Milwaukee FHA Loan Rates, Closing Costs & Stats

MILWAUKEE-WAUKESHA, WI

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.

Milwaukee's 129 lenders originated 1,944 FHA loans during 2023. The total origination value was $476,740,000, with an average FHA loan value of $245,237.

Milwaukee FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Milwaukee averaged 6.9% for the week of 2024-05-24, compared to the national average (all FHA variants) of 6.746% for the same period.

Milwaukee's average FHA mortgage closing costs are $6,575.

The average rate for the prior week (2024-05-17) was 6.9% and one month ago for the week of 2024-04-19, the average rate was 6.72%.

The average rate one year ago was 6.34%.

For refis of the same type during the week of 2024-05-24, the average rate was 6.17%.

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

Milwaukee 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 Milwaukee level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 170 6.32% $10,051
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 134 7.03% $9,431
UNITED WHOLESALE MORTGAGE, LLC 102 6.56% $9,659
Bank of England 64 6.98% $8,596
Paramount Residential Mortgage Group, Inc. 64 6.94% $8,255
CROSSCOUNTRY MORTGAGE, LLC 52 6.88% $9,735
GUILD MORTGAGE COMPANY 48 6.76% $9,201
LOANDEPOT.COM, LLC 48 6.67% $10,694
NEWREZ LLC 44 6.55% $9,787
Associated Bank 37 6.33% $7,003
CARDINAL FINANCIAL 33 6.94% $10,799
CMG MORTGAGE, INC. 33 7.17% $10,076
JPMorgan Chase Bank 32 6.55% $4,969
Bank Five Nine 31 6.83% $6,626
Barrington Bank & Trust Company, N.A. 30 6.77% $8,200
Bell Bank 29 6.63% $8,260
AMERICAN PACIFIC MORTGAGE CORPORATION 28 7.02% $12,899
BROKER SOLUTIONS, INC. 27 6.85% $10,951
V.I.P. MORTGAGE, INC. 27 6.88% $10,474
FREEDOM MORTGAGE CORPORATION 26 7.13% $12,600
Mr. Cooper ( Nationstar Mortgage ) 26 6.26% $14,411
MUTUAL OF OMAHA MORTGAGE, INC. 24 6.76% $12,887
WISCONSIN MORTGAGE CORPORATION 23 6.63% $7,483
American Mortgage & Equity Consultants, Inc. 22 7.11% $10,188
ARK-LA-TEX FINANCIAL SERVICES, LLC. 21 6.75% $7,572
AMERISAVE MORTGAGE CORPORATION 21 6.04% $13,991
Prosperity Home Mortgage, LLC 20 6.69% $8,001
SUN WEST MORTGAGE COMPANY, INC. 18 6.91% $9,833
NATIONS RELIABLE LENDING, LLC 18 7.27% $9,254
Nations Lending Corporation 16 7.06% $9,593
PENNYMAC LOAN SERVICES, LLC 16 6.27% $10,380
BAY EQUITY LLC 16 6.64% $9,331
CHURCHILL MORTGAGE CORPORATION 15 7.08% $7,876
ENDEAVOR CAPITAL, LLC. 15 6.71% $11,358
PLANET HOME LENDING, LLC 14 5.91% $7,880
BMO Harris Bank 14 6.87% $7,586
U.S. Bank 14 6.95% $6,697
Mortgage Research Center, LLC 13 7.21% $5,586
The Equitable Bank, S.S.B. 13 6.05% $6,536
ENVOY MORTGAGE, LTD 13 6.66% $8,191
GUARANTEED RATE AFFINITY, LLC 12 6.79% $11,004
GUARANTEED RATE, INC. 12 6.99% $12,052
Carrington Mortgage Services, LLC 12 6.45% $10,264
A + MORTGAGE SERVICES, INC. 11 6.49% $8,535
AMERICAN FINANCIAL NETWORK, INC. 11 7.06% $10,158
Ixonia Bank 11 7.20% $8,324
DIAMOND RESIDENTIAL MORTGAGE CORPORATION 11 7.19% $8,671
CIBM Bank 11 6.86% $6,887
MID AMERICA MORTGAGE, INC. 11 6.65% $8,476
Century Mortgage Company DBA Century Lending Company 11 7.03% $10,651
UNION HOME MORTGAGE CORP. 10 7.04% $8,588
GSF Mortgage Corporation 10 6.58% $9,714
AXIA FINANCIAL, LLC 8 5.87% $10,758
CHERRY CREEK MORTGAGE, LLC 8 6.44% $4,658
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 6.63% $8,272
MOVEMENT MORTGAGE, LLC 7 7.11% $10,417
FIRST CENTENNIAL MORTGAGE CORPORATION 7 6.61% $8,838
Waukesha State Bank 7 6.86% $8,361
Flagstar Bank, FSB 7 6.71% $8,912
THOMPSON KANE & COMPANY, LLC 7 6.79% $10,703
University of Wisconsin Credit Union 6 6.48% $9,039
GENEVA FINANCIAL, LLC 6 7.27% $14,265
TOWNE MORTGAGE COMPANY 6 6.65% $8,504
LAND HOME FINANCIAL SERVICES, INC. 6 6.54% $11,440
Waterstone Mortgage Corporation 6 7.13% $8,797
The Huntington National Bank 6 6.38% $8,565
PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.92% $9,014
Old National Bank 5 6.53% $6,043
Equity Prime Mortgage LLC 5 6.78% $11,761
CIBC Bank USA 5 6.32% $6,384
AmeriHome Mortgage Company, LLC 5 6.55% $7,283
T2 FINANCIAL LLC 5 7.03% $12,166
TOP FLITE FINANCIAL, INC. 5 7.00% $15,141
LAKEVIEW LOAN SERVICING, LLC 5 5.93% $11,173
SUCCESS MORTGAGE PARTNERS, INC. 5 6.73% $7,137
PNC Bank 4 6.13% $6,292
EVERETT FINANCIAL, INC. 4 6.66% $9,256
BECKAM FUNDING CORP. 4 7.28% $11,049
PRIMARY RESIDENTIAL MORTGAGE, INC. 4 7.06% $8,087
ZILLOW HOME LOANS, LLC 3 6.38% $10,937
DRAPER AND KRAMER MORTGAGE CORP. 3 6.96% $8,369
HOMESIDE FINANCIAL, LLC 3 6.63% $8,941
Lakeview Community Capital, LLC 3 6.67% $11,588
Neighborhood Loans, Inc. 2 7.19% $9,843
EMBRACE HOME LOANS, INC. 2 6.56% $10,302
Ameris Bank 2 7.31% $7,410
Citizens Bank 2 6.13% $9,499
The Federal Savings Bank 2 6.75% $12,385
SUMMIT FUNDING, INC. 2 7.00% $14,063
PHH Mortgage Corporation 2 6.38% $10,182
Plains Commerce Bank 2 6.00% $6,974
Servion, Inc. 2 6.00% $8,670
SECURITYNATIONAL MORTGAGE COMPANY 2 7.44% $9,155
LEADERONE FINANCIAL CORPORATION 2 6.56% $8,331
LOANPAL, LLC 2 5.38% $14,687
AMERICAN FINANCIAL RESOURCES, INC. 2 7.00% $8,020
JLB CORPORATION 2 7.06% $9,779
NBKC BANK 2 6.00% $7,736
NATION ONE MORTGAGE CORPORATION 1 6.38% $25,254
ARC HOME LLC 1 7.13% $6,960
BETTER MORTGAGE CORPORATION 1 6.00% $5,332
CALCON MUTUAL MORTGAGE LLC 1 7.75% $15,210
CALIBER HOME LOANS, INC. 1 6.75% $10,749
CITY FIRST MORTGAGE SERVICES, L.L.C. 1 7.25% $6,452
COMPASS MORTGAGE, INC. 1 5.25% $6,446
CORNERSTONE HOME LENDING, INC. 1 6.63% $4,512
First-Citizens Bank & Trust Company 1 6.13% $6,834
FIRST COMMUNITY MORTGAGE, INC. 1 7.00% $9,019
First Federal Bank 1 5.88% $13,160
FIRST STATE MORTGAGE SERVICES, LLC 1 6.63% $8,767
Home Federal Savings Bank 1 7.38% $6,076
Home State Bank 1 6.99% $6,013
LEGEND LENDING CORPORATION 1 6.13% $22,249
LIBERTY HOME MORTGAGE CORPORATION 1 7.25% $30,539
MEGASTAR FINANCIAL CORP. 1 6.63% $12,027
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.75% $11,523
M&T Bank 1 6.25% $6,082
ACADEMY MORTGAGE CORPORATION 1 6.25% $12,560
NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $11,380
NexBank 1 6.63% $6,526
OCMBC, INC. 1 7.13% $13,726
PENTAGON FEDERAL CREDIT UNION 1 5.75% $5,481
PLAZA HOME MORTGAGE, INC. 1 7.25% $12,327
ROYAL UNITED MORTGAGE LLC 1 6.63% $7,108
TJC Mortgage, Inc. 1 5.25% $23,483
TRUSTONE FINANCIAL FEDERAL CREDIT UNION 1 6.63% $7,774
UNITED HOME LOANS, INC. 1 6.63% $7,275
VILLAGE CAPITAL MORTGAGE 1 6.25% $11,149
Wells Fargo Bank 1 6.63% $8,900

The top Milwaukee FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 170 FHA loans originated. Their average total fees are $10,051, which is $620 higher than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

The lowest fee Milwaukee FHA lenders (with over 10 loans originated) are JPMorgan Chase Bank ($4,969), Mortgage Research Center, LLC ($5,586), The Equitable Bank, S.S.B. ($6,536), Bank Five Nine ($6,626) and U.S. Bank ($6,697).

The lowest rate Milwaukee FHA lenders (with over 10 loans originated) are PLANET HOME LENDING, LLC (5.91%), AMERISAVE MORTGAGE CORPORATION (6.04%), The Equitable Bank, S.S.B. (6.05%), Mr. Cooper ( Nationstar Mortgage ) (6.26%) and PENNYMAC LOAN SERVICES, LLC (6.27%).

Milwaukee FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
MILWAUKEE-WAUKESHA, WI MILWAUKEE 2022 $420,680 $538,650 $651,050 $809,150
MILWAUKEE-WAUKESHA, WI OZAUKEE 2022 $420,680 $538,650 $651,050 $809,150
MILWAUKEE-WAUKESHA, WI WASHINGTON 2022 $420,680 $538,650 $651,050 $809,150
MILWAUKEE-WAUKESHA, WI WAUKESHA 2022 $420,680 $538,650 $651,050 $809,150
MILWAUKEE-WAUKESHA, WI MILWAUKEE 2023 $472,030 $604,400 $730,525 $907,900
MILWAUKEE-WAUKESHA, WI OZAUKEE 2023 $472,030 $604,400 $730,525 $907,900
MILWAUKEE-WAUKESHA, WI WASHINGTON 2023 $472,030 $604,400 $730,525 $907,900
MILWAUKEE-WAUKESHA, WI WAUKESHA 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Milwaukee (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 $213,950 (7.0%) $304,492 (6.1%) 0.79 3,853
2018-02-01 $222,400 (9.0%) $315,261 (8.0%) 0.81 4,074
2018-03-01 $232,450 (6.2%) $321,757 (6.3%) 0.82 4,494
2018-04-01 $241,425 (9.8%) $328,105 (8.0%) 0.82 4,827
2018-05-01 $249,900 (10.1%) $331,661 (7.3%) 0.83 5,146
2018-06-01 $259,900 (13.0%) $343,249 (9.7%) 0.87 5,337
2018-07-01 $254,950 (10.9%) $338,895 (7.2%) 0.85 5,416
2018-08-01 $249,900 (8.9%) $333,963 (6.8%) 0.84 5,521
2018-09-01 $249,900 (11.1%) $336,092 (8.1%) 0.84 5,366
2018-10-01 $249,900 (13.6%) $334,642 (8.6%) 0.85 5,223
2018-11-01 $249,000 (13.4%) $331,330 (7.8%) 0.84 4,819
2018-12-01 $244,900 (14.0%) $327,679 (8.5%) 0.84 4,059
2019-01-01 $249,575 (16.7%) $332,532 (9.2%) 0.86 3,608
2019-02-01 $261,900 (17.8%) $342,888 (8.8%) 0.88 3,779
2019-03-01 $270,943 (16.6%) $351,332 (9.2%) 0.89 4,193
2019-04-01 $304,450 (26.1%) $385,958 (17.6%) 0.97 4,721
2019-05-01 $304,900 (22.0%) $386,754 (16.6%) 0.95 4,973
2019-06-01 $279,900 (7.7%) $358,176 (4.4%) 0.87 5,244
2019-07-01 $281,713 (10.5%) $364,387 (7.5%) 0.88 5,221
2019-08-01 $275,855 (10.4%) $360,673 (8.0%) 0.87 5,236
2019-09-01 $269,749 (7.9%) $355,033 (5.6%) 0.86 5,207
2019-10-01 $264,950 (6.0%) $349,048 (4.3%) 0.85 5,162
2019-11-01 $259,900 (4.4%) $342,044 (3.2%) 0.85 4,588
2019-12-01 $253,450 (3.5%) $339,705 (3.7%) 0.85 3,760
2020-01-01 $256,475 (2.8%) $341,509 (2.7%) 0.86 3,366
2020-02-01 $269,900 (3.1%) $352,524 (2.8%) 0.88 3,607
2020-03-01 $279,900 (3.3%) $356,161 (1.4%) 0.88 3,994
2020-04-01 $282,450 (-7.2%) $356,228 (-7.7%) 0.88 3,907
2020-05-01 $293,950 (-3.6%) $370,498 (-4.2%) 0.89 4,032
2020-06-01 $294,925 (5.4%) $371,487 (3.7%) 0.87 4,432
2020-07-01 $299,900 (6.5%) $375,615 (3.1%) 0.87 4,500
2020-08-01 $289,900 (5.1%) $372,590 (3.3%) 0.83 4,557
2020-09-01 $275,000 (2.0%) $359,972 (1.4%) 0.79 4,634
2020-10-01 $267,900 (1.1%) $352,902 (1.1%) 0.77 4,433
2020-11-01 $263,700 (1.5%) $352,325 (3.0%) 0.77 3,788
2020-12-01 $260,000 (2.6%) $352,173 (3.7%) 0.77 3,041
2021-01-01 $259,900 (1.3%) $353,181 (3.4%) 0.78 2,481
2021-02-01 $264,900 (-1.9%) $356,453 (1.1%) 0.77 2,489
2021-03-01 $274,900 (-1.8%) $359,178 (0.9%) 0.78 2,704
2021-04-01 $277,450 (-1.8%) $361,118 (1.4%) 0.75 3,054
2021-05-01 $289,900 (-1.4%) $371,738 (0.3%) 0.77 3,450
2021-06-01 $289,900 (-1.7%) $371,004 (-0.1%) 0.76 3,911
2021-07-01 $284,900 (-5.0%) $362,260 (-3.6%) 0.75 4,361
2021-08-01 $280,000 (-3.4%) $359,763 (-3.4%) 0.75 4,433
2021-09-01 $276,850 (0.7%) $357,279 (-0.8%) 0.74 4,388
2021-10-01 $274,900 (2.6%) $357,071 (1.2%) 0.73 4,163
2021-11-01 $262,400 (-0.5%) $350,043 (-0.7%) 0.70 3,708
2021-12-01 $250,000 (-3.9%) $341,680 (-3.0%) 0.68 2,930
2022-01-01 $259,900 (0.0%) $353,801 (0.2%) 0.70 2,124
2022-02-01 $267,900 (1.1%) $363,553 (2.0%) 0.70 2,284
2022-03-01 $289,950 (5.5%) $389,002 (8.3%) 0.73 2,389
2022-04-01 $299,900 (8.1%) $397,866 (10.2%) 0.71 2,615
2022-05-01 $322,450 (11.2%) $408,308 (9.8%) 0.74 3,099
2022-06-01 $334,900 (15.5%) $420,023 (13.2%) 0.75 3,399
2022-07-01 $325,000 (14.1%) $413,933 (14.3%) 0.73 3,597
2022-08-01 $332,400 (18.7%) $415,704 (15.6%) 0.77 3,590
2022-09-01 $332,450 (20.1%) $416,238 (16.5%) 0.78 3,203
2022-10-01 $329,900 (20.0%) $415,246 (16.3%) 0.78 3,111
2022-11-01 $324,950 (23.8%) $414,015 (18.3%) 0.78 2,992
2022-12-01 $337,900 (35.2%) $427,662 (25.2%) 0.83 2,353
2023-01-01 $349,900 (34.6%) $431,805 (22.1%) 0.87 1,947
2023-02-01 $349,900 (30.6%) $438,030 (20.5%) 0.84 1,989
2023-03-01 $366,200 (26.3%) $452,577 (16.3%) 0.86 1,977
2023-04-01 $369,000 (23.0%) $452,755 (13.8%) 0.86 2,186
2023-05-01 $374,950 (16.3%) $460,004 (12.7%) 0.85 2,385
2023-06-01 $379,950 (13.5%) $478,344 (13.9%) 0.85 2,551
2023-07-01 $374,900 (15.4%) $475,517 (14.9%) 0.85 2,712
2023-08-01 $352,500 (6.1%) $461,060 (10.9%) 0.81 2,839
2023-09-01 $349,900 (5.3%) $453,475 (9.0%) 0.81 2,927
2023-10-01 $339,975 (3.1%) $437,790 (5.4%) 0.80 3,024
2023-11-01 $342,450 (5.4%) $441,520 (6.6%) 0.82 2,844
2023-12-01 $335,000 (-0.9%) $434,646 (1.6%) 0.82 2,360
2024-01-01 $341,950 (-2.3%) $434,354 (0.6%) 0.84 2,038
2024-02-01 $353,950 (1.2%) $448,558 (2.4%) 0.85 1,950
2024-03-01 $365,000 (-0.3%) $459,758 (1.6%) 0.86 2,173
2024-04-01 $376,450 (2.0%) $469,251 (3.6%) 0.88 2,452
Milwaukee's median listing price for 2024-04-01 was $376,450, a difference of $7,450 (2.0%) versus the prior year and $11,450 versus the prior month.

Milwaukee's median listing price comes in at 88% of the national average.

Milwaukee's average listing price for 2024-04-01 was $469,251, a difference of $16,496 (3.6%) versus the prior year and $9,493 versus the prior month.

For the 2024-04-01 period, Milwaukee had 2,452 MLS listings, a difference of 279 listings (13%) versus the prior month and 266 listings (12%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Milwaukee (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 77 days 1,643 sqft
2018-02-01 55 days 1,670 sqft
2018-03-01 40 days 1,714 sqft
2018-04-01 36 days 1,735 sqft
2018-05-01 36 days 1,747 sqft
2018-06-01 36 days 1,785 sqft
2018-07-01 40 days 1,763 sqft
2018-08-01 40 days 1,738 sqft
2018-09-01 43 days 1,728 sqft
2018-10-01 45 days 1,733 sqft
2018-11-01 50 days 1,725 sqft
2018-12-01 59 days 1,720 sqft
2019-01-01 67 days 1,739 sqft
2019-02-01 54 days 1,781 sqft
2019-03-01 42 days 1,806 sqft
2019-04-01 39 days 1,900 sqft
2019-05-01 38 days 1,922 sqft
2019-06-01 36 days 1,833 sqft
2019-07-01 37 days 1,835 sqft
2019-08-01 39 days 1,823 sqft
2019-09-01 42 days 1,805 sqft
2019-10-01 44 days 1,788 sqft
2019-11-01 50 days 1,757 sqft
2019-12-01 61 days 1,719 sqft
2020-01-01 65 days 1,707 sqft
2020-02-01 43 days 1,754 sqft
2020-03-01 37 days 1,783 sqft
2020-04-01 39 days 1,795 sqft
2020-05-01 42 days 1,825 sqft
2020-06-01 36 days 1,824 sqft
2020-07-01 36 days 1,823 sqft
2020-08-01 33 days 1,800 sqft
2020-09-01 35 days 1,727 sqft
2020-10-01 36 days 1,680 sqft
2020-11-01 40 days 1,666 sqft
2020-12-01 46 days 1,637 sqft
2021-01-01 48 days 1,625 sqft
2021-02-01 37 days 1,635 sqft
2021-03-01 30 days 1,633 sqft
2021-04-01 29 days 1,629 sqft
2021-05-01 26 days 1,691 sqft
2021-06-01 26 days 1,702 sqft
2021-07-01 29 days 1,690 sqft
2021-08-01 32 days 1,679 sqft
2021-09-01 35 days 1,656 sqft
2021-10-01 37 days 1,633 sqft
2021-11-01 41 days 1,613 sqft
2021-12-01 49 days 1,580 sqft
2022-01-01 50 days 1,576 sqft
2022-02-01 30 days 1,610 sqft
2022-03-01 30 days 1,655 sqft
2022-04-01 28 days 1,682 sqft
2022-05-01 25 days 1,743 sqft
2022-06-01 28 days 1,778 sqft
2022-07-01 29 days 1,758 sqft
2022-08-01 32 days 1,762 sqft
2022-09-01 36 days 1,733 sqft
2022-10-01 35 days 1,736 sqft
2022-11-01 37 days 1,717 sqft
2022-12-01 46 days 1,718 sqft
2023-01-01 55 days 1,702 sqft
2023-02-01 37 days 1,711 sqft
2023-03-01 33 days 1,730 sqft
2023-04-01 30 days 1,763 sqft
2023-05-01 29 days 1,776 sqft
2023-06-01 29 days 1,785 sqft
2023-07-01 29 days 1,753 sqft
2023-08-01 29 days 1,716 sqft
2023-09-01 30 days 1,695 sqft
2023-10-01 32 days 1,700 sqft
2023-11-01 36 days 1,719 sqft
2023-12-01 44 days 1,690 sqft
2024-01-01 46 days 1,677 sqft
2024-02-01 37 days 1,706 sqft
2024-03-01 29 days 1,725 sqft
2024-04-01 31 days 1,762 sqft
Milwaukee's median listing age (time on market) for 2024-04-01 was 31 days. This is 2% longer than the same period one year ago.

Milwaukee's median square footage for active listings during the 2024-04-01 period was 1,762 sqft. One year prior, the average listing was 1,763 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).