.72 1,144
2022-12-01 $324,999 (22.7%) $365,418 (-3.0%) 0.80 1,130
2023-01-01 $317,750 (17.7%) $352,080 (-7.0%) 0.79 1,059
2023-02-01 $320,000 (8.4%) $358,289 (-6.2%) 0.77 1,072
2023-03-01 $298,250 (-2.2%) $347,489 (-12.8%) 0.70 1,159
2023-04-01 $280,000 (-8.2%) $341,340 (-15.8%) 0.65 1,153
2023-05-01 $289,150 (2.5%) $349,587 (-9.3%) 0.66 1,113
2023-06-01 $289,450 (2.2%) $352,094 (-5.8%) 0.65 1,176
2023-07-01 $280,000 (-8.5%) $338,868 (-12.4%) 0.64 1,236
2023-08-01 $286,450 (-4.5%) $341,191 (-9.6%) 0.66 1,323
2023-09-01 $286,250 (-3.4%) $343,037 (-6.2%) 0.67 1,397
2023-10-01 $283,850 (-4.8%) $340,394 (-4.0%) 0.67 1,464
2023-11-01 $284,000 (-5.8%) $344,026 (-2.9%) 0.68 1,526
2023-12-01 $285,000 (-12.3%) $347,925 (-4.8%) 0.70 1,494
2024-01-01 $291,750 (-8.2%) $348,855 (-0.9%) 0.71 1,381
2024-02-01 $296,375 (-7.4%) $348,891 (-2.6%) 0.71 1,321
2024-03-01 $299,999 (0.6%) $359,791 (3.5%) 0.71 1,382
2024-04-01 $307,500 (9.8%) $366,375 (7.3%) 0.72 1,447
2024-05-01 $320,238 (10.8%) $378,359 (8.2%) 0.73 1,498
2024-06-01 $319,999 (10.6%) $381,580 (8.4%) 0.73 1,557
2024-07-01 $319,499 (14.1%) $383,042 (13.0%) 0.73 1,613
2024-08-01 $310,000 (8.2%) $368,201 (7.9%) 0.72 1,671
2024-09-01 $311,500 (8.8%) $365,087 (6.4%) 0.73 1,752
2024-10-01 $307,725 (8.4%) $360,707 (6.0%) 0.72 1,814
2024-11-01 $300,000 (5.6%) $354,087 (2.9%) 0.72 1,807
2024-12-01 $299,900 (5.2%) $349,801 (0.5%) 0.75 1,731
2025-01-01 $299,900 (2.8%) $350,535 (0.5%) 0.75 1,643
2025-02-01 $309,750 (4.5%) $354,229 (1.5%) 0.75 1,623
2025-03-01 $315,000 (5.0%) $358,822 (-0.3%) 0.00 1,671
Jackson's median listing price for 2025-03-01 was $315,000, a difference of $15,001 (5.0%) versus the prior year and $5,250 versus the prior month.

Jackson's median listing price comes in at 0% of the national average.

Jackson's average listing price for 2025-03-01 was $358,822, a difference of $-969 (-0.3%) versus the prior year and $4,593 versus the prior month.

For the 2025-03-01 period, Jackson had 1,671 MLS listings, a difference of 48 listings (3%) versus the prior month and 289 listings (21%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Jackson (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 93 days 2,176 sqft
2018-02-01 91 days 2,150 sqft
2018-03-01 74 days 2,196 sqft
2018-04-01 64 days 2,205 sqft
2018-05-01 65 days 2,362 sqft
2018-06-01 68 days 2,392 sqft
2018-07-01 71 days 2,375 sqft
2018-08-01 72 days 2,336 sqft
2018-09-01 77 days 2,290 sqft
2018-10-01 82 days 2,220 sqft
2018-11-01 90 days 2,235 sqft
2018-12-01 95 days 2,216 sqft
2019-01-01 101 days 2,208 sqft
2019-02-01 99 days 2,261 sqft
2019-03-01 82 days 2,292 sqft
2019-04-01 64 days 2,325 sqft
2019-05-01 63 days 2,334 sqft
2019-06-01 71 days 2,335 sqft
2019-07-01 74 days 2,281 sqft
2019-08-01 77 days 2,270 sqft
2019-09-01 80 days 2,273 sqft
2019-10-01 82 days 2,273 sqft
2019-11-01 84 days 2,262 sqft
2019-12-01 91 days 2,254 sqft
2020-01-01 97 days 2,254 sqft
2020-02-01 94 days 2,251 sqft
2020-03-01 73 days 2,303 sqft
2020-04-01 74 days 2,295 sqft
2020-05-01 78 days 2,340 sqft
2020-06-01 76 days 2,395 sqft
2020-07-01 65 days 2,420 sqft
2020-08-01 64 days 2,422 sqft
2020-09-01 63 days 2,412 sqft
2020-10-01 61 days 2,347 sqft
2020-11-01 62 days 2,337 sqft
2020-12-01 72 days 2,268 sqft
2021-01-01 82 days 2,277 sqft
2021-02-01 70 days 2,296 sqft
2021-03-01 59 days 2,302 sqft
2021-04-01 53 days 2,439 sqft
2021-05-01 37 days 2,368 sqft
2021-06-01 37 days 2,236 sqft
2021-07-01 43 days 2,301 sqft
2021-08-01 42 days 2,236 sqft
2021-09-01 47 days 2,304 sqft
2021-10-01 52 days 2,346 sqft
2021-11-01 22 days 2,239 sqft
2021-12-01 50 days 2,172 sqft
2022-01-01 56 days 2,165 sqft
2022-02-01 44 days 2,189 sqft
2022-03-01 32 days 2,132 sqft
2022-04-01 35 days 2,206 sqft
2022-05-01 37 days 2,125 sqft
2022-06-01 40 days 2,107 sqft
2022-07-01 43 days 2,200 sqft
2022-08-01 50 days 2,129 sqft
2022-09-01 56 days 2,127 sqft
2022-10-01 56 days 2,114 sqft
2022-11-01 60 days 2,120 sqft
2022-12-01 71 days 2,153 sqft
2023-01-01 78 days 2,117 sqft
2023-02-01 74 days 2,112 sqft
2023-03-01 54 days 2,066 sqft
2023-04-01 54 days 2,000 sqft
2023-05-01 59 days 2,008 sqft
2023-06-01 61 days 2,007 sqft
2023-07-01 57 days 1,975 sqft
2023-08-01 56 days 2,006 sqft
2023-09-01 54 days 2,015 sqft
2023-10-01 58 days 1,999 sqft
2023-11-01 65 days 2,010 sqft
2023-12-01 70 days 2,007 sqft
2024-01-01 78 days 2,009 sqft
2024-02-01 78 days 2,028 sqft
2024-03-01 57 days 2,051 sqft
2024-04-01 52 days 2,074 sqft
2024-05-01 53 days 2,116 sqft
2024-06-01 63 days 2,102 sqft
2024-07-01 65 days 2,097 sqft
2024-08-01 65 days 2,057 sqft
2024-09-01 66 days 2,052 sqft
2024-10-01 68 days 2,050 sqft
2024-11-01 72 days 2,009 sqft
2024-12-01 84 days 1,998 sqft
2025-01-01 92 days 1,986 sqft
2025-02-01 91 days 2,000 sqft
2025-03-01 0 days 2,027 sqft
Jackson's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

Jackson's median square footage for active listings during the 2025-03-01 period was 2,027 sqft. One year prior, the average listing was 2,051 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).