Kansas City FHA Loans

KANSAS CITY, MO-KS

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.

Kansas City's 182 lenders originated 9,799 FHA loans during 2021. The total origination value was $2,009,675,000, with an average FHA loan value of $205,090.

Kansas City FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Kansas City averaged 5.47% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.4% and one month ago for the week of 2022-04-08, the average rate was 4.86%.

The average rate one year ago was 3.27%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.09%.

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

Kansas City FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Kansas City level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 875 2.74% $5,842
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 484 3.18% $6,349
FREEDOM MORTGAGE CORPORATION 416 2.87% $4,441
FLAT BRANCH MORTGAGE, INC. 409 3.16% $6,269
LEADERONE FINANCIAL CORPORATION 362 3.15% $6,454
LAKEVIEW LOAN SERVICING, LLC 317 3.01% $4,501
PRIMELENDING, A PLAINSCAPITAL COMPANY 314 3.23% $6,894
GUILD MORTGAGE COMPANY 235 3.04% $6,506
COMMUNITY MORTGAGE, LLC 227 2.89% $6,540
Prosperity Home Mortgage, LLC 212 3.30% $6,490
Mr. Cooper ( Nationstar Mortgage ) 209 3.32% $3,968
JLB CORPORATION 202 2.84% $7,102
PENNYMAC LOAN SERVICES, LLC 190 3.11% $4,417
First State Bank of St. Charles, Missouri 168 2.81% $6,637
COMMUNITYAMERICA 158 2.93% $6,193
UNITED WHOLESALE MORTGAGE, LLC 155 2.79% $6,252
HOME POINT FINANCIAL CORPORATION 143 2.93% $6,412
CALIBER HOME LOANS, INC. 139 2.86% $5,322
GUARANTEED RATE, INC. 136 2.93% $6,806
AMERICAN PACIFIC MORTGAGE CORPORATION 119 2.99% $6,999
HOMEBRIDGE FINANCIAL SERVICES, INC. 111 2.94% $6,180
CROSSCOUNTRY MORTGAGE, LLC 106 3.18% $7,270
BROKER SOLUTIONS, INC. 103 3.34% $6,974
LOANDEPOT.COM, LLC 97 3.26% $7,542
ENDEAVOR CAPITAL, LLC. 91 3.19% $5,915
MID AMERICA MORTGAGE, INC. 85 2.83% $2,764
UNION HOME MORTGAGE CORP. 83 3.17% $6,840
North American Savings Bank, F.S.B. 78 2.75% $5,610
OPEN MORTGAGE, LLC 74 2.99% $7,812
NEWREZ LLC 66 2.98% $4,790
MOVEMENT MORTGAGE, LLC 64 3.23% $6,363
American Mortgage & Equity Consultants, Inc. 64 3.61% $6,447
Carrington Mortgage Services, LLC 64 3.47% $6,539
DAS Acquisition Company, LLC 64 3.31% $6,753
First Bank 64 2.76% $6,583
Arvest Bank 62 2.84% $6,432
United Fidelity Funding Corp. 55 2.95% $9,541
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 52 3.34% $7,657
VILLAGE CAPITAL & INVESTMENT LLC 52 2.94% $2,131
MEGASTAR FINANCIAL CORP. 51 2.96% $6,570
AMERISAVE MORTGAGE CORPORATION 51 3.05% $7,030
BNC National Bank 50 2.76% $6,130
SUMMIT FUNDING, INC. 49 3.43% $7,919
FINANCE OF AMERICA MORTGAGE LLC 48 3.48% $7,106
NBH Bank 47 3.20% $6,877
BOKF 43 3.20% $6,385
PLANET HOME LENDING, LLC 40 2.82% $5,260
CMG MORTGAGE, INC. 34 3.24% $5,970
Plains Commerce Bank 30 2.69% $5,770
U.S. Bank 30 3.27% $5,880
INLANTA MORTGAGE, INC. 30 3.09% $6,343
EVERETT FINANCIAL, INC. 29 3.44% $5,058
Flagstar Bank, FSB 29 2.77% $6,190
Commerce Bank 28 3.32% $4,960
The Central Trust Bank 26 3.02% $6,792
ACADEMY MORTGAGE CORPORATION 26 3.15% $6,904
Fidelity Bank 25 2.98% $6,530
S1L, Inc. 25 3.24% $6,968
First Federal Bank of Kansas City 24 2.90% $6,480
Mazuma Credit Union 24 2.81% $6,372
Ixonia Bank 24 3.72% $9,356
Nations Lending Corporation 23 3.65% $7,033
CELEBRITY HOME LOANS, LLC 22 3.14% $7,223
Academy Bank 22 2.91% $6,678
GENEVA FINANCIAL, LLC 22 3.21% $7,368
Bank of America 21 2.93% $3,635
DELMAR FINANCIAL COMPANY 20 3.23% $4,233
The Home Loan Expert LLC 20 3.20% $6,222
First National Bank of Omaha 19 2.93% $6,090
First Mortgage Solutions, LLC 19 2.81% $6,090
GERSHMAN INVESTMENT CORP. 19 3.33% $5,799
PREMIER MORTGAGE RESOURCES, L.L.C. 19 3.18% $7,311
Community First National Bank 18 2.68% $6,670
American Mortgage Bank, LLC 18 3.18% $7,005
Sunflower Bank 18 3.10% $7,316
First Guaranty Mortgage Corporation 17 2.96% $6,069
Bank of England 17 3.09% $7,470
PANORAMA MORTGAGE GROUP, LLC 17 3.40% $7,528
Paramount Residential Mortgage Group, Inc. 16 3.43% $7,239
Mortgage Research Center, LLC 15 3.04% $5,262
UMB Bank 15 2.93% $6,022
Bell Bank 13 2.95% $7,779
NBKC BANK 13 3.14% $6,977
Mortgage Investment Services Corporation 12 3.08% $5,610
The Federal Savings Bank 12 2.76% $9,136
AMERICAN FINANCIAL NETWORK, INC. 12 3.56% $15,500
Gateway First Bank 11 3.57% $4,610
ZILLOW HOME LOANS, LLC 11 3.11% $6,974
Central National Bank 11 2.66% $4,587
First Home Bank 11 3.22% $6,534
MUTUAL OF OMAHA MORTGAGE, INC. 10 2.96% $8,173
Neighborhood Loans, Inc. 10 3.01% $6,790
HOMESIDE FINANCIAL, LLC 9 3.06% $7,159
SUN WEST MORTGAGE COMPANY, INC. 9 3.39% $6,845
TOP FLITE FINANCIAL, INC. 9 3.24% $10,917
Landmark National Bank 9 2.81% $6,068
NORTHERN MORTGAGE SERVICES, LLC 8 3.20% $5,860
Sierra Pacific Mortgage Company, Inc. 8 3.06% $5,814
Manufacturers and Traders Trust Company 8 3.17% $6,276
AMERICAN FINANCING CORPORATION 8 2.95% $7,364
CHURCHILL MORTGAGE CORPORATION 7 3.23% $6,277
Equity Prime Mortgage LLC 7 3.68% $5,933
PHH Mortgage Corporation 7 3.30% $5,762
PLAZA HOME MORTGAGE, INC. 7 2.82% $6,675
Paramount Bank 7 3.16% $4,980
BAY EQUITY LLC 7 2.95% $6,777
Members Mortgage Services, L.L.C. 6 2.60% $3,754
Hawthorn Bank 6 2.65% $6,102
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 6 3.31% $8,891
SENTE MORTGAGE, INC. 6 3.40% $8,467
PRIMARY RESIDENTIAL MORTGAGE, INC. 6 3.71% $6,116
Servion, Inc. 6 2.88% $6,082
ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 3.50% $7,258
TruHome Solutions, LLC 6 3.33% $5,753
JPMorgan Chase Bank 5 3.20% $4,870
AMERICAN FINANCIAL RESOURCES, INC. 5 3.33% $5,954
Bank of the West 5 3.58% $6,782
Citizens Bank 5 3.03% $5,357
Enterprise Bank & Trust 5 2.98% $6,442
JAMES B. NUTTER & COMPANY 5 2.85% $3,389
KELLER MORTGAGE, LLC 5 3.00% $5,547
KS StateBank 5 2.63% $6,848
SUCCESS MORTGAGE PARTNERS, INC. 5 3.22% $7,810
THRIVE MORTGAGE, LLC 5 3.50% $7,446
LOANPAL, LLC 4 3.03% $10,017
Peoples Bank 4 3.41% $9,209
Midwest Mortgage Associates Corporation 4 2.88% $7,664
Wyndham Capital Mortgage, Inc. 4 2.91% $5,418
Oakstar Bank 4 2.53% $6,557
STEARNS LENDING, LLC 4 3.00% $5,569
OCEANSIDE MORTGAGE COMPANY 4 2.56% $3,353
Magnolia Bank 4 2.97% $6,431
VANDERBILT MORTGAGE AND FINANCE, INC. 4 3.09% $8,220
RUOFF MORTGAGE COMPANY, INC. 3 3.00% $3,915
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 3 3.46% $5,628
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 2.75% $8,563
AMCAP MORTGAGE, LTD. 3 3.67% $8,222
Armed Forces Bank 3 2.71% $5,266
InterContinental Capital Group, Inc 3 3.21% $7,672
Flanagan State Bank 3 4.00% $6,956
Regions Bank 3 2.92% $7,075
NexBank 2 2.94% $7,161
Origin Bank 2 3.06% $7,106
HAMILTON HOME LOANS, INC. 2 3.62% $7,521
GSF Mortgage Corporation 2 3.25% $4,285
First Savings Bank 2 4.13% $10,572
T2 FINANCIAL LLC 2 3.25% $11,291
Union Bank and Trust Company 2 2.75% $6,006
BAYSHORE MORTGAGE FUNDING, LLC 2 3.13% $5,447
Wells Fargo Bank 2 3.25% $4,170
GUARANTEED RATE AFFINITY, LLC 1 2.75% $6,431
SECURITYNATIONAL MORTGAGE COMPANY 1 2.75% $6,812
Level One Bank 1 2.50% $7,021
Great Southern Bank 1 2.63% $3,647
PNC Bank 1 2.88% $6,203
SOUTHWEST FUNDING, LP 1 3.75% $5,265
SpiritBank 1 2.63% $6,678
INLAND BANK & TRUST 1 3.00% $9,732
LAND HOME FINANCIAL SERVICES, INC. 1 3.38% $9,532
Low VA Rates, LLC 1 2.50% $3,852
FIRST INTEGRITY MORTGAGE SERVICES, INC. 1 4.25% $3,966
Financial Funding Solutions, Inc. 1 3.13% $4,943
Meridian Bank Corporation 1 2.88% $5,604
FBC MORTGAGE, LLC 1 2.75% $7,638
EMBRACE HOME LOANS, INC. 1 3.25% $6,839
DRAPER AND KRAMER MORTGAGE CORP. 1 3.25% $6,049
Access Bank 1 2.63% $7,240
TIAA, FSB 1 2.75% $9,778
Colonial Savings, F.A. 1 3.25% $4,231
Trinity Oaks Mortgage, LLC 1 3.75% $10,796
Chickasaw Community Bank 1 2.63% $9,475
Centennial Bank 1 3.25% $5,230
MORIA DEVELOPMENT, INC. 1 3.38% $5,542
BETTER MORTGAGE CORPORATION 1 3.75% $6,173
MYCUMORTGAGE, LLC 1 2.88% $3,851
Barrington Bank & Trust Company, N.A. 1 2.63% $9,263
Guaranty Bank 1 3.63% $5,886
RED DIAMOND HOME LOANS, LLC 1 2.88% $5,858
Regent Financial Group, Inc. 1 3.25% $3,639
HOMESPIRE MORTGAGE CORPORATION 1 3.25% $7,876
ROYAL UNITED MORTGAGE LLC 1 2.75% $8,388
Hometown Equity Mortgage, LLC 1 2.50% $13,988

The top Kansas City FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 875 FHA loans originated. Their average total fees are $5,842, which is $507 lower than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

The lowest fee Kansas City FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,131), MID AMERICA MORTGAGE, INC. ($2,764), Bank of America ($3,635), Mr. Cooper ( Nationstar Mortgage ) ($3,968) and DELMAR FINANCIAL COMPANY ($4,233).

The lowest rate Kansas City FHA lenders (with over 10 loans originated) are Central National Bank (2.66%), Community First National Bank (2.68%), Plains Commerce Bank (2.69%), QUICKEN LOANS, LLC (2.74%) and North American Savings Bank, F.S.B. (2.75%).

Kansas City FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
KANSAS CITY, MO-KS JOHNSON 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS LEAVENWORTH 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS LINN 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS MIAMI 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS WYANDOTTE 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS BATES 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS CALDWELL 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS CASS 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS CLAY 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS CLINTON 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS JACKSON 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS LAFAYETTE 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS PLATTE 2022 $431,250 $552,050 $667,350 $829,350
KANSAS CITY, MO-KS RAY 2022 $431,250 $552,050 $667,350 $829,350

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Kansas City (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 $278,750 (15.8%) $341,616 (10.4%) 1.03 5,265
2018-02-01 $293,000 (17.5%) $356,320 (14.1%) 1.06 4,909
2018-03-01 $300,000 (13.2%) $364,264 (11.1%) 1.04 5,120
2018-04-01 $304,975 (9.0%) $372,997 (8.8%) 1.02 5,353
2018-05-01 $300,750 (9.5%) $371,509 (8.0%) 1.00 5,829
2018-06-01 $297,950 (8.4%) $366,497 (6.4%) 0.99 6,278
2018-07-01 $294,500 (7.1%) $364,884 (7.0%) 0.98 6,640
2018-08-01 $290,000 (7.5%) $362,085 (6.1%) 0.97 6,931
2018-09-01 $290,000 (7.8%) $361,563 (6.8%) 0.97 7,145
2018-10-01 $289,950 (8.7%) $355,402 (5.8%) 0.97 7,335
2018-11-01 $289,900 (7.7%) $355,120 (6.2%) 0.97 7,208
2018-12-01 $291,065 (9.8%) $355,802 (7.5%) 1.00 6,581
2019-01-01 $299,000 (7.3%) $359,247 (5.2%) 1.03 6,140
2019-02-01 $311,225 (6.2%) $371,414 (4.2%) 1.04 5,835
2019-03-01 $316,714 (5.6%) $378,354 (3.9%) 1.03 5,797
2019-04-01 $322,000 (5.6%) $385,048 (3.2%) 1.01 5,840
2019-05-01 $324,450 (7.9%) $388,804 (4.7%) 1.00 6,172
2019-06-01 $320,000 (7.4%) $388,467 (6.0%) 0.98 6,353
2019-07-01 $309,500 (5.1%) $380,132 (4.2%) 0.96 6,626
2019-08-01 $300,693 (3.7%) $372,567 (2.9%) 0.95 6,665
2019-09-01 $295,668 (2.0%) $367,183 (1.6%) 0.94 6,700
2019-10-01 $311,000 (7.3%) $383,531 (7.9%) 0.99 6,865
2019-11-01 $310,900 (7.2%) $382,678 (7.8%) 1.00 6,540
2019-12-01 $314,950 (8.2%) $385,063 (8.2%) 1.05 5,701
2020-01-01 $324,425 (8.5%) $392,819 (9.4%) 1.08 5,044
2020-02-01 $339,000 (8.9%) $410,751 (10.6%) 1.09 4,654
2020-03-01 $350,058 (10.5%) $431,160 (14.0%) 1.09 4,441
2020-04-01 $353,950 (9.9%) $431,722 (12.1%) 1.10 4,464
2020-05-01 $370,270 (14.1%) $456,496 (17.4%) 1.12 4,260
2020-06-01 $379,900 (18.7%) $480,776 (23.8%) 1.11 3,912
2020-07-01 $377,400 (21.9%) $474,960 (25.0%) 1.08 3,629
2020-08-01 $365,000 (21.4%) $471,991 (26.7%) 1.04 3,460
2020-09-01 $359,450 (21.6%) $466,828 (27.1%) 1.03 3,422
2020-10-01 $350,000 (12.5%) $453,788 (18.3%) 1.00 3,523
2020-11-01 $340,475 (9.5%) $435,678 (13.9%) 0.97 3,421
2020-12-01 $325,000 (3.2%) $415,488 (7.9%) 0.95 3,064
2021-01-01 $334,200 (3.0%) $425,607 (8.4%) 0.98 2,573
2021-02-01 $349,925 (3.2%) $456,968 (11.3%) 1.01 2,002
2021-03-01 $349,875 (-0.1%) $460,245 (6.8%) 0.98 1,895
2021-04-01 $344,500 (-2.7%) $453,598 (5.1%) 0.93 1,988
2021-05-01 $343,750 (-7.2%) $445,355 (-2.4%) 0.90 2,150
2021-06-01 $331,975 (-12.6%) $428,075 (-11.0%) 0.86 2,480
2021-07-01 $330,000 (-12.6%) $425,386 (-10.4%) 0.86 2,918
2021-08-01 $322,248 (-11.7%) $411,634 (-12.8%) 0.85 3,211
2021-09-01 $324,925 (-9.6%) $405,683 (-13.1%) 0.86 3,362
2021-10-01 $325,000 (-7.1%) $409,075 (-9.9%) 0.86 3,309
2021-11-01 $332,488 (-2.4%) $410,907 (-5.7%) 0.88 3,079
2021-12-01 $347,450 (6.9%) $416,257 (0.2%) 0.93 2,695
2022-01-01 $369,000 (10.4%) $434,628 (2.1%) 0.98 2,182
2022-02-01 $387,500 (10.7%) $453,421 (-0.8%) 0.99 1,991
2022-03-01 $389,900 (11.4%) $445,296 (-3.3%) 0.96 2,022
2022-04-01 $389,000 (12.9%) $453,289 (-0.1%) 0.92 2,173
Kansas City's median listing price for 2022-04-01 was $389,000, a difference of $44,500 (12.9%) versus the prior year and $-900 versus the prior month.

Kansas City's median listing price comes in at 92% of the national average.

Kansas City's average listing price for 2022-04-01 was $453,289, a difference of $-309 (-0.1%) versus the prior year and $7,993 versus the prior month.

For the 2022-04-01 period, Kansas City had 2,173 MLS listings, a difference of 151 listings (7%) versus the prior month and 185 listings (9%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Kansas City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 86 days 2,211 sqft
2018-02-01 86 days 2,272 sqft
2018-03-01 58 days 2,320 sqft
2018-04-01 50 days 2,374 sqft
2018-05-01 47 days 2,399 sqft
2018-06-01 47 days 2,372 sqft
2018-07-01 51 days 2,395 sqft
2018-08-01 53 days 2,372 sqft
2018-09-01 58 days 2,351 sqft
2018-10-01 61 days 2,300 sqft
2018-11-01 63 days 2,243 sqft
2018-12-01 78 days 2,205 sqft
2019-01-01 86 days 2,206 sqft
2019-02-01 91 days 2,249 sqft
2019-03-01 67 days 2,299 sqft
2019-04-01 50 days 2,348 sqft
2019-05-01 43 days 2,354 sqft
2019-06-01 50 days 2,359 sqft
2019-07-01 51 days 2,289 sqft
2019-08-01 51 days 2,247 sqft
2019-09-01 51 days 2,213 sqft
2019-10-01 57 days 2,288 sqft
2019-11-01 63 days 2,280 sqft
2019-12-01 78 days 2,243 sqft
2020-01-01 90 days 2,274 sqft
2020-02-01 94 days 2,323 sqft
2020-03-01 65 days 2,401 sqft
2020-04-01 63 days 2,403 sqft
2020-05-01 69 days 2,458 sqft
2020-06-01 61 days 2,510 sqft
2020-07-01 52 days 2,469 sqft
2020-08-01 51 days 2,386 sqft
2020-09-01 48 days 2,351 sqft
2020-10-01 44 days 2,321 sqft
2020-11-01 49 days 2,216 sqft
2020-12-01 58 days 2,141 sqft
2021-01-01 70 days 2,105 sqft
2021-02-01 69 days 2,156 sqft
2021-03-01 51 days 2,173 sqft
2021-04-01 41 days 2,139 sqft
2021-05-01 40 days 2,112 sqft
2021-06-01 38 days 2,082 sqft
2021-07-01 38 days 2,074 sqft
2021-08-01 39 days 2,030 sqft
2021-09-01 43 days 2,018 sqft
2021-10-01 46 days 2,000 sqft
2021-11-01 49 days 2,010 sqft
2021-12-01 57 days 2,036 sqft
2022-01-01 69 days 2,061 sqft
2022-02-01 66 days 2,112 sqft
2022-03-01 48 days 2,084 sqft
2022-04-01 39 days 2,092 sqft
Kansas City's median listing age (time on market) for 2022-04-01 was 39 days. This is -4% shorter than the same period one year ago.

Kansas City's median square footage for active listings during the 2022-04-01 period was 2,092 sqft. One year prior, the average listing was 2,139 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).