Providence FHA Loan Rates, Closing Costs & Stats

PROVIDENCE-WARWICK, RI-MA

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.

Providence's 158 lenders originated 5,496 FHA loans during 2022. The total origination value was $1,977,470,000, with an average FHA loan value of $359,802.

Providence FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Providence averaged 6% for the week of 2023-05-26, compared to the national average (all FHA variants) of 6.612% for the same period.

Providence's average FHA mortgage closing costs are $9,230.

The average rate for the prior week (2023-05-19) was 5.87% and one month ago for the week of 2023-04-21, the average rate was 5.82%.

The average rate one year ago was 4.63%.

For refis of the same type during the week of 2023-05-26, the average rate was 5.23%.

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

Providence 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 Providence level.

Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 372 4.70% $13,476
MOVEMENT MORTGAGE, LLC 272 4.91% $11,540
QUICKEN LOANS, LLC 239 4.32% $12,679
Shamrock Home Loans, Inc. 222 4.83% $11,153
GUILD MORTGAGE COMPANY 187 4.66% $11,372
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 178 5.11% $12,608
Semper Home Loans, Inc. 176 5.21% $13,391
Northpointe Bank 170 4.80% $13,026
PRIMARY RESIDENTIAL MORTGAGE, INC. 162 4.83% $13,014
NFM, INC. 153 4.90% $13,891
CROSSCOUNTRY MORTGAGE, LLC 148 5.20% $15,247
TOTAL MORTGAGE SERVICES, LLC 145 5.01% $15,081
CALIBER HOME LOANS, INC. 142 4.50% $11,539
FREEDOM MORTGAGE CORPORATION 117 4.57% $11,517
LOANDEPOT.COM, LLC 109 4.46% $14,557
PENNYMAC LOAN SERVICES, LLC 106 4.22% $12,917
HOME POINT FINANCIAL CORPORATION 104 4.13% $12,909
GUARANTEED RATE, INC. 81 4.85% $12,784
GUARANTEED RATE AFFINITY, LLC 79 4.73% $12,031
PROVINCE MORTGAGE ASSOCIATES, INC. 75 4.91% $10,979
EMBRACE HOME LOANS, INC. 66 4.54% $12,738
Nations Lending Corporation 64 5.00% $12,076
HOMEBRIDGE FINANCIAL SERVICES, INC. 57 4.79% $14,119
Mr. Cooper ( Nationstar Mortgage ) 56 4.19% $15,224
AMERISAVE MORTGAGE CORPORATION 56 4.15% $12,955
LAKEVIEW LOAN SERVICING, LLC 54 3.94% $8,902
HOMESPIRE MORTGAGE CORPORATION 54 4.83% $15,025
Paramount Residential Mortgage Group, Inc. 47 5.01% $14,754
OCMBC, INC. 45 4.72% $13,835
FIRST MORTGAGE COMPANY, INC. 45 4.91% $13,748
Ixonia Bank 44 5.13% $18,416
Citizens Bank 41 4.55% $10,655
NEWREZ LLC 40 4.54% $11,296
Mortgage Network, Inc. 39 5.27% $10,396
HARBORONE MORTGAGE, LLC 35 4.79% $11,038
CARDINAL FINANCIAL 34 4.26% $13,550
Home Loan Investment Bank, F.S.B. 34 4.59% $10,515
FIRST HOME MORTGAGE CORPORATION 34 5.11% $16,320
Envision Bank 33 4.25% $10,358
NORWICH COMMERCIAL GROUP, INC. 32 5.34% $16,235
Flagstar Bank, FSB 30 5.04% $12,926
Carrington Mortgage Services, LLC 29 4.91% $14,030
RADIUS FINANCIAL GROUP INC. 26 4.83% $13,821
EMM LOANS LLC 26 4.83% $15,360
Fall River Five Cents Savings Bank 23 4.90% $11,000
Sierra Pacific Mortgage Company, Inc. 23 4.46% $15,103
BROKER SOLUTIONS, INC. 23 4.85% $12,169
Princeton Mortgage Corporation 22 5.58% $13,309
EVERETT FINANCIAL, INC. 21 5.64% $8,095
MORTGAGE EQUITY PARTNERS LLC 21 5.43% $15,302
The Federal Savings Bank 19 4.56% $16,322
EQUITY RESOURCES, INC. 19 4.87% $15,270
Equity Prime Mortgage LLC 17 4.76% $13,581
BAYCOAST MORTGAGE COMPANY, LLC 16 4.92% $10,988
RELIANCE FIRST CAPITAL, LLC 14 4.55% $12,800
NEW FED MORTGAGE, CORP. 13 4.55% $12,858
ENVOY MORTGAGE, LTD 13 4.57% $12,337
Homestar Mortgage, Inc. 13 4.21% $8,391
MUTUAL OF OMAHA MORTGAGE, INC. 12 5.36% $15,973
PLAZA HOME MORTGAGE, INC. 11 5.26% $18,482
Rockland Trust Company 11 4.63% $11,450
M&T Bank 11 3.99% $10,883
Leader Bank 10 4.36% $12,668
Waterstone Mortgage Corporation 9 5.29% $14,920
BAY EQUITY LLC 9 5.26% $18,013
PRIMELENDING, A PLAINSCAPITAL COMPANY 9 4.50% $13,823
The Washington Trust Company, of Westerly 9 4.69% $10,024
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 9 4.50% $11,962
Hometown Equity Mortgage, LLC 9 5.03% $17,312
AMERICAN NATIONWIDE MORTGAGE COMPANY, INC. 8 4.50% $17,531
Bank of England 7 5.25% $12,654
FINANCE OF AMERICA MORTGAGE LLC 7 4.79% $13,921
U.S. Bank 7 5.04% $10,375
GENEVA FINANCIAL, LLC 7 5.16% $16,944
Southern Mass Credit Union 6 4.64% $11,258
AMERICAN FINANCING CORPORATION 6 3.85% $12,058
Century Mortgage Company DBA Century Lending Company 6 4.17% $11,157
CMG MORTGAGE, INC. 6 5.25% $12,422
Eastern Bank 6 5.19% $12,759
INLAND BANK & TRUST 6 4.88% $11,711
NORTHPOINT MORTGAGE, INC. 5 4.45% $9,518
VILLAGE CAPITAL MORTGAGE 5 2.98% $6,543
First Savings Bank 5 4.28% $13,143
ALLIED MORTGAGE GROUP, INC. 5 4.80% $10,111
DRAPER AND KRAMER MORTGAGE CORP. 5 4.13% $12,819
TOP FLITE FINANCIAL, INC. 5 4.85% $18,995
Network Funding, L.P. 5 5.40% $12,052
Mortgage Research Center, LLC 4 4.50% $8,897
Luxury Mortgage Corp. 4 4.25% $17,105
BankNewport 4 3.88% $9,468
First Home Bank 4 4.34% $15,656
ARC HOME LLC 3 4.75% $9,904
DAS Acquisition Company, LLC 3 6.33% $15,080
Webster Bank 3 4.46% $11,273
Prosperity Home Mortgage, LLC 3 5.33% $9,652
ZILLOW HOME LOANS, LLC 3 3.50% $11,480
Santander Bank, N.A. 3 2.83% $11,002
Bank of America 3 4.33% $9,970
JPMorgan Chase Bank 3 5.79% $10,243
SALEM FIVE MORTGAGE COMPANY, LLC 3 4.92% $11,998
PNC Bank 3 5.33% $8,913
PLANET HOME LENDING, LLC 3 3.25% $4,057
Easthampton Savings Bank 3 6.00% $9,782
T2 FINANCIAL LLC 2 5.44% $15,992
AMERICAN PACIFIC MORTGAGE CORPORATION 2 5.56% $12,526
BETTER MORTGAGE CORPORATION 2 3.75% $12,152
Bridgewater Savings Bank 2 3.75% $9,859
CONTOUR MORTGAGE CORPORATION 2 5.44% $17,872
CONWAY FINANCIAL SERVICES, LLC 2 4.81% $12,679
DREW MORTGAGE ASSOCIATES, INC. 2 6.63% $11,902
Evolve Bank & Trust 2 2.63% $15,912
First Option Mortgage, LLC 2 4.19% $17,165
HOMESIDE FINANCIAL, LLC 2 3.81% $10,914
LADERA LENDING, INC. 2 4.50% $14,916
LAND HOME FINANCIAL SERVICES, INC. 2 3.75% $15,064
LIBERTY HOME MORTGAGE CORPORATION 2 6.63% $15,085
Magnolia Bank 2 2.62% $20,051
NATIONS RELIABLE LENDING, LLC 2 5.81% $18,050
PHH Mortgage Corporation 2 5.63% $11,430
STEARNS LENDING, LLC 2 3.00% $4,825
SUN WEST MORTGAGE COMPANY, INC. 2 6.00% $13,012
TD Bank 2 5.13% $7,473
Texana Bank 2 4.00% $13,369
The Camden National Bank 2 4.06% $14,070
Wells Fargo Bank 2 5.19% $9,348
NBKC BANK 1 4.75% $10,141
NATIONS DIRECT MORTGAGE, LLC 1 7.13% $10,215
MountainOne Bank 1 4.50% $14,150
MID-ISLAND MORTGAGE CORP. 1 4.75% $11,956
Ross Mortgage Company, Inc. 1 3.75% $16,370
Merchants Bank of Indiana 1 5.13% $16,271
LOANPAL, LLC 1 4.99% $22,737
LEADERONE FINANCIAL CORPORATION 1 3.50% $12,676
HUNT MORTGAGE CORPORATION 1 4.88% $14,852
First Guaranty Mortgage Corporation 1 3.50% $15,745
First Federal Bank 1 2.25% $9,785
Ameris Bank 1 5.63% $8,812
AmeriHome Mortgage Company, LLC 1 3.13% $11,404
ACADEMY MORTGAGE CORPORATION 1 5.25% $10,882
American Mortgage & Equity Consultants, Inc. 1 7.13% $22,024
AMERICAN FINANCIAL RESOURCES, INC. 1 5.13% $11,982
Wyndham Capital Mortgage, Inc. 1 5.00% $7,653
CRESCENT MORTGAGE COMPANY 1 2.75% $11,196
The Union Bank Company 1 6.00% $14,459
Cornerstone First Mortgage, Inc 1 4.25% $9,678
TJC Mortgage, Inc. 1 4.00% $16,362
Centreville Bank 1 4.25% $8,652
CANOPY MORTGAGE, LLC 1 5.25% $15,613
UNION HOME MORTGAGE CORP. 1 4.75% $11,143
UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 3.50% $11,556
BNC National Bank 1 3.63% $6,994
Barrington Bank & Trust Company, N.A. 1 5.25% $14,217
PREMIA MORTGAGE, LLC 1 5.88% $10,874
Poli Mortgage Group, Inc. 1 5.00% $12,989
Plains Commerce Bank 1 4.50% $12,807
OCEAN STATE CREDIT UNION 1 3.88% $5,190
OCEANSIDE MORTGAGE COMPANY 1 2.75% $2,954
North American Savings Bank, F.S.B. 1 5.13% $9,603

The top Providence FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 372 FHA loans originated. Their average total fees are $13,476, which is $1,936 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

The lowest fee Providence FHA lenders (with over 10 loans originated) are EVERETT FINANCIAL, INC. ($8,095), Homestar Mortgage, Inc. ($8,391), LAKEVIEW LOAN SERVICING, LLC ($8,902), Envision Bank ($10,358) and Mortgage Network, Inc. ($10,396).

The lowest rate Providence FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC (3.94%), M&T Bank (3.99%), HOME POINT FINANCIAL CORPORATION (4.13%), AMERISAVE MORTGAGE CORPORATION (4.15%) and Mr. Cooper ( Nationstar Mortgage ) (4.19%).

Providence FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
PROVIDENCE-WARWICK, RI-MA BRISTOL 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA BRISTOL 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA KENT 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA NEWPORT 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA PROVIDENCE 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA WASHINGTON 2022 $592,250 $758,200 $916,450 $1,138,950
PROVIDENCE-WARWICK, RI-MA BRISTOL 2023 $661,250 $846,500 $1,023,250 $1,271,650
PROVIDENCE-WARWICK, RI-MA BRISTOL 2023 $661,250 $846,500 $1,023,250 $1,271,650
PROVIDENCE-WARWICK, RI-MA KENT 2023 $661,250 $846,500 $1,023,250 $1,271,650
PROVIDENCE-WARWICK, RI-MA NEWPORT 2023 $661,250 $846,500 $1,023,250 $1,271,650
PROVIDENCE-WARWICK, RI-MA PROVIDENCE 2023 $661,250 $846,500 $1,023,250 $1,271,650
PROVIDENCE-WARWICK, RI-MA WASHINGTON 2023 $661,250 $846,500 $1,023,250 $1,271,650

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Providence (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 $339,900 (6.4%) $534,035 (6.1%) 1.26 3,680
2018-02-01 $349,450 (7.4%) $544,558 (7.1%) 1.27 3,510
2018-03-01 $359,000 (6.4%) $546,441 (4.7%) 1.26 3,545
2018-04-01 $369,000 (5.5%) $555,680 (2.4%) 1.25 3,765
2018-05-01 $372,400 (6.4%) $558,783 (2.4%) 1.24 4,164
2018-06-01 $369,900 (2.8%) $558,188 (0.6%) 1.23 4,806
2018-07-01 $370,000 (3.1%) $566,792 (1.6%) 1.24 5,134
2018-08-01 $369,000 (5.5%) $553,132 (0.4%) 1.24 5,353
2018-09-01 $364,900 (4.3%) $547,484 (0.6%) 1.23 5,561
2018-10-01 $352,500 (0.9%) $535,174 (-0.1%) 1.19 5,697
2018-11-01 $349,900 (0.3%) $534,839 (1.4%) 1.19 5,499
2018-12-01 $349,900 (2.9%) $521,359 (-0.7%) 1.21 4,956
2019-01-01 $349,900 (2.9%) $524,274 (-1.8%) 1.21 4,391
2019-02-01 $357,400 (2.3%) $545,059 (0.1%) 1.21 4,090
2019-03-01 $369,900 (3.0%) $553,914 (1.4%) 1.23 4,058
2019-04-01 $377,000 (2.2%) $563,100 (1.3%) 1.20 4,315
2019-05-01 $379,950 (2.0%) $574,165 (2.8%) 1.19 4,606
2019-06-01 $384,900 (4.1%) $579,677 (3.9%) 1.20 4,745
2019-07-01 $387,125 (4.6%) $587,901 (3.7%) 1.21 4,782
2019-08-01 $389,900 (5.7%) $596,121 (7.8%) 1.22 4,730
2019-09-01 $389,744 (6.8%) $602,563 (10.1%) 1.23 4,321
2019-10-01 $379,450 (7.7%) $580,851 (8.5%) 1.22 4,804
2019-11-01 $379,900 (8.6%) $586,226 (9.6%) 1.25 4,421
2019-12-01 $369,900 (5.7%) $561,197 (7.6%) 1.23 3,819
2020-01-01 $367,450 (5.0%) $558,946 (6.6%) 1.23 3,414
2020-02-01 $383,700 (7.4%) $582,606 (6.9%) 1.26 3,115
2020-03-01 $399,000 (7.9%) $610,479 (10.2%) 1.25 3,082
2020-04-01 $399,000 (5.8%) $621,255 (10.3%) 1.25 3,058
2020-05-01 $399,900 (5.3%) $642,895 (12.0%) 1.22 3,004
2020-06-01 $429,450 (11.6%) $688,571 (18.8%) 1.27 2,789
2020-07-01 $427,450 (10.4%) $702,136 (19.4%) 1.24 2,543
2020-08-01 $429,900 (10.3%) $722,819 (21.3%) 1.23 2,353
2020-09-01 $422,450 (8.4%) $746,989 (24.0%) 1.21 2,304
2020-10-01 $419,900 (10.7%) $738,920 (27.2%) 1.20 2,317
2020-11-01 $409,500 (7.8%) $730,099 (24.5%) 1.20 2,177
2020-12-01 $413,750 (11.9%) $740,130 (31.9%) 1.23 1,849
2021-01-01 $431,900 (17.5%) $802,270 (43.5%) 1.29 1,580
2021-02-01 $422,400 (10.1%) $804,545 (38.1%) 1.23 1,306
2021-03-01 $399,900 (0.2%) $776,799 (27.2%) 1.13 1,324
2021-04-01 $404,763 (1.4%) $792,424 (27.6%) 1.10 1,300
2021-05-01 $399,900 (0.0%) $776,013 (20.7%) 1.06 1,373
2021-06-01 $422,625 (-1.6%) $785,721 (14.1%) 1.11 1,623
2021-07-01 $429,900 (0.6%) $775,704 (10.5%) 1.13 1,896
2021-08-01 $438,625 (2.0%) $752,895 (4.2%) 1.17 2,032
2021-09-01 $436,900 (3.4%) $737,960 (-1.2%) 1.17 2,077
2021-10-01 $439,900 (4.8%) $699,443 (-5.3%) 1.17 2,036
2021-11-01 $434,425 (6.1%) $713,576 (-2.3%) 1.16 1,791
2021-12-01 $427,450 (3.3%) $713,774 (-3.6%) 1.16 1,419
2022-01-01 $450,000 (4.2%) $769,271 (-4.1%) 1.22 1,113
2022-02-01 $457,400 (8.3%) $759,805 (-5.6%) 1.19 1,017
2022-03-01 $442,225 (10.6%) $743,895 (-4.2%) 1.11 997
2022-04-01 $474,999 (17.4%) $727,988 (-8.1%) 1.13 1,104
2022-05-01 $472,450 (18.1%) $713,797 (-8.0%) 1.08 1,407
2022-06-01 $480,450 (13.7%) $718,239 (-8.6%) 1.07 1,711
2022-07-01 $479,900 (11.6%) $731,528 (-5.7%) 1.08 2,037
2022-08-01 $475,000 (8.3%) $761,008 (1.1%) 1.10 2,018
2022-09-01 $479,900 (9.8%) $781,272 (5.9%) 1.12 1,886
2022-10-01 $474,500 (7.9%) $774,346 (10.7%) 1.12 1,952
2022-11-01 $475,000 (9.3%) $749,736 (5.1%) 1.14 1,931
2022-12-01 $475,000 (11.1%) $754,807 (5.8%) 1.17 1,647
2023-01-01 $475,000 (5.6%) $764,435 (-0.6%) 1.18 1,445
2023-02-01 $498,125 (8.9%) $819,646 (7.9%) 1.20 1,284
2023-03-01 $512,900 (16.0%) $908,437 (22.1%) 1.21 1,170
2023-04-01 $529,900 (11.6%) $903,595 (24.1%) 1.23 1,220
Providence's median listing price for 2023-04-01 was $529,900, a difference of $54,901 (11.6%) versus the prior year and $17,000 versus the prior month.

Providence's median listing price comes in at 123% of the national average.

Providence's average listing price for 2023-04-01 was $903,595, a difference of $175,607 (24.1%) versus the prior year and $-4,842 versus the prior month.

For the 2023-04-01 period, Providence had 1,220 MLS listings, a difference of 50 listings (4%) versus the prior month and 116 listings (11%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Providence (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 87 days 1,676 sqft
2018-02-01 83 days 1,692 sqft
2018-03-01 57 days 1,714 sqft
2018-04-01 50 days 1,733 sqft
2018-05-01 43 days 1,738 sqft
2018-06-01 40 days 1,725 sqft
2018-07-01 46 days 1,728 sqft
2018-08-01 51 days 1,712 sqft
2018-09-01 52 days 1,700 sqft
2018-10-01 54 days 1,699 sqft
2018-11-01 58 days 1,682 sqft
2018-12-01 71 days 1,673 sqft
2019-01-01 79 days 1,667 sqft
2019-02-01 77 days 1,678 sqft
2019-03-01 62 days 1,692 sqft
2019-04-01 47 days 1,710 sqft
2019-05-01 46 days 1,736 sqft
2019-06-01 46 days 1,754 sqft
2019-07-01 52 days 1,750 sqft
2019-08-01 63 days 1,769 sqft
2019-09-01 65 days 1,757 sqft
2019-10-01 52 days 1,712 sqft
2019-11-01 59 days 1,728 sqft
2019-12-01 74 days 1,681 sqft
2020-01-01 78 days 1,678 sqft
2020-02-01 68 days 1,700 sqft
2020-03-01 51 days 1,739 sqft
2020-04-01 56 days 1,734 sqft
2020-05-01 64 days 1,754 sqft
2020-06-01 52 days 1,800 sqft
2020-07-01 50 days 1,773 sqft
2020-08-01 43 days 1,777 sqft
2020-09-01 33 days 1,754 sqft
2020-10-01 33 days 1,727 sqft
2020-11-01 41 days 1,696 sqft
2020-12-01 52 days 1,698 sqft
2021-01-01 57 days 1,700 sqft
2021-02-01 53 days 1,650 sqft
2021-03-01 40 days 1,631 sqft
2021-04-01 31 days 1,600 sqft
2021-05-01 29 days 1,572 sqft
2021-06-01 23 days 1,601 sqft
2021-07-01 29 days 1,600 sqft
2021-08-01 25 days 1,613 sqft
2021-09-01 30 days 1,649 sqft
2021-10-01 28 days 1,639 sqft
2021-11-01 32 days 1,622 sqft
2021-12-01 49 days 1,575 sqft
2022-01-01 45 days 1,596 sqft
2022-02-01 39 days 1,600 sqft
2022-03-01 31 days 1,573 sqft
2022-04-01 25 days 1,604 sqft
2022-05-01 23 days 1,607 sqft
2022-06-01 22 days 1,618 sqft
2022-07-01 29 days 1,602 sqft
2022-08-01 33 days 1,621 sqft
2022-09-01 39 days 1,645 sqft
2022-10-01 36 days 1,648 sqft
2022-11-01 38 days 1,650 sqft
2022-12-01 46 days 1,664 sqft
2023-01-01 53 days 1,632 sqft
2023-02-01 45 days 1,651 sqft
2023-03-01 42 days 1,665 sqft
2023-04-01 36 days 1,664 sqft
Providence's median listing age (time on market) for 2023-04-01 was 36 days. This is 44% longer than the same period one year ago.

Providence's median square footage for active listings during the 2023-04-01 period was 1,664 sqft. One year prior, the average listing was 1,604 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).