Memphis FHA Loans

MEMPHIS, TN-MS-AR

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.

Memphis's 183 lenders originated 6,407 FHA loans during 2021. The total origination value was $1,342,085,000, with an average FHA loan value of $209,472.

Memphis FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Memphis averaged 5.51% 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 5.45% and one month ago for the week of 2022-04-08, the average rate was 4.91%.

The average rate one year ago was 3.12%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.27%.

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

Memphis 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 Memphis level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 609 2.74% $6,012
COMMUNITY MORTGAGE CORPORATION 417 2.78% $7,468
FREEDOM MORTGAGE CORPORATION 274 2.87% $5,402
CROSSCOUNTRY MORTGAGE, LLC 196 3.06% $8,709
Eagle Bank and Trust Company 190 2.94% $6,097
PENNYMAC LOAN SERVICES, LLC 179 3.04% $4,678
Nations Lending Corporation 152 3.18% $7,904
Trustmark National Bank 150 2.80% $6,844
PRIMELENDING, A PLAINSCAPITAL COMPANY 140 3.20% $8,761
BancorpSouth Bank 136 2.92% $7,368
Mr. Cooper ( Nationstar Mortgage ) 121 3.24% $4,036
SOUTHWEST FUNDING, LP 121 3.47% $10,503
LAKEVIEW LOAN SERVICING, LLC 120 2.99% $4,492
BARTLETT MORTGAGE, INC. 117 2.68% $7,622
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 112 3.24% $7,492
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 98 3.39% $9,737
GUILD MORTGAGE COMPANY 93 3.21% $7,925
MORTGAGE INVESTORS GROUP, INC. 91 3.03% $7,281
Sierra Pacific Mortgage Company, Inc. 88 3.31% $8,036
Patriot Bank 84 2.58% $7,009
UNITED WHOLESALE MORTGAGE, LLC 84 2.75% $7,462
CALIBER HOME LOANS, INC. 81 2.82% $7,089
AMERICAN FINANCIAL NETWORK, INC. 66 3.33% $10,615
Hometown Equity Mortgage, LLC 63 3.41% $10,237
VILLAGE CAPITAL & INVESTMENT LLC 61 2.89% $2,552
Evolve Bank & Trust 58 3.01% $7,349
Bank of England 57 3.06% $8,293
LOANDEPOT.COM, LLC 57 3.33% $8,228
First Horizon Bank 53 2.88% $7,462
Carrington Mortgage Services, LLC 53 3.43% $7,438
Renasant Bank 49 3.02% $7,034
Regions Bank 45 3.02% $6,254
Wolfe Financial, Inc 44 3.04% $10,518
HOMEBRIDGE FINANCIAL SERVICES, INC. 43 2.62% $5,472
Independent Bank 43 2.83% $7,667
BROKER SOLUTIONS, INC. 40 3.07% $7,799
Paramount Residential Mortgage Group, Inc. 39 3.27% $8,289
AMERISAVE MORTGAGE CORPORATION 38 2.88% $7,937
Community Bank of Mississippi 37 2.79% $7,244
The Home Loan Expert LLC 32 2.78% $7,051
Flagstar Bank, FSB 32 2.98% $7,655
GUARANTEED RATE, INC. 32 2.97% $8,973
FirstBank 31 3.18% $7,857
PLANET HOME LENDING, LLC 29 2.75% $4,897
AmeriHome Mortgage Company, LLC 28 2.98% $3,961
Plains Commerce Bank 27 2.84% $8,301
Lakeview Community Capital, LLC 27 2.97% $4,374
FINANCE OF AMERICA MORTGAGE LLC 23 2.62% $7,791
NEWREZ LLC 23 2.98% $4,915
Citizens Bank 22 2.84% $7,133
Pinnacle Bank 21 2.94% $6,961
EVERETT FINANCIAL, INC. 20 3.48% $5,156
First Guaranty Mortgage Corporation 19 2.84% $6,263
Simmons Bank 18 2.88% $6,979
AMERICAN MORTGAGE SERVICE COMPANY 16 2.91% $6,577
FIRST COMMUNITY MORTGAGE, INC. 16 3.18% $7,966
HOMESTAR FINANCIAL CORPORATION 15 3.42% $6,576
KELLER MORTGAGE, LLC 15 2.99% $6,574
MORTGAGE FINANCIAL SERVICES, LLC 15 3.21% $6,835
SECURITYNATIONAL MORTGAGE COMPANY 14 3.00% $8,129
PLAZA HOME MORTGAGE, INC. 14 2.94% $3,972
Mortgage Research Center, LLC 13 3.02% $6,223
Bank of America 13 3.03% $3,769
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 12 3.07% $6,826
The Federal Savings Bank 12 2.59% $11,232
AMERICAN FINANCIAL RESOURCES, INC. 11 3.34% $7,690
RELIANCE FIRST CAPITAL, LLC 11 2.97% $9,540
Hometown Lenders, Inc. 10 3.30% $7,274
OCEANSIDE MORTGAGE COMPANY 10 2.82% $2,753
SUN WEST MORTGAGE COMPANY, INC. 10 2.96% $8,083
UNITED SECURITY FINANCIAL CORP 10 3.44% $9,321
MUTUAL OF OMAHA MORTGAGE, INC. 10 3.15% $8,442
HOME POINT FINANCIAL CORPORATION 10 2.76% $7,418
FirstTrust Home Loans, Inc. 9 3.29% $6,014
CMG MORTGAGE, INC. 9 3.35% $8,331
BECKAM FUNDING CORP. 9 3.03% $8,562
InterContinental Capital Group, Inc 8 2.58% $6,861
STOCKTON MORTGAGE CORPORATION 8 3.03% $7,322
AMERICAN FINANCING CORPORATION 8 3.08% $6,922
DAS Acquisition Company, LLC 8 3.31% $7,150
CRESCENT MORTGAGE COMPANY 6 2.65% $6,670
Goldwater Bank, N.A. 6 3.23% $7,330
T2 FINANCIAL LLC 6 3.31% $8,759
ACOPIA, LLC 5 3.38% $9,751
EMBRACE HOME LOANS, INC. 5 3.25% $7,946
Colten Mortgage, LLC 5 3.68% $7,264
TOWNE MORTGAGE COMPANY 5 2.97% $6,212
Barrington Bank & Trust Company, N.A. 5 3.30% $5,397
BankPlus 5 2.73% $6,662
HOMESIDE FINANCIAL, LLC 5 3.03% $8,954
Triumph Bank 5 2.55% $7,007
TruHome Solutions, LLC 5 2.93% $7,934
ZILLOW HOME LOANS, LLC 5 2.65% $7,289
Leaders Credit Union 5 3.20% $6,885
Manufacturers and Traders Trust Company 5 3.33% $7,182
MORIA DEVELOPMENT, INC. 4 3.53% $9,042
AMERICAN PACIFIC MORTGAGE CORPORATION 4 3.16% $10,370
BETTER MORTGAGE CORPORATION 4 2.72% $6,808
DRAPER AND KRAMER MORTGAGE CORP. 4 3.05% $9,315
ENVOY MORTGAGE, LTD 4 2.84% $9,909
First Federal Bank 4 2.94% $8,695
Peoples Bank 4 3.53% $7,917
PHH Mortgage Corporation 4 3.88% $5,369
PILGRIM MORTGAGE LLC 4 3.34% $9,964
SOUTHPOINT FINANCIAL SERVICES, INC. 4 2.69% $9,210
SOUTHWEST STAGE FUNDING, LLC 4 3.50% $5,127
SOVEREIGN LENDING GROUP INCORPORATED 4 2.66% $10,506
GREAT WESTERN FINANCIAL SERVICES, INC. 3 3.75% $8,861
PRIMARY RESIDENTIAL MORTGAGE, INC. 3 4.29% $9,954
Financial Federal Bank 3 2.38% $7,464
AMCAP MORTGAGE, LTD. 3 3.54% $7,397
TOP FLITE FINANCIAL, INC. 3 3.04% $12,045
VANDERBILT MORTGAGE AND FINANCE, INC. 3 3.00% $6,514
MOVEMENT MORTGAGE, LLC 3 3.17% $4,535
BAYSHORE MORTGAGE FUNDING, LLC 3 3.54% $6,405
JPMorgan Chase Bank 3 2.88% $1,988
Ixonia Bank 3 3.58% $8,629
JLB CORPORATION 3 2.38% $6,232
Amerifirst Financial, Inc. 3 3.25% $6,641
Ameris Bank 2 3.13% $9,033
MICHIGAN MUTUAL, INC. 2 3.75% $9,864
INTERLINC MORTGAGE SERVICES, LLC 2 3.31% $5,364
FLAT BRANCH MORTGAGE, INC. 2 3.19% $8,032
LOANPAL, LLC 2 3.38% $6,688
MIDLAND MORTGAGE CORPORATION 2 3.75% $4,837
VERITAS FUNDING, LLC 2 2.69% $12,096
MID AMERICA MORTGAGE, INC. 2 2.56% $1,845
Commerce Home Mortgage, Inc. 2 3.38% $8,977
First Home Bank 2 3.50% $8,170
NATIONS RELIABLE LENDING, LLC 2 3.13% $9,558
CIS Financial Services, Inc. 2 3.25% $10,678
BEST CAPITAL FUNDING 2 3.00% $8,531
First Citizens National Bank 2 3.19% $6,533
Austin Capital Bank SSB 2 3.28% $9,562
Truist Bank 2 2.90% $6,654
RANLIFE, INC. 2 2.88% $7,142
ISERVE RESIDENTIAL LENDING, LLC 2 3.25% $7,458
STEARNS LENDING, LLC 1 2.25% $4,618
Citibank 1 3.25% $9,114
CHURCHILL MORTGAGE CORPORATION 1 2.88% $7,080
BNC National Bank 1 3.00% $8,257
The Huntington National Bank 1 3.38% $5,848
TIAA, FSB 1 2.75% $8,563
ASPIRE FINANCIAL, INC. 1 2.63% $11,054
AmRes Corporation 1 2.88% $12,154
United Fidelity Funding Corp. 1 2.88% $13,244
A Mortgage Boutique, LLC 1 2.50% $6,172
U.S. Bank 1 2.88% $9,109
LIBERTY HOME MORTGAGE CORPORATION 1 3.25% $11,742
Legacy Home Loans, LLC 1 3.00% $5,737
LOANLEADERS OF AMERICA, INC. 1 3.13% $14,795
Low VA Rates, LLC 1 2.75% $6,328
MEMBER FIRST MORTGAGE, LLC 1 3.50% $6,623
LEADERONE FINANCIAL CORPORATION 1 3.25% $6,254
Mid-Continent Funding, Inc. 1 3.00% $5,528
MILEND, INC. 1 3.88% $10,614
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.25% $5,125
INLAND BANK & TRUST 1 3.25% $5,605
GUARANTEED RATE AFFINITY, LLC 1 2.63% $7,608
Northpointe Bank 1 2.50% $12,743
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 3.75% $14,842
OCMBC, INC. 1 3.75% $8,177
OPEN MORTGAGE, LLC 1 3.25% $7,370
Origin Bank 1 2.88% $9,177
GMFS LLC 1 3.25% $4,835
Gateway First Bank 1 3.38% $5,946
VAN DYK MORTGAGE CORPORATION 1 2.25% $7,595
First Option Mortgage, LLC 1 2.75% $15,099
First Financial Bank 1 2.75% $7,262
First Community Bank 1 2.25% $9,755
POLARIS HOME FUNDING CORP. 1 3.25% $7,018
Presidential Bank, FSB 1 3.25% $4,735
Financial Funding Solutions, Inc. 1 2.75% $9,631
RAPID MORTGAGE COMPANY 1 3.50% $8,936
FBC MORTGAGE, LLC 1 3.13% $5,038
F&B Acquisition Group LLC 1 2.75% $2,677
ROYAL UNITED MORTGAGE LLC 1 3.13% $9,498
RUOFF MORTGAGE COMPANY, INC. 1 2.88% $7,077
EAGLE HOME MORTGAGE, LLC 1 3.13% $6,925
DHI MORTGAGE COMPANY, LTD. 1 3.13% $10,208
CREDIT UNION MORTGAGE ASSOCIATION, INC. 1 2.88% $6,221
WILLOW BEND MORTGAGE COMPANY, LLC 1 2.75% $5,699
Alcova Mortgage LLC 1 3.75% $8,801

The top Memphis FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 609 FHA loans originated. Their average total fees are $6,012, which is $1,457 lower than the next largest lender, COMMUNITY MORTGAGE CORPORATION.

The lowest fee Memphis FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,552), OCEANSIDE MORTGAGE COMPANY ($2,753), Bank of America ($3,769), AmeriHome Mortgage Company, LLC ($3,961) and PLAZA HOME MORTGAGE, INC. ($3,972).

The lowest rate Memphis FHA lenders (with over 10 loans originated) are Patriot Bank (2.58%), The Federal Savings Bank (2.59%), FINANCE OF AMERICA MORTGAGE LLC (2.62%), HOMEBRIDGE FINANCIAL SERVICES, INC. (2.62%) and BARTLETT MORTGAGE, INC. (2.68%).

Memphis FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
MEMPHIS, TN-MS-AR CRITTENDEN 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR DESOTO 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR MARSHALL 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR TATE 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR TUNICA 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR FAYETTE 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR SHELBY 2022 $420,680 $538,650 $651,050 $809,150
MEMPHIS, TN-MS-AR TIPTON 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Memphis (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 $188,250 (10.8%) $245,305 (4.6%) 0.69 3,900
2018-02-01 $185,000 (8.1%) $242,658 (4.7%) 0.67 3,882
2018-03-01 $185,000 (5.4%) $247,593 (4.8%) 0.64 3,885
2018-04-01 $195,000 (6.9%) $254,992 (3.2%) 0.65 3,286
2018-05-01 $202,425 (8.4%) $265,309 (5.0%) 0.68 3,238
2018-06-01 $215,000 (10.3%) $268,259 (5.2%) 0.72 3,506
2018-07-01 $214,950 (8.6%) $266,062 (4.1%) 0.72 3,886
2018-08-01 $214,950 (10.2%) $265,662 (5.0%) 0.72 3,878
2018-09-01 $215,000 (8.1%) $266,004 (4.8%) 0.72 3,889
2018-10-01 $217,900 (11.8%) $268,398 (7.4%) 0.73 3,894
2018-11-01 $213,900 (11.8%) $263,227 (5.5%) 0.72 3,845
2018-12-01 $210,000 (11.9%) $257,565 (3.7%) 0.72 3,573
2019-01-01 $206,100 (9.5%) $254,767 (3.9%) 0.71 3,227
2019-02-01 $209,900 (13.5%) $258,248 (6.4%) 0.70 3,110
2019-03-01 $215,829 (16.7%) $269,738 (8.9%) 0.70 3,025
2019-04-01 $222,500 (14.1%) $280,887 (10.2%) 0.70 3,024
2019-05-01 $231,950 (14.6%) $286,602 (8.0%) 0.71 3,035
2019-06-01 $230,000 (7.0%) $289,335 (7.9%) 0.71 3,141
2019-07-01 $231,500 (7.7%) $289,338 (8.8%) 0.72 3,296
2019-08-01 $233,714 (8.7%) $290,677 (9.4%) 0.74 3,269
2019-09-01 $232,214 (8.0%) $290,677 (9.3%) 0.74 3,241
2019-10-01 $231,200 (6.1%) $291,371 (8.6%) 0.74 3,213
2019-11-01 $235,000 (9.9%) $295,162 (12.1%) 0.76 3,179
2019-12-01 $232,900 (10.9%) $290,529 (12.8%) 0.78 3,013
2020-01-01 $229,400 (11.3%) $288,076 (13.1%) 0.76 2,795
2020-02-01 $231,900 (10.5%) $294,070 (13.9%) 0.75 2,525
2020-03-01 $243,450 (12.8%) $305,118 (13.1%) 0.76 2,422
2020-04-01 $249,700 (12.2%) $310,475 (10.5%) 0.78 2,429
2020-05-01 $250,000 (7.8%) $319,676 (11.5%) 0.76 2,227
2020-06-01 $257,945 (12.2%) $328,921 (13.7%) 0.75 1,997
2020-07-01 $259,950 (12.3%) $340,411 (17.7%) 0.74 1,820
2020-08-01 $265,000 (13.4%) $339,594 (16.8%) 0.76 1,725
2020-09-01 $261,950 (12.8%) $339,250 (16.7%) 0.75 1,628
2020-10-01 $263,770 (14.1%) $343,021 (17.7%) 0.75 1,635
2020-11-01 $262,000 (11.5%) $333,770 (13.1%) 0.75 1,572
2020-12-01 $252,250 (8.3%) $323,190 (11.2%) 0.74 1,447
2021-01-01 $240,000 (4.6%) $318,610 (10.6%) 0.71 1,265
2021-02-01 $235,000 (1.3%) $321,362 (9.3%) 0.68 1,105
2021-03-01 $237,900 (-2.3%) $330,557 (8.3%) 0.67 1,041
2021-04-01 $239,750 (-4.0%) $329,167 (6.0%) 0.64 1,020
2021-05-01 $235,000 (-6.0%) $324,724 (1.6%) 0.62 1,066
2021-06-01 $238,950 (-7.4%) $318,338 (-3.2%) 0.62 1,178
2021-07-01 $240,000 (-7.7%) $319,323 (-6.2%) 0.62 1,308
2021-08-01 $249,200 (-6.0%) $325,345 (-4.2%) 0.66 1,419
2021-09-01 $249,450 (-4.8%) $324,015 (-4.5%) 0.66 1,399
2021-10-01 $265,000 (0.5%) $340,284 (-0.8%) 0.70 1,352
2021-11-01 $261,800 (-0.1%) $339,422 (1.7%) 0.69 1,269
2021-12-01 $242,500 (-3.9%) $328,000 (1.5%) 0.65 1,234
2022-01-01 $220,500 (-8.1%) $326,366 (2.4%) 0.59 1,075
2022-02-01 $226,000 (-3.8%) $332,469 (3.5%) 0.58 948
2022-03-01 $226,950 (-4.6%) $326,743 (-1.2%) 0.56 1,039
2022-04-01 $242,900 (1.3%) $342,551 (4.1%) 0.57 1,143
Memphis's median listing price for 2022-04-01 was $242,900, a difference of $3,150 (1.3%) versus the prior year and $15,950 versus the prior month.

Memphis's median listing price comes in at 57% of the national average.

Memphis's average listing price for 2022-04-01 was $342,551, a difference of $13,384 (4.1%) versus the prior year and $15,808 versus the prior month.

For the 2022-04-01 period, Memphis had 1,143 MLS listings, a difference of 104 listings (10%) versus the prior month and 123 listings (12%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Memphis (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 82 days 2,137 sqft
2018-02-01 75 days 2,137 sqft
2018-03-01 56 days 2,155 sqft
2018-04-01 57 days 2,202 sqft
2018-05-01 55 days 2,231 sqft
2018-06-01 51 days 2,301 sqft
2018-07-01 52 days 2,262 sqft
2018-08-01 58 days 2,286 sqft
2018-09-01 63 days 2,279 sqft
2018-10-01 64 days 2,323 sqft
2018-11-01 67 days 2,344 sqft
2018-12-01 72 days 2,354 sqft
2019-01-01 80 days 2,301 sqft
2019-02-01 77 days 2,320 sqft
2019-03-01 57 days 2,370 sqft
2019-04-01 57 days 2,397 sqft
2019-05-01 53 days 2,403 sqft
2019-06-01 55 days 2,370 sqft
2019-07-01 54 days 2,300 sqft
2019-08-01 56 days 2,332 sqft
2019-09-01 58 days 2,322 sqft
2019-10-01 57 days 2,350 sqft
2019-11-01 60 days 2,330 sqft
2019-12-01 68 days 2,366 sqft
2020-01-01 77 days 2,351 sqft
2020-02-01 79 days 2,367 sqft
2020-03-01 60 days 2,510 sqft
2020-04-01 57 days 2,482 sqft
2020-05-01 59 days 2,500 sqft
2020-06-01 58 days 2,490 sqft
2020-07-01 51 days 2,412 sqft
2020-08-01 48 days 2,433 sqft
2020-09-01 47 days 2,433 sqft
2020-10-01 44 days 2,500 sqft
2020-11-01 49 days 2,533 sqft
2020-12-01 52 days 2,550 sqft
2021-01-01 60 days 2,520 sqft
2021-02-01 57 days 2,426 sqft
2021-03-01 49 days 2,405 sqft
2021-04-01 43 days 2,382 sqft
2021-05-01 37 days 2,537 sqft
2021-06-01 36 days 2,405 sqft
2021-07-01 36 days 2,410 sqft
2021-08-01 37 days 2,400 sqft
2021-09-01 39 days 2,400 sqft
2021-10-01 33 days 2,400 sqft
2021-11-01 38 days 2,404 sqft
2021-12-01 45 days 2,630 sqft
2022-01-01 49 days 2,585 sqft
2022-02-01 40 days 2,341 sqft
2022-03-01 39 days 2,334 sqft
2022-04-01 35 days 2,450 sqft
Memphis's median listing age (time on market) for 2022-04-01 was 35 days. This is -18% shorter than the same period one year ago.

Memphis's median square footage for active listings during the 2022-04-01 period was 2,450 sqft. One year prior, the average listing was 2,382 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).