Modesto FHA Loan Rates, Closing Costs & Stats

MODESTO, CA

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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.

    Modesto's 116 lenders originated 1,260 FHA loans during 2023. The total origination value was $490,140,000, with an average FHA loan value of $389,000.

    Modesto FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Modesto averaged 6.19% for the week of 2024-12-13, compared to the national average (all FHA variants) of 6.277% for the same period.

    Modesto's average FHA mortgage closing costs are $10,639.

    The average rate for the prior week (2024-12-06) was 6.06% and one month ago for the week of 2024-11-08, the average rate was 6.43%.

    The average rate one year ago was 6.84%.

    For refis of the same type during the week of 2024-12-13, the average rate was 6.34%.

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

    Modesto 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 Modesto level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 204 6.15% $16,336
    QUICKEN LOANS, LLC 118 6.17% $15,467
    AMERICAN PACIFIC MORTGAGE CORPORATION 73 6.45% $17,838
    CROSSCOUNTRY MORTGAGE, LLC 67 6.47% $16,523
    Century Mortgage Company DBA Century Lending Company 57 6.52% $15,398
    SCENIC OAKS FUNDING, INC. 32 6.21% $18,569
    CARDINAL FINANCIAL 31 6.21% $16,713
    LOANDEPOT.COM, LLC 31 6.18% $17,097
    S1L, Inc. 30 6.41% $16,969
    RESIDENTIAL BANCORP 27 6.50% $17,341
    AMERICAN FINANCIAL NETWORK, INC. 25 6.89% $16,997
    Paramount Residential Mortgage Group, Inc. 22 6.64% $14,783
    ENVOY MORTGAGE, LTD 19 6.28% $18,234
    Sierra Pacific Mortgage Company, Inc. 17 6.36% $19,323
    BROKER SOLUTIONS, INC. 16 6.90% $14,829
    ACADEMY MORTGAGE CORPORATION 15 6.47% $17,112
    GUARANTEED RATE, INC. 15 6.49% $15,381
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 13 6.85% $16,554
    KBHS HOME LOANS, LLC 13 5.76% $20,420
    Golden Empire Mortgage, Inc. 13 6.50% $19,981
    PENNYMAC LOAN SERVICES, LLC 12 5.71% $17,248
    SUMMIT FUNDING, INC. 12 6.34% $20,258
    GUILD MORTGAGE COMPANY 11 6.32% $16,064
    DHI MORTGAGE COMPANY, LTD. 10 5.22% $11,991
    SUN WEST MORTGAGE COMPANY, INC. 10 6.39% $17,081
    Northpointe Bank 10 5.46% $18,364
    NEWREZ LLC 9 5.99% $15,653
    FREEDOM MORTGAGE CORPORATION 9 6.76% $17,193
    Mr. Cooper ( Nationstar Mortgage ) 9 6.25% $18,809
    Flagstar Bank, FSB 8 6.52% $12,728
    NATIONS DIRECT MORTGAGE, LLC 7 6.54% $16,000
    Carrington Mortgage Services, LLC 7 6.54% $14,913
    PRIMARY RESIDENTIAL MORTGAGE, INC. 6 6.75% $17,018
    OCMBC, INC. 6 6.98% $14,126
    ALAMEDA MORTGAGE CORPORATION 6 6.48% $17,953
    PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.90% $16,058
    EVERETT FINANCIAL, INC. 5 6.70% $16,533
    Equity Prime Mortgage LLC 5 7.18% $17,964
    MLD MORTGAGE INC. 5 6.75% $17,996
    NFM, INC. 5 6.83% $15,551
    TOP FLITE FINANCIAL, INC. 5 7.05% $18,435
    CHURCHILL MORTGAGE CORPORATION 5 6.13% $21,461
    VILLAGE CAPITAL MORTGAGE 4 6.31% $17,044
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 4 5.94% $15,538
    CALCON MUTUAL MORTGAGE LLC 4 7.19% $18,841
    CMG MORTGAGE, INC. 4 6.69% $17,295
    ML Mortgage Corp. 4 7.38% $18,285
    ALLIED MORTGAGE GROUP, INC. 4 6.09% $15,323
    AMERISAVE MORTGAGE CORPORATION 4 5.69% $18,887
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 4 6.03% $15,387
    JPMorgan Chase Bank 4 6.19% $13,668
    Performance Financial, Inc. 4 5.47% $21,073
    LAND HOME FINANCIAL SERVICES, INC. 4 7.09% $15,199
    Prosperity Home Mortgage, LLC 3 5.83% $14,377
    Bank of America 3 6.21% $15,931
    PLANET HOME LENDING, LLC 3 5.58% $7,966
    Commerce Home Mortgage, Inc. 3 6.92% $21,001
    AmeriHome Mortgage Company, LLC 3 5.29% $22,316
    Mortgage Research Center, LLC 2 7.44% $13,104
    HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.44% $12,988
    HOMEOWNERS FINANCIAL GROUP USA, LLC 2 6.69% $18,875
    AMERITRUST MORTGAGE CORPORATION 2 6.75% $17,450
    GENEVA FINANCIAL, LLC 2 6.94% $26,252
    AXIA FINANCIAL, LLC 2 6.44% $12,873
    PLAZA HOME MORTGAGE, INC. 2 6.06% $15,293
    TruHome Solutions, LLC 2 6.81% $10,505
    LENDING 3, INC. 2 5.81% $23,642
    U.S. Bank 2 6.63% $15,363
    MUTUAL OF OMAHA MORTGAGE, INC. 2 7.25% $18,647
    VERITAS FUNDING, LLC 2 6.38% $17,391
    Lakeview Community Capital, LLC 2 6.00% $18,173
    BMO Harris Bank 2 6.06% $12,780
    ON Q FINANCIAL, INC. 2 6.69% $23,612
    Keystone Funding, Inc. 2 6.31% $13,337
    Franklin Loan Corporation 2 6.06% $18,280
    ZILLOW HOME LOANS, LLC 1 5.50% $13,286
    EMM LOANS LLC 1 5.88% $17,685
    FBC MORTGAGE, LLC 1 6.13% $17,821
    FIRST COMMUNITY MORTGAGE, INC. 1 6.75% $18,542
    DIRECTIONS EQUITY, LLC 1 6.63% $16,654
    Comerica Bank 1 6.13% $11,455
    GUARANTEED RATE AFFINITY, LLC 1 5.73% $16,672
    GUARANTY HOME MORTGAGE CORPORATION 1 5.38% $11,758
    HOME APPROVALS DIRECT, INC. 1 7.75% $21,275
    Hometown Equity Mortgage, LLC 1 6.25% $21,478
    INFINITY EQUITY GROUP, INC. 1 6.63% $22,991
    CASTLE & COOKE MORTGAGE, LLC 1 7.63% $28,179
    LADERA LENDING, INC. 1 5.63% $15,116
    CALIBER HOME LOANS, INC. 1 6.25% $14,113
    LOANPAL, LLC 1 5.63% $18,245
    MANN FINANCIAL INC. 1 6.50% $13,037
    MICHIGAN MUTUAL, INC. 1 6.00% $16,758
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.63% $20,180
    MOUNTAIN WEST FINANCIAL, INC. 1 6.63% $22,820
    MOVEMENT MORTGAGE, LLC 1 5.63% $13,767
    Nations Lending Corporation 1 7.75% $14,166
    BECKAM FUNDING CORP. 1 7.50% $24,680
    BAY EQUITY LLC 1 6.25% $15,257
    NuVision Federal Credit Union 1 7.50% $20,415
    ONY GLO, INC. 1 8.13% $27,463
    Barrington Bank & Trust Company, N.A. 1 6.25% $5,106
    PHH Mortgage Corporation 1 6.49% $14,039
    Plains Commerce Bank 1 5.50% $14,463
    PREMIER LENDING, INC. 1 7.25% $16,579
    RANLIFE, INC. 1 5.88% $18,787
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.00% $4,013
    SNAPFI, INC. 1 6.63% $16,298
    SOVEREIGN LENDING GROUP INCORPORATED 1 5.50% $15,529
    ST FIN CORP 1 7.00% $19,869
    AMCAP MORTGAGE, LTD. 1 7.50% $16,255
    THE GOLDEN 1 1 6.75% $15,048
    The Loan Store, Inc. 1 7.00% $15,537
    TJC Mortgage, Inc. 1 6.63% $16,457
    TRAVIS CREDIT UNION 1 6.50% $7,981
    US MORTGAGE CORPORATION 1 6.75% $13,262
    VISION ONE MORTGAGE, INC. 1 7.00% $17,876

    The top Modesto FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 204 FHA loans originated. Their average total fees are $16,336, which is $869 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Modesto FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($11,991), Paramount Residential Mortgage Group, Inc. ($14,783), BROKER SOLUTIONS, INC. ($14,829), GUARANTEED RATE, INC. ($15,381) and Century Mortgage Company DBA Century Lending Company ($15,398).

    The lowest rate Modesto FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.22%), Northpointe Bank (5.46%), PENNYMAC LOAN SERVICES, LLC (5.71%), KBHS HOME LOANS, LLC (5.76%) and UNITED WHOLESALE MORTGAGE, LLC (6.15%).

    Modesto FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MODESTO, CA STANISLAUS 2022 $460,000 $588,850 $711,800 $884,600
    MODESTO, CA STANISLAUS 2023 $517,500 $662,500 $800,800 $995,200

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Modesto (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 $346,500 (14.6%) $435,301 (9.6%) 1.28 643
    2018-02-01 $346,875 (11.9%) $423,147 (4.2%) 1.26 681
    2018-03-01 $353,000 (10.8%) $449,092 (10.6%) 1.24 722
    2018-04-01 $359,500 (10.6%) $454,420 (10.9%) 1.22 753
    2018-05-01 $364,950 (10.8%) $450,889 (9.2%) 1.22 842
    2018-06-01 $355,000 (6.1%) $430,577 (4.4%) 1.18 957
    2018-07-01 $354,900 (7.6%) $425,911 (2.8%) 1.19 1,005
    2018-08-01 $350,000 (7.0%) $423,132 (1.6%) 1.17 1,106
    2018-09-01 $349,000 (5.8%) $420,435 (2.2%) 1.17 1,086
    2018-10-01 $339,913 (3.0%) $411,327 (0.3%) 1.15 1,102
    2018-11-01 $339,900 (0.9%) $416,682 (0.9%) 1.15 1,079
    2018-12-01 $340,000 (0.0%) $413,623 (-3.2%) 1.17 1,026
    2019-01-01 $339,985 (-1.9%) $413,501 (-5.0%) 1.17 925
    2019-02-01 $344,611 (-0.7%) $416,321 (-1.6%) 1.16 887
    2019-03-01 $356,371 (1.0%) $426,391 (-5.1%) 1.17 836
    2019-04-01 $365,000 (1.5%) $441,712 (-2.8%) 1.16 806
    2019-05-01 $365,000 (0.0%) $441,618 (-2.1%) 1.14 865
    2019-06-01 $369,950 (4.2%) $456,546 (6.0%) 1.16 879
    2019-07-01 $374,400 (5.5%) $463,568 (8.8%) 1.17 851
    2019-08-01 $375,836 (7.4%) $461,688 (9.1%) 1.19 870
    2019-09-01 $369,741 (5.9%) $448,629 (6.7%) 1.18 897
    2019-10-01 $367,677 (8.2%) $441,824 (7.4%) 1.19 886
    2019-11-01 $369,000 (8.6%) $438,366 (5.2%) 1.21 794
    2019-12-01 $368,950 (8.5%) $449,597 (8.7%) 1.23 640
    2020-01-01 $372,000 (9.4%) $452,766 (9.5%) 1.24 575
    2020-02-01 $375,120 (8.9%) $474,080 (13.9%) 1.23 538
    2020-03-01 $389,225 (9.2%) $473,800 (11.1%) 1.22 610
    2020-04-01 $377,250 (3.4%) $456,612 (3.4%) 1.18 667
    2020-05-01 $377,000 (3.3%) $465,429 (5.4%) 1.15 661
    2020-06-01 $392,450 (6.1%) $479,783 (5.1%) 1.16 486
    2020-07-01 $402,225 (7.4%) $529,779 (14.3%) 1.17 411
    2020-08-01 $419,000 (11.5%) $547,642 (18.6%) 1.20 356
    2020-09-01 $417,225 (12.8%) $536,714 (19.6%) 1.20 374
    2020-10-01 $418,888 (13.9%) $550,968 (24.7%) 1.20 399
    2020-11-01 $422,500 (14.5%) $556,940 (27.1%) 1.24 410
    2020-12-01 $431,235 (16.9%) $589,424 (31.1%) 1.28 354
    2021-01-01 $439,000 (18.0%) $619,061 (36.7%) 1.31 299
    2021-02-01 $429,950 (14.6%) $622,412 (31.3%) 1.25 265
    2021-03-01 $443,500 (13.9%) $639,943 (35.1%) 1.26 267
    2021-04-01 $445,600 (18.1%) $609,410 (33.5%) 1.21 299
    2021-05-01 $449,800 (19.3%) $614,325 (32.0%) 1.19 320
    2021-06-01 $448,425 (14.3%) $598,953 (24.8%) 1.18 379
    2021-07-01 $449,900 (11.9%) $584,241 (10.3%) 1.19 451
    2021-08-01 $460,000 (9.8%) $580,082 (5.9%) 1.23 495
    2021-09-01 $464,500 (11.3%) $569,751 (6.2%) 1.24 481
    2021-10-01 $472,450 (12.8%) $579,129 (5.1%) 1.26 526
    2021-11-01 $482,450 (14.2%) $591,879 (6.3%) 1.29 467
    2021-12-01 $481,315 (11.6%) $597,951 (1.5%) 1.30 352
    2022-01-01 $479,925 (9.3%) $600,753 (-3.0%) 1.30 290
    2022-02-01 $489,500 (13.9%) $612,804 (-1.5%) 1.27 279
    2022-03-01 $494,225 (11.4%) $624,146 (-2.5%) 1.24 291
    2022-04-01 $499,000 (12.0%) $630,535 (3.5%) 1.19 337
    2022-05-01 $499,950 (11.2%) $639,979 (4.2%) 1.14 475
    2022-06-01 $494,475 (10.3%) $598,062 (-0.2%) 1.10 607
    2022-07-01 $480,000 (6.7%) $553,414 (-5.3%) 1.08 762
    2022-08-01 $475,000 (3.3%) $549,208 (-5.3%) 1.10 824
    2022-09-01 $472,500 (1.7%) $544,610 (-4.4%) 1.10 789
    2022-10-01 $470,000 (-0.5%) $552,066 (-4.7%) 1.11 743
    2022-11-01 $472,500 (-2.1%) $564,609 (-4.6%) 1.14 653
    2022-12-01 $480,000 (-0.3%) $588,001 (-1.7%) 1.19 542
    2023-01-01 $488,871 (1.9%) $595,593 (-0.9%) 1.21 456
    2023-02-01 $489,499 (0.0%) $597,835 (-2.4%) 1.18 417
    2023-03-01 $499,993 (1.2%) $610,642 (-2.2%) 1.18 363
    2023-04-01 $520,000 (4.2%) $612,746 (-2.8%) 1.21 319
    2023-05-01 $530,000 (6.0%) $627,971 (-1.9%) 1.20 322
    2023-06-01 $531,200 (7.4%) $619,455 (3.6%) 1.19 358
    2023-07-01 $522,450 (8.8%) $612,921 (10.8%) 1.19 414
    2023-08-01 $516,250 (8.7%) $624,545 (13.7%) 1.19 441
    2023-09-01 $504,500 (6.8%) $624,643 (14.7%) 1.17 448
    2023-10-01 $519,987 (10.6%) $628,522 (13.9%) 1.22 488
    2023-11-01 $499,987 (5.8%) $618,671 (9.6%) 1.19 505
    2023-12-01 $509,995 (6.3%) $628,165 (6.8%) 1.24 460
    2024-01-01 $522,500 (6.9%) $625,522 (5.0%) 1.28 416
    2024-02-01 $525,000 (7.3%) $622,800 (4.2%) 1.26 385
    2024-03-01 $519,999 (4.0%) $625,227 (2.4%) 1.22 448
    2024-04-01 $529,000 (1.7%) $635,737 (3.8%) 1.23 496
    2024-05-01 $535,000 (0.9%) $628,863 (0.1%) 1.21 539
    2024-06-01 $530,000 (-0.2%) $620,549 (0.2%) 1.19 577
    2024-07-01 $529,923 (1.4%) $630,957 (2.9%) 1.21 632
    2024-08-01 $534,999 (3.6%) $620,420 (-0.7%) 1.24 684
    2024-09-01 $528,950 (4.9%) $610,897 (-2.2%) 1.24 698
    2024-10-01 $524,950 (1.0%) $612,561 (-2.5%) 1.24 685
    2024-11-01 $520,000 (4.0%) $633,218 (2.4%) 1.25 701
    Modesto's median listing price for 2024-11-01 was $520,000, a difference of $20,013 (4.0%) versus the prior year and $-4,950 versus the prior month.

    Modesto's median listing price comes in at 125% of the national average.

    Modesto's average listing price for 2024-11-01 was $633,218, a difference of $14,547 (2.4%) versus the prior year and $20,657 versus the prior month.

    For the 2024-11-01 period, Modesto had 701 MLS listings, a difference of 16 listings (2%) versus the prior month and 196 listings (39%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Modesto (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 57 days 1,837 sqft
    2018-02-01 37 days 1,778 sqft
    2018-03-01 35 days 1,837 sqft
    2018-04-01 35 days 1,862 sqft
    2018-05-01 33 days 1,870 sqft
    2018-06-01 34 days 1,835 sqft
    2018-07-01 37 days 1,829 sqft
    2018-08-01 37 days 1,810 sqft
    2018-09-01 38 days 1,767 sqft
    2018-10-01 42 days 1,715 sqft
    2018-11-01 45 days 1,704 sqft
    2018-12-01 54 days 1,712 sqft
    2019-01-01 57 days 1,695 sqft
    2019-02-01 47 days 1,713 sqft
    2019-03-01 42 days 1,755 sqft
    2019-04-01 40 days 1,816 sqft
    2019-05-01 39 days 1,813 sqft
    2019-06-01 39 days 1,849 sqft
    2019-07-01 43 days 1,863 sqft
    2019-08-01 44 days 1,865 sqft
    2019-09-01 43 days 1,838 sqft
    2019-10-01 45 days 1,822 sqft
    2019-11-01 52 days 1,844 sqft
    2019-12-01 65 days 1,834 sqft
    2020-01-01 67 days 1,833 sqft
    2020-02-01 45 days 1,856 sqft
    2020-03-01 35 days 1,888 sqft
    2020-04-01 43 days 1,828 sqft
    2020-05-01 57 days 1,853 sqft
    2020-06-01 63 days 1,882 sqft
    2020-07-01 53 days 1,902 sqft
    2020-08-01 35 days 1,948 sqft
    2020-09-01 32 days 1,844 sqft
    2020-10-01 32 days 1,836 sqft
    2020-11-01 37 days 1,851 sqft
    2020-12-01 42 days 1,844 sqft
    2021-01-01 46 days 1,845 sqft
    2021-02-01 34 days 1,788 sqft
    2021-03-01 32 days 1,841 sqft
    2021-04-01 30 days 1,847 sqft
    2021-05-01 26 days 1,789 sqft
    2021-06-01 25 days 1,737 sqft
    2021-07-01 26 days 1,754 sqft
    2021-08-01 26 days 1,790 sqft
    2021-09-01 30 days 1,724 sqft
    2021-10-01 30 days 1,762 sqft
    2021-11-01 37 days 1,745 sqft
    2021-12-01 42 days 1,770 sqft
    2022-01-01 40 days 1,763 sqft
    2022-02-01 29 days 1,739 sqft
    2022-03-01 26 days 1,750 sqft
    2022-04-01 25 days 1,718 sqft
    2022-05-01 23 days 1,755 sqft
    2022-06-01 25 days 1,725 sqft
    2022-07-01 30 days 1,695 sqft
    2022-08-01 37 days 1,663 sqft
    2022-09-01 44 days 1,661 sqft
    2022-10-01 46 days 1,663 sqft
    2022-11-01 54 days 1,662 sqft
    2022-12-01 64 days 1,678 sqft
    2023-01-01 60 days 1,712 sqft
    2023-02-01 51 days 1,737 sqft
    2023-03-01 40 days 1,794 sqft
    2023-04-01 36 days 1,824 sqft
    2023-05-01 35 days 1,822 sqft
    2023-06-01 32 days 1,866 sqft
    2023-07-01 33 days 1,860 sqft
    2023-08-01 34 days 1,832 sqft
    2023-09-01 37 days 1,786 sqft
    2023-10-01 37 days 1,829 sqft
    2023-11-01 42 days 1,787 sqft
    2023-12-01 49 days 1,753 sqft
    2024-01-01 47 days 1,805 sqft
    2024-02-01 42 days 1,809 sqft
    2024-03-01 33 days 1,783 sqft
    2024-04-01 33 days 1,835 sqft
    2024-05-01 27 days 1,796 sqft
    2024-06-01 32 days 1,798 sqft
    2024-07-01 39 days 1,781 sqft
    2024-08-01 42 days 1,798 sqft
    2024-09-01 43 days 1,765 sqft
    2024-10-01 48 days 1,743 sqft
    2024-11-01 50 days 1,730 sqft
    Modesto's median listing age (time on market) for 2024-11-01 was 50 days. This is 19% longer than the same period one year ago.

    Modesto's median square footage for active listings during the 2024-11-01 period was 1,730 sqft. One year prior, the average listing was 1,787 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).