Oakland FHA Loans

OAKLAND-BERKELEY-LIVERMORE, 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.

    Oakland's 180 lenders originated 4,730 FHA loans during 2021. The total origination value was $2,397,040,000, with an average FHA loan value of $506,774.

    Oakland FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Oakland averaged 4.25% for the week of 2022-03-25, compared to the national average (all FHA variants) of 4.648% for the same period.

    The average rate for the prior week (2022-03-18) was 4.26% and one month ago for the week of 2022-02-18, the average rate was 4.19%.

    The average rate one year ago was 3.22%.

    For refis of the same type during the week of 2022-03-25, the average rate was 4.19%.

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

    Oakland 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 Oakland level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 380 2.63% $12,134
    CALIBER HOME LOANS, INC. 258 2.81% $14,203
    UNITED WHOLESALE MORTGAGE, LLC 257 2.71% $15,955
    FREEDOM MORTGAGE CORPORATION 175 2.63% $10,261
    LOANDEPOT.COM, LLC 172 3.05% $16,480
    AMERICAN PACIFIC MORTGAGE CORPORATION 148 3.02% $16,716
    LAKEVIEW LOAN SERVICING, LLC 111 2.74% $9,582
    Mr. Cooper ( Nationstar Mortgage ) 102 2.96% $8,869
    Commerce Home Mortgage, Inc. 97 3.23% $17,357
    HOMEBRIDGE FINANCIAL SERVICES, INC. 87 2.86% $15,433
    GUARANTEED RATE, INC. 75 2.89% $16,949
    Carrington Mortgage Services, LLC 69 3.10% $16,521
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 63 3.18% $18,138
    PENNYMAC LOAN SERVICES, LLC 63 2.88% $10,556
    GUILD MORTGAGE COMPANY 63 2.86% $15,959
    HOME POINT FINANCIAL CORPORATION 57 2.72% $13,935
    CROSSCOUNTRY MORTGAGE, LLC 57 3.01% $17,789
    FINANCE OF AMERICA MORTGAGE LLC 53 2.79% $15,304
    Lakeview Community Capital, LLC 51 2.75% $9,007
    CMG MORTGAGE, INC. 50 3.04% $21,908
    NEWREZ LLC 43 2.73% $11,083
    LENDUS, LLC 37 2.70% $14,528
    VILLAGE CAPITAL & INVESTMENT LLC 36 2.44% $5,910
    MASON MCDUFFIE MORTGAGE CORPORATION 35 2.89% $16,031
    ALAMEDA MORTGAGE CORPORATION 34 2.98% $15,257
    BROKER SOLUTIONS, INC. 34 2.98% $15,259
    Paramount Residential Mortgage Group, Inc. 34 3.10% $15,227
    AMERICAN FINANCIAL NETWORK, INC. 33 2.98% $26,902
    Platinum Home Mortgage Corporation 29 3.01% $20,289
    PLANET HOME LENDING, LLC 27 2.83% $13,364
    KBHS HOME LOANS, LLC 27 2.92% $18,570
    DHI MORTGAGE COMPANY, LTD. 26 2.62% $15,107
    SUN WEST MORTGAGE COMPANY, INC. 26 2.97% $15,647
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 23 2.97% $13,620
    SUMMIT FUNDING, INC. 23 3.08% $18,723
    Equity Prime Mortgage LLC 22 2.89% $18,092
    BECKAM FUNDING CORP. 21 3.84% $26,304
    BAY EQUITY LLC 20 3.10% $17,668
    EVERETT FINANCIAL, INC. 20 3.26% $13,251
    AmeriHome Mortgage Company, LLC 19 2.66% $10,389
    LAND HOME FINANCIAL SERVICES, INC. 17 3.09% $17,069
    AMERISAVE MORTGAGE CORPORATION 17 2.89% $14,125
    PRIMARY RESIDENTIAL MORTGAGE, INC. 17 3.04% $20,624
    NATIONS DIRECT MORTGAGE, LLC 17 2.85% $17,623
    MOUNTAIN WEST FINANCIAL, INC. 15 3.37% $22,521
    MOVEMENT MORTGAGE, LLC 14 2.91% $15,843
    ENVOY MORTGAGE, LTD 13 3.15% $15,817
    Sierra Pacific Mortgage Company, Inc. 12 3.08% $19,077
    OCMBC, INC. 11 2.93% $14,351
    First Guaranty Mortgage Corporation 10 2.79% $12,380
    Hometown Equity Mortgage, LLC 10 3.31% $19,677
    INSPIRE HOME LOANS INC. 10 3.05% $17,564
    InterContinental Capital Group, Inc 9 2.49% $9,082
    SNAPFI, INC. 9 2.99% $15,964
    South Pacific Financial Corporation 9 3.07% $20,756
    Nations Lending Corporation 9 3.06% $17,384
    Golden Empire Mortgage, Inc. 8 3.02% $19,297
    U.S. Bank 8 2.91% $13,549
    STEARNS LENDING, LLC 8 3.03% $12,151
    Flagstar Bank, FSB 8 3.05% $17,725
    PULTE MORTGAGE LLC 7 2.98% $13,321
    PLAZA HOME MORTGAGE, INC. 7 2.78% $12,315
    S1L, Inc. 7 3.07% $17,831
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 6 3.02% $16,379
    The Federal Savings Bank 6 2.75% $10,442
    PREMIER LENDING, INC. 6 2.96% $19,316
    JPMorgan Chase Bank 5 3.00% $10,133
    DIGNIFIED HOME LOANS, LLC 5 2.55% $9,427
    PRIMELENDING, A PLAINSCAPITAL COMPANY 5 3.68% $27,773
    NFM, INC. 5 3.23% $16,163
    MUFG Union Bank 5 2.70% $14,683
    GUARANTEED RATE AFFINITY, LLC 5 2.95% $13,317
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 2.58% $18,689
    MID AMERICA MORTGAGE, INC. 5 2.88% $6,641
    TOP FLITE FINANCIAL, INC. 5 3.18% $29,086
    LADERA LENDING, INC. 5 2.58% $12,280
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 5 3.53% $21,258
    DATA MORTGAGE, INC. 4 3.44% $14,361
    DRAPER AND KRAMER MORTGAGE CORP. 4 2.66% $15,535
    HOMESIDE FINANCIAL, LLC 4 3.00% $19,198
    Bank of the West 4 3.53% $11,789
    PANORAMA MORTGAGE GROUP, LLC 4 3.42% $21,166
    SOVEREIGN LENDING GROUP INCORPORATED 4 2.63% $13,458
    WESTERN EXPRESS LENDING 4 2.50% $10,846
    LOANPAL, LLC 4 2.81% $13,904
    BEST CAPITAL FUNDING 3 2.96% $18,373
    Amerifirst Financial, Inc. 3 2.83% $15,047
    CELEBRITY HOME LOANS, LLC 3 3.33% $15,913
    Century Mortgage Company DBA Century Lending Company 3 2.88% $15,386
    First Bank 3 2.29% $14,563
    HOMEAMERICAN MORTGAGE CORPORATION 3 3.21% $13,876
    Mortgage Research Center, LLC 3 2.83% $13,084
    MUTUAL OF OMAHA MORTGAGE, INC. 3 3.00% $17,611
    NEXERA HOLDING LLC 3 2.96% $16,669
    PHH Mortgage Corporation 3 2.75% $11,339
    THE GOLDEN 1 3 2.83% $20,339
    PRIMUS LENDING CORP. 2 2.94% $19,526
    CANOPY MORTGAGE, LLC 2 2.56% $27,961
    EMBRACE HOME LOANS, INC. 2 2.56% $13,595
    PARKSIDE LENDING, LLC 2 2.63% $12,449
    NATIONWIDE MORTGAGE BANKERS, INC. 2 3.13% $16,286
    Manufacturers and Traders Trust Company 2 3.13% $13,827
    GRANDE HOMES, INC. 2 2.63% $14,300
    TRAVIS CREDIT UNION 2 2.63% $9,318
    Franklin Loan Corporation 2 3.50% $16,095
    CALCULATED RISK ANALYTICS LLC 2 2.88% $12,533
    CALCON MUTUAL MORTGAGE LLC 2 3.31% $13,998
    SCENIC OAKS FUNDING, INC. 2 2.44% $15,134
    HOME APPROVALS DIRECT, INC. 2 2.44% $12,323
    MORIA DEVELOPMENT, INC. 2 3.13% $16,386
    VISION ONE MORTGAGE, INC. 2 3.25% $7,415
    Wells Fargo Bank 2 3.75% $9,088
    MEGA CAPITAL FUNDING, INC. 2 2.69% $21,339
    GENEVA FINANCIAL, LLC 2 3.19% $12,439
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 3.06% $27,824
    EVERGREEN MONEYSOURCE MORTGAGE COMPANY 2 3.50% $25,261
    Evolve Bank & Trust 1 3.75% $10,947
    OPEN MORTGAGE, LLC 1 2.50% $11,511
    DIRECTORS MORTGAGE, INC. 1 3.75% $9,369
    Peoples Bank 1 3.75% $10,954
    Wyndham Capital Mortgage, Inc. 1 3.25% $5,616
    DEL SUR CORPORATION 1 2.63% $19,295
    DAS Acquisition Company, LLC 1 3.38% $15,835
    COUNTRYPLACE MORTGAGE, LTD. 1 5.25% $23,570
    PNC Bank 1 3.13% $12,212
    Colten Mortgage, LLC 1 2.50% $18,076
    COASTAL FUNDING SLC, INC. 1 2.25% $22,773
    Prime Choice Funding Inc. 1 2.75% $6,137
    CLEARPATH LENDING 1 2.75% $7,186
    CAMPOS FINANCIAL CORP. 1 3.25% $28,183
    RANLIFE, INC. 1 2.75% $13,341
    RELIANCE FIRST CAPITAL, LLC 1 2.63% $13,552
    RESIDENTIAL BANCORP. 1 2.88% $16,141
    Residential Mortgage Solutions, Inc. 1 2.25% $15,642
    RMS & Associates 1 3.63% $12,548
    BETTER MORTGAGE CORPORATION 1 2.25% $10,912
    ACADEMY MORTGAGE CORPORATION 1 2.25% $17,888
    BELEM SERVICING LLC 1 2.63% $30,831
    Bank of England 1 2.88% $17,449
    STARBOARD FINANCIAL MANAGEMENT, LLC 1 2.38% $7,789
    Bank of America 1 3.38% $19,893
    AUGUSTA FINANCIAL, INC. 1 2.63% $20,563
    AmRes Corporation 1 2.38% $11,231
    SWBC MORTGAGE CORPORATION 1 3.63% $13,853
    Ameris Bank 1 2.50% $5,688
    ZILLOW HOME LOANS, LLC 1 2.75% $10,703
    TJC Mortgage, Inc. 1 3.25% $10,947
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 2.75% $7,570
    TOWNE MORTGAGE COMPANY 1 4.25% $14,980
    TruHome Solutions, LLC 1 2.25% $19,011
    UNITED SECURITY FINANCIAL CORP 1 2.50% $8,964
    AMERICAN FINANCING CORPORATION 1 3.00% $27,672
    ALL WESTERN MORTGAGE, INC. 1 3.50% $15,664
    Utah Mortgage Loan Corporation 1 2.88% $25,836
    AHL FUNDING 1 4.25% $19,222
    JMJ FINANCIAL GROUP 1 3.13% $18,007
    JMAC LENDING, INC. 1 2.38% $21,167
    INTERNATIONAL CITY MORTGAGE, INC. 1 2.88% $18,727
    LEADERONE FINANCIAL CORPORATION 1 3.13% $22,673
    LENOX FINANCIAL MORTGAGE CORPORATION 1 3.00% $13,261
    INTERCAP LENDING INC. 1 2.63% $16,847
    HOMEOWNERS FINANCIAL GROUP USA, LLC 1 2.88% $18,048
    LOANLEADERS OF AMERICA, INC. 1 3.25% $15,971
    Home Mortgage Alliance Corp 1 3.25% $24,192
    Magnolia Bank 1 3.50% $23,570
    MANN FINANCIAL INC. 1 4.13% $19,329
    HOME FUNDING CORPORATION 1 4.00% $21,812
    MICHIGAN MUTUAL, INC. 1 3.13% $25,553
    WALL FINANCIAL, INC. 1 2.38% $9,634
    HighTechLending Inc 1 2.63% $16,680
    GoPrime Mortgage, Inc. 1 3.13% $13,445
    Goldwater Bank, N.A. 1 2.88% $16,365
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 2.75% $13,851
    NATIONS RELIABLE LENDING, LLC 1 2.63% $12,747
    NBKC BANK 1 2.63% $19,397
    NETWORK CAPITAL FUNDING CORPORATION 1 3.13% $27,269
    A&D Mortgage LLC 1 2.50% $12,785
    FBC MORTGAGE, LLC 1 2.75% $14,880
    NMSI, INC. 1 3.25% $15,020
    OCEANSIDE MORTGAGE COMPANY 1 2.75% $10,483

    The top Oakland FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 380 FHA loans originated. Their average total fees are $12,134, which is $2,069 lower than the next largest lender, CALIBER HOME LOANS, INC..

    The lowest fee Oakland FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($5,910), Mr. Cooper ( Nationstar Mortgage ) ($8,869), Lakeview Community Capital, LLC ($9,007), LAKEVIEW LOAN SERVICING, LLC ($9,582) and FREEDOM MORTGAGE CORPORATION ($10,261).

    The lowest rate Oakland FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC (2.44%), DHI MORTGAGE COMPANY, LTD. (2.62%), FREEDOM MORTGAGE CORPORATION (2.63%), QUICKEN LOANS, LLC (2.63%) and AmeriHome Mortgage Company, LLC (2.66%).

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Oakland (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 $832,915 (4.3%) $1,485,691 (14.7%) 3.07 2,454
    2018-02-01 $894,500 (6.6%) $1,527,161 (11.4%) 3.23 2,923
    2018-03-01 $939,000 (5.9%) $1,557,480 (10.1%) 3.25 3,362
    2018-04-01 $981,500 (9.7%) $1,627,669 (10.6%) 3.29 3,858
    2018-05-01 $992,500 (10.4%) $1,631,792 (10.6%) 3.31 4,356
    2018-06-01 $980,000 (8.9%) $1,586,014 (7.6%) 3.27 4,862
    2018-07-01 $922,500 (5.4%) $1,505,141 (5.4%) 3.08 5,230
    2018-08-01 $889,750 (4.7%) $1,367,976 (-0.2%) 2.97 5,420
    2018-09-01 $899,000 (3.9%) $1,380,708 (-3.8%) 3.01 6,521
    2018-10-01 $899,000 (1.0%) $1,390,218 (-7.7%) 3.01 6,733
    2018-11-01 $887,444 (-0.2%) $1,454,799 (-4.5%) 2.98 6,398
    2018-12-01 $849,000 (-2.3%) $1,321,150 (-14.6%) 2.91 4,585
    2019-01-01 $822,444 (-1.3%) $1,281,720 (-13.7%) 2.84 3,911
    2019-02-01 $878,000 (-1.8%) $1,392,919 (-8.8%) 2.94 4,470
    2019-03-01 $905,143 (-3.6%) $1,481,646 (-4.9%) 2.95 4,885
    2019-04-01 $938,000 (-4.4%) $1,523,268 (-6.4%) 2.95 5,273
    2019-05-01 $952,500 (-4.0%) $1,495,179 (-8.4%) 2.94 5,904
    2019-06-01 $949,950 (-3.1%) $1,469,299 (-7.4%) 2.92 6,445
    2019-07-01 $927,000 (0.5%) $1,511,051 (0.4%) 2.88 6,372
    2019-08-01 $910,657 (2.4%) $1,486,560 (8.7%) 2.87 6,238
    2019-09-01 $925,000 (2.9%) $1,470,599 (6.5%) 2.94 6,177
    2019-10-01 $946,500 (5.3%) $1,522,534 (9.5%) 3.02 6,536
    2019-11-01 $949,950 (7.0%) $1,628,141 (11.9%) 3.07 5,321
    2019-12-01 $897,250 (5.7%) $1,711,252 (29.5%) 2.99 3,202
    2020-01-01 $893,500 (8.6%) $1,682,109 (31.2%) 2.98 2,718
    2020-02-01 $969,950 (10.5%) $1,703,609 (22.3%) 3.13 3,486
    2020-03-01 $987,475 (9.1%) $1,666,066 (12.5%) 3.09 3,860
    2020-04-01 $950,000 (1.3%) $1,566,455 (2.8%) 2.96 3,669
    2020-05-01 $999,000 (4.9%) $1,631,205 (9.1%) 3.03 4,853
    2020-06-01 $1,075,000 (13.2%) $1,673,197 (13.9%) 3.14 5,218
    2020-07-01 $1,084,000 (16.9%) $1,688,769 (11.8%) 3.11 5,348
    2020-08-01 $1,050,000 (15.3%) $1,693,359 (13.9%) 3.00 5,513
    2020-09-01 $1,067,444 (15.4%) $1,710,780 (16.3%) 3.05 5,702
    2020-10-01 $1,075,000 (13.6%) $1,704,790 (12.0%) 3.07 6,146
    2020-11-01 $1,050,000 (10.5%) $1,687,095 (3.6%) 3.01 5,521
    2020-12-01 $998,940 (11.3%) $1,715,364 (0.2%) 2.93 3,965
    2021-01-01 $995,000 (11.4%) $1,765,083 (4.9%) 2.93 3,084
    2021-02-01 $999,997 (3.1%) $1,783,564 (4.7%) 2.88 3,223
    2021-03-01 $1,021,500 (3.5%) $1,869,112 (12.2%) 2.86 3,354
    2021-04-01 $1,049,500 (10.5%) $1,871,486 (19.5%) 2.82 3,430
    2021-05-01 $1,088,000 (8.9%) $1,891,446 (16.0%) 2.86 3,463
    2021-06-01 $1,079,000 (0.4%) $1,809,889 (8.2%) 2.80 3,872
    2021-07-01 $999,500 (-7.8%) $1,709,988 (1.3%) 2.60 4,134
    2021-08-01 $995,000 (-5.2%) $1,648,041 (-2.7%) 2.62 4,245
    2021-09-01 $993,500 (-6.9%) $1,704,806 (-0.4%) 2.61 4,585
    2021-10-01 $997,000 (-7.3%) $1,774,651 (4.1%) 2.62 4,575
    2021-11-01 $984,450 (-6.2%) $1,795,658 (6.4%) 2.59 3,554
    2021-12-01 $954,000 (-4.5%) $1,842,466 (7.4%) 2.54 2,340
    2022-01-01 $949,000 (-4.6%) $1,746,953 (-1.0%) 2.53 2,009
    Oakland's median listing price for 2022-01-01 was $949,000, a difference of $-46,000 (-4.6%) versus the prior year and $-5,000 versus the prior month.

    Oakland's median listing price comes in at 253% of the national average.

    Oakland's average listing price for 2022-01-01 was $1,746,953, a difference of $-18,130 (-1.0%) versus the prior year and $-95,513 versus the prior month.

    For the 2022-01-01 period, Oakland had 2,009 MLS listings, a difference of -331 listings (-14%) versus the prior month and -1,075 listings (-35%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Oakland (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 31 days 1,710 sqft
    2018-02-01 19 days 1,736 sqft
    2018-03-01 22 days 1,750 sqft
    2018-04-01 23 days 1,781 sqft
    2018-05-01 21 days 1,803 sqft
    2018-06-01 24 days 1,780 sqft
    2018-07-01 29 days 1,735 sqft
    2018-08-01 29 days 1,701 sqft
    2018-09-01 27 days 1,686 sqft
    2018-10-01 31 days 1,687 sqft
    2018-11-01 37 days 1,655 sqft
    2018-12-01 50 days 1,609 sqft
    2019-01-01 49 days 1,595 sqft
    2019-02-01 27 days 1,631 sqft
    2019-03-01 28 days 1,691 sqft
    2019-04-01 28 days 1,757 sqft
    2019-05-01 28 days 1,811 sqft
    2019-06-01 30 days 1,787 sqft
    2019-07-01 35 days 1,740 sqft
    2019-08-01 36 days 1,726 sqft
    2019-09-01 35 days 1,722 sqft
    2019-10-01 34 days 1,706 sqft
    2019-11-01 42 days 1,703 sqft
    2019-12-01 57 days 1,707 sqft
    2020-01-01 54 days 1,680 sqft
    2020-02-01 18 days 1,723 sqft
    2020-03-01 28 days 1,760 sqft
    2020-04-01 37 days 1,764 sqft
    2020-05-01 33 days 1,760 sqft
    2020-06-01 30 days 1,702 sqft
    2020-07-01 30 days 1,625 sqft
    2020-08-01 31 days 1,569 sqft
    2020-09-01 30 days 1,533 sqft
    2020-10-01 29 days 1,525 sqft
    2020-11-01 40 days 1,500 sqft
    2020-12-01 51 days 1,479 sqft
    2021-01-01 46 days 1,454 sqft
    2021-02-01 28 days 1,485 sqft
    2021-03-01 29 days 1,530 sqft
    2021-04-01 30 days 1,548 sqft
    2021-05-01 28 days 1,562 sqft
    2021-06-01 28 days 1,560 sqft
    2021-07-01 28 days 1,546 sqft
    2021-08-01 29 days 1,548 sqft
    2021-09-01 29 days 1,538 sqft
    2021-10-01 30 days 1,514 sqft
    2021-11-01 38 days 1,502 sqft
    2021-12-01 44 days 1,455 sqft
    2022-01-01 39 days 1,423 sqft
    Oakland's median listing age (time on market) for 2022-01-01 was 39 days. This is -15% shorter than the same period one year ago.

    Oakland's median square footage for active listings during the 2022-01-01 period was 1,423 sqft. One year prior, the average listing was 1,454 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).