Philadelphia FHA Loan Rates, Closing Costs & Stats

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

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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.

    Philadelphia's 251 lenders originated 13,142 FHA loans during 2023. The total origination value was $3,489,150,000, with an average FHA loan value of $265,496.

    Philadelphia FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Philadelphia averaged 6.5% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Philadelphia's average FHA mortgage closing costs are $8,752.

    The average rate for the prior week (2024-11-01) was 6.48% and one month ago for the week of 2024-10-04, the average rate was 5.8%.

    The average rate one year ago was 7.14%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.56%.

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

    Philadelphia 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 Philadelphia level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 1,182 6.22% $12,221
    CROSSCOUNTRY MORTGAGE, LLC 805 6.76% $13,418
    UNITED WHOLESALE MORTGAGE, LLC 645 6.34% $13,533
    MOVEMENT MORTGAGE, LLC 393 6.57% $12,088
    ALLIED MORTGAGE GROUP, INC. 345 6.52% $11,139
    Prosperity Home Mortgage, LLC 345 6.55% $10,709
    GREENTREE MORTGAGE COMPANY, L.P. 342 6.55% $10,701
    NATION ONE MORTGAGE CORPORATION 289 6.66% $13,857
    NFM, INC. 276 6.46% $11,678
    LOANDEPOT.COM, LLC 271 6.36% $12,944
    PENNYMAC LOAN SERVICES, LLC 251 6.17% $13,759
    ABSOLUTE HOME MORTGAGE CORPORATION 239 6.61% $12,546
    NVR Mortgage Finance, Inc. 236 5.82% $14,969
    PIKE CREEK MORTGAGE SERVICES, INC. 220 6.84% $11,937
    Meridian Bank Corporation 219 6.73% $11,449
    BROKER SOLUTIONS, INC. 187 6.62% $11,721
    GUARANTEED RATE, INC. 186 6.30% $12,363
    FREEDOM MORTGAGE CORPORATION 177 6.82% $13,856
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 175 6.71% $12,879
    NEWREZ LLC 168 6.38% $13,060
    Acre Mortgage and Financial Inc 164 6.72% $14,358
    Keystone Funding, Inc. 153 6.52% $14,339
    Mr. Cooper ( Nationstar Mortgage ) 152 6.11% $16,233
    CMG MORTGAGE, INC. 151 6.77% $14,292
    EMM LOANS LLC 145 6.37% $13,545
    SUCCESS MORTGAGE PARTNERS, INC. 134 6.51% $11,898
    Carrington Mortgage Services, LLC 132 6.41% $13,778
    Citizens Bank 125 6.37% $11,455
    CARDINAL FINANCIAL 120 6.52% $13,237
    AMERICAN FINANCIAL NETWORK, INC. 115 6.79% $12,352
    Advisors Mortgage Group, L.L.C. 100 6.44% $10,970
    AMERISAVE MORTGAGE CORPORATION 98 6.04% $14,421
    PLAZA HOME MORTGAGE, INC. 90 6.61% $14,456
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 82 6.58% $12,007
    GUILD MORTGAGE COMPANY 81 6.70% $13,387
    Equity Prime Mortgage LLC 78 6.63% $14,756
    Wilmington Savings Fund Society, FSB 78 6.54% $9,377
    Huntingdon Valley Bank 73 6.31% $9,609
    Northpointe Bank 71 6.25% $12,047
    MUTUAL OF OMAHA MORTGAGE, INC. 70 6.69% $16,733
    First Citizens Community Bank 67 6.71% $9,876
    Paramount Residential Mortgage Group, Inc. 66 6.73% $13,965
    Mortgage America, Inc. 66 6.46% $10,190
    PRIMARY RESIDENTIAL MORTGAGE, INC. 65 6.79% $12,885
    Gateway First Bank 65 6.56% $10,791
    LAKEVIEW LOAN SERVICING, LLC 61 6.19% $12,962
    Evolve Bank & Trust 58 6.70% $11,652
    NJ LENDERS CORP. 56 6.47% $13,805
    DHI MORTGAGE COMPANY, LTD. 53 6.23% $13,739
    Fulton Bank 49 6.13% $10,058
    HOMEBRIDGE FINANCIAL SERVICES, INC. 48 6.49% $12,245
    Flagstar Bank, FSB 47 6.67% $12,715
    FIRST HERITAGE FINANCIAL, LLC 46 6.58% $9,158
    Princeton Mortgage Corporation 44 6.58% $11,618
    Nations Lending Corporation 42 6.40% $12,784
    PANORAMA MORTGAGE GROUP, LLC 41 6.41% $14,487
    MORTGAGE ACCESS CORP. 41 6.57% $14,188
    Summit Mortgage Corporation 41 6.72% $12,704
    Quaint Oak Mortgage, LLC 41 6.34% $12,281
    Univest Bank and Trust Co. 40 6.32% $11,169
    LENDING CAPITAL GROUP Inc 40 6.69% $14,499
    JPMorgan Chase Bank 38 6.24% $7,397
    M&T Bank 38 6.41% $11,475
    1st Colonial Community Bank 37 6.46% $9,220
    NATIONWIDE MORTGAGE BANKERS, INC. 36 6.93% $14,605
    Center City Mortgage and Investments LLC 36 6.18% $12,323
    GUARANTEED RATE AFFINITY, LLC 35 6.50% $13,845
    SUN WEST MORTGAGE COMPANY, INC. 35 6.37% $11,331
    US MORTGAGE CORPORATION 34 6.39% $13,503
    Philadelphia Mortgage Advisors, Inc. 34 6.52% $10,628
    MLD MORTGAGE INC. 31 6.42% $10,040
    RELIANCE FIRST CAPITAL, LLC 30 6.63% $14,839
    DRAPER AND KRAMER MORTGAGE CORP. 30 6.57% $11,036
    AmeriHome Mortgage Company, LLC 30 6.42% $12,950
    EMBRACE HOME LOANS, INC. 28 6.61% $11,631
    GSF Mortgage Corporation 28 6.81% $12,510
    Mortgage Research Center, LLC 27 6.98% $8,531
    HOMESIDE FINANCIAL, LLC 27 6.74% $12,607
    Plains Commerce Bank 27 6.56% $15,450
    PNC Bank 26 6.70% $9,605
    PLANET HOME LENDING, LLC 25 5.86% $12,519
    VILLAGE CAPITAL MORTGAGE 24 6.08% $12,669
    CONTOUR MORTGAGE CORPORATION 24 6.77% $16,821
    Wells Fargo Bank 23 6.72% $9,679
    Bank of America 22 6.16% $8,788
    ENVOY MORTGAGE, LTD 22 6.67% $15,021
    Firstrust Savings Bank 22 6.68% $9,612
    TD Bank 22 6.41% $8,199
    RESIDENTIAL BANCORP 21 6.56% $11,248
    TIDEWATER MORTGAGE SERVICES, INC. 21 6.80% $11,286
    PRIMELENDING, A PLAINSCAPITAL COMPANY 21 6.51% $11,296
    Mid Penn Bank 21 6.58% $11,489
    Ixonia Bank 21 6.51% $14,819
    AMERICAN PACIFIC MORTGAGE CORPORATION 20 7.14% $9,805
    UNION HOME MORTGAGE CORP. 20 6.83% $11,212
    EVERETT FINANCIAL, INC. 20 6.91% $14,680
    AmRes Corporation 20 6.87% $12,659
    DEVELOPER'S MORTGAGE COMPANY 19 6.84% $9,215
    MLB RESIDENTIAL LENDING, LLC 18 6.75% $17,822
    The Federal Savings Bank 18 6.31% $16,931
    TOP FLITE FINANCIAL, INC. 18 6.92% $19,285
    BAY EQUITY LLC 18 6.58% $12,945
    AMERICAN HERITAGE FCU 18 6.51% $8,460
    Lakeview Community Capital, LLC 18 5.94% $10,551
    TOWNE MORTGAGE COMPANY 16 6.58% $14,928
    ZILLOW HOME LOANS, LLC 16 6.43% $11,537
    PHH Mortgage Corporation 15 6.31% $12,791
    LOANPAL, LLC 15 5.80% $13,603
    MORTGAGE SOLUTIONS OF COLORADO, LLC 14 6.94% $15,280
    Customers Bank 14 6.15% $7,525
    EAGLE HOME MORTGAGE, LLC 14 6.01% $15,023
    MICHIGAN MUTUAL, INC. 14 5.71% $15,387
    Financial Freedom Mortgage, LLC 13 6.17% $11,745
    FIRST ALLIANCE HOME MORTGAGE, LLC 13 6.63% $15,296
    NATIONS DIRECT MORTGAGE, LLC 13 6.63% $12,590
    NBKC BANK 13 5.93% $12,720
    OCMBC, INC. 12 7.04% $14,037
    FIRST COMMUNITY MORTGAGE, INC. 12 7.05% $13,269
    BECKAM FUNDING CORP. 11 7.39% $18,476
    Magnolia Bank 11 6.68% $11,614
    MILEND, INC. 11 6.39% $16,523
    1ST 2ND MORTGAGE COMPANY OF N.J., INC. 10 6.80% $15,214
    Northeast Equitable Mortgage, LLC 10 6.75% $11,356
    PINNACLE MORTGAGE, INC. 10 6.45% $11,547
    LIBERTY HOME MORTGAGE CORPORATION 9 6.36% $14,674
    Century Mortgage Company DBA Century Lending Company 9 6.46% $14,294
    NORWICH COMMERCIAL GROUP, INC. 9 6.21% $10,519
    First Savings Bank 9 5.90% $13,332
    TJC Mortgage, Inc. 9 7.01% $11,434
    SWBC MORTGAGE CORPORATION 8 6.84% $7,938
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 8 6.28% $12,934
    AMERICAN FINANCIAL RESOURCES, INC. 8 6.39% $14,506
    MDE Home Loans, LLC 8 6.61% $17,395
    Bank of England 8 6.78% $11,334
    Barrington Bank & Trust Company, N.A. 8 6.55% $10,275
    RAPID MORTGAGE COMPANY 8 6.64% $17,720
    Presidential Bank, FSB 8 6.58% $14,314
    PENTAGON FEDERAL CREDIT UNION 7 5.82% $10,730
    DAS Acquisition Company, LLC 7 6.87% $15,873
    U.S. Bank 7 6.14% $12,085
    DIRECT MORTGAGE LOANS, LLC 7 6.71% $12,058
    Cornerstone First Mortgage, Inc 7 6.80% $13,227
    SUMMIT FUNDING, INC. 7 6.80% $18,266
    JERSEY MORTGAGE COMPANY OF NEW JERSEY, INC. 6 6.54% $19,115
    CALIBER HOME LOANS, INC. 6 6.15% $11,062
    NEW FED MORTGAGE, CORP. 6 6.52% $13,501
    LOANLEADERS OF AMERICA, INC. 6 6.29% $18,276
    CHERRY CREEK MORTGAGE, LLC 6 6.42% $5,090
    T2 FINANCIAL LLC 6 6.63% $15,830
    FIRST HOME MORTGAGE CORPORATION 6 6.92% $17,540
    POLARIS HOME FUNDING CORP. 6 6.92% $13,188
    East Coast Capital Corp. 6 6.46% $18,638
    AMERICAN FINANCING CORPORATION 6 6.77% $13,948
    Truist 6 6.53% $8,335
    NETWORK CAPITAL FUNDING CORPORATION 5 6.75% $11,276
    TOTAL MORTGAGE SERVICES, LLC 5 6.60% $10,368
    Atlantic Coast Mortgage, LLC 5 6.44% $17,233
    MEMBER FIRST MORTGAGE, LLC 5 6.50% $10,886
    ROYAL UNITED MORTGAGE LLC 5 7.00% $11,609
    Residential Mortgage Solutions, Inc. 5 6.93% $13,727
    Republic Bank 5 5.73% $7,164
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 4 6.53% $19,360
    Loan Simple, Inc. 4 6.75% $13,973
    GREENWAY MORTGAGE FUNDING CORP. 4 6.53% $17,405
    GENEVA FINANCIAL, LLC 4 6.78% $15,188
    Florida Capital Bank 4 6.81% $14,238
    First Federal Bank 4 6.25% $11,934
    Commerce Home Mortgage, Inc. 4 6.97% $13,905
    BOND STREET MORTGAGE, LLC 4 6.38% $11,490
    RESIDENTIAL HOME MORTGAGE CORPORATION 4 6.69% $16,606
    Sierra Pacific Mortgage Company, Inc. 4 6.22% $17,190
    SOUTHPOINT FINANCIAL SERVICES, INC. 4 6.25% $9,221
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 4 6.94% $10,741
    JMAC LENDING, INC. 4 7.72% $9,787
    The Huntington National Bank 3 6.00% $8,808
    MID AMERICA MORTGAGE, INC. 3 6.79% $11,590
    BAYSHORE MORTGAGE FUNDING, LLC 3 6.75% $9,780
    Towne Bank 3 6.25% $11,380
    FIDELITY DIRECT MORTGAGE, LLC 3 6.75% $12,883
    MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 3 6.25% $22,105
    CLIFFCO, INC. 3 6.04% $16,654
    FEDERATED LENDING CORPORATION 3 5.92% $14,796
    The Loan Store, Inc. 3 7.12% $13,903
    OCEANSIDE MORTGAGE COMPANY 2 6.25% $7,190
    Fifth Third Bank 2 6.06% $7,067
    CITY FIRST MORTGAGE SERVICES, L.L.C. 2 7.06% $12,491
    FM Home Loans, LLC 2 6.19% $12,845
    PREMIA MORTGAGE, LLC 2 6.19% $8,014
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 2 6.44% $15,735
    Alcova Mortgage LLC 2 6.94% $7,732
    Blue Ridge Bank 2 6.25% $8,230
    GUARANTY HOME MORTGAGE CORPORATION 2 6.75% $13,498
    RESIDENTIAL HOME FUNDING CORP. 2 6.81% $13,300
    Willamette Valley Bank 2 6.25% $21,228
    MILLENIUM HOME MORTGAGE, LLC 2 6.44% $11,896
    ACADEMY MORTGAGE CORPORATION 2 6.50% $18,807
    A&D Mortgage LLC 2 6.06% $18,691
    STOCKTON MORTGAGE CORPORATION 2 5.81% $10,382
    HARTFORD FUNDING, LTD. 2 7.19% $18,718
    HOMESPIRE MORTGAGE CORPORATION 2 6.88% $18,095
    The Central Trust Bank 2 6.25% $9,304
    KeyBank 2 6.38% $7,600
    TruHome Solutions, LLC 2 6.19% $12,459
    AMERITRUST MORTGAGE CORPORATION 2 6.13% $22,637
    AmeriServ Financial Bank 2 5.69% $14,927
    American Mortgage & Equity Consultants, Inc. 2 7.31% $9,353
    VERITAS FUNDING, LLC 2 6.81% $13,847
    Waterstone Mortgage Corporation 2 7.00% $13,164
    EQUITY NOW INC. 2 6.19% $8,795
    SOUTHERN TRUST MORTGAGE, LLC 1 6.13% $8,672
    Wyndham Capital Mortgage, Inc. 1 5.63% $20,173
    SOVEREIGN LENDING GROUP INCORPORATED 1 5.63% $15,994
    STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED 1 6.00% $4,076
    LAND HOME FINANCIAL SERVICES, INC. 1 7.50% $9,442
    CHURCHILL MORTGAGE CORPORATION 1 6.50% $10,538
    VAN DYK MORTGAGE CORPORATION 1 7.00% $7,600
    Mid-Continent Funding, Inc. 1 6.75% $18,310
    CITADEL FEDERAL CREDIT UNION 1 7.63% $6,055
    COMMUNITYAMERICA 1 6.38% $14,647
    HOMESTEAD FUNDING CORP. 1 5.75% $8,152
    BANC ONE MORTGAGE CORPORATION 1 6.13% $4,452
    JET DIRECT FUNDING CORP 1 7.00% $11,428
    ATLANTIS MORTGAGE CO., INC. 1 6.63% $10,147
    Citibank 1 5.38% $11,249
    First National Bank of Pennsylvania 1 7.13% $10,556
    THE MORTGAGE LINK, INC. 1 7.25% $10,743
    Colonial Savings, F.A. 1 6.50% $8,772
    MCLEAN MORTGAGE CORPORATION 1 6.13% $15,052
    First Option Mortgage, LLC 1 6.50% $8,806
    OAKTREE FUNDING CORP. 1 6.63% $23,454
    York Traditions Bank 1 6.38% $6,638
    Franklin Loan Corporation 1 5.63% $15,443
    MORTGAGE EQUITY PARTNERS LLC 1 7.13% $9,292
    Capital Bank 1 7.25% $9,018
    WELCOME HOME FINANCE, L.P. 1 5.88% $2,043
    HOMEXPRESS MORTGAGE CORP. 1 6.88% $11,640
    BNC National Bank 1 6.50% $15,618
    North American Savings Bank, F.S.B. 1 6.63% $5,907
    RADIUS FINANCIAL GROUP INC. 1 6.75% $11,151
    Goldwater Bank, N.A. 1 6.13% $17,943
    BETTER MORTGAGE CORPORATION 1 5.75% $11,614
    MORIA DEVELOPMENT, INC. 1 7.63% $13,351
    INTERSTATE HOME LOAN CENTER, INC. 1 7.13% $21,111
    NEW DAY FINANCIAL, LLC 1 7.99% $4,441
    EQUITY RESOURCES, INC. 1 6.99% $9,853
    UNIVERSAL MORTGAGE & FINANCE, INC. 1 6.75% $15,373
    NOVA FINANCIAL & INVESTMENT CORPORATION 1 7.38% $19,664
    RUOFF MORTGAGE COMPANY, INC. 1 6.50% $5,969
    SeaTrust Mortgage Company 1 6.12% $17,761
    Shore United Bank 1 6.75% $7,087
    Leader Bank 1 6.13% $9,194

    The top Philadelphia FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 1,182 FHA loans originated. Their average total fees are $12,221, which is $1,197 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Philadelphia FHA lenders (with over 10 loans originated) are JPMorgan Chase Bank ($7,397), Customers Bank ($7,525), TD Bank ($8,199), AMERICAN HERITAGE FCU ($8,460) and Mortgage Research Center, LLC ($8,531).

    The lowest rate Philadelphia FHA lenders (with over 10 loans originated) are MICHIGAN MUTUAL, INC. (5.71%), LOANPAL, LLC (5.80%), NVR Mortgage Finance, Inc. (5.82%), PLANET HOME LENDING, LLC (5.86%) and NBKC BANK (5.93%).

    Philadelphia FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD NEW CASTLE 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CECIL 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD BURLINGTON 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CAMDEN 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD GLOUCESTER 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD SALEM 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD BUCKS 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CHESTER 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD DELAWARE 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD MONTGOMERY 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD PHILADELPHIA 2022 $477,250 $610,950 $738,500 $917,800
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD NEW CASTLE 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CECIL 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD BURLINGTON 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CAMDEN 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD GLOUCESTER 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD SALEM 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD BUCKS 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD CHESTER 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD DELAWARE 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD MONTGOMERY 2023 $529,000 $677,200 $818,600 $1,017,300
    PHILADELPHIA-CAMDEN-WILMINGTON, PA-NJ-DE-MD PHILADELPHIA 2023 $529,000 $677,200 $818,600 $1,017,300

    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).