Pittsburgh FHA Loan Rates, Closing Costs & Stats

PITTSBURGH, PA

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 5.81% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Pittsburgh's average FHA mortgage closing costs are $6,461.

The average rate for the prior week (2023-01-20) was 5.88% and one month ago for the week of 2022-12-23, the average rate was 6.37%.

The average rate one year ago was 3.56%.

For refis of the same type during the week of 2023-01-27, the average rate was 5.94%.

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/closing costs 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. Closing Costs
QUICKEN LOANS, LLC 1,019 2.81% $6,067
Victorian Finance, LLC 329 2.93% $7,174
Citizens Bank 316 2.74% $6,846
HOWARD HANNA FINANCIAL SERVICES, INC. 234 2.76% $6,826
UNITED WHOLESALE MORTGAGE, LLC 234 2.77% $7,808
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 MORTGAGE 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
HOME POINT FINANCIAL CORPORATION 43 2.88% $7,897
Princeton Mortgage Corporation 43 3.28% $8,431
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
Equity Prime Mortgage LLC 27 3.40% $7,476
FBC MORTGAGE, LLC 27 2.97% $11,070
DEVELOPER'S MORTGAGE COMPANY 27 3.07% $5,687
RESIDENTIAL MORTGAGE SERVICES, INC. 26 2.79% $7,441
ALLIED MORTGAGE GROUP, INC. 25 3.18% $9,104
MUTUAL OF OMAHA MORTGAGE, INC. 25 3.14% $7,237
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
WELCOME HOME FINANCE, L.P. 18 2.78% $3,418
PRIMELENDING, A PLAINSCAPITAL COMPANY 18 3.45% $9,957
Northwest Bank 15 2.89% $6,905
Gateway First Bank 15 3.53% $5,985
AMERICAN FINANCIAL NETWORK, INC. 15 3.11% $12,711
HOMEBRIDGE FINANCIAL SERVICES, INC. 13 2.78% $8,158
EVANSVILLE TEACHERS 13 3.03% $6,701
First National Bank of Pennsylvania 13 2.82% $6,822
STEARNS LENDING, LLC 12 3.07% $7,066
NATIONS DIRECT MORTGAGE, LLC 12 2.97% $8,798
InterContinental Capital Group, Inc 12 3.06% $7,703
Waterstone Mortgage Corporation 12 3.45% $8,251
ASSOCIATED MORTGAGE BANKERS, INC. 11 3.18% $5,827
OCEANSIDE MORTGAGE COMPANY 11 2.94% $2,535
KeyBank 11 2.91% $7,271
Bank of England 11 3.11% $7,456
NATIONWIDE MORTGAGE BANKERS, INC. 11 3.10% $8,114
MICHIGAN MUTUAL, INC. 10 2.88% $7,301
Mortgage Research Center, LLC 9 3.15% $5,219
GUILD MORTGAGE COMPANY 9 3.01% $6,512
Barrington Bank & Trust Company, N.A. 9 3.39% $6,666
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
CONTOUR MORTGAGE CORPORATION 7 3.14% $9,183
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
M&T Bank 7 2.98% $6,236
Bank of America 6 3.06% $5,427
EMBRACE HOME LOANS, INC. 6 3.27% $8,424
SUN WEST MORTGAGE COMPANY, INC. 6 3.43% $10,987
OCMBC, INC. 6 3.44% $8,479
GSF Mortgage Corporation 6 2.98% $6,202
Lakeview Community Capital, LLC 6 3.21% $4,773
TOP FLITE FINANCIAL, INC. 5 3.20% $11,756
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
T2 FINANCIAL LLC 4 2.84% $9,521
PHH Mortgage Corporation 4 3.78% $5,019
Northpointe Bank 4 2.69% $6,578
MORTGAGE SOLUTIONS OF COLORADO, LLC 4 3.22% $6,722
CHURCHILL MORTGAGE CORPORATION 4 3.13% $7,757
SECURITYNATIONAL MORTGAGE COMPANY 4 3.91% $7,263
Wells Fargo Bank 3 3.13% $7,748
Prosperity Home Mortgage, LLC 3 3.29% $6,269
LOANPAL, LLC 3 3.17% $9,838
Century Mortgage Company DBA Century Lending Company 3 3.13% $8,122
SOUTHWEST STAGE FUNDING, LLC 3 2.96% $4,468
Peoples Bank 3 3.42% $7,702
First Federal Bank 3 3.04% $6,792
NP, Inc. 3 2.63% $11,418
The Federal Savings Bank 3 2.75% $7,392
FIRST HOME MORTGAGE CORPORATION 2 3.00% $7,210
UNITED SECURITY FINANCIAL CORP 2 2.69% $5,118
BAYSHORE MORTGAGE FUNDING, LLC 2 3.25% $8,810
NATION ONE MORTGAGE CORPORATION 2 2.88% $7,726
NBKC BANK 2 2.88% $6,454
NFM, INC. 2 3.13% $6,859
MILEND, INC. 2 2.44% $8,528
SUCCESS MORTGAGE PARTNERS, INC. 2 3.38% $7,287
Wyndham Capital Mortgage, Inc. 2 2.94% $5,041
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
SOVEREIGN LENDING GROUP INCORPORATED 2 2.81% $11,618
ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 2.94% $6,076
POLARIS HOME FUNDING CORP. 2 3.44% $7,712
Keystone Funding, Inc. 2 3.06% $5,840
First Home Bank 2 2.56% $11,003
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 MORTGAGE ($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 $169,900 (11.3%) $260,220 (6.9%) 0.63 7,638
2018-02-01 $169,900 (9.7%) $265,383 (6.6%) 0.62 7,156
2018-03-01 $179,900 (11.4%) $279,024 (7.5%) 0.63 6,923
2018-04-01 $184,900 (9.8%) $285,038 (7.4%) 0.63 6,960
2018-05-01 $188,425 (10.1%) $288,764 (7.4%) 0.63 7,194
2018-06-01 $184,900 (5.7%) $282,786 (5.0%) 0.62 7,536
2018-07-01 $183,750 (2.1%) $281,272 (4.0%) 0.61 7,817
2018-08-01 $182,400 (2.4%) $277,899 (3.9%) 0.61 7,964
2018-09-01 $179,900 (2.8%) $275,548 (3.8%) 0.60 8,059
2018-10-01 $179,450 (2.6%) $272,377 (4.0%) 0.61 8,183
2018-11-01 $174,950 (0.0%) $270,499 (2.7%) 0.59 7,938
2018-12-01 $169,900 (-0.1%) $272,292 (4.6%) 0.59 7,395
2019-01-01 $169,900 (0.0%) $272,667 (4.8%) 0.59 7,000
2019-02-01 $173,575 (2.2%) $278,509 (5.0%) 0.59 6,567
2019-03-01 $181,929 (1.1%) $290,077 (4.0%) 0.59 6,386
2019-04-01 $189,450 (2.5%) $297,434 (4.4%) 0.60 6,385
2019-05-01 $195,975 (4.0%) $302,290 (4.7%) 0.61 6,537
2019-06-01 $199,900 (8.1%) $303,889 (7.5%) 0.62 6,901
2019-07-01 $199,900 (8.8%) $301,522 (7.2%) 0.63 7,176
2019-08-01 $199,655 (9.5%) $299,501 (7.8%) 0.63 7,246
2019-09-01 $199,286 (10.8%) $297,536 (8.0%) 0.64 7,372
2019-10-01 $199,000 (10.9%) $297,140 (9.1%) 0.64 7,455
2019-11-01 $194,000 (10.9%) $298,890 (10.5%) 0.64 7,145
2019-12-01 $189,900 (11.8%) $295,767 (8.6%) 0.63 6,600
2020-01-01 $189,950 (11.8%) $303,456 (11.3%) 0.63 6,170
2020-02-01 $199,999 (15.2%) $317,338 (13.9%) 0.65 5,714
2020-03-01 $214,950 (18.2%) $327,756 (13.0%) 0.67 5,456
2020-04-01 $215,000 (13.5%) $325,708 (9.5%) 0.67 5,313
2020-05-01 $225,000 (14.8%) $328,945 (8.8%) 0.68 5,494
2020-06-01 $242,473 (21.3%) $349,256 (14.9%) 0.71 5,259
2020-07-01 $249,450 (24.8%) $358,112 (18.8%) 0.72 4,984
2020-08-01 $248,750 (24.6%) $355,346 (18.7%) 0.71 4,902
2020-09-01 $243,450 (22.2%) $355,653 (19.5%) 0.70 4,879
2020-10-01 $239,900 (20.6%) $356,780 (20.1%) 0.69 4,734
2020-11-01 $239,450 (23.4%) $354,687 (18.7%) 0.70 4,382
2020-12-01 $234,850 (23.7%) $357,733 (21.0%) 0.70 3,931
2021-01-01 $239,000 (25.8%) $367,932 (21.3%) 0.71 3,414
2021-02-01 $244,950 (22.5%) $390,171 (23.0%) 0.71 2,820
2021-03-01 $249,900 (16.3%) $405,028 (23.6%) 0.71 2,704
2021-04-01 $259,000 (20.5%) $411,203 (26.3%) 0.70 2,805
2021-05-01 $260,000 (15.6%) $407,091 (23.8%) 0.69 2,977
2021-06-01 $256,900 (6.0%) $394,843 (13.1%) 0.68 3,377
2021-07-01 $239,900 (-3.8%) $368,773 (3.0%) 0.63 3,921
2021-08-01 $229,900 (-7.6%) $347,174 (-2.3%) 0.61 4,199
2021-09-01 $226,725 (-6.9%) $340,606 (-4.2%) 0.60 4,339
2021-10-01 $225,000 (-6.2%) $341,372 (-4.3%) 0.60 4,251
2021-11-01 $218,375 (-8.8%) $338,492 (-4.6%) 0.58 3,964
2021-12-01 $209,900 (-10.6%) $336,068 (-6.1%) 0.57 3,507
2022-01-01 $205,000 (-14.2%) $344,661 (-6.3%) 0.55 3,010
2022-02-01 $213,950 (-12.7%) $362,955 (-7.0%) 0.56 2,572
2022-03-01 $219,950 (-12.0%) $371,676 (-8.2%) 0.55 2,501
2022-04-01 $225,000 (-13.1%) $373,634 (-9.1%) 0.54 2,616
2022-05-01 $239,450 (-7.9%) $369,836 (-9.2%) 0.55 3,142
2022-06-01 $239,900 (-6.6%) $365,022 (-7.6%) 0.53 3,544
2022-07-01 $239,000 (-0.4%) $360,922 (-2.1%) 0.54 4,039
2022-08-01 $232,500 (1.1%) $349,279 (0.6%) 0.54 4,296
2022-09-01 $225,000 (-0.8%) $337,705 (-0.9%) 0.53 4,420
2022-10-01 $219,900 (-2.3%) $327,975 (-3.9%) 0.52 4,596
2022-11-01 $218,700 (0.2%) $326,981 (-3.4%) 0.53 4,552
2022-12-01 $205,000 (-2.3%) $323,340 (-3.8%) 0.51 4,231
Pittsburgh's median listing price for 2022-12-01 was $205,000, a difference of $-4,900 (-2.3%) versus the prior year and $-13,700 versus the prior month.

Pittsburgh's median listing price comes in at 51% of the national average.

Pittsburgh's average listing price for 2022-12-01 was $323,340, a difference of $-12,728 (-3.8%) versus the prior year and $-3,641 versus the prior month.

For the 2022-12-01 period, Pittsburgh had 4,231 MLS listings, a difference of -321 listings (-7%) versus the prior month and 724 listings (21%) 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 1,651 sqft
2018-02-01 111 days 1,658 sqft
2018-03-01 98 days 1,690 sqft
2018-04-01 71 days 1,731 sqft
2018-05-01 62 days 1,744 sqft
2018-06-01 58 days 1,716 sqft
2018-07-01 60 days 1,680 sqft
2018-08-01 64 days 1,673 sqft
2018-09-01 71 days 1,680 sqft
2018-10-01 74 days 1,664 sqft
2018-11-01 78 days 1,651 sqft
2018-12-01 89 days 1,628 sqft
2019-01-01 104 days 1,622 sqft
2019-02-01 107 days 1,632 sqft
2019-03-01 89 days 1,661 sqft
2019-04-01 66 days 1,662 sqft
2019-05-01 58 days 1,683 sqft
2019-06-01 58 days 1,700 sqft
2019-07-01 60 days 1,706 sqft
2019-08-01 62 days 1,706 sqft
2019-09-01 65 days 1,703 sqft
2019-10-01 68 days 1,699 sqft
2019-11-01 74 days 1,680 sqft
2019-12-01 87 days 1,663 sqft
2020-01-01 98 days 1,680 sqft
2020-02-01 96 days 1,711 sqft
2020-03-01 76 days 1,724 sqft
2020-04-01 84 days 1,738 sqft
2020-05-01 88 days 1,764 sqft
2020-06-01 85 days 1,799 sqft
2020-07-01 54 days 1,796 sqft
2020-08-01 54 days 1,781 sqft
2020-09-01 54 days 1,741 sqft
2020-10-01 58 days 1,715 sqft
2020-11-01 65 days 1,680 sqft
2020-12-01 75 days 1,680 sqft
2021-01-01 88 days 1,677 sqft
2021-02-01 89 days 1,678 sqft
2021-03-01 68 days 1,693 sqft
2021-04-01 45 days 1,705 sqft
2021-05-01 45 days 1,700 sqft
2021-06-01 41 days 1,690 sqft
2021-07-01 39 days 1,625 sqft
2021-08-01 41 days 1,607 sqft
2021-09-01 46 days 1,603 sqft
2021-10-01 50 days 1,588 sqft
2021-11-01 55 days 1,568 sqft
2021-12-01 65 days 1,556 sqft
2022-01-01 78 days 1,562 sqft
2022-02-01 80 days 1,611 sqft
2022-03-01 58 days 1,608 sqft
2022-04-01 40 days 1,632 sqft
2022-05-01 37 days 1,628 sqft
2022-06-01 37 days 1,622 sqft
2022-07-01 39 days 1,630 sqft
2022-08-01 44 days 1,617 sqft
2022-09-01 51 days 1,591 sqft
2022-10-01 54 days 1,584 sqft
2022-11-01 59 days 1,569 sqft
2022-12-01 73 days 1,550 sqft
Pittsburgh's median listing age (time on market) for 2022-12-01 was 73 days. This is 12% longer than the same period one year ago.

Pittsburgh's median square footage for active listings during the 2022-12-01 period was 1,550 sqft. One year prior, the average listing was 1,556 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).