Killeen FHA Loan Rates, Closing Costs & Stats

KILLEEN-TEMPLE, TX

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 137 lenders originated 1,354 FHA loans during 2023. The total origination value was $335,320,000, with an average FHA loan value of $247,651.

Killeen FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Killeen averaged 6.57% for the week of 2024-05-17, compared to the national average (all FHA variants) of 6.744% for the same period.

Killeen's average FHA mortgage closing costs are $7,112.

The average rate for the prior week (2024-05-10) was 6.61% and one month ago for the week of 2024-04-12, the average rate was 6.27%.

The average rate one year ago was 6.03%.

For refis of the same type during the week of 2024-05-17, the average rate was 6.72%.

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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 290 6.84% $7,887
DHI MORTGAGE COMPANY, LTD. 199 5.33% $8,439
First National Bank Texas 85 6.13% $11,289
CMG MORTGAGE, INC. 56 6.60% $12,188
SWBC MORTGAGE CORPORATION 53 6.57% $6,884
UNITED WHOLESALE MORTGAGE, LLC 44 6.20% $12,680
QUICKEN LOANS, LLC 34 6.37% $11,294
CORNERSTONE HOME LENDING, INC. 20 6.74% $11,098
KBHS HOME LOANS, LLC 19 5.57% $15,571
HOMESIDE FINANCIAL, LLC 18 7.23% $9,982
GUILD MORTGAGE COMPANY 17 6.51% $12,561
AMCAP MORTGAGE, LTD. 16 6.86% $12,465
THRIVE MORTGAGE, LLC 16 6.90% $14,736
MUTUAL OF OMAHA MORTGAGE, INC. 15 6.88% $12,711
PLAZA HOME MORTGAGE, INC. 14 6.60% $12,243
AMERICAN PACIFIC MORTGAGE CORPORATION 12 6.96% $11,871
Wolfe Financial, Inc 12 6.71% $11,426
AMERICAN FINANCIAL NETWORK, INC. 11 6.77% $13,693
GUARANTEED RATE, INC. 11 6.54% $11,694
NEWREZ LLC 10 6.44% $9,667
LEADERONE FINANCIAL CORPORATION 10 6.49% $10,961
ENVOY MORTGAGE, LTD 10 6.80% $10,433
EVERETT FINANCIAL, INC. 9 6.61% $8,528
Equity Prime Mortgage LLC 9 6.63% $11,154
Gateway First Bank 9 6.92% $9,548
NTFN, INC. 7 5.98% $13,453
Waterstone Mortgage Corporation 7 6.64% $8,786
CROSSCOUNTRY MORTGAGE, LLC 7 6.84% $10,077
Century Mortgage Company DBA Century Lending Company 6 6.67% $9,065
SECURITYNATIONAL MORTGAGE COMPANY 6 7.21% $11,082
CALCON MUTUAL MORTGAGE LLC 6 6.38% $16,333
SeaTrust Mortgage Company 6 7.02% $14,712
Network Funding, L.P. 6 6.67% $10,453
SENTE MORTGAGE, INC. 5 6.73% $11,332
BROKER SOLUTIONS, INC. 5 6.60% $12,125
MORTGAGE SOLUTIONS OF COLORADO, LLC 5 7.68% $10,292
T2 FINANCIAL LLC 5 7.15% $11,514
CARDINAL FINANCIAL 4 6.50% $14,353
LOANDEPOT.COM, LLC 4 6.81% $10,567
FREEDOM MORTGAGE CORPORATION 4 7.00% $8,884
NATIONS RELIABLE LENDING, LLC 4 6.50% $9,824
BOKF 4 5.75% $19,145
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.88% $15,252
Mortgage Research Center, LLC 4 7.22% $5,687
OCMBC, INC. 3 6.83% $13,238
VILLAGE CAPITAL MORTGAGE 3 6.71% $6,834
MORTGAGE FINANCIAL SERVICES, LLC 3 6.71% $9,604
BancorpSouth 3 6.75% $10,590
ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 6.54% $10,600
Alcova Mortgage LLC 3 6.83% $6,496
UNIVERSITY Federal Credit Union 3 5.67% $9,686
Mr. Cooper ( Nationstar Mortgage ) 3 6.58% $12,936
LEGEND LENDING CORPORATION 3 7.13% $16,891
ACADEMY MORTGAGE CORPORATION 3 6.00% $10,712
PENNYMAC LOAN SERVICES, LLC 3 6.16% $17,105
Flagstar Bank, FSB 2 6.10% $8,198
American Mortgage & Equity Consultants, Inc. 2 6.00% $13,502
AMERISAVE MORTGAGE CORPORATION 2 5.69% $14,124
Barrington Bank & Trust Company, N.A. 2 7.00% $10,319
BECKAM FUNDING CORP. 2 7.06% $21,096
CITY FIRST MORTGAGE SERVICES, L.L.C. 2 6.19% $22,004
DRAPER AND KRAMER MORTGAGE CORP. 2 6.69% $10,634
First Bank 2 6.69% $8,883
First United Bank and Trust Company 2 7.25% $19,399
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 2 6.63% $11,895
HOMESTAR FINANCIAL CORPORATION 2 6.88% $7,932
JPMorgan Chase Bank 2 6.94% $6,222
Keystone Funding, Inc. 2 6.25% $15,217
Loan Simple, Inc. 2 6.19% $17,386
MID AMERICA MORTGAGE, INC. 2 7.69% $16,550
MLD MORTGAGE INC. 2 7.44% $7,469
Nations Lending Corporation 2 6.44% $5,955
NBKC BANK 2 6.19% $9,833
Paramount Residential Mortgage Group, Inc. 2 7.00% $13,350
PENTAGON FEDERAL CREDIT UNION 2 5.25% $7,516
PREMIER MORTGAGE RESOURCES, L.L.C. 2 6.94% $13,977
SUMMIT FUNDING, INC. 2 6.94% $10,677
SUN WEST MORTGAGE COMPANY, INC. 2 7.00% $16,493
TIB The Independent Bankersbank 2 7.13% $8,845
TOWNE MORTGAGE COMPANY 2 6.31% $10,304
Town Square Mortgage & Investments, Inc. 2 7.06% $13,090
V.I.P. MORTGAGE, INC. 2 6.62% $16,826
Wallick & Volk, Inc. 2 6.44% $12,035
MOVEMENT MORTGAGE, LLC 1 6.75% $9,250
FIRST COMMUNITY MORTGAGE, INC. 1 6.75% $13,421
M&T Bank 1 5.75% $12,511
Extraco Banks 1 6.75% $11,076
ZILLOW HOME LOANS, LLC 1 6.75% $8,216
Encompass Lending Group, LP 1 7.13% $10,759
AMERICAN FINANCIAL RESOURCES, INC. 1 6.00% $11,008
Eagle Bank and Trust Company 1 6.50% $11,764
DIRECT MORTGAGE, CORP. 1 6.50% $13,833
NFM, INC. 1 6.63% $17,433
NORWICH COMMERCIAL GROUP, INC. 1 6.25% $12,819
NP, Inc. 1 5.75% $12,167
DAS Acquisition Company, LLC 1 5.75% $9,312
CLM MORTGAGE, INC 1 6.88% $10,126
OPEN MORTGAGE, LLC 1 6.25% $10,649
PANORAMA MORTGAGE GROUP, LLC 1 5.25% $11,378
WILLOW BEND MORTGAGE COMPANY, LLC 1 7.75% $11,709
Citizens Bank 1 6.50% $10,167
AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 7.50% $5,695
Plains Commerce Bank 1 6.50% $6,966
PLANET HOME LENDING, LLC 1 6.63% $20,798
CIBM Bank 1 5.75% $11,390
PNC Bank 1 6.75% $5,397
American Mortgage Bank, LLC 1 7.13% $9,358
CHURCHILL MORTGAGE CORPORATION 1 7.13% $11,645
Carrington Mortgage Services, LLC 1 8.13% $10,605
RB MORTGAGE LLC 1 7.25% $11,976
S1L, Inc. 1 7.25% $5,605
CANOPY MORTGAGE, LLC 1 6.75% $14,471
BM Real Estate Services, Inc. 1 7.75% $10,939
BAY EQUITY LLC 1 7.25% $9,288
SUCCESS MORTGAGE PARTNERS, INC. 1 6.50% $10,718
AMERICAN FINANCING CORPORATION 1 6.13% $10,193
Sunflower Bank 1 7.25% $11,492
Affiliated Bank 1 5.63% $15,061
Bank of England 1 6.50% $10,090
Bank of America 1 7.00% $4,731
TEXAS TECH 1 7.00% $10,657
HOMETRUST MORTGAGE COMPANY 1 6.63% $9,962
TEXELL Credit Union 1 7.25% $0
LAKEVIEW LOAN SERVICING, LLC 1 7.25% $11,406
LAND HOME FINANCIAL SERVICES, INC. 1 8.00% $15,535
HOMESPIRE MORTGAGE CORPORATION 1 6.63% $4,291
HOMEOWNERS FINANCIAL GROUP USA, LLC 1 6.75% $14,537
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.50% $11,283
LOANPEOPLE, LLC 1 5.63% $9,787
The Federal Savings Bank 1 7.00% $5,749
MANN FINANCIAL INC. 1 7.63% $13,843
MEMBER FIRST MORTGAGE, LLC 1 5.50% $8,872
THE MORTGAGE LINK, INC. 1 5.75% $18,034
Armed Forces Bank 1 5.13% $22,706
GUARANTEED RATE AFFINITY, LLC 1 5.68% $9,684
GENEVA FINANCIAL, LLC 1 7.25% $14,664
GARDNER FINANCIAL SERVICES, LTD. 1 6.63% $12,948

The top Killeen FHA lender as defined by loan originations is FAIRWAY INDEPENDENT MORTGAGE CORPORATION, with 290 FHA loans originated. Their average total fees are $7,887, which is $552 lower than the next largest lender, DHI MORTGAGE COMPANY, LTD..

The lowest fee Killeen FHA lenders (with over 10 loans originated) are SWBC MORTGAGE CORPORATION ($6,884), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($7,887), DHI MORTGAGE COMPANY, LTD. ($8,439), NEWREZ LLC ($9,667) and HOMESIDE FINANCIAL, LLC ($9,982).

The lowest rate Killeen FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.33%), KBHS HOME LOANS, LLC (5.57%), First National Bank Texas (6.13%), UNITED WHOLESALE MORTGAGE, LLC (6.20%) and QUICKEN LOANS, LLC (6.37%).

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 (8.6%) $227,093 (12.5%) 0.67 1,404
2018-04-01 $199,913 (10.8%) $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 1,439
2018-07-01 $215,522 (20.5%) $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 $231,250 (11.5%) $266,227 (8.4%) 0.72 1,171
2019-06-01 $229,900 (9.5%) $264,784 (6.1%) 0.72 1,258
2019-07-01 $225,850 (4.8%) $262,226 (3.8%) 0.71 1,338
2019-08-01 $226,091 (9.8%) $261,558 (6.8%) 0.72 1,346
2019-09-01 $227,727 (8.6%) $264,069 (9.0%) 0.73 1,336
2019-10-01 $228,818 (14.4%) $265,743 (12.7%) 0.74 1,330
2019-11-01 $225,000 (8.7%) $267,659 (13.8%) 0.74 1,321
2019-12-01 $220,450 (5.0%) $261,630 (11.4%) 0.74 1,273
2020-01-01 $224,950 (6.6%) $262,480 (10.1%) 0.75 1,219
2020-02-01 $225,000 (3.0%) $264,544 (6.7%) 0.74 1,168
2020-03-01 $224,975 (0.3%) $264,800 (3.6%) 0.71 1,200
2020-04-01 $229,325 (-0.3%) $266,982 (1.8%) 0.72 1,189
2020-05-01 $234,900 (1.6%) $276,558 (3.9%) 0.71 1,033
2020-06-01 $241,975 (5.3%) $287,048 (8.4%) 0.71 893
2020-07-01 $243,950 (8.0%) $287,960 (9.8%) 0.71 785
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 (11.7%) 0.72 535
2020-12-01 $243,300 (10.4%) $290,518 (11.0%) 0.72 525
2021-01-01 $245,500 (9.1%) $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 $226,575 (-1.2%) $299,069 (12.0%) 0.61 353
2021-05-01 $225,000 (-4.2%) $295,606 (6.9%) 0.60 358
2021-06-01 $228,350 (-5.6%) $295,183 (2.8%) 0.60 390
2021-07-01 $249,900 (2.4%) $311,592 (8.2%) 0.66 483
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%) $371,741 (28.0%) 0.73 514
2021-11-01 $275,000 (11.8%) $393,032 (31.4%) 0.74 516
2021-12-01 $269,000 (10.6%) $397,193 (36.7%) 0.73 485
2022-01-01 $271,560 (10.6%) $413,973 (38.1%) 0.73 375
2022-02-01 $283,875 (21.2%) $423,264 (41.3%) 0.74 329
2022-03-01 $276,725 (23.3%) $412,366 (38.2%) 0.69 354
2022-04-01 $292,500 (29.1%) $444,274 (48.6%) 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%) $430,998 (30.9%) 0.72 1,178
2022-09-01 $310,000 (19.4%) $418,110 (20.8%) 0.72 1,290
2022-10-01 $315,000 (14.6%) $414,405 (11.5%) 0.74 1,390
2022-11-01 $313,700 (14.1%) $405,772 (3.2%) 0.75 1,475
2022-12-01 $308,400 (14.7%) $399,714 (0.6%) 0.76 1,464
2023-01-01 $309,950 (14.1%) $399,616 (-3.5%) 0.77 1,365
2023-02-01 $310,900 (9.5%) $398,797 (-5.8%) 0.75 1,300
2023-03-01 $315,000 (13.8%) $402,898 (-2.3%) 0.74 1,305
2023-04-01 $329,800 (12.8%) $416,348 (-6.3%) 0.77 1,270
2023-05-01 $333,501 (9.0%) $432,229 (-3.1%) 0.76 1,336
2023-06-01 $329,900 (5.1%) $421,716 (-7.9%) 0.74 1,461
2023-07-01 $325,350 (3.4%) $417,241 (-6.1%) 0.74 1,621
2023-08-01 $325,000 (4.6%) $417,987 (-3.0%) 0.75 1,687
2023-09-01 $325,000 (4.8%) $408,595 (-2.3%) 0.76 1,769
2023-10-01 $315,750 (0.2%) $400,214 (-3.4%) 0.74 1,932
2023-11-01 $314,458 (0.2%) $394,079 (-2.9%) 0.75 1,958
2023-12-01 $315,400 (2.3%) $396,896 (-0.7%) 0.77 1,832
2024-01-01 $311,158 (0.4%) $391,080 (-2.1%) 0.76 1,746
2024-02-01 $309,987 (-0.3%) $389,429 (-2.4%) 0.75 1,740
2024-03-01 $314,900 (0.0%) $394,248 (-2.2%) 0.74 1,862
2024-04-01 $319,250 (-3.2%) $404,726 (-2.8%) 0.74 1,965
Killeen's median listing price for 2024-04-01 was $319,250, a difference of $-10,550 (-3.2%) versus the prior year and $4,350 versus the prior month.

Killeen's median listing price comes in at 74% of the national average.

Killeen's average listing price for 2024-04-01 was $404,726, a difference of $-11,622 (-2.8%) versus the prior year and $10,478 versus the prior month.

For the 2024-04-01 period, Killeen had 1,965 MLS listings, a difference of 103 listings (6%) versus the prior month and 695 listings (55%) 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 2,137 sqft
2019-06-01 41 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 69 days 2,056 sqft
2020-02-01 64 days 2,038 sqft
2020-03-01 53 days 2,037 sqft
2020-04-01 59 days 2,055 sqft
2020-05-01 72 days 2,089 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 1,908 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 1,927 sqft
2021-11-01 42 days 1,931 sqft
2021-12-01 53 days 1,903 sqft
2022-01-01 61 days 1,928 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 1,938 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 1,971 sqft
2022-10-01 47 days 1,982 sqft
2022-11-01 55 days 1,960 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 1,964 sqft
2023-04-01 49 days 1,985 sqft
2023-05-01 46 days 2,029 sqft
2023-06-01 46 days 2,019 sqft
2023-07-01 51 days 2,012 sqft
2023-08-01 55 days 2,007 sqft
2023-09-01 55 days 2,012 sqft
2023-10-01 59 days 1,960 sqft
2023-11-01 65 days 1,960 sqft
2023-12-01 70 days 1,958 sqft
2024-01-01 76 days 1,951 sqft
2024-02-01 69 days 1,940 sqft
2024-03-01 52 days 1,948 sqft
2024-04-01 51 days 1,970 sqft
Killeen's median listing age (time on market) for 2024-04-01 was 51 days. This is 4% longer than the same period one year ago.

Killeen's median square footage for active listings during the 2024-04-01 period was 1,970 sqft. One year prior, the average listing was 1,985 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).