Little Rock FHA Loan Rates, Closing Costs & Stats

LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR

  • JUMP TO:
  • Trends
  • Rates vs Fees
  • Top Lenders
  • Markets
  • Loan Limits
  • Market Conditions & Pricing
  • Time on Market/Property Size

    • 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.

    Little Rock's 135 lenders originated 2,609 FHA loans during 2022. The total origination value was $505,305,000, with an average FHA loan value of $193,678.

    Little Rock FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Little Rock averaged 6.21% for the week of 2023-05-26, compared to the national average (all FHA variants) of 6.612% for the same period.

    Little Rock's average FHA mortgage closing costs are $6,086.

    The average rate for the prior week (2023-05-19) was 6.18% and one month ago for the week of 2023-04-21, the average rate was 6.12%.

    The average rate one year ago was 5.14%.

    For refis of the same type during the week of 2023-05-26, the average rate was 5.5%.

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

    Little Rock 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 Little Rock level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    QUICKEN LOANS, LLC 253 4.56% $8,005
    FirstTrust Home Loans, Inc. 194 5.01% $8,584
    MORTGAGE FINANCIAL SERVICES, LLC 132 4.79% $8,295
    Bank of England 125 4.89% $8,196
    Eagle Bank and Trust Company 122 5.11% $6,901
    Arvest Bank 118 4.91% $6,711
    Centennial Bank 96 5.04% $7,291
    PILGRIM MORTGAGE LLC 91 5.26% $9,499
    CORNERSTONE HOME LENDING, INC. 86 5.40% $9,109
    UNITED WHOLESALE MORTGAGE, LLC 59 4.73% $7,318
    FLAT BRANCH MORTGAGE, INC. 57 5.32% $7,647
    Simmons Bank 52 5.20% $6,838
    SENTE MORTGAGE, INC. 43 4.91% $7,838
    COMMUNITY MORTGAGE CORPORATION 42 5.22% $7,181
    BANK OF LITTLE ROCK MORTGAGE CORPORATION 37 4.82% $6,688
    Mr. Cooper ( Nationstar Mortgage ) 35 4.46% $9,175
    CALIBER HOME LOANS, INC. 35 4.72% $7,338
    GUARANTEED RATE, INC. 35 5.10% $8,016
    BROKER SOLUTIONS, INC. 34 5.24% $9,162
    EVERETT FINANCIAL, INC. 33 5.62% $5,374
    PENNYMAC LOAN SERVICES, LLC 31 4.33% $8,507
    NFM, INC. 30 5.66% $10,085
    First Security Bank 30 4.87% $6,886
    AMERISAVE MORTGAGE CORPORATION 29 4.79% $9,768
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 29 5.17% $8,280
    Citizens Bank 28 4.71% $7,098
    First Horizon Bank 27 5.26% $6,898
    PRIMARY RESIDENTIAL MORTGAGE, INC. 27 5.56% $8,127
    Gateway First Bank 26 5.45% $6,259
    Regions Bank 26 4.77% $8,333
    DAS Acquisition Company, LLC 24 5.11% $7,646
    First Community Bank 23 5.42% $8,404
    CROSSCOUNTRY MORTGAGE, LLC 22 5.78% $10,494
    Carrington Mortgage Services, LLC 21 5.02% $11,204
    LOANDEPOT.COM, LLC 20 4.54% $8,174
    LAKEVIEW LOAN SERVICING, LLC 18 3.93% $5,328
    FREEDOM MORTGAGE CORPORATION 16 5.24% $8,420
    Mortgage Research Center, LLC 14 5.44% $5,973
    GERSHMAN INVESTMENT CORP. 14 4.81% $6,001
    The Home Loan Expert LLC 14 4.38% $6,279
    BancorpSouth Bank 13 5.13% $6,456
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 13 5.41% $9,520
    AMCAP MORTGAGE, LTD. 11 5.14% $9,472
    U.S. Bank 11 5.02% $6,663
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 11 4.70% $8,160
    ACADEMY MORTGAGE CORPORATION 11 5.99% $7,161
    Paramount Residential Mortgage Group, Inc. 10 4.63% $7,712
    First Option Mortgage, LLC 8 5.13% $7,593
    TELCOE FEDERAL CREDIT UNION 7 5.46% $7,325
    M&T Bank 7 4.36% $7,246
    MID AMERICA MORTGAGE, INC. 7 4.77% $7,492
    AMERICAN FINANCIAL RESOURCES, INC. 7 4.98% $7,607
    JPMorgan Chase Bank 6 5.44% $8,370
    Chambers Bank 6 4.52% $7,058
    MUTUAL OF OMAHA MORTGAGE, INC. 6 4.56% $10,854
    SWBC MORTGAGE CORPORATION 6 5.13% $4,253
    ENCORE BANK 6 5.12% $7,111
    VILLAGE CAPITAL MORTGAGE 6 3.83% $4,459
    First Financial Bank 5 3.90% $5,846
    PLANET HOME LENDING, LLC 5 4.55% $7,624
    Barrington Bank & Trust Company, N.A. 5 4.50% $6,512
    Bank of America 5 3.70% $4,315
    LOANPAL, LLC 5 4.55% $9,362
    HOME POINT FINANCIAL CORPORATION 4 5.28% $5,383
    Lakeview Community Capital, LLC 4 4.34% $8,126
    MOVEMENT MORTGAGE, LLC 4 5.28% $9,834
    CARDINAL FINANCIAL 4 4.13% $9,512
    First Guaranty Mortgage Corporation 4 4.06% $7,902
    NEWREZ LLC 4 5.81% $7,965
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 4.75% $9,385
    AMERICAN FINANCING CORPORATION 3 4.17% $7,445
    Evolve Bank & Trust 3 4.88% $7,638
    FIRST COMMUNITY MORTGAGE, INC. 3 4.96% $9,089
    Flagstar Bank, FSB 3 3.99% $4,738
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 5.79% $10,435
    MORTGAGE INVESTORS GROUP, INC. 3 4.71% $5,688
    Peoples Bank 3 4.99% $12,766
    RELIANCE FIRST CAPITAL, LLC 3 4.63% $13,908
    RUOFF MORTGAGE COMPANY, INC. 3 3.83% $8,856
    SOUTHWEST STAGE FUNDING, LLC 3 5.67% $6,103
    SUN WEST MORTGAGE COMPANY, INC. 3 5.63% $6,761
    Nations Lending Corporation 2 4.69% $11,648
    Equity Prime Mortgage LLC 2 5.63% $16,434
    ENDEAVOR CAPITAL, LLC. 2 5.88% $11,944
    EMBRACE HOME LOANS, INC. 2 5.50% $9,662
    Armed Forces Bank 2 6.38% $6,341
    THRIVE MORTGAGE, LLC 2 6.19% $5,564
    GMFS LLC 2 4.88% $6,828
    ROYAL UNITED MORTGAGE LLC 2 6.00% $8,901
    United Community Bank 2 3.38% $5,634
    Wells Fargo Bank 2 4.69% $1,252
    UNITED MORTGAGE CORP. 2 3.63% $6,396
    VANDERBILT MORTGAGE AND FINANCE, INC. 2 4.56% $10,590
    Magnolia Bank 2 3.75% $5,301
    First Savings Bank 2 5.13% $10,223
    Sierra Pacific Mortgage Company, Inc. 2 6.25% $15,527
    Plains Commerce Bank 2 5.75% $10,624
    ON Q FINANCIAL, INC. 2 5.62% $9,635
    OPEN MORTGAGE, LLC 2 4.69% $8,364
    Servion, Inc. 1 4.75% $8,173
    CRESCENT MORTGAGE COMPANY 1 5.88% $6,017
    WILLOW BEND MORTGAGE COMPANY, LLC 1 5.13% $6,630
    SpiritBank 1 5.25% $6,135
    ZILLOW HOME LOANS, LLC 1 4.13% $6,285
    COMMUNITYAMERICA 1 3.13% $5,399
    CHURCHILL MORTGAGE CORPORATION 1 4.00% $9,607
    The Federal Savings Bank 1 5.13% $7,866
    CERTAINTY HOME LOANS, LLC 1 4.75% $5,678
    TOP FLITE FINANCIAL, INC. 1 6.13% $10,259
    Total Media Management, LLC 1 3.25% $5,003
    United Fidelity Funding Corp. 1 4.88% $4,937
    CB&S Bank, Inc. 1 3.63% $6,621
    MASON MCDUFFIE MORTGAGE CORPORATION 1 5.63% $5,509
    MEMBER FIRST MORTGAGE, LLC 1 5.63% $6,409
    LOANPEOPLE, LLC 1 5.50% $8,029
    Midwest Mortgage Associates Corporation 1 6.50% $3,431
    BOKF 1 5.13% $6,015
    LIBERTY HOME MORTGAGE CORPORATION 1 5.25% $10,423
    LAND HOME FINANCIAL SERVICES, INC. 1 7.50% $9,279
    KELLER MORTGAGE, LLC 1 3.13% $5,879
    HOMESTAR FINANCIAL CORPORATION 1 3.63% $6,452
    HOMESIDE FINANCIAL, LLC 1 6.13% $12,146
    GUILD MORTGAGE COMPANY 1 5.00% $9,062
    GSF Mortgage Corporation 1 6.63% $6,220
    NBKC BANK 1 4.50% $8,120
    Goldwater Bank, N.A. 1 4.13% $8,460
    Northpointe Bank 1 3.75% $6,410
    OCEANSIDE MORTGAGE COMPANY 1 5.38% $3,931
    GENEVA FINANCIAL, LLC 1 3.38% $6,608
    First United Bank and Trust Company 1 4.25% $6,048
    EUSTIS AND AMERICAN MORTGAGE COMPANY 1 3.88% $6,161
    POLARIS HOME FUNDING CORP. 1 5.38% $13,879
    PREMIA MORTGAGE, LLC 1 5.25% $7,092
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 1 4.25% $7,872
    DRAPER AND KRAMER MORTGAGE CORP. 1 3.63% $8,241

    The top Little Rock FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 253 FHA loans originated. Their average total fees are $8,005, which is $579 lower than the next largest lender, FirstTrust Home Loans, Inc..

    The lowest fee Little Rock FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($5,328), EVERETT FINANCIAL, INC. ($5,374), Mortgage Research Center, LLC ($5,973), GERSHMAN INVESTMENT CORP. ($6,001) and Gateway First Bank ($6,259).

    The lowest rate Little Rock FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC (3.93%), PENNYMAC LOAN SERVICES, LLC (4.33%), The Home Loan Expert LLC (4.38%), Mr. Cooper ( Nationstar Mortgage ) (4.46%) and LOANDEPOT.COM, LLC (4.54%).

    Little Rock FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR FAULKNER 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR GRANT 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR LONOKE 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR PERRY 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR PULASKI 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR SALINE 2022 $420,680 $538,650 $651,050 $809,150
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR FAULKNER 2023 $472,030 $604,400 $730,525 $907,900
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR GRANT 2023 $472,030 $604,400 $730,525 $907,900
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR LONOKE 2023 $472,030 $604,400 $730,525 $907,900
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR PERRY 2023 $472,030 $604,400 $730,525 $907,900
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR PULASKI 2023 $472,030 $604,400 $730,525 $907,900
    LITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR SALINE 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Little Rock (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 $175,450 (9.7%) $244,247 (12.8%) 0.65 3,009
    2018-02-01 $179,900 (11.5%) $245,854 (12.3%) 0.65 2,998
    2018-03-01 $181,500 (7.6%) $244,862 (9.0%) 0.64 3,033
    2018-04-01 $186,000 (10.1%) $250,370 (10.6%) 0.63 3,073
    2018-05-01 $189,500 (11.5%) $257,179 (11.5%) 0.63 3,232
    2018-06-01 $189,900 (10.1%) $258,409 (9.7%) 0.63 3,321
    2018-07-01 $189,700 (8.5%) $254,994 (7.7%) 0.63 3,425
    2018-08-01 $189,900 (9.0%) $251,907 (6.9%) 0.64 3,472
    2018-09-01 $189,000 (8.1%) $252,200 (7.1%) 0.64 3,532
    2018-10-01 $189,900 (9.2%) $251,833 (7.3%) 0.64 3,652
    2018-11-01 $189,000 (8.3%) $250,605 (6.2%) 0.64 3,485
    2018-12-01 $187,000 (6.9%) $249,459 (3.9%) 0.65 3,371
    2019-01-01 $184,975 (5.4%) $247,499 (1.3%) 0.64 3,232
    2019-02-01 $186,950 (3.9%) $250,674 (2.0%) 0.63 3,153
    2019-03-01 $194,900 (7.4%) $260,428 (6.4%) 0.65 3,110
    2019-04-01 $199,900 (7.5%) $266,115 (6.3%) 0.63 3,085
    2019-05-01 $199,950 (5.5%) $271,717 (5.7%) 0.62 3,070
    2019-06-01 $204,250 (7.6%) $274,673 (6.3%) 0.64 3,066
    2019-07-01 $202,500 (6.8%) $275,158 (7.9%) 0.63 3,011
    2019-08-01 $207,500 (9.3%) $278,576 (10.6%) 0.65 2,977
    2019-09-01 $212,750 (12.6%) $283,100 (12.3%) 0.67 2,734
    2019-10-01 $208,100 (9.6%) $276,710 (9.9%) 0.67 2,859
    2019-11-01 $204,900 (8.4%) $273,793 (9.3%) 0.67 2,781
    2019-12-01 $202,650 (8.4%) $276,321 (10.8%) 0.68 2,606
    2020-01-01 $199,963 (8.1%) $276,394 (11.7%) 0.67 2,412
    2020-02-01 $210,000 (12.3%) $280,921 (12.1%) 0.69 2,320
    2020-03-01 $219,450 (12.6%) $284,838 (9.4%) 0.69 2,313
    2020-04-01 $219,250 (9.7%) $283,395 (6.5%) 0.69 2,282
    2020-05-01 $230,100 (15.1%) $294,752 (8.5%) 0.70 2,023
    2020-06-01 $239,450 (17.2%) $304,392 (10.8%) 0.71 1,860
    2020-07-01 $243,656 (20.3%) $311,343 (13.2%) 0.71 1,760
    2020-08-01 $245,000 (18.1%) $319,359 (14.6%) 0.70 1,617
    2020-09-01 $241,200 (13.4%) $320,661 (13.3%) 0.69 1,483
    2020-10-01 $244,950 (17.7%) $329,289 (19.0%) 0.70 1,425
    2020-11-01 $241,700 (18.0%) $329,576 (20.4%) 0.71 1,337
    2020-12-01 $239,450 (18.2%) $331,040 (19.8%) 0.71 1,209
    2021-01-01 $230,000 (15.0%) $331,887 (20.1%) 0.69 993
    2021-02-01 $244,950 (16.6%) $335,296 (19.4%) 0.71 848
    2021-03-01 $250,000 (13.9%) $341,334 (19.8%) 0.71 793
    2021-04-01 $248,950 (13.6%) $342,671 (20.9%) 0.67 763
    2021-05-01 $239,000 (3.9%) $335,123 (13.7%) 0.63 745
    2021-06-01 $235,000 (-1.9%) $330,739 (8.7%) 0.62 820
    2021-07-01 $245,000 (0.6%) $332,807 (6.9%) 0.65 991
    2021-08-01 $249,450 (1.8%) $333,052 (4.3%) 0.67 1,082
    2021-09-01 $249,450 (3.4%) $331,112 (3.3%) 0.67 1,089
    2021-10-01 $249,000 (1.7%) $328,339 (-0.3%) 0.66 1,002
    2021-11-01 $233,450 (-3.4%) $315,195 (-4.4%) 0.62 974
    2021-12-01 $236,950 (-1.0%) $319,465 (-3.5%) 0.64 870
    2022-01-01 $238,900 (3.9%) $318,318 (-4.1%) 0.65 774
    2022-02-01 $242,425 (-1.0%) $334,904 (-0.1%) 0.63 669
    2022-03-01 $251,950 (0.8%) $364,470 (6.8%) 0.63 693
    2022-04-01 $285,000 (14.5%) $371,692 (8.5%) 0.68 714
    2022-05-01 $289,900 (21.3%) $370,590 (10.6%) 0.66 834
    2022-06-01 $289,598 (23.2%) $368,833 (11.5%) 0.65 941
    2022-07-01 $280,000 (14.3%) $358,112 (7.6%) 0.63 1,155
    2022-08-01 $279,000 (11.9%) $349,778 (5.0%) 0.64 1,264
    2022-09-01 $284,900 (14.2%) $349,042 (5.4%) 0.67 1,252
    2022-10-01 $296,000 (18.9%) $355,234 (8.2%) 0.70 1,309
    2022-11-01 $289,950 (24.2%) $343,368 (8.9%) 0.70 1,454
    2022-12-01 $299,900 (26.6%) $347,605 (8.8%) 0.74 1,345
    2023-01-01 $300,000 (25.6%) $348,214 (9.4%) 0.74 1,231
    2023-02-01 $304,245 (25.5%) $350,781 (4.7%) 0.73 1,134
    2023-03-01 $303,475 (20.5%) $351,884 (-3.5%) 0.71 1,124
    2023-04-01 $315,000 (10.5%) $358,437 (-3.6%) 0.73 1,121
    Little Rock's median listing price for 2023-04-01 was $315,000, a difference of $30,000 (10.5%) versus the prior year and $11,525 versus the prior month.

    Little Rock's median listing price comes in at 73% of the national average.

    Little Rock's average listing price for 2023-04-01 was $358,437, a difference of $-13,255 (-3.6%) versus the prior year and $6,553 versus the prior month.

    For the 2023-04-01 period, Little Rock had 1,121 MLS listings, a difference of -3 listings (0%) versus the prior month and 407 listings (57%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Little Rock (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 82 days 1,909 sqft
    2018-02-01 72 days 1,910 sqft
    2018-03-01 61 days 1,928 sqft
    2018-04-01 61 days 1,940 sqft
    2018-05-01 57 days 1,951 sqft
    2018-06-01 58 days 1,962 sqft
    2018-07-01 60 days 1,957 sqft
    2018-08-01 61 days 1,955 sqft
    2018-09-01 65 days 1,937 sqft
    2018-10-01 68 days 1,938 sqft
    2018-11-01 71 days 1,920 sqft
    2018-12-01 78 days 1,900 sqft
    2019-01-01 79 days 1,891 sqft
    2019-02-01 69 days 1,895 sqft
    2019-03-01 63 days 1,950 sqft
    2019-04-01 59 days 1,993 sqft
    2019-05-01 57 days 2,004 sqft
    2019-06-01 60 days 2,016 sqft
    2019-07-01 61 days 2,028 sqft
    2019-08-01 71 days 2,043 sqft
    2019-09-01 72 days 2,052 sqft
    2019-10-01 67 days 2,028 sqft
    2019-11-01 67 days 2,025 sqft
    2019-12-01 73 days 2,023 sqft
    2020-01-01 70 days 2,000 sqft
    2020-02-01 58 days 2,049 sqft
    2020-03-01 54 days 2,088 sqft
    2020-04-01 58 days 2,072 sqft
    2020-05-01 64 days 2,145 sqft
    2020-06-01 55 days 2,148 sqft
    2020-07-01 51 days 2,145 sqft
    2020-08-01 45 days 2,150 sqft
    2020-09-01 46 days 2,142 sqft
    2020-10-01 45 days 2,129 sqft
    2020-11-01 48 days 2,123 sqft
    2020-12-01 54 days 2,081 sqft
    2021-01-01 58 days 2,048 sqft
    2021-02-01 48 days 2,063 sqft
    2021-03-01 44 days 2,040 sqft
    2021-04-01 32 days 1,979 sqft
    2021-05-01 25 days 1,936 sqft
    2021-06-01 25 days 1,901 sqft
    2021-07-01 25 days 1,979 sqft
    2021-08-01 32 days 1,977 sqft
    2021-09-01 39 days 1,984 sqft
    2021-10-01 43 days 1,950 sqft
    2021-11-01 39 days 1,911 sqft
    2021-12-01 45 days 1,941 sqft
    2022-01-01 50 days 1,970 sqft
    2022-02-01 38 days 1,929 sqft
    2022-03-01 32 days 1,926 sqft
    2022-04-01 26 days 2,032 sqft
    2022-05-01 27 days 2,038 sqft
    2022-06-01 29 days 2,066 sqft
    2022-07-01 29 days 1,996 sqft
    2022-08-01 35 days 2,020 sqft
    2022-09-01 40 days 2,051 sqft
    2022-10-01 39 days 2,085 sqft
    2022-11-01 41 days 2,039 sqft
    2022-12-01 52 days 2,058 sqft
    2023-01-01 53 days 2,024 sqft
    2023-02-01 50 days 2,009 sqft
    2023-03-01 47 days 1,995 sqft
    2023-04-01 42 days 2,023 sqft
    Little Rock's median listing age (time on market) for 2023-04-01 was 42 days. This is 62% longer than the same period one year ago.

    Little Rock's median square footage for active listings during the 2023-04-01 period was 2,023 sqft. One year prior, the average listing was 2,032 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).