Pittsburgh FHA Loans

PITTSBURGH, PA

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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.

    Pittsburgh's 169 lenders originated 7,531 FHA loans during 2021. The total origination value was $1,217,785,000, with an average FHA loan value of $161,703.

    Pittsburgh FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Pittsburgh averaged 5.18% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

    The average rate for the prior week (2022-05-13) was 5.28% and one month ago for the week of 2022-04-15, the average rate was 4.87%.

    The average rate one year ago was 3.04%.

    For refis of the same type during the week of 2022-05-20, the average rate was 5.01%.

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

    Pittsburgh 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 Pittsburgh level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 1,019 2.81% $6,067
    Victorian Finance, LLC 329 2.93% $7,174
    Citizens Bank 316 2.74% $6,846
    UNITED WHOLESALE MORTGAGE, LLC 234 2.77% $7,808
    HOWARD HANNA FINANCIAL SERVICES, INC. 234 2.76% $6,826
    FREEDOM MORTGAGE CORPORATION 216 2.96% $5,283
    WEST PENN FINANCIAL SERVICE CENTER, INC. 196 2.75% $6,630
    UNION HOME MORTGAGE CORP. 188 2.99% $8,153
    MOVEMENT MORTGAGE, LLC 185 3.19% $7,053
    JLB CORPORATION 175 2.84% $7,640
    GUARANTEED RATE AFFINITY, LLC 172 2.92% $7,396
    PENNYMAC LOAN SERVICES, LLC 166 2.95% $4,953
    EQUITY RESOURCES, INC. 155 3.16% $7,130
    PLAZA HOME MORTGAGE, INC. 154 2.99% $8,228
    Mr. Cooper ( Nationstar Mortgage ) 146 3.35% $4,379
    LOANDEPOT.COM, LLC 110 3.14% $7,645
    CROSSCOUNTRY MORTGAGE, LLC 101 3.14% $8,748
    EMM LOANS LLC 96 2.95% $7,333
    The Huntington National Bank 94 2.99% $6,367
    LAKEVIEW LOAN SERVICING, LLC 90 3.16% $5,342
    NEWREZ LLC 90 2.90% $5,862
    AFFORDABLE MORTGAGE ADVISORS, LLC. 88 2.79% $7,232
    Union Savings Bank 78 2.70% $6,663
    CALIBER HOME LOANS, INC. 78 2.91% $5,357
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 74 3.00% $8,007
    GUARANTEED RATE, INC. 72 2.91% $7,597
    VILLAGE CAPITAL & INVESTMENT LLC 67 2.97% $2,205
    Carrington Mortgage Services, LLC 65 3.55% $7,819
    Flagstar Bank, FSB 62 2.79% $5,382
    Dollar Bank, Federal Savings Bank 59 2.91% $6,290
    PNC Bank 56 2.92% $5,892
    RELIANCE FIRST CAPITAL, LLC 50 3.00% $7,836
    First Commonwealth Bank 45 2.66% $6,494
    Princeton Mortgage Corporation 43 3.28% $8,431
    HOME POINT FINANCIAL CORPORATION 43 2.88% $7,897
    NVR Mortgage Finance, Inc. 40 3.01% $11,402
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 39 3.22% $7,502
    TOWNE MORTGAGE COMPANY 37 2.91% $7,036
    BROKER SOLUTIONS, INC. 36 3.21% $7,331
    FINANCE OF AMERICA MORTGAGE LLC 35 2.99% $6,851
    First Guaranty Mortgage Corporation 33 3.02% $6,563
    PLANET HOME LENDING, LLC 31 2.97% $5,203
    Paramount Residential Mortgage Group, Inc. 30 3.19% $7,516
    AmeriHome Mortgage Company, LLC 28 3.01% $4,779
    WesBanco Bank, Inc. 28 2.77% $6,592
    DEVELOPER'S MORTGAGE COMPANY 27 3.07% $5,687
    FBC MORTGAGE, LLC 27 2.97% $11,070
    Equity Prime Mortgage LLC 27 3.40% $7,476
    RESIDENTIAL MORTGAGE SERVICES, INC. 26 2.79% $7,441
    MUTUAL OF OMAHA MORTGAGE, INC. 25 3.14% $7,237
    ALLIED MORTGAGE GROUP, INC. 25 3.18% $9,104
    Sail Mortgage Corp. 24 2.56% $7,276
    AMERISAVE MORTGAGE CORPORATION 22 3.03% $8,646
    Patriot Lending Services, Inc. 22 3.07% $7,260
    U.S. Bank 21 2.64% $6,935
    Nations Lending Corporation 20 3.13% $8,247
    PRIMELENDING, A PLAINSCAPITAL COMPANY 18 3.45% $9,957
    WELCOME HOME FINANCE, L.P. 18 2.78% $3,418
    Northwest Bank 15 2.89% $6,905
    Gateway First Bank 15 3.53% $5,985
    AMERICAN FINANCIAL NETWORK, INC. 15 3.11% $12,711
    First National Bank of Pennsylvania 13 2.82% $6,822
    EVANSVILLE TEACHERS 13 3.03% $6,701
    HOMEBRIDGE FINANCIAL SERVICES, INC. 13 2.78% $8,158
    Waterstone Mortgage Corporation 12 3.45% $8,251
    STEARNS LENDING, LLC 12 3.07% $7,066
    InterContinental Capital Group, Inc 12 3.06% $7,703
    NATIONS DIRECT MORTGAGE, LLC 12 2.97% $8,798
    KeyBank 11 2.91% $7,271
    Bank of England 11 3.11% $7,456
    NATIONWIDE MORTGAGE BANKERS, INC. 11 3.10% $8,114
    ASSOCIATED MORTGAGE BANKERS, INC. 11 3.18% $5,827
    OCEANSIDE MORTGAGE COMPANY 11 2.94% $2,535
    MICHIGAN MUTUAL, INC. 10 2.88% $7,301
    Mortgage Research Center, LLC 9 3.15% $5,219
    Barrington Bank & Trust Company, N.A. 9 3.39% $6,666
    GUILD MORTGAGE COMPANY 9 3.01% $6,512
    Colonial Savings, F.A. 9 2.93% $6,671
    PRIMARY RESIDENTIAL MORTGAGE, INC. 8 3.75% $8,275
    HOMESIDE FINANCIAL, LLC 8 2.84% $8,931
    SOUTHPOINT FINANCIAL SERVICES, INC. 8 3.23% $5,382
    BETTER MORTGAGE CORPORATION 7 3.04% $6,166
    ROYAL UNITED MORTGAGE LLC 7 3.07% $7,379
    NORWICH COMMERCIAL GROUP, INC. 7 4.43% $7,661
    Manufacturers and Traders Trust Company 7 2.98% $6,236
    CONTOUR MORTGAGE CORPORATION 7 3.14% $9,183
    Bank of America 6 3.06% $5,427
    Lakeview Community Capital, LLC 6 3.21% $4,773
    SUN WEST MORTGAGE COMPANY, INC. 6 3.43% $10,987
    GSF Mortgage Corporation 6 2.98% $6,202
    OCMBC, INC. 6 3.44% $8,479
    EMBRACE HOME LOANS, INC. 6 3.27% $8,424
    AMERICAN FINANCING CORPORATION 5 3.33% $8,077
    First Federal Bank of the Midwest 5 3.33% $8,587
    LIBERTY HOME MORTGAGE CORPORATION 5 3.15% $11,522
    TOP FLITE FINANCIAL, INC. 5 3.20% $11,756
    MORTGAGE SOLUTIONS OF COLORADO, LLC 4 3.22% $6,722
    SECURITYNATIONAL MORTGAGE COMPANY 4 3.91% $7,263
    PHH Mortgage Corporation 4 3.78% $5,019
    Northpointe Bank 4 2.69% $6,578
    T2 FINANCIAL LLC 4 2.84% $9,521
    CHURCHILL MORTGAGE CORPORATION 4 3.13% $7,757
    The Federal Savings Bank 3 2.75% $7,392
    First Federal Bank 3 3.04% $6,792
    LOANPAL, LLC 3 3.17% $9,838
    SOUTHWEST STAGE FUNDING, LLC 3 2.96% $4,468
    Wells Fargo Bank 3 3.13% $7,748
    Century Mortgage Company DBA Century Lending Company 3 3.13% $8,122
    NP, Inc. 3 2.63% $11,418
    Peoples Bank 3 3.42% $7,702
    Prosperity Home Mortgage, LLC 3 3.29% $6,269
    NBKC BANK 2 2.88% $6,454
    NATION ONE MORTGAGE CORPORATION 2 2.88% $7,726
    UNITED SECURITY FINANCIAL CORP 2 2.69% $5,118
    Wyndham Capital Mortgage, Inc. 2 2.94% $5,041
    MILEND, INC. 2 2.44% $8,528
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 2.94% $6,076
    MID AMERICA MORTGAGE, INC. 2 3.12% $1,391
    EVERETT FINANCIAL, INC. 2 3.13% $8,022
    AMERICAN FINANCIAL RESOURCES, INC. 2 2.69% $6,104
    Keystone Funding, Inc. 2 3.06% $5,840
    BAYSHORE MORTGAGE FUNDING, LLC 2 3.25% $8,810
    POLARIS HOME FUNDING CORP. 2 3.44% $7,712
    First Home Bank 2 2.56% $11,003
    FIRST HOME MORTGAGE CORPORATION 2 3.00% $7,210
    SOVEREIGN LENDING GROUP INCORPORATED 2 2.81% $11,618
    SUCCESS MORTGAGE PARTNERS, INC. 2 3.38% $7,287
    NFM, INC. 2 3.13% $6,859
    North American Savings Bank, F.S.B. 1 3.50% $3,128
    AMERIFIRST FINANCIAL CORPORATION 1 4.75% $8,944
    Ameris Bank 1 3.00% $5,717
    Austin Capital Bank SSB 1 4.75% $11,300
    AXIA FINANCIAL, LLC 1 2.88% $7,272
    Bank of Idaho 1 2.63% $8,820
    BECKAM FUNDING CORP. 1 2.50% $7,925
    Blue Ridge Bank 1 2.38% $8,038
    BNC National Bank 1 2.75% $7,420
    COUNTRYPLACE MORTGAGE, LTD. 1 3.25% $7,966
    Credence Funding Corporation 1 2.25% $7,977
    DAS Acquisition Company, LLC 1 3.25% $5,574
    Fifth Third Bank 1 2.75% $4,815
    FirstBank 1 2.75% $6,364
    First Midwest Bank 1 3.13% $5,971
    Hometown Equity Mortgage, LLC 1 2.88% $9,572
    Hometown Lenders, Inc. 1 3.63% $13,367
    INTELLILOAN, INC. 1 3.88% $12,306
    JAMES B. NUTTER & COMPANY 1 2.88% $4,082
    JPMorgan Chase Bank 1 3.25% $2,364
    MCLEAN MORTGAGE CORPORATION 1 2.88% $10,321
    MEMBER FIRST MORTGAGE, LLC 1 3.50% $6,582
    Meridian Bank Corporation 1 2.75% $5,158
    Mid Penn Bank 1 3.13% $6,133
    MORIA DEVELOPMENT, INC. 1 3.75% $6,929
    MORTGAGE ACCESS CORP. 1 2.75% $7,796
    NJ LENDERS CORP. 1 2.88% $6,335
    1ST SIGNATURE LENDING, LLC 1 3.00% $10,112
    PLUS RELOCATION MORTGAGE, LLC 1 3.25% $7,519
    RADIUS FINANCIAL GROUP INC. 1 2.25% $4,834
    RAPID MORTGAGE COMPANY 1 3.00% $5,721
    Residential Mortgage Solutions, Inc. 1 2.63% $10,609
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 1 3.25% $7,869
    SIRVA MORTGAGE, INC. 1 3.50% $8,262
    Stifel Bank and Trust 1 2.50% $6,883
    Strong Home Mortgage, LLC 1 3.00% $4,690
    Summit Mortgage Corporation 1 4.50% $5,661
    TIDEWATER MORTGAGE SERVICES, INC. 1 3.75% $7,531
    TOTAL MORTGAGE SERVICES, LLC 1 4.75% $10,409
    UNITED MORTGAGE CORP. 1 3.13% $9,021
    ZILLOW HOME LOANS, LLC 1 3.13% $5,439

    The top Pittsburgh FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 1,019 FHA loans originated. Their average total fees are $6,067, which is $1,108 lower than the next largest lender, Victorian Finance, LLC.

    The lowest fee Pittsburgh FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,205), OCEANSIDE MORTGAGE COMPANY ($2,535), WELCOME HOME FINANCE, L.P. ($3,418), Mr. Cooper ( Nationstar Mortgage ) ($4,379) and AmeriHome Mortgage Company, LLC ($4,779).

    The lowest rate Pittsburgh FHA lenders (with over 10 loans originated) are Sail Mortgage Corp. (2.56%), U.S. Bank (2.64%), First Commonwealth Bank (2.66%), Union Savings Bank (2.70%) and Citizens Bank (2.74%).

    Pittsburgh FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    PITTSBURGH, PA ALLEGHENY 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA ARMSTRONG 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA BEAVER 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA BUTLER 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA FAYETTE 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA WASHINGTON 2022 $420,680 $538,650 $651,050 $809,150
    PITTSBURGH, PA WESTMORELAND 2022 $420,680 $538,650 $651,050 $809,150

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Pittsburgh (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 $170,000 (9.7%) $261,913 (6.9%) 0.63 7,787
    2018-02-01 $172,500 (8.9%) $267,949 (6.8%) 0.62 7,298
    2018-03-01 $179,900 (9.1%) $281,372 (7.7%) 0.62 7,052
    2018-04-01 $187,750 (10.5%) $287,343 (7.7%) 0.63 7,111
    2018-05-01 $189,900 (8.6%) $290,644 (7.2%) 0.63 7,350
    2018-06-01 $189,000 (5.1%) $285,803 (5.5%) 0.63 7,687
    2018-07-01 $187,700 (4.3%) $283,957 (4.6%) 0.63 7,952
    2018-08-01 $185,950 (3.4%) $280,188 (4.1%) 0.62 8,144
    2018-09-01 $184,900 (2.8%) $277,416 (3.9%) 0.62 8,252
    2018-10-01 $179,950 (2.3%) $275,090 (4.2%) 0.60 8,389
    2018-11-01 $177,000 (-1.1%) $273,059 (2.8%) 0.59 8,136
    2018-12-01 $173,900 (-0.6%) $274,286 (4.7%) 0.60 7,565
    2019-01-01 $171,250 (0.7%) $274,817 (4.9%) 0.59 7,180
    2019-02-01 $175,400 (1.7%) $280,871 (4.8%) 0.59 6,748
    2019-03-01 $184,186 (2.4%) $292,170 (3.8%) 0.60 6,530
    2019-04-01 $189,900 (1.2%) $299,130 (4.1%) 0.60 6,479
    2019-05-01 $197,450 (4.0%) $302,885 (4.2%) 0.61 6,674
    2019-06-01 $199,900 (5.8%) $304,387 (6.5%) 0.62 7,070
    2019-07-01 $199,900 (6.5%) $302,033 (6.4%) 0.62 7,369
    2019-08-01 $199,900 (7.5%) $300,057 (7.1%) 0.63 7,288
    2019-09-01 $199,900 (8.1%) $297,732 (7.3%) 0.63 7,212
    2019-10-01 $197,750 (9.9%) $295,298 (7.4%) 0.63 7,360
    2019-11-01 $194,900 (10.1%) $297,273 (8.9%) 0.63 6,999
    2019-12-01 $189,700 (9.1%) $294,069 (7.2%) 0.63 6,458
    2020-01-01 $189,900 (10.9%) $300,862 (9.5%) 0.63 6,021
    2020-02-01 $200,000 (14.0%) $316,877 (12.8%) 0.65 5,784
    2020-03-01 $214,950 (16.7%) $326,634 (11.8%) 0.67 5,521
    2020-04-01 $217,000 (14.3%) $324,067 (8.3%) 0.68 5,413
    2020-05-01 $225,000 (14.0%) $328,230 (8.4%) 0.68 5,510
    2020-06-01 $247,200 (23.7%) $351,154 (15.4%) 0.72 5,287
    2020-07-01 $249,900 (25.0%) $359,668 (19.1%) 0.72 4,982
    2020-08-01 $249,900 (25.0%) $359,066 (19.7%) 0.71 4,824
    2020-09-01 $249,900 (25.0%) $361,718 (21.5%) 0.71 4,809
    2020-10-01 $245,000 (23.9%) $361,931 (22.6%) 0.70 4,646
    2020-11-01 $240,000 (23.1%) $359,640 (21.0%) 0.69 4,297
    2020-12-01 $238,950 (26.0%) $363,443 (23.6%) 0.70 3,870
    2021-01-01 $243,500 (28.2%) $374,484 (24.5%) 0.72 3,348
    2021-02-01 $249,900 (25.0%) $396,864 (25.2%) 0.72 2,767
    2021-03-01 $257,950 (20.0%) $414,079 (26.8%) 0.72 2,623
    2021-04-01 $267,450 (23.3%) $418,222 (29.1%) 0.72 2,719
    2021-05-01 $268,000 (19.1%) $413,019 (25.8%) 0.71 2,910
    2021-06-01 $262,450 (6.2%) $399,571 (13.8%) 0.68 3,313
    2021-07-01 $247,500 (-1.0%) $376,143 (4.6%) 0.64 3,784
    2021-08-01 $232,500 (-7.0%) $353,036 (-1.7%) 0.61 4,113
    2021-09-01 $229,900 (-8.0%) $344,807 (-4.7%) 0.61 4,250
    2021-10-01 $225,000 (-8.2%) $345,457 (-4.6%) 0.59 4,158
    2021-11-01 $219,450 (-8.6%) $340,286 (-5.4%) 0.58 3,894
    2021-12-01 $210,000 (-12.1%) $339,063 (-6.7%) 0.56 3,453
    2022-01-01 $209,900 (-13.8%) $349,138 (-6.8%) 0.56 2,934
    2022-02-01 $215,000 (-14.0%) $368,740 (-7.1%) 0.55 2,504
    2022-03-01 $222,500 (-13.7%) $374,164 (-9.6%) 0.55 2,429
    2022-04-01 $229,000 (-14.4%) $374,156 (-10.5%) 0.54 2,530
    Pittsburgh's median listing price for 2022-04-01 was $229,000, a difference of $-38,450 (-14.4%) versus the prior year and $6,500 versus the prior month.

    Pittsburgh's median listing price comes in at 54% of the national average.

    Pittsburgh's average listing price for 2022-04-01 was $374,156, a difference of $-44,066 (-10.5%) versus the prior year and $-8 versus the prior month.

    For the 2022-04-01 period, Pittsburgh had 2,530 MLS listings, a difference of 101 listings (4%) versus the prior month and -189 listings (-7%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Pittsburgh (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 109 days 1,590 sqft
    2018-02-01 111 days 1,578 sqft
    2018-03-01 99 days 1,548 sqft
    2018-04-01 70 days 1,578 sqft
    2018-05-01 62 days 1,606 sqft
    2018-06-01 58 days 1,623 sqft
    2018-07-01 60 days 1,678 sqft
    2018-08-01 65 days 1,613 sqft
    2018-09-01 70 days 1,612 sqft
    2018-10-01 73 days 1,630 sqft
    2018-11-01 79 days 1,627 sqft
    2018-12-01 90 days 1,564 sqft
    2019-01-01 104 days 1,624 sqft
    2019-02-01 108 days 1,613 sqft
    2019-03-01 95 days 1,592 sqft
    2019-04-01 68 days 1,563 sqft
    2019-05-01 59 days 1,616 sqft
    2019-06-01 58 days 1,611 sqft
    2019-07-01 61 days 1,624 sqft
    2019-08-01 64 days 1,715 sqft
    2019-09-01 66 days 1,811 sqft
    2019-10-01 67 days 1,692 sqft
    2019-11-01 73 days 1,679 sqft
    2019-12-01 86 days 1,665 sqft
    2020-01-01 98 days 1,688 sqft
    2020-02-01 98 days 1,711 sqft
    2020-03-01 78 days 1,721 sqft
    2020-04-01 83 days 1,736 sqft
    2020-05-01 91 days 1,773 sqft
    2020-06-01 89 days 1,800 sqft
    2020-07-01 56 days 1,800 sqft
    2020-08-01 55 days 1,800 sqft
    2020-09-01 55 days 1,770 sqft
    2020-10-01 57 days 1,730 sqft
    2020-11-01 64 days 1,700 sqft
    2020-12-01 73 days 1,693 sqft
    2021-01-01 87 days 1,694 sqft
    2021-02-01 87 days 1,686 sqft
    2021-03-01 61 days 1,706 sqft
    2021-04-01 44 days 1,727 sqft
    2021-05-01 43 days 1,719 sqft
    2021-06-01 41 days 1,705 sqft
    2021-07-01 40 days 1,657 sqft
    2021-08-01 42 days 1,629 sqft
    2021-09-01 46 days 1,618 sqft
    2021-10-01 50 days 1,600 sqft
    2021-11-01 55 days 1,585 sqft
    2021-12-01 65 days 1,570 sqft
    2022-01-01 79 days 1,580 sqft
    2022-02-01 82 days 1,624 sqft
    2022-03-01 61 days 1,629 sqft
    2022-04-01 42 days 1,654 sqft
    Pittsburgh's median listing age (time on market) for 2022-04-01 was 42 days. This is -3% shorter than the same period one year ago.

    Pittsburgh's median square footage for active listings during the 2022-04-01 period was 1,654 sqft. One year prior, the average listing was 1,727 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).