Philadelphia FHA Loans

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

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 295 lenders originated 28,667 FHA loans during 2021. The total origination value was $6,693,965,000, with an average FHA loan value of $233,508.

Philadelphia FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Philadelphia averaged 5.04% for the week of 2022-08-05, compared to the national average (all FHA variants) of 5.305% for the same period.

The average rate for the prior week (2022-07-29) was 5.28% and one month ago for the week of 2022-07-01, the average rate was 5.77%.

The average rate one year ago was 2.87%.

For refis of the same type during the week of 2022-08-05, the average rate was 5.05%.

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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Philadelphia level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 2,132 2.74% $7,102
CROSSCOUNTRY MORTGAGE, LLC 1,126 3.14% $9,835
FREEDOM MORTGAGE CORPORATION 947 2.90% $6,002
PENNYMAC LOAN SERVICES, LLC 850 3.00% $5,508
GREENTREE MORTGAGE COMPANY, L.P. 776 2.85% $7,711
LAKEVIEW LOAN SERVICING, LLC 734 3.04% $5,659
ALLIED MORTGAGE GROUP, INC. 705 3.14% $8,377
Prosperity Home Mortgage, LLC 632 3.20% $8,146
Mr. Cooper ( Nationstar Mortgage ) 628 3.22% $5,020
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 615 3.28% $9,259
CALIBER HOME LOANS, INC. 563 2.81% $7,002
NEWREZ LLC 531 2.91% $6,842
Huntingdon Valley Bank 524 3.14% $8,300
Meridian Bank Corporation 483 3.18% $8,565
LOANDEPOT.COM, LLC 455 3.14% $9,062
NATION ONE MORTGAGE CORPORATION 453 3.54% $10,656
UNITED WHOLESALE MORTGAGE, LLC 420 2.73% $8,976
GUARANTEED RATE, INC. 391 2.85% $8,997
FINANCE OF AMERICA MORTGAGE LLC 368 3.09% $9,055
Gateway First Bank 359 3.10% $6,375
MOVEMENT MORTGAGE, LLC 341 3.00% $8,644
Carrington Mortgage Services, LLC 313 3.44% $8,868
AMERICAN FINANCIAL NETWORK, INC. 310 3.27% $14,324
ABSOLUTE HOME MORTGAGE CORPORATION 308 3.18% $8,888
HOME POINT FINANCIAL CORPORATION 297 2.75% $8,594
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 271 3.21% $9,059
Acre Mortgage and Financial Inc 254 3.31% $8,878
PIKE CREEK MORTGAGE SERVICES, INC. 247 4.16% $5,338
BROKER SOLUTIONS, INC. 243 3.17% $8,695
AmeriHome Mortgage Company, LLC 227 2.87% $5,553
SUCCESS MORTGAGE PARTNERS, INC. 223 3.17% $9,637
VILLAGE CAPITAL & INVESTMENT LLC 217 2.89% $3,292
PRIMARY RESIDENTIAL MORTGAGE, INC. 215 3.64% $9,409
NFM, INC. 211 3.18% $9,127
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 206 3.32% $9,168
HOMEBRIDGE FINANCIAL SERVICES, INC. 205 2.88% $9,002
NVR Mortgage Finance, Inc. 199 3.00% $12,124
Bank of America 174 2.79% $4,675
Citizens Bank 169 2.81% $8,315
Evolve Bank & Trust 165 3.35% $9,139
CMG MORTGAGE, INC. 159 3.38% $9,906
Nations Lending Corporation 151 3.14% $8,964
Equity Prime Mortgage LLC 151 3.24% $8,983
Lakeview Community Capital, LLC 139 3.13% $5,358
Paramount Residential Mortgage Group, Inc. 137 3.28% $9,260
Advisors Mortgage Group, L.L.C. 130 2.95% $9,458
MORTGAGE ACCESS CORP. 123 3.20% $9,665
EMM LOANS LLC 121 3.16% $10,107
Keystone Funding, Inc. 117 2.84% $7,022
ROUNDPOINT MORTGAGE SERVICING CORPORATION 113 3.25% $7,754
Mortgage America, Inc. 111 3.03% $8,060
AMERISAVE MORTGAGE CORPORATION 106 3.03% $9,182
RESIDENTIAL MORTGAGE SERVICES, INC. 103 3.02% $8,791
First Guaranty Mortgage Corporation 98 2.90% $8,487
ENVOY MORTGAGE, LTD 98 3.37% $9,718
Republic Bank 97 2.88% $6,762
EMBRACE HOME LOANS, INC. 96 3.00% $8,297
Summit Mortgage Corporation 96 2.99% $9,558
Customers Bank 91 2.95% $6,931
FIRST HERITAGE FINANCIAL, LLC 90 3.19% $7,423
PLANET HOME LENDING, LLC 88 2.78% $5,973
FAMILY FIRST FUNDING LLC 85 3.13% $9,108
LENDING CAPITAL GROUP Inc 83 3.00% $11,343
Mid Penn Bank 82 3.11% $8,861
Quaint Oak Mortgage, LLC 80 3.00% $8,320
US MORTGAGE CORPORATION 78 3.18% $9,695
Evesham Mortgage, LLC 76 3.20% $8,243
Univest Bank and Trust Co. 73 2.95% $8,648
GUARANTEED RATE AFFINITY, LLC 71 2.88% $9,300
APEX HOME LOANS, INC. 70 3.13% $11,114
The Federal Savings Bank 68 2.97% $9,411
Fulton Bank 67 3.00% $7,028
PRIMELENDING, A PLAINSCAPITAL COMPANY 67 3.33% $8,962
AmRes Corporation 66 3.15% $9,022
Manufacturers and Traders Trust Company 66 2.83% $8,316
DRAPER AND KRAMER MORTGAGE CORP. 65 3.28% $9,187
1st Colonial Community Bank 60 2.95% $7,508
Philadelphia Mortgage Advisors, Inc. 60 3.13% $8,200
Northpointe Bank 58 3.13% $8,548
AMERICAN HERITAGE FCU 57 3.08% $7,472
Firstrust Savings Bank 55 2.88% $8,666
SUN WEST MORTGAGE COMPANY, INC. 53 2.97% $8,846
NATIONWIDE MORTGAGE BANKERS, INC. 51 3.26% $10,667
BAYSHORE MORTGAGE FUNDING, LLC 51 3.27% $10,589
PLAZA HOME MORTGAGE, INC. 51 2.90% $10,857
MLB RESIDENTIAL LENDING, LLC 50 3.36% $11,181
InterContinental Capital Group, Inc 45 2.82% $9,614
HOMESIDE FINANCIAL, LLC 44 3.07% $8,928
NP, Inc. 43 3.31% $9,602
TIDEWATER MORTGAGE SERVICES, INC. 43 3.22% $8,286
Home Mortgage Alliance Corp 39 3.21% $10,047
PNC Bank 38 2.97% $6,869
Wilmington Savings Fund Society, FSB 38 3.09% $7,608
Plains Commerce Bank 37 2.88% $8,867
Financial Freedom Mortgage, LLC 36 3.14% $10,206
CONTOUR MORTGAGE CORPORATION 34 3.00% $9,147
LENDUS, LLC 34 3.19% $9,974
GUARANTY HOME MORTGAGE CORPORATION 31 2.76% $10,871
GUILD MORTGAGE COMPANY 30 3.40% $8,460
MUTUAL OF OMAHA MORTGAGE, INC. 29 3.03% $8,849
DEVELOPER'S MORTGAGE COMPANY 29 3.05% $7,628
Hometown Lenders, Inc. 29 3.03% $11,158
OCEANSIDE MORTGAGE COMPANY 28 2.77% $4,016
Bank of England 27 3.21% $11,054
BEST CAPITAL FUNDING 27 3.06% $9,977
RELIANCE FIRST CAPITAL, LLC 27 2.94% $11,330
Princeton Mortgage Corporation 26 3.01% $8,575
Mortgage Research Center, LLC 26 3.06% $6,956
UNION HOME MORTGAGE CORP. 26 3.01% $8,868
First Home Bank 25 3.22% $10,080
OCMBC, INC. 24 2.86% $10,302
ARC HOME LLC 24 2.76% $8,667
PHH Mortgage Corporation 24 3.43% $6,779
RESIDENTIAL HOME FUNDING CORP. 23 3.11% $9,361
JERSEY MORTGAGE COMPANY OF NEW JERSEY, INC. 23 3.17% $11,826
Flagstar Bank, FSB 22 2.80% $8,755
NJ LENDERS CORP. 22 2.79% $10,286
FIRST ALLIANCE HOME MORTGAGE, LLC 21 3.06% $8,843
STEARNS LENDING, LLC 21 2.90% $8,667
ACADEMY MORTGAGE CORPORATION 20 3.21% $8,778
JPMorgan Chase Bank 20 3.02% $6,027
Santander Bank, N.A. 19 2.79% $7,108
GENEVA FINANCIAL, LLC 19 3.30% $9,605
SOUTHERN TRUST MORTGAGE, LLC 19 3.09% $5,521
HOMESPIRE MORTGAGE CORPORATION 18 3.05% $10,052
Colonial Savings, F.A. 17 3.08% $6,420
TOP FLITE FINANCIAL, INC. 17 3.30% $16,351
Atlantic Home Loans, Inc. 17 3.07% $9,617
Residential Mortgage Solutions, Inc. 17 3.04% $9,435
TD Bank 16 3.02% $5,672
TOWNE MORTGAGE COMPANY 16 2.97% $9,710
SWBC MORTGAGE CORPORATION 16 3.18% $8,558
SOVEREIGN LENDING GROUP INCORPORATED 16 2.68% $8,993
AMERICAN FINANCING CORPORATION 15 2.83% $9,782
NATIONS DIRECT MORTGAGE, LLC 14 2.95% $9,949
AMERICAN FINANCIAL RESOURCES, INC. 13 3.16% $9,920
FIRST HOME MORTGAGE CORPORATION 13 3.17% $12,082
RAPID MORTGAGE COMPANY 12 2.95% $9,664
MORIA DEVELOPMENT, INC. 11 3.60% $10,604
Northeast Equitable Mortgage, LLC 11 3.02% $9,329
First Federal Bank 11 3.11% $10,294
EVERETT FINANCIAL, INC. 11 3.38% $6,719
DHI MORTGAGE COMPANY, LTD. 11 2.94% $11,212
LEADERONE FINANCIAL CORPORATION 11 3.08% $8,724
MDE Home Loans, LLC 11 2.82% $11,567
Wells Fargo Bank 10 3.23% $7,161
Hometown Equity Mortgage, LLC 10 3.49% $11,835
ARK-LA-TEX FINANCIAL SERVICES, LLC. 10 2.99% $9,971
FBC MORTGAGE, LLC 10 2.96% $7,161
Presidential Bank, FSB 10 3.11% $7,913
ZILLOW HOME LOANS, LLC 10 2.89% $8,613
Mortgage Network, Inc. 10 2.83% $9,254
KELLER MORTGAGE, LLC 9 2.74% $6,978
MLD MORTGAGE INC. 9 3.04% $7,980
RESIDENTIAL BANCORP. 9 2.76% $8,483
Blue Ridge Bank 9 2.92% $8,628
U.S. Bank 9 2.60% $8,190
BOND STREET MORTGAGE, LLC 8 2.97% $9,384
Florida Capital Bank 8 3.05% $12,096
LIBERTY HOME MORTGAGE CORPORATION 8 3.17% $9,827
EAGLE HOME MORTGAGE, LLC 7 3.27% $11,459
Barrington Bank & Trust Company, N.A. 7 3.00% $7,935
DIRECT MORTGAGE LOANS, LLC 7 3.41% $11,351
MILEND, INC. 7 3.13% $11,764
Sierra Pacific Mortgage Company, Inc. 7 2.91% $7,978
UNITED MORTGAGE CORP. 7 3.03% $9,898
UNITED NORTHERN MORTGAGE BANKERS LIMITED 7 3.07% $11,340
TOTAL MORTGAGE SERVICES, LLC 6 3.44% $9,728
Low VA Rates, LLC 6 2.83% $4,068
GREENWAY MORTGAGE FUNDING CORP. 6 2.75% $9,778
VAN DYK MORTGAGE CORPORATION 6 3.19% $8,770
UNITED SECURITY FINANCIAL CORP 6 2.77% $7,298
George Mason Mortgage, LLC 5 3.02% $9,479
East Coast Capital Corp. 5 3.05% $11,711
MEMBER FIRST MORTGAGE, LLC 5 3.28% $8,719
Century Mortgage Company DBA Century Lending Company 5 3.20% $10,436
AMERICAN PACIFIC MORTGAGE CORPORATION 4 2.94% $10,208
ROYAL UNITED MORTGAGE LLC 4 3.06% $10,413
RUOFF MORTGAGE COMPANY, INC. 4 3.28% $6,301
1st Constitution Bank 4 2.91% $10,314
AMCAP MORTGAGE, LTD. 4 3.47% $8,773
ON Q FINANCIAL, INC. 4 3.03% $8,902
MID-ISLAND MORTGAGE CORP. 4 2.94% $8,383
NORWICH COMMERCIAL GROUP, INC. 4 3.34% $10,709
BETTER MORTGAGE CORPORATION 4 2.72% $9,719
First Option Mortgage, LLC 4 3.25% $11,217
Magnolia Bank 4 2.94% $9,712
CHURCHILL MORTGAGE CORPORATION 4 3.03% $9,541
Strong Home Mortgage, LLC 3 3.17% $5,567
CLIFFCO, INC. 3 3.29% $18,427
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 3.25% $18,443
GLENDENNING MORTGAGE CORPORATION 3 3.17% $9,456
Mortgage Unlimited, L.L.C. 3 3.08% $11,477
North American Savings Bank, F.S.B. 3 2.71% $6,918
Peoples Bank 3 3.58% $10,675
LENOX FINANCIAL MORTGAGE CORPORATION 3 3.04% $7,975
T2 FINANCIAL LLC 3 3.29% $9,780
The Huntington National Bank 3 2.92% $9,890
MID AMERICA MORTGAGE, INC. 3 3.00% $2,056
Towne Bank 3 2.67% $8,146
FIDELITY DIRECT MORTGAGE, LLC 3 3.50% $12,671
Truist Bank 3 2.83% $7,020
American Mortgage Bank, LLC 3 3.42% $9,056
POLARIS HOME FUNDING CORP. 3 2.79% $9,051
LOANPAL, LLC 3 2.79% $10,602
1ST FINANCIAL, INC. 3 3.38% $10,048
NETWORK CAPITAL FUNDING CORPORATION 3 2.46% $12,939
FEDERATED LENDING CORPORATION 3 3.17% $6,569
JET DIRECT FUNDING CORP 3 3.33% $10,806
Paramount Bank 2 3.00% $8,700
GSF Mortgage Corporation 2 2.88% $10,939
HARTFORD FUNDING, LTD. 2 3.06% $11,728
Prime Choice Funding Inc. 2 2.56% $11,309
JLB CORPORATION 2 2.44% $13,186
MILLENIUM HOME MORTGAGE, LLC 2 2.88% $11,280
CELEBRITY HOME LOANS, LLC 2 3.69% $16,435
Goldwater Bank, N.A. 2 3.38% $8,415
RESIDENTIAL HOME MORTGAGE CORPORATION 2 3.50% $7,523
INTELLILOAN, INC. 2 3.31% $7,366
AMERICAN ADVISORS GROUP 2 2.81% $9,809
HOWARD HANNA FINANCIAL SERVICES, INC. 2 3.56% $7,299
Atlantic Coast Mortgage, LLC 2 3.38% $8,418
Homesale Mortgage, LLC 2 2.81% $6,560
Wyndham Capital Mortgage, Inc. 2 2.94% $8,799
Credence Funding Corporation 2 2.44% $6,642
GENNEXT FUNDING, LLC 2 3.81% $9,010
TIAA, FSB 2 2.50% $10,459
ANGEL OAK HOME LOANS LLC 2 3.00% $6,735
Ameris Bank 2 3.06% $7,894
Capital Bank 2 2.50% $8,439
GET A RATE LLC 2 2.56% $10,823
MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 3.63% $19,647
MEMBERS 1ST FEDERAL CREDIT UNION 1 2.38% $7,484
MICHIGAN MUTUAL, INC. 1 2.50% $14,854
LOANLEADERS OF AMERICA, INC. 1 3.25% $14,812
Kwik Mortgage Corporation 1 2.50% $13,059
KS StateBank 1 2.25% $10,317
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 1 3.13% $11,870
KeyBank 1 3.00% $11,229
INTERCOASTAL MORTGAGE COMPANY 1 3.00% $7,538
HUDSON VALLEY CREDIT UNION 1 3.25% $6,681
HOME FUNDING CORPORATION 1 2.75% $6,088
NATIONS RELIABLE LENDING, LLC 1 2.50% $10,431
HOMEAMERICAN MORTGAGE CORPORATION 1 2.38% $6,784
NBKC BANK 1 2.50% $9,103
HARBORONE MORTGAGE, LLC 1 3.00% $7,673
HAMILTON HOME LOANS, INC. 1 2.88% $14,137
Great Plains National Bank 1 2.38% $10,448
OPEN MORTGAGE, LLC 1 2.63% $10,370
PANORAMA MORTGAGE GROUP, LLC 1 3.38% $8,999
FM Home Loans, LLC 1 2.25% $7,984
First Savings Bank 1 3.50% $17,848
PINNACLE MORTGAGE, INC. 1 3.50% $9,673
FIRST COMMUNITY MORTGAGE, INC. 1 2.50% $11,048
FirstBank 1 3.00% $8,932
Fifth Third Bank 1 3.13% $8,154
PREMIA MORTGAGE, LLC 1 2.38% $9,772
PREMIER LENDING, INC. 1 2.50% $8,674
Premium Mortgage Corporation 1 2.63% $6,847
FAY SERVICING, LLC 1 3.25% $5,971
EQUITY NOW INC. 1 3.25% $9,991
DATA MORTGAGE, INC. 1 4.63% $7,662
CREDIT UNION MORTGAGE ASSOCIATION, INC. 1 2.88% $7,672
Congressional Bank 1 3.75% $8,745
Community First National Bank 1 3.25% $4,710
Commerce Home Mortgage, Inc. 1 4.13% $11,047
CLEARPATH LENDING 1 3.00% $2,878
CityWorth Mortgage LLC 1 3.75% $17,940
C & F Mortgage Corporation 1 2.25% $9,851
Sail Mortgage Corp. 1 2.50% $9,611
SIRVA MORTGAGE, INC. 1 3.00% $11,831
SIWELL, INC. 1 3.25% $5,354
SOUTHPOINT FINANCIAL SERVICES, INC. 1 2.75% $7,734
SOUTHWEST STAGE FUNDING, LLC 1 3.75% $8,907
Specialized Loan Servicing LLC 1 2.25% $6,168
BNC National Bank 1 3.00% $6,313
SUMMIT FUNDING, INC. 1 4.25% $11,298
BELEM SERVICING LLC 1 3.25% $6,298
BAY CAPITAL MORTGAGE CORPORATION 1 2.25% $9,139
Austin Capital Bank SSB 1 2.75% $5,692
TBI MORTGAGE COMPANY 1 2.75% $12,664
ASSOCIATED MORTGAGE BANKERS, INC. 1 3.25% $11,232
THE MORTGAGE LINK, INC. 1 2.88% $7,759
The Union Bank Company 1 2.88% $15,270
TruHome Solutions, LLC 1 2.75% $5,200
York Traditions Bank 1 3.00% $6,086
AMERICAN FEDERAL MORTGAGE CORPORATION 1 2.75% $7,865
UNIVERSAL MORTGAGE & FINANCE, INC. 1 3.75% $8,308
AFFORDABLE MORTGAGE ADVISORS, LLC. 1 2.63% $12,256
Victorian Finance, LLC 1 3.75% $5,741
A&D Mortgage LLC 1 3.63% $8,265
Waterstone Mortgage Corporation 1 3.38% $7,764
1ST PREFERENCE MORTGAGE CORP. 1 2.88% $4,980
WesBanco Bank, Inc. 1 2.75% $11,292
MCLEAN MORTGAGE CORPORATION 1 3.00% $6,386

The top Philadelphia FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 2,132 FHA loans originated. Their average total fees are $7,102, which is $2,732 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

The lowest fee Philadelphia FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($3,292), OCEANSIDE MORTGAGE COMPANY ($4,016), Bank of America ($4,675), Mr. Cooper ( Nationstar Mortgage ) ($5,020) and PIKE CREEK MORTGAGE SERVICES, INC. ($5,338).

The lowest rate Philadelphia FHA lenders (with over 10 loans originated) are SOVEREIGN LENDING GROUP INCORPORATED (2.68%), UNITED WHOLESALE MORTGAGE, LLC (2.73%), QUICKEN LOANS, LLC (2.74%), HOME POINT FINANCIAL CORPORATION (2.75%) and GUARANTY HOME MORTGAGE CORPORATION (2.76%).

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

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).