Naples FHA Loan Rates, Closing Costs & Stats

NAPLES-MARCO ISLAND, FL

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.

Naples's 111 lenders originated 852 FHA loans during 2024. The total origination value was $441,680,000, with an average FHA loan value of $518,404.

Naples FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Naples averaged 6.45% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

Naples's average FHA mortgage closing costs are $12,422.

The average rate for the prior week (2025-03-28) was 6.85% and one month ago for the week of 2025-02-28, the average rate was 6.83%.

The average rate one year ago was 6.65%.

For refis of the same type during the week of 2025-04-04, the average rate was 6.67%.

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

Naples 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 Naples level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
CROSSCOUNTRY MORTGAGE, LLC 135 6.71% $20,542
UNITED WHOLESALE MORTGAGE, LLC 87 6.14% $20,575
LOANDEPOT.COM, LLC 74 6.20% $11,996
QUICKEN LOANS, LLC 71 6.10% $20,623
AMERICAN PACIFIC MORTGAGE CORPORATION 69 6.58% $23,864
EAGLE HOME MORTGAGE, LLC 38 5.17% $14,003
BROKER SOLUTIONS, INC. 23 6.55% $19,998
FREEDOM MORTGAGE CORPORATION 16 6.26% $18,766
PRIMARY RESIDENTIAL MORTGAGE, INC. 15 6.88% $19,126
Paramount Residential Mortgage Group, Inc. 12 6.74% $19,143
PULTE MORTGAGE LLC 10 4.89% $11,887
PENNYMAC LOAN SERVICES, LLC 10 6.42% $21,067
Flagstar Bank, FSB 9 6.68% $15,690
Equity Prime Mortgage LLC 8 6.13% $18,145
BELEM SERVICING LLC 7 6.89% $20,694
Mr. Cooper ( Nationstar Mortgage ) 6 6.60% $12,475
MOVEMENT MORTGAGE, LLC 5 6.40% $20,371
AMERICAN FINANCIAL NETWORK, INC. 5 6.43% $26,959
DHI MORTGAGE COMPANY, LTD. 5 5.72% $13,471
NEWREZ LLC 5 6.00% $20,212
U.S. Bank 4 6.25% $17,038
T2 FINANCIAL LLC 4 5.97% $19,129
Carrington Mortgage Services, LLC 4 6.38% $14,083
MY MORTGAGE, INC. 3 6.66% $22,790
GENEVA FINANCIAL, LLC 3 6.04% $21,461
PLAZA HOME MORTGAGE, INC. 3 6.50% $18,454
HOMESIDE FINANCIAL, LLC 3 6.58% $18,076
Summit Mortgage Corporation 3 6.50% $29,375
Hometown Equity Mortgage, LLC 3 5.83% $28,218
Keystone Funding, Inc. 3 6.33% $27,123
LAKE MICHIGAN CREDIT UNION 3 5.83% $15,464
ABSOLUTE HOME MORTGAGE CORPORATION 3 6.71% $17,842
VILLAGE CAPITAL MORTGAGE 3 6.83% $7,951
MID AMERICA MORTGAGE, INC. 3 6.71% $7,812
Sierra Pacific Mortgage Company, Inc. 2 6.25% $25,702
LAKEVIEW LOAN SERVICING, LLC 2 6.12% $23,296
BETTER MORTGAGE CORPORATION 2 6.06% $13,546
NFM, INC. 2 6.63% $25,178
MUTUAL OF OMAHA MORTGAGE, INC. 2 6.00% $14,697
Century Mortgage Company DBA Century Lending Company 2 6.25% $11,936
American Mortgage & Equity Consultants, Inc. 2 7.44% $21,718
Bank of England 2 6.63% $18,679
NEAL COMMUNITIES FUNDING, LLC 2 6.69% $14,460
TJC Mortgage, Inc. 2 6.69% $16,744
1ST FINANCIAL, INC. 2 6.88% $21,930
Lakeview Community Capital, LLC 2 5.75% $10,430
TOWNE MORTGAGE COMPANY 2 5.56% $13,646
UNION HOME MORTGAGE CORP. 2 6.75% $16,819
GUARANTEED RATE, INC. 2 6.69% $17,398
OCMBC, INC. 2 6.19% $19,827
FIRST COLONY MORTGAGE CORPORATION 2 6.81% $24,709
GUILD MORTGAGE COMPANY 2 6.56% $13,172
AMERISAVE MORTGAGE CORPORATION 2 5.31% $32,828
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.25% $16,116
Residential Mortgage Solutions, Inc. 2 6.00% $16,776
SECURITYNATIONAL MORTGAGE COMPANY 2 6.63% $14,959
WILLIAM RAVEIS MORTGAGE, LLC 1 7.00% $11,718
A&D Mortgage LLC 1 6.00% $22,208
AHL FUNDING 1 6.50% $17,598
AMERICAN FINANCIAL RESOURCES, INC. 1 5.38% $30,137
AMERICAN FINANCING CORPORATION 1 6.00% $16,356
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 5.63% $20,196
AmeriHome Mortgage Company, LLC 1 6.99% $7,378
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.25% $10,743
Barrington Bank & Trust Company, N.A. 1 7.25% $14,730
Bell Bank 1 6.50% $16,798
CARDINAL FINANCIAL 1 5.50% $12,042
Centennial Bank 1 6.50% $16,991
City National Bank of Florida 1 5.75% $24,756
CMG MORTGAGE, INC. 1 5.63% $31,658
Cornerstone First Mortgage, Inc 1 6.13% $26,456
Countybank 1 6.63% $18,331
DELMAR FINANCIAL COMPANY 1 5.88% $16,078
FIDELITY DIRECT MORTGAGE, LLC 1 6.75% $18,125
FIRST ALLIANCE HOME MORTGAGE, LLC 1 6.38% $26,659
FIRST COMMUNITY MORTGAGE, INC. 1 6.50% $15,751
GERSHMAN INVESTMENT CORP. 1 6.13% $14,416
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 6.63% $14,117
INTELLILOAN, INC. 1 6.50% $7,526
Ixonia Bank 1 6.99% $18,411
JMAC LENDING, INC. 1 5.25% $21,377
LEADERONE FINANCIAL CORPORATION 1 5.99% $14,691
LOANPAL, LLC 1 5.99% $22,378
Loan Simple, Inc. 1 5.63% $8,258
MATTAMY HOME FUNDING, LLC 1 5.50% $14,613
MSA MORTGAGE, LLC 1 6.25% $13,439
NATIONS DIRECT MORTGAGE, LLC 1 5.75% $17,375
NETWORK CAPITAL FUNDING CORPORATION 1 6.25% $23,926
Northpointe Bank 1 6.38% $19,840
NORWICH COMMERCIAL GROUP, INC. 1 6.75% $11,909
OCEANSIDE MORTGAGE COMPANY 1 6.25% $5,708
ON Q FINANCIAL, INC. 1 6.75% $22,586
PANORAMA MORTGAGE GROUP, LLC 1 6.63% $26,227
PHH Mortgage Corporation 1 5.49% $12,722
Plains Commerce Bank 1 6.00% $26,305
PLANET HOME LENDING, LLC 1 6.50% $22,944
Prosperity Home Mortgage, LLC 1 6.63% $23,069
RADIUS FINANCIAL GROUP INC. 1 6.25% $22,070
READY MORTGAGE LENDERS, LLC 1 6.75% $27,713
Regions Bank 1 6.13% $14,352
Strong Home Mortgage, LLC 1 6.13% $10,069
SUN WEST MORTGAGE COMPANY, INC. 1 4.88% $27,479
TBI MORTGAGE COMPANY 1 5.25% $25,280
The Central Trust Bank 1 5.99% $11,486
The Loan Store, Inc. 1 5.63% $18,882
THE MORTGAGE WAREHOUSE,LLC 1 5.75% $14,088
TOTAL MORTGAGE SERVICES, LLC 1 5.88% $17,167
Towne Bank 1 6.63% $12,963
UNITED MORTGAGE CORP 1 6.63% $27,570
Vellum Mortgage, Inc. 1 6.25% $7,907
Wells Fargo Bank 1 6.88% $12,015

The top Naples FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 135 FHA loans originated. Their average total fees are $20,542, which is $32 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Naples FHA lenders (with over 10 loans originated) are PULTE MORTGAGE LLC ($11,887), LOANDEPOT.COM, LLC ($11,996), EAGLE HOME MORTGAGE, LLC ($14,003), FREEDOM MORTGAGE CORPORATION ($18,766) and PRIMARY RESIDENTIAL MORTGAGE, INC. ($19,126).

The lowest rate Naples FHA lenders (with over 10 loans originated) are PULTE MORTGAGE LLC (4.89%), EAGLE HOME MORTGAGE, LLC (5.17%), QUICKEN LOANS, LLC (6.10%), UNITED WHOLESALE MORTGAGE, LLC (6.14%) and LOANDEPOT.COM, LLC (6.20%).

Naples FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
NAPLES-MARCO ISLAND, FL COLLIER 2022 $552,000 $706,650 $854,200 $1,061,550
NAPLES-MARCO ISLAND, FL COLLIER 2023 $672,750 $861,250 $1,041,050 $1,293,750

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Naples (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 $468,900 (-6.0%) $955,497 (-6.6%) 1.74 6,385
2018-02-01 $469,000 (-5.7%) $938,749 (-7.2%) 1.70 6,867
2018-03-01 $460,000 (-6.0%) $930,658 (-7.1%) 1.61 7,090
2018-04-01 $456,100 (-6.7%) $911,095 (-7.9%) 1.55 6,898
2018-05-01 $449,900 (-5.3%) $893,558 (-8.7%) 1.50 6,574
2018-06-01 $449,900 (-5.7%) $883,640 (-9.4%) 1.50 6,206
2018-07-01 $449,700 (-5.3%) $886,938 (-7.1%) 1.50 5,894
2018-08-01 $445,473 (-5.2%) $883,042 (-8.0%) 1.49 5,719
2018-09-01 $439,950 (-6.4%) $882,337 (-9.6%) 1.48 5,649
2018-10-01 $445,000 (-5.1%) $910,227 (-5.9%) 1.51 6,080
2018-11-01 $449,000 (-4.3%) $920,712 (-3.8%) 1.52 6,595
2018-12-01 $449,000 (-2.4%) $915,696 (-3.8%) 1.55 6,957
2019-01-01 $449,450 (-4.2%) $924,565 (-3.2%) 1.55 7,385
2019-02-01 $454,684 (-3.1%) $923,013 (-1.7%) 1.54 7,862
2019-03-01 $458,914 (-0.2%) $932,859 (0.2%) 1.50 7,821
2019-04-01 $458,989 (0.6%) $932,334 (2.3%) 1.46 7,659
2019-05-01 $450,000 (0.0%) $927,167 (3.8%) 1.41 7,112
2019-06-01 $450,000 (0.0%) $938,364 (6.2%) 1.41 6,566
2019-07-01 $449,450 (-0.1%) $918,666 (3.6%) 1.41 6,107
2019-08-01 $449,245 (0.9%) $920,740 (4.3%) 1.42 5,957
2019-09-01 $449,614 (2.2%) $919,825 (4.3%) 1.44 5,878
2019-10-01 $449,950 (1.1%) $923,402 (1.5%) 1.45 5,850
2019-11-01 $459,000 (2.2%) $950,477 (3.2%) 1.50 6,017
2019-12-01 $465,000 (3.6%) $960,423 (4.9%) 1.55 6,125
2020-01-01 $475,000 (5.7%) $997,643 (7.9%) 1.59 6,087
2020-02-01 $475,000 (4.5%) $991,163 (7.4%) 1.55 6,203
2020-03-01 $475,000 (3.5%) $1,008,669 (8.1%) 1.49 6,160
2020-04-01 $469,160 (2.2%) $978,840 (5.0%) 1.47 5,994
2020-05-01 $473,345 (5.2%) $1,008,953 (8.8%) 1.44 5,683
2020-06-01 $475,000 (5.6%) $1,025,949 (9.3%) 1.40 5,341
2020-07-01 $474,000 (5.5%) $1,031,953 (12.3%) 1.37 4,927
2020-08-01 $475,000 (5.7%) $1,051,742 (14.2%) 1.36 4,621
2020-09-01 $478,579 (6.4%) $1,064,008 (15.7%) 1.37 4,314
2020-10-01 $475,000 (5.6%) $1,068,283 (15.7%) 1.36 4,156
2020-11-01 $479,000 (4.4%) $1,085,815 (14.2%) 1.40 3,915
2020-12-01 $478,303 (2.9%) $1,105,719 (15.1%) 1.42 3,638
2021-01-01 $479,000 (0.8%) $1,144,020 (14.7%) 1.43 3,192
2021-02-01 $497,000 (4.6%) $1,169,300 (18.0%) 1.45 2,416
2021-03-01 $549,500 (15.7%) $1,276,586 (26.6%) 1.56 1,796
2021-04-01 $582,100 (24.1%) $1,362,758 (39.2%) 1.58 1,491
2021-05-01 $600,000 (26.8%) $1,461,823 (44.9%) 1.59 1,263
2021-06-01 $640,000 (34.7%) $1,522,698 (48.4%) 1.68 1,232
2021-07-01 $649,900 (37.1%) $1,577,046 (52.8%) 1.71 1,281
2021-08-01 $659,500 (38.8%) $1,557,300 (48.1%) 1.76 1,290
2021-09-01 $666,000 (39.2%) $1,615,310 (51.8%) 1.78 1,259
2021-10-01 $699,950 (47.4%) $1,687,676 (58.0%) 1.87 1,264
2021-11-01 $728,499 (52.1%) $1,787,211 (64.6%) 1.95 1,192
2021-12-01 $742,450 (55.2%) $1,844,149 (66.8%) 2.01 1,166
2022-01-01 $769,450 (60.6%) $1,928,505 (68.6%) 2.08 1,068
2022-02-01 $798,350 (60.6%) $1,969,890 (68.5%) 2.08 1,024
2022-03-01 $799,500 (45.5%) $1,863,799 (46.0%) 2.00 1,211
2022-04-01 $849,900 (46.0%) $1,839,091 (35.0%) 2.03 1,509
2022-05-01 $825,000 (37.5%) $1,745,267 (19.4%) 1.89 1,903
2022-06-01 $799,945 (25.0%) $1,692,527 (11.2%) 1.78 2,269
2022-07-01 $790,000 (21.6%) $1,676,639 (6.3%) 1.78 2,517
2022-08-01 $766,750 (16.3%) $1,609,801 (3.4%) 1.77 2,467
2022-09-01 $778,950 (17.0%) $1,625,772 (0.7%) 1.82 2,347
2022-10-01 $795,000 (13.6%) $1,672,375 (-0.9%) 1.87 2,380
2022-11-01 $799,000 (9.7%) $1,765,237 (-1.2%) 1.92 2,656
2022-12-01 $810,000 (9.1%) $1,827,135 (-0.9%) 2.00 2,766
2023-01-01 $849,950 (10.5%) $1,907,021 (-1.1%) 2.11 2,986
2023-02-01 $879,500 (10.2%) $2,053,510 (4.2%) 2.12 3,142
2023-03-01 $891,000 (11.4%) $2,244,482 (20.4%) 2.10 3,218
2023-04-01 $899,000 (5.8%) $2,280,143 (24.0%) 2.09 3,216
2023-05-01 $899,748 (9.1%) $2,290,211 (31.2%) 2.04 3,131
2023-06-01 $889,950 (11.3%) $2,193,264 (29.6%) 2.00 3,087
2023-07-01 $854,500 (8.2%) $2,157,210 (28.7%) 1.94 2,990
2023-08-01 $845,013 (10.2%) $2,092,003 (30.0%) 1.94 2,886
2023-09-01 $839,900 (7.8%) $2,025,423 (24.6%) 1.96 2,977
2023-10-01 $850,000 (6.9%) $2,003,511 (19.8%) 2.00 3,399
2023-11-01 $854,725 (7.0%) $2,029,371 (15.0%) 2.04 3,974
2023-12-01 $855,000 (5.6%) $2,035,302 (11.4%) 2.09 4,324
2024-01-01 $850,000 (0.0%) $2,025,147 (6.2%) 2.08 4,839
2024-02-01 $849,950 (-3.4%) $2,057,708 (0.2%) 2.05 5,438
2024-03-01 $849,000 (-4.7%) $2,048,994 (-8.7%) 2.00 5,852
2024-04-01 $817,750 (-9.0%) $2,009,145 (-11.9%) 1.90 5,874
2024-05-01 $799,450 (-11.2%) $1,995,775 (-12.9%) 1.82 5,767
2024-06-01 $785,000 (-11.8%) $1,926,082 (-12.2%) 1.78 5,366
2024-07-01 $768,000 (-10.1%) $1,884,991 (-12.6%) 1.76 5,021
2024-08-01 $749,999 (-11.2%) $1,846,966 (-11.7%) 1.74 4,720
2024-09-01 $749,000 (-10.8%) $1,829,513 (-9.7%) 1.76 4,687
2024-10-01 $749,000 (-11.9%) $1,806,341 (-9.8%) 1.76 4,939
2024-11-01 $759,900 (-11.1%) $1,816,295 (-10.5%) 1.82 5,675
2024-12-01 $775,000 (-9.4%) $1,838,008 (-9.7%) 1.93 6,259
2025-01-01 $791,750 (-6.9%) $1,847,306 (-8.8%) 1.98 6,879
2025-02-01 $779,200 (-8.3%) $1,825,814 (-11.3%) 1.89 7,841
2025-03-01 $775,000 (-8.7%) $1,790,337 (-12.6%) 0.00 8,252
Naples's median listing price for 2025-03-01 was $775,000, a difference of $-74,000 (-8.7%) versus the prior year and $-4,200 versus the prior month.

Naples's median listing price comes in at 0% of the national average.

Naples's average listing price for 2025-03-01 was $1,790,337, a difference of $-258,657 (-12.6%) versus the prior year and $-35,477 versus the prior month.

For the 2025-03-01 period, Naples had 8,252 MLS listings, a difference of 411 listings (5%) versus the prior month and 2,400 listings (41%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Naples (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 80 days 1,943 sqft
2018-02-01 75 days 1,925 sqft
2018-03-01 73 days 1,910 sqft
2018-04-01 81 days 1,889 sqft
2018-05-01 87 days 1,874 sqft
2018-06-01 96 days 1,883 sqft
2018-07-01 103 days 1,889 sqft
2018-08-01 106 days 1,890 sqft
2018-09-01 107 days 1,884 sqft
2018-10-01 99 days 1,882 sqft
2018-11-01 88 days 1,880 sqft
2018-12-01 86 days 1,869 sqft
2019-01-01 87 days 1,866 sqft
2019-02-01 85 days 1,866 sqft
2019-03-01 85 days 1,865 sqft
2019-04-01 88 days 1,862 sqft
2019-05-01 97 days 1,861 sqft
2019-06-01 102 days 1,868 sqft
2019-07-01 108 days 1,866 sqft
2019-08-01 109 days 1,868 sqft
2019-09-01 106 days 1,868 sqft
2019-10-01 102 days 1,876 sqft
2019-11-01 87 days 1,883 sqft
2019-12-01 85 days 1,880 sqft
2020-01-01 87 days 1,895 sqft
2020-02-01 86 days 1,900 sqft
2020-03-01 80 days 1,900 sqft
2020-04-01 90 days 1,883 sqft
2020-05-01 99 days 1,885 sqft
2020-06-01 107 days 1,882 sqft
2020-07-01 106 days 1,870 sqft
2020-08-01 94 days 1,832 sqft
2020-09-01 94 days 1,833 sqft
2020-10-01 83 days 1,819 sqft
2020-11-01 74 days 1,824 sqft
2020-12-01 74 days 1,803 sqft
2021-01-01 73 days 1,778 sqft
2021-02-01 60 days 1,786 sqft
2021-03-01 49 days 1,833 sqft
2021-04-01 44 days 1,854 sqft
2021-05-01 43 days 1,869 sqft
2021-06-01 44 days 1,922 sqft
2021-07-01 44 days 1,901 sqft
2021-08-01 52 days 1,889 sqft
2021-09-01 57 days 1,924 sqft
2021-10-01 58 days 1,945 sqft
2021-11-01 58 days 2,000 sqft
2021-12-01 50 days 1,988 sqft
2022-01-01 54 days 1,971 sqft
2022-02-01 36 days 1,936 sqft
2022-03-01 30 days 1,916 sqft
2022-04-01 31 days 1,904 sqft
2022-05-01 36 days 1,883 sqft
2022-06-01 40 days 1,881 sqft
2022-07-01 51 days 1,868 sqft
2022-08-01 61 days 1,866 sqft
2022-09-01 69 days 1,879 sqft
2022-10-01 74 days 1,888 sqft
2022-11-01 67 days 1,882 sqft
2022-12-01 65 days 1,894 sqft
2023-01-01 67 days 1,924 sqft
2023-02-01 60 days 1,914 sqft
2023-03-01 54 days 1,921 sqft
2023-04-01 58 days 1,907 sqft
2023-05-01 62 days 1,908 sqft
2023-06-01 67 days 1,871 sqft
2023-07-01 75 days 1,857 sqft
2023-08-01 80 days 1,853 sqft
2023-09-01 75 days 1,848 sqft
2023-10-01 67 days 1,847 sqft
2023-11-01 60 days 1,836 sqft
2023-12-01 65 days 1,820 sqft
2024-01-01 72 days 1,823 sqft
2024-02-01 67 days 1,814 sqft
2024-03-01 64 days 1,819 sqft
2024-04-01 72 days 1,802 sqft
2024-05-01 78 days 1,817 sqft
2024-06-01 86 days 1,818 sqft
2024-07-01 94 days 1,807 sqft
2024-08-01 99 days 1,797 sqft
2024-09-01 96 days 1,793 sqft
2024-10-01 88 days 1,786 sqft
2024-11-01 73 days 1,800 sqft
2024-12-01 70 days 1,800 sqft
2025-01-01 70 days 1,804 sqft
2025-02-01 71 days 1,805 sqft
2025-03-01 0 days 1,811 sqft
Naples's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

Naples's median square footage for active listings during the 2025-03-01 period was 1,811 sqft. One year prior, the average listing was 1,819 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).