Montgomery FHA Loan Rates, Closing Costs & Stats

MONTGOMERY, AL

  • 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.

    Montgomery's 96 lenders originated 1,442 FHA loans during 2024. The total origination value was $322,970,000, with an average FHA loan value of $223,974.

    Montgomery FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Montgomery averaged -0.08% for the week of 2025-07-04, compared to the national average (all FHA variants) of 0% for the same period.

    Montgomery's average FHA mortgage closing costs are $7,027.

    The average rate for the prior week (2025-06-27) was 6.7% and one month ago for the week of 2025-05-30, the average rate was 6.47%.

    The average rate one year ago was 6.7%.

    For refis of the same type during the week of 2025-07-04, the average rate was -0.09%.

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

    Montgomery 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 Montgomery level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    GUILD MORTGAGE COMPANY 233 6.46% $10,074
    CROSSCOUNTRY MORTGAGE, LLC 126 6.36% $10,970
    Trustmark National Bank 106 6.36% $10,127
    QUICKEN LOANS, LLC 92 6.41% $9,278
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 80 6.67% $8,214
    Renasant Bank 78 6.23% $9,959
    UNITED WHOLESALE MORTGAGE, LLC 61 6.35% $10,556
    CMG MORTGAGE, INC. 50 6.65% $10,489
    DHI MORTGAGE COMPANY, LTD. 35 5.05% $7,966
    MOVEMENT MORTGAGE, LLC 34 6.68% $10,794
    FREEDOM MORTGAGE CORPORATION 28 6.12% $11,106
    Flagstar Bank, FSB 26 6.26% $7,833
    Synovus Bank 25 6.44% $9,009
    UNION HOME MORTGAGE CORP. 22 6.37% $10,952
    GMFS LLC 22 6.59% $4,884
    LOANDEPOT.COM, LLC 20 6.59% $8,873
    PENNYMAC LOAN SERVICES, LLC 18 5.99% $8,298
    PRIMELENDING, A PLAINSCAPITAL COMPANY 18 6.37% $8,608
    Regions Bank 15 6.33% $7,295
    SouthPoint Bank 14 6.11% $6,527
    TOWNE MORTGAGE COMPANY 13 6.33% $11,494
    Mr. Cooper ( Nationstar Mortgage ) 12 6.61% $8,761
    GUARANTEED RATE, INC. 11 6.41% $10,099
    BROKER SOLUTIONS, INC. 11 6.95% $9,103
    Mortgage Research Center, LLC 10 6.64% $4,300
    STOCKTON MORTGAGE CORPORATION 9 6.60% $11,781
    FIRST COMMUNITY MORTGAGE, INC. 9 6.53% $11,418
    Carrington Mortgage Services, LLC 9 6.21% $10,919
    First Federal Bank 8 6.64% $7,507
    Hamilton Mortgage Corporation 7 6.50% $8,583
    NEWREZ LLC 6 6.17% $9,412
    Consumer First Mortgage, Inc. 6 6.69% $9,668
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 6 6.10% $10,317
    AMERICAN FINANCIAL NETWORK, INC. 5 7.65% $9,831
    CANOPY MORTGAGE, LLC 5 6.70% $10,036
    Assurance Financial Group, L.L.C. 5 6.68% $7,717
    ZILLOW HOME LOANS, LLC 5 6.80% $8,761
    AmeriHome Mortgage Company, LLC 5 6.22% $7,515
    LAKEVIEW LOAN SERVICING, LLC 5 6.43% $10,144
    LOANPAL, LLC 5 6.17% $6,762
    ACOPIA, LLC 4 6.88% $9,680
    AMERISAVE MORTGAGE CORPORATION 4 6.53% $8,810
    First Federal Bank, A FSB 4 6.09% $8,879
    OCMBC, INC. 4 7.38% $10,199
    ServisFirst Bank 4 6.41% $8,914
    EMM LOANS LLC 3 6.33% $18,309
    MICHIGAN MUTUAL, INC. 3 6.33% $7,941
    Prosperity Home Mortgage, LLC 3 5.67% $12,270
    ENDEAVOR CAPITAL, LLC. 3 6.74% $8,465
    BancorpSouth 3 5.63% $11,270
    South State Bank 3 5.54% $10,685
    AMERICAN FINANCIAL RESOURCES, INC. 3 6.21% $11,504
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 3 6.50% $9,196
    Residential Acceptance Corporation 3 7.71% $5,937
    NEW DAY FINANCIAL, LLC 2 7.44% $4,877
    FirstBank 2 6.81% $7,448
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 7.25% $6,127
    M&T Bank 2 6.19% $7,076
    PNC Bank 2 6.56% $4,880
    CARDINAL FINANCIAL 2 6.13% $9,288
    SOUTHWEST FUNDING, LP 2 7.75% $8,635
    United Community Bank 2 6.69% $8,007
    Equity Prime Mortgage LLC 1 7.38% $8,138
    PENTAGON FEDERAL CREDIT UNION 1 6.38% $7,081
    Plains Commerce Bank 1 6.75% $5,437
    PLAZA HOME MORTGAGE, INC. 1 5.88% $9,172
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 4.99% $10,756
    LIBERTY HOME MORTGAGE CORPORATION 1 7.00% $3,731
    MUTUAL OF OMAHA MORTGAGE, INC. 1 7.25% $6,742
    EVERETT FINANCIAL, INC. 1 6.88% $14,339
    Cornerstone First Mortgage, Inc 1 6.25% $9,233
    RELIANCE FIRST CAPITAL, LLC 1 7.13% $5,439
    CIS Financial Services, Inc. 1 6.63% $9,841
    FBC MORTGAGE, LLC 1 5.50% $7,528
    ROYAL UNITED MORTGAGE LLC 1 6.50% $10,113
    Alcova Mortgage LLC 1 7.25% $8,428
    VILLAGE CAPITAL MORTGAGE 1 6.75% $7,226
    Capital City Home Loans, LLC 1 6.25% $8,714
    MORTGAGE INVESTORS GROUP, INC. 1 5.75% $8,200
    LEADERONE FINANCIAL CORPORATION 1 5.75% $13,461
    SOUTHWEST STAGE FUNDING, LLC 1 5.38% $6,819
    BETTER MORTGAGE CORPORATION 1 5.63% $19,069
    SUN WEST MORTGAGE COMPANY, INC. 1 7.88% $12,228
    MILEND, INC. 1 6.63% $11,569
    The Central Trust Bank 1 6.00% $10,715
    Home Mortgage Alliance Corp 1 6.25% $17,189
    Truist 1 6.75% $10,585
    AMERITRUST MORTGAGE CORPORATION 1 6.99% $9,450
    AMERICAN FINANCING CORPORATION 1 6.75% $4,667
    LENOX FINANCIAL MORTGAGE CORPORATION 1 5.75% $7,697
    Keystone Funding, Inc. 1 6.25% $12,102
    Valley National Bank 1 6.25% $6,051
    EUSTIS AND AMERICAN MORTGAGE COMPANY 1 6.63% $14,101
    NFM, INC. 1 6.63% $7,908
    Northpointe Bank 1 5.75% $15,251
    Wells Fargo Bank 1 6.75% $7,995

    The top Montgomery FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 233 FHA loans originated. Their average total fees are $10,074, which is $896 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Montgomery FHA lenders (with over 10 loans originated) are Mortgage Research Center, LLC ($4,300), GMFS LLC ($4,884), SouthPoint Bank ($6,527), Regions Bank ($7,295) and Flagstar Bank, FSB ($7,833).

    The lowest rate Montgomery FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.05%), PENNYMAC LOAN SERVICES, LLC (5.99%), SouthPoint Bank (6.11%), FREEDOM MORTGAGE CORPORATION (6.12%) and Renasant Bank (6.23%).

    Montgomery FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MONTGOMERY, AL AUTAUGA 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL ELMORE 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL LOWNDES 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL MONTGOMERY 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL AUTAUGA 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL ELMORE 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL LOWNDES 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL MONTGOMERY 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Montgomery (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 $170,950 (3.6%) $220,991 (-2.5%) 0.63 1,893
    2018-02-01 $178,500 (5.8%) $232,723 (2.0%) 0.65 1,892
    2018-03-01 $179,900 (5.9%) $240,141 (1.4%) 0.63 1,969
    2018-04-01 $189,945 (11.7%) $250,530 (4.4%) 0.64 2,069
    2018-05-01 $194,900 (14.1%) $254,535 (4.7%) 0.65 2,077
    2018-06-01 $194,900 (13.7%) $255,190 (4.6%) 0.65 2,088
    2018-07-01 $197,500 (14.8%) $255,607 (5.8%) 0.66 2,059
    2018-08-01 $199,700 (17.4%) $260,018 (8.8%) 0.67 1,981
    2018-09-01 $199,900 (11.7%) $259,132 (8.4%) 0.67 1,943
    2018-10-01 $197,000 (12.6%) $254,254 (6.9%) 0.67 1,919
    2018-11-01 $194,925 (14.7%) $251,699 (9.7%) 0.66 1,824
    2018-12-01 $190,500 (10.8%) $245,374 (8.6%) 0.66 1,745
    2019-01-01 $192,200 (12.4%) $246,181 (11.4%) 0.66 1,654
    2019-02-01 $197,884 (10.9%) $251,249 (8.0%) 0.67 1,684
    2019-03-01 $207,929 (15.6%) $261,496 (8.9%) 0.68 1,681
    2019-04-01 $220,700 (16.2%) $276,980 (10.6%) 0.70 1,731
    2019-05-01 $224,800 (15.3%) $275,726 (8.3%) 0.70 1,647
    2019-06-01 $220,000 (12.9%) $271,627 (6.4%) 0.69 1,671
    2019-07-01 $223,700 (13.3%) $271,754 (6.3%) 0.70 1,664
    2019-08-01 $223,536 (11.9%) $267,994 (3.1%) 0.71 1,605
    2019-09-01 $221,491 (10.8%) $263,979 (1.9%) 0.71 1,571
    2019-10-01 $219,900 (11.6%) $260,756 (2.6%) 0.71 1,547
    2019-11-01 $216,000 (10.8%) $253,641 (0.8%) 0.71 1,524
    2019-12-01 $219,900 (15.4%) $254,326 (3.7%) 0.73 1,452
    2020-01-01 $223,800 (16.4%) $255,642 (3.8%) 0.75 1,381
    2020-02-01 $225,500 (14.0%) $264,362 (5.2%) 0.74 1,359
    2020-03-01 $239,450 (15.2%) $274,927 (5.1%) 0.75 1,346
    2020-04-01 $243,300 (10.2%) $277,420 (0.2%) 0.76 1,329
    2020-05-01 $244,900 (8.9%) $276,293 (0.2%) 0.74 1,243
    2020-06-01 $244,900 (11.3%) $276,288 (1.7%) 0.72 1,133
    2020-07-01 $243,650 (8.9%) $273,981 (0.8%) 0.71 1,075
    2020-08-01 $237,950 (6.5%) $278,935 (4.1%) 0.68 1,081
    2020-09-01 $238,975 (7.9%) $281,214 (6.5%) 0.68 980
    2020-10-01 $239,000 (8.7%) $284,416 (9.1%) 0.68 903
    2020-11-01 $217,450 (0.7%) $273,234 (7.7%) 0.64 895
    2020-12-01 $212,700 (-3.3%) $271,413 (6.7%) 0.63 816
    2021-01-01 $209,000 (-6.6%) $269,779 (5.5%) 0.62 736
    2021-02-01 $224,900 (-0.3%) $294,066 (11.2%) 0.65 580
    2021-03-01 $235,000 (-1.9%) $304,742 (10.8%) 0.67 555
    2021-04-01 $262,700 (8.0%) $327,711 (18.1%) 0.71 561
    2021-05-01 $259,700 (6.0%) $325,146 (17.7%) 0.69 571
    2021-06-01 $234,500 (-4.3%) $300,481 (8.8%) 0.62 572
    2021-07-01 $229,900 (-5.6%) $300,640 (9.7%) 0.61 620
    2021-08-01 $234,925 (-1.3%) $306,582 (9.9%) 0.63 638
    2021-09-01 $235,000 (-1.7%) $303,238 (7.8%) 0.63 601
    2021-10-01 $232,500 (-2.7%) $295,671 (4.0%) 0.62 549
    2021-11-01 $234,225 (7.7%) $288,880 (5.7%) 0.63 514
    2021-12-01 $211,175 (-0.7%) $274,183 (1.0%) 0.57 484
    2022-01-01 $205,000 (-1.9%) $274,556 (1.8%) 0.55 436
    2022-02-01 $202,400 (-10.0%) $301,069 (2.4%) 0.53 365
    2022-03-01 $229,600 (-2.3%) $297,026 (-2.5%) 0.57 414
    2022-04-01 $249,450 (-5.0%) $305,963 (-6.6%) 0.59 436
    2022-05-01 $246,825 (-5.0%) $307,241 (-5.5%) 0.56 506
    2022-06-01 $249,900 (6.6%) $303,396 (1.0%) 0.56 577
    2022-07-01 $288,500 (25.5%) $324,184 (7.8%) 0.65 678
    2022-08-01 $281,825 (20.0%) $334,505 (9.1%) 0.65 729
    2022-09-01 $269,900 (14.9%) $348,781 (15.0%) 0.63 710
    2022-10-01 $264,543 (13.8%) $344,789 (16.6%) 0.62 759
    2022-11-01 $263,750 (12.6%) $332,561 (15.1%) 0.63 793
    2022-12-01 $259,900 (23.1%) $326,728 (19.2%) 0.64 766
    2023-01-01 $277,100 (35.2%) $327,971 (19.5%) 0.69 693
    2023-02-01 $302,000 (49.2%) $342,734 (13.8%) 0.73 664
    2023-03-01 $309,325 (34.7%) $358,512 (20.7%) 0.73 647
    2023-04-01 $320,900 (28.6%) $382,939 (25.2%) 0.75 647
    2023-05-01 $308,950 (25.2%) $388,422 (26.4%) 0.70 653
    2023-06-01 $299,250 (19.8%) $372,533 (22.8%) 0.67 690
    2023-07-01 $315,000 (9.2%) $370,584 (14.3%) 0.72 743
    2023-08-01 $312,300 (10.8%) $361,803 (8.2%) 0.72 797
    2023-09-01 $305,000 (13.0%) $355,753 (2.0%) 0.71 848
    2023-10-01 $297,600 (12.5%) $338,096 (-1.9%) 0.70 926
    2023-11-01 $296,100 (12.3%) $338,919 (1.9%) 0.71 918
    2023-12-01 $299,000 (15.0%) $331,287 (1.4%) 0.73 903
    2024-01-01 $289,675 (4.5%) $325,032 (-0.9%) 0.71 836
    2024-02-01 $294,450 (-2.5%) $336,035 (-2.0%) 0.71 807
    2024-03-01 $309,900 (0.2%) $354,598 (-1.1%) 0.73 852
    2024-04-01 $317,500 (-1.1%) $374,038 (-2.3%) 0.74 864
    2024-05-01 $324,900 (5.2%) $374,925 (-3.5%) 0.74 889
    2024-06-01 $324,000 (8.3%) $374,974 (0.7%) 0.74 931
    2024-07-01 $317,000 (0.6%) $372,238 (0.5%) 0.73 1,008
    2024-08-01 $299,900 (-4.0%) $368,975 (2.0%) 0.70 1,067
    2024-09-01 $296,700 (-2.7%) $372,886 (4.8%) 0.70 1,148
    2024-10-01 $297,000 (-0.2%) $365,668 (8.2%) 0.70 1,165
    2024-11-01 $274,900 (-7.2%) $340,051 (0.3%) 0.66 1,190
    2024-12-01 $269,950 (-9.7%) $331,641 (0.1%) 0.67 1,131
    2025-01-01 $262,450 (-9.4%) $324,150 (-0.3%) 0.66 1,057
    2025-02-01 $265,725 (-9.8%) $338,084 (0.6%) 0.65 1,051
    2025-03-01 $274,900 (-11.3%) $338,610 (-4.5%) 0.65 1,084
    2025-04-01 $280,617 (-11.6%) $358,574 (-4.1%) 0.65 1,123
    2025-05-01 $295,000 (-9.2%) $372,156 (-0.7%) 0.67 1,198
    Montgomery's median listing price for 2025-05-01 was $295,000, a difference of $-29,900 (-9.2%) versus the prior year and $14,383 versus the prior month.

    Montgomery's median listing price comes in at 67% of the national average.

    Montgomery's average listing price for 2025-05-01 was $372,156, a difference of $-2,769 (-0.7%) versus the prior year and $13,582 versus the prior month.

    For the 2025-05-01 period, Montgomery had 1,198 MLS listings, a difference of 75 listings (7%) versus the prior month and 309 listings (35%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Montgomery (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 99 days 1,959 sqft
    2018-02-01 96 days 1,992 sqft
    2018-03-01 71 days 2,003 sqft
    2018-04-01 66 days 2,067 sqft
    2018-05-01 66 days 2,082 sqft
    2018-06-01 74 days 2,080 sqft
    2018-07-01 75 days 2,099 sqft
    2018-08-01 78 days 2,122 sqft
    2018-09-01 79 days 2,133 sqft
    2018-10-01 80 days 2,089 sqft
    2018-11-01 85 days 2,086 sqft
    2018-12-01 92 days 2,052 sqft
    2019-01-01 100 days 2,049 sqft
    2019-02-01 84 days 2,100 sqft
    2019-03-01 73 days 2,146 sqft
    2019-04-01 65 days 2,192 sqft
    2019-05-01 61 days 2,205 sqft
    2019-06-01 65 days 2,188 sqft
    2019-07-01 70 days 2,172 sqft
    2019-08-01 74 days 2,162 sqft
    2019-09-01 77 days 2,141 sqft
    2019-10-01 80 days 2,120 sqft
    2019-11-01 85 days 2,112 sqft
    2019-12-01 87 days 2,126 sqft
    2020-01-01 92 days 2,140 sqft
    2020-02-01 87 days 2,157 sqft
    2020-03-01 64 days 2,200 sqft
    2020-04-01 63 days 2,214 sqft
    2020-05-01 71 days 2,241 sqft
    2020-06-01 73 days 2,248 sqft
    2020-07-01 61 days 2,247 sqft
    2020-08-01 51 days 2,241 sqft
    2020-09-01 55 days 2,243 sqft
    2020-10-01 62 days 2,239 sqft
    2020-11-01 59 days 2,144 sqft
    2020-12-01 65 days 2,092 sqft
    2021-01-01 67 days 2,080 sqft
    2021-02-01 60 days 2,204 sqft
    2021-03-01 42 days 2,221 sqft
    2021-04-01 30 days 2,226 sqft
    2021-05-01 30 days 2,192 sqft
    2021-06-01 35 days 2,067 sqft
    2021-07-01 35 days 1,986 sqft
    2021-08-01 35 days 2,065 sqft
    2021-09-01 45 days 2,077 sqft
    2021-10-01 49 days 2,080 sqft
    2021-11-01 52 days 2,093 sqft
    2021-12-01 48 days 1,933 sqft
    2022-01-01 51 days 1,883 sqft
    2022-02-01 41 days 1,958 sqft
    2022-03-01 29 days 1,916 sqft
    2022-04-01 29 days 2,074 sqft
    2022-05-01 25 days 2,076 sqft
    2022-06-01 30 days 2,016 sqft
    2022-07-01 30 days 2,123 sqft
    2022-08-01 40 days 2,091 sqft
    2022-09-01 46 days 2,098 sqft
    2022-10-01 45 days 2,078 sqft
    2022-11-01 50 days 2,079 sqft
    2022-12-01 61 days 2,089 sqft
    2023-01-01 74 days 2,109 sqft
    2023-02-01 58 days 2,164 sqft
    2023-03-01 52 days 2,166 sqft
    2023-04-01 50 days 2,188 sqft
    2023-05-01 46 days 2,153 sqft
    2023-06-01 48 days 2,094 sqft
    2023-07-01 46 days 2,140 sqft
    2023-08-01 45 days 2,142 sqft
    2023-09-01 51 days 2,135 sqft
    2023-10-01 53 days 2,052 sqft
    2023-11-01 59 days 2,025 sqft
    2023-12-01 68 days 2,045 sqft
    2024-01-01 78 days 2,019 sqft
    2024-02-01 65 days 2,022 sqft
    2024-03-01 53 days 2,098 sqft
    2024-04-01 50 days 2,122 sqft
    2024-05-01 50 days 2,136 sqft
    2024-06-01 54 days 2,135 sqft
    2024-07-01 51 days 2,114 sqft
    2024-08-01 50 days 2,041 sqft
    2024-09-01 55 days 2,035 sqft
    2024-10-01 60 days 2,063 sqft
    2024-11-01 64 days 2,011 sqft
    2024-12-01 75 days 1,972 sqft
    2025-01-01 85 days 1,926 sqft
    2025-02-01 79 days 1,932 sqft
    2025-03-01 59 days 1,953 sqft
    2025-04-01 56 days 2,005 sqft
    2025-05-01 53 days 2,065 sqft
    Montgomery's median listing age (time on market) for 2025-05-01 was 53 days. This is 6% longer than the same period one year ago.

    Montgomery's median square footage for active listings during the 2025-05-01 period was 2,065 sqft. One year prior, the average listing was 2,136 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).