Killeen FHA Loan Rates, Closing Costs & Stats

KILLEEN-TEMPLE, TX

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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.

    Killeen's 140 lenders originated 1,372 FHA loans during 2022. The total origination value was $341,300,000, with an average FHA loan value of $248,761.

    Killeen FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Killeen averaged 6.67% for the week of 2023-09-22, compared to the national average (all FHA variants) of 7.036% for the same period.

    Killeen's average FHA mortgage closing costs are $6,591.

    The average rate for the prior week (2023-09-15) was 6.62% and one month ago for the week of 2023-08-18, the average rate was 6.53%.

    The average rate one year ago was 5.32%.

    For refis of the same type during the week of 2023-09-22, the average rate was 5.77%.

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

    Killeen 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 Killeen level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 368 5.49% $8,741
    DHI MORTGAGE COMPANY, LTD. 90 4.68% $9,647
    First National Bank Texas 46 5.18% $9,244
    SWBC MORTGAGE CORPORATION 37 5.46% $9,026
    QUICKEN LOANS, LLC 35 4.34% $10,707
    CORNERSTONE HOME LENDING, INC. 35 5.13% $10,390
    GUILD MORTGAGE COMPANY 35 5.45% $10,292
    Gateway First Bank 34 5.28% $8,342
    UNITED WHOLESALE MORTGAGE, LLC 23 5.41% $9,846
    LEADERONE FINANCIAL CORPORATION 23 4.99% $9,746
    SECURITYNATIONAL MORTGAGE COMPANY 23 5.48% $11,321
    CMG MORTGAGE, INC. 22 5.47% $11,140
    GUARANTEED RATE, INC. 21 5.18% $11,173
    AMCAP MORTGAGE, LTD. 20 5.24% $11,663
    KBHS HOME LOANS, LLC 17 5.04% $13,153
    THRIVE MORTGAGE, LLC 16 5.30% $12,015
    CALIBER HOME LOANS, INC. 16 5.04% $10,439
    UNIVERSITY Federal Credit Union 12 4.46% $8,872
    CARDINAL FINANCIAL 12 5.26% $11,551
    Flagstar Bank, FSB 10 4.81% $8,375
    SOUTHWEST FUNDING, LP 10 5.16% $12,655
    AMERICAN PACIFIC MORTGAGE CORPORATION 10 5.26% $10,142
    Mortgage Research Center, LLC 9 5.15% $7,531
    FREEDOM MORTGAGE CORPORATION 8 4.88% $12,258
    BROKER SOLUTIONS, INC. 8 4.68% $12,025
    LOANDEPOT.COM, LLC 8 4.92% $9,915
    LAKEVIEW LOAN SERVICING, LLC 8 3.66% $4,022
    HOMESIDE FINANCIAL, LLC 8 6.20% $11,425
    EVERETT FINANCIAL, INC. 8 4.95% $7,168
    Paramount Residential Mortgage Group, Inc. 7 5.77% $12,308
    PLANET HOME LENDING, LLC 7 4.68% $10,942
    PLAZA HOME MORTGAGE, INC. 7 5.11% $11,555
    ENVOY MORTGAGE, LTD 7 5.54% $10,014
    Equity Prime Mortgage LLC 7 5.73% $10,329
    MOVEMENT MORTGAGE, LLC 7 5.91% $11,396
    SENTE MORTGAGE, INC. 6 5.67% $10,575
    LOANPEOPLE, LLC 6 5.42% $11,371
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 4.75% $10,189
    Carrington Mortgage Services, LLC 6 5.06% $10,399
    PENNYMAC LOAN SERVICES, LLC 6 3.50% $3,855
    AMERISAVE MORTGAGE CORPORATION 5 4.85% $12,616
    HOME POINT FINANCIAL CORPORATION 5 4.52% $14,067
    MUTUAL OF OMAHA MORTGAGE, INC. 5 5.95% $15,313
    SUMMIT FUNDING, INC. 5 5.38% $11,744
    PREMIER MORTGAGE RESOURCES, L.L.C. 5 5.18% $11,275
    CROSSCOUNTRY MORTGAGE, LLC 4 6.72% $8,754
    Austin Capital Bank SSB 4 5.88% $11,558
    Loan Simple, Inc. 4 5.44% $11,164
    Mr. Cooper ( Nationstar Mortgage ) 4 4.16% $6,893
    PRIMELENDING, A PLAINSCAPITAL COMPANY 4 5.94% $8,784
    SFMC, LP 4 5.00% $12,772
    NATIONS RELIABLE LENDING, LLC 3 4.29% $11,603
    Town Square Mortgage & Investments, Inc. 3 5.29% $8,541
    SOUTHWEST STAGE FUNDING, LLC 3 3.83% $6,997
    Nations Lending Corporation 3 5.92% $9,112
    MORTGAGE FINANCIAL SERVICES, LLC 3 6.21% $11,894
    Wallick & Volk, Inc. 3 4.75% $7,119
    GUARANTEED RATE AFFINITY, LLC 3 4.96% $7,427
    ASPIRE FINANCIAL, INC. 3 5.04% $9,415
    First United Bank and Trust Company 3 5.96% $12,308
    Plains Commerce Bank 3 5.13% $13,357
    CANOPY MORTGAGE, LLC 3 5.13% $9,862
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 3 5.88% $13,190
    CASTLE & COOKE MORTGAGE, LLC 3 6.42% $11,358
    NFM, INC. 3 5.25% $9,320
    Network Funding, L.P. 3 4.46% $8,260
    ANGEL OAK HOME LOANS LLC 2 4.69% $10,351
    GENEVA FINANCIAL, LLC 2 4.69% $11,262
    GREAT WESTERN FINANCIAL SERVICES, INC. 2 5.50% $9,582
    EUSTIS AND AMERICAN MORTGAGE COMPANY 2 5.31% $8,656
    Hometown Lenders, Inc. 2 5.00% $17,242
    INTERLINC MORTGAGE SERVICES, LLC 2 4.69% $10,917
    Lakeview Community Capital, LLC 2 3.00% $5,519
    CITY FIRST MORTGAGE SERVICES, L.L.C. 2 6.69% $15,265
    CHURCHILL MORTGAGE CORPORATION 2 5.00% $8,995
    Waterstone Mortgage Corporation 2 7.06% $9,159
    Northpointe Bank 2 3.81% $12,154
    NTFN, INC. 2 5.06% $6,897
    OPEN MORTGAGE, LLC 2 5.50% $8,251
    PENTAGON FEDERAL CREDIT UNION 2 5.19% $8,644
    Bank of America 2 3.19% $3,211
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.25% $11,385
    Republic State Mortgage Co. 2 4.81% $9,695
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 2 4.50% $7,311
    Wyndham Capital Mortgage, Inc. 2 4.81% $11,696
    V.I.P. MORTGAGE, INC. 2 3.81% $10,984
    Century Mortgage Company DBA Century Lending Company 1 6.50% $12,076
    NATIONS DIRECT MORTGAGE, LLC 1 6.13% $16,711
    JPMorgan Chase Bank 1 5.50% $4,162
    Hometown Equity Mortgage, LLC 1 6.75% $21,515
    NATIONWIDE MORTGAGE BANKERS, INC. 1 5.25% $10,557
    1ST PREFERENCE MORTGAGE CORP. 1 3.88% $5,271
    NEWREZ LLC 1 6.75% $7,665
    NexBank 1 6.63% $7,653
    EagleBank 1 5.13% $8,791
    UNION HOME MORTGAGE CORP. 1 4.50% $10,656
    NOVA FINANCIAL & INVESTMENT CORPORATION 1 5.25% $8,577
    AMERICAN FINANCIAL RESOURCES, INC. 1 6.75% $10,105
    ACADEMY MORTGAGE CORPORATION 1 3.88% $20,207
    PANORAMA MORTGAGE GROUP, LLC 1 5.75% $12,002
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.88% $16,903
    HANCOCK MORTGAGE PARTNERS, LLC 1 5.25% $9,930
    U.S. Bank 1 5.25% $8,280
    HAMILTON HOME LOANS, INC. 1 5.13% $9,165
    CALCON MUTUAL MORTGAGE LLC 1 7.62% $7,562
    BOKF 1 6.13% $10,652
    PNC Bank 1 6.63% $8,922
    VILLAGE CAPITAL MORTGAGE 1 3.13% $2,163
    FINANCE OF AMERICA MORTGAGE LLC 1 5.00% $8,858
    Wolfe Financial, Inc 1 6.13% $13,998
    Prosperity Home Mortgage, LLC 1 5.00% $8,387
    BancorpSouth 1 5.63% $9,008
    FIRST CENTENNIAL MORTGAGE CORPORATION 1 6.13% $7,839
    First Bank 1 5.63% $15,234
    Axos Bank 1 4.88% $11,772
    EVERGREEN MONEYSOURCE MORTGAGE COMPANY 1 4.99% $8,550
    Extraco Banks 1 6.13% $9,260
    Farmers & Stockmens Bank 1 5.13% $8,677
    GSB MORTGAGE, INC. 1 4.25% $5,857
    SUCCESS MORTGAGE PARTNERS, INC. 1 7.25% $10,342
    AMERICA'S CHOICE HOME LOANS LP 1 4.88% $7,834
    SUN WEST MORTGAGE COMPANY, INC. 1 4.75% $8,310
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 4.88% $19,220
    T2 FINANCIAL LLC 1 5.75% $11,001
    TEXAS DOW EMPLOYEES CREDIT UNION 1 3.38% $11,841
    The Home Loan Expert LLC 1 4.75% $8,060
    THE MORTGAGE FIRM, INC. 1 6.75% $10,393
    CLM MORTGAGE, INC 1 4.50% $9,029
    AMERICAN FINANCING CORPORATION 1 4.00% $10,898
    LEGEND LENDING CORPORATION 1 5.50% $5,750
    City Bank 1 3.63% $6,312
    Citizens Bank 1 2.99% $12,430
    KELLER MORTGAGE, LLC 1 2.88% $6,371
    MLB RESIDENTIAL LENDING, LLC 1 4.88% $8,872
    Colonial Savings, F.A. 1 5.38% $16,432
    GROUP MORTGAGE, LLC 1 5.25% $8,528
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 4.75% $8,358
    CHERRY CREEK MORTGAGE, LLC 1 5.75% $6,129
    Trinity Oaks Mortgage, LLC 1 4.00% $6,701
    M&T Bank 1 2.50% $7,519

    The top Killeen FHA lender as defined by loan originations is FAIRWAY INDEPENDENT MORTGAGE CORPORATION, with 368 FHA loans originated. Their average total fees are $8,741, which is $905 lower than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Killeen FHA lenders (with over 10 loans originated) are Gateway First Bank ($8,342), Flagstar Bank, FSB ($8,375), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($8,741), UNIVERSITY Federal Credit Union ($8,872) and SWBC MORTGAGE CORPORATION ($9,026).

    The lowest rate Killeen FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (4.34%), UNIVERSITY Federal Credit Union (4.46%), DHI MORTGAGE COMPANY, LTD. (4.68%), Flagstar Bank, FSB (4.81%) and LEADERONE FINANCIAL CORPORATION (4.99%).

    Killeen FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    KILLEEN-TEMPLE, TX BELL 2022 $420,680 $538,650 $651,050 $809,150
    KILLEEN-TEMPLE, TX CORYELL 2022 $420,680 $538,650 $651,050 $809,150
    KILLEEN-TEMPLE, TX LAMPASAS 2022 $420,680 $538,650 $651,050 $809,150
    KILLEEN-TEMPLE, TX BELL 2023 $472,030 $604,400 $730,525 $907,900
    KILLEEN-TEMPLE, TX CORYELL 2023 $472,030 $604,400 $730,525 $907,900
    KILLEEN-TEMPLE, TX LAMPASAS 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Killeen (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 $189,175 (11.6%) $219,818 (12.0%) 0.70 1,408
    2018-02-01 $189,818 (11.0%) $224,262 (13.2%) 0.69 1,388
    2018-03-01 $190,225 (8.5%) $227,093 (12.5%) 0.67 1,404
    2018-04-01 $199,913 (10.6%) $234,341 (12.3%) 0.68 1,371
    2018-05-01 $207,498 (14.3%) $245,646 (16.9%) 0.69 1,368
    2018-06-01 $210,000 (17.0%) $249,536 (18.2%) 0.70 1,441
    2018-07-01 $215,575 (20.6%) $252,545 (20.3%) 0.72 1,439
    2018-08-01 $205,925 (16.0%) $244,946 (17.6%) 0.69 1,486
    2018-09-01 $209,755 (19.6%) $242,166 (16.0%) 0.71 1,538
    2018-10-01 $199,944 (12.2%) $235,729 (12.7%) 0.68 1,506
    2018-11-01 $206,950 (15.6%) $235,109 (11.9%) 0.70 1,436
    2018-12-01 $209,900 (16.6%) $234,945 (9.8%) 0.72 1,370
    2019-01-01 $210,950 (11.5%) $238,313 (8.4%) 0.73 1,300
    2019-02-01 $218,425 (15.1%) $248,003 (10.6%) 0.74 1,221
    2019-03-01 $224,271 (17.9%) $255,539 (12.5%) 0.73 1,198
    2019-04-01 $230,000 (15.1%) $262,283 (11.9%) 0.73 1,191
    2019-05-01 $230,450 (11.1%) $265,898 (8.2%) 0.72 1,169
    2019-06-01 $229,900 (9.5%) $264,718 (6.1%) 0.72 1,257
    2019-07-01 $225,750 (4.7%) $262,193 (3.8%) 0.71 1,338
    2019-08-01 $226,091 (9.8%) $261,547 (6.8%) 0.72 1,346
    2019-09-01 $227,727 (8.6%) $264,041 (9.0%) 0.73 1,337
    2019-10-01 $228,818 (14.4%) $265,703 (12.7%) 0.74 1,331
    2019-11-01 $225,000 (8.7%) $267,616 (13.8%) 0.74 1,322
    2019-12-01 $220,200 (4.9%) $261,587 (11.3%) 0.73 1,274
    2020-01-01 $224,929 (6.6%) $262,428 (10.1%) 0.75 1,220
    2020-02-01 $224,950 (3.0%) $264,489 (6.7%) 0.74 1,169
    2020-03-01 $224,950 (0.3%) $264,747 (3.6%) 0.71 1,201
    2020-04-01 $229,325 (-0.3%) $266,956 (1.8%) 0.72 1,189
    2020-05-01 $234,900 (1.9%) $276,490 (4.0%) 0.71 1,033
    2020-06-01 $242,200 (5.4%) $287,090 (8.5%) 0.71 894
    2020-07-01 $244,175 (8.2%) $288,121 (9.9%) 0.71 786
    2020-08-01 $249,000 (10.1%) $298,993 (14.3%) 0.71 716
    2020-09-01 $240,911 (5.8%) $291,424 (10.4%) 0.69 638
    2020-10-01 $239,450 (4.7%) $290,507 (9.3%) 0.69 567
    2020-11-01 $245,949 (9.3%) $299,061 (11.8%) 0.72 535
    2020-12-01 $243,300 (10.5%) $290,518 (11.1%) 0.72 525
    2021-01-01 $245,500 (9.2%) $299,804 (14.2%) 0.73 439
    2021-02-01 $234,175 (4.1%) $299,650 (13.3%) 0.68 347
    2021-03-01 $224,500 (-0.2%) $298,340 (12.7%) 0.64 349
    2021-04-01 $226,900 (-1.1%) $299,539 (12.2%) 0.61 354
    2021-05-01 $225,000 (-4.2%) $295,606 (6.9%) 0.60 358
    2021-06-01 $228,350 (-5.7%) $295,183 (2.8%) 0.60 390
    2021-07-01 $249,900 (2.3%) $311,573 (8.1%) 0.66 485
    2021-08-01 $254,900 (2.4%) $329,296 (10.1%) 0.68 521
    2021-09-01 $259,699 (7.8%) $346,066 (18.8%) 0.69 505
    2021-10-01 $275,000 (14.9%) $371,634 (27.9%) 0.73 514
    2021-11-01 $275,000 (11.8%) $393,032 (31.4%) 0.74 516
    2021-12-01 $269,125 (10.6%) $397,500 (36.8%) 0.73 486
    2022-01-01 $273,120 (11.3%) $414,343 (38.2%) 0.74 376
    2022-02-01 $283,875 (21.2%) $423,264 (41.3%) 0.74 329
    2022-03-01 $276,000 (22.9%) $412,366 (38.2%) 0.69 355
    2022-04-01 $292,500 (28.9%) $444,274 (48.3%) 0.70 409
    2022-05-01 $306,000 (36.0%) $446,188 (50.9%) 0.70 540
    2022-06-01 $314,000 (37.5%) $457,919 (55.1%) 0.70 699
    2022-07-01 $314,778 (26.0%) $444,352 (42.6%) 0.71 907
    2022-08-01 $310,635 (21.9%) $431,023 (30.9%) 0.72 1,178
    2022-09-01 $310,000 (19.4%) $418,165 (20.8%) 0.72 1,291
    2022-10-01 $315,000 (14.6%) $414,405 (11.5%) 0.74 1,390
    2022-11-01 $313,700 (14.1%) $405,822 (3.3%) 0.75 1,474
    2022-12-01 $308,400 (14.6%) $399,714 (0.6%) 0.76 1,464
    2023-01-01 $309,950 (13.5%) $399,616 (-3.6%) 0.77 1,365
    2023-02-01 $310,900 (9.5%) $398,797 (-5.8%) 0.75 1,300
    2023-03-01 $315,000 (14.1%) $402,813 (-2.3%) 0.74 1,305
    2023-04-01 $329,650 (12.7%) $416,268 (-6.3%) 0.77 1,269
    2023-05-01 $333,251 (8.9%) $431,702 (-3.3%) 0.75 1,334
    2023-06-01 $329,900 (5.1%) $421,683 (-7.9%) 0.74 1,460
    2023-07-01 $325,000 (3.3%) $417,208 (-6.1%) 0.74 1,620
    2023-08-01 $325,000 (4.6%) $417,987 (-3.0%) 0.75 1,687
    Killeen's median listing price for 2023-08-01 was $325,000, a difference of $14,365 (4.6%) versus the prior year and $0 versus the prior month.

    Killeen's median listing price comes in at 75% of the national average.

    Killeen's average listing price for 2023-08-01 was $417,987, a difference of $-13,036 (-3.0%) versus the prior year and $779 versus the prior month.

    For the 2023-08-01 period, Killeen had 1,687 MLS listings, a difference of 67 listings (4%) versus the prior month and 509 listings (43%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Killeen (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 71 days 2,036 sqft
    2018-02-01 67 days 2,059 sqft
    2018-03-01 57 days 2,061 sqft
    2018-04-01 51 days 2,069 sqft
    2018-05-01 48 days 2,083 sqft
    2018-06-01 47 days 2,088 sqft
    2018-07-01 51 days 2,100 sqft
    2018-08-01 51 days 2,064 sqft
    2018-09-01 51 days 2,066 sqft
    2018-10-01 60 days 2,059 sqft
    2018-11-01 67 days 2,081 sqft
    2018-12-01 71 days 2,068 sqft
    2019-01-01 74 days 2,075 sqft
    2019-02-01 70 days 2,094 sqft
    2019-03-01 60 days 2,109 sqft
    2019-04-01 45 days 2,124 sqft
    2019-05-01 45 days 2,139 sqft
    2019-06-01 40 days 2,100 sqft
    2019-07-01 45 days 2,092 sqft
    2019-08-01 49 days 2,087 sqft
    2019-09-01 52 days 2,085 sqft
    2019-10-01 54 days 2,084 sqft
    2019-11-01 54 days 2,097 sqft
    2019-12-01 63 days 2,059 sqft
    2020-01-01 70 days 2,056 sqft
    2020-02-01 64 days 2,037 sqft
    2020-03-01 53 days 2,036 sqft
    2020-04-01 59 days 2,055 sqft
    2020-05-01 72 days 2,088 sqft
    2020-06-01 57 days 2,124 sqft
    2020-07-01 51 days 2,136 sqft
    2020-08-01 57 days 2,106 sqft
    2020-09-01 57 days 2,077 sqft
    2020-10-01 63 days 2,069 sqft
    2020-11-01 51 days 2,033 sqft
    2020-12-01 44 days 1,988 sqft
    2021-01-01 49 days 2,000 sqft
    2021-02-01 43 days 1,951 sqft
    2021-03-01 36 days 1,876 sqft
    2021-04-01 34 days 1,906 sqft
    2021-05-01 40 days 1,875 sqft
    2021-06-01 38 days 1,875 sqft
    2021-07-01 31 days 1,903 sqft
    2021-08-01 31 days 1,875 sqft
    2021-09-01 42 days 1,922 sqft
    2021-10-01 44 days 1,929 sqft
    2021-11-01 42 days 1,931 sqft
    2021-12-01 53 days 1,904 sqft
    2022-01-01 61 days 1,931 sqft
    2022-02-01 30 days 1,909 sqft
    2022-03-01 28 days 1,882 sqft
    2022-04-01 27 days 1,901 sqft
    2022-05-01 24 days 1,937 sqft
    2022-06-01 25 days 1,978 sqft
    2022-07-01 30 days 1,984 sqft
    2022-08-01 31 days 1,982 sqft
    2022-09-01 42 days 1,972 sqft
    2022-10-01 47 days 1,982 sqft
    2022-11-01 55 days 1,961 sqft
    2022-12-01 65 days 1,942 sqft
    2023-01-01 72 days 1,945 sqft
    2023-02-01 64 days 1,948 sqft
    2023-03-01 54 days 1,963 sqft
    2023-04-01 49 days 1,984 sqft
    2023-05-01 46 days 2,029 sqft
    2023-06-01 45 days 2,019 sqft
    2023-07-01 51 days 2,011 sqft
    2023-08-01 55 days 2,007 sqft
    Killeen's median listing age (time on market) for 2023-08-01 was 55 days. This is 78% longer than the same period one year ago.

    Killeen's median square footage for active listings during the 2023-08-01 period was 2,007 sqft. One year prior, the average listing was 1,982 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).