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 165 lenders originated 9,539 FHA loans during 2021. The total origination value was $2,959,235,000, with an average FHA loan value of $310,225.

Providence FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Providence averaged 6.16% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Providence's average FHA mortgage closing costs are $8,612.

The average rate for the prior week (2023-01-20) was 6.14% and one month ago for the week of 2022-12-23, the average rate was 6.23%.

The average rate one year ago was 3.52%.

For refis of the same type during the week of 2023-01-27, the average rate was 5.84%.

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 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
QUICKEN LOANS, LLC 474 2.63% $7,974
RESIDENTIAL MORTGAGE SERVICES, INC. 394 2.93% $10,128
Shamrock Home Loans, Inc. 350 3.02% $9,053
LAKEVIEW LOAN SERVICING, LLC 349 2.90% $6,019
MOVEMENT MORTGAGE, LLC 348 3.00% $8,992
UNITED WHOLESALE MORTGAGE, LLC 337 2.65% $10,236
PRIMARY RESIDENTIAL MORTGAGE, INC. 318 3.25% $10,496
CALIBER HOME LOANS, INC. 316 2.72% $8,832
NFM, INC. 303 3.14% $10,229
PROVINCE MORTGAGE ASSOCIATES, INC. 291 3.08% $10,170
FREEDOM MORTGAGE CORPORATION 290 2.78% $6,282
Northpointe Bank 228 3.02% $10,372
TOTAL MORTGAGE SERVICES, LLC 226 3.14% $11,671
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 200 3.10% $10,096
PENNYMAC LOAN SERVICES, LLC 197 2.88% $6,795
CROSSCOUNTRY MORTGAGE, LLC 181 3.13% $11,456
Nations Lending Corporation 175 3.31% $10,106
Mr. Cooper ( Nationstar Mortgage ) 166 3.12% $5,626
NEWREZ LLC 165 2.74% $7,985
HOMEBRIDGE FINANCIAL SERVICES, INC. 164 2.70% $8,341
HOME POINT FINANCIAL CORPORATION 162 2.78% $8,995
GUARANTEED RATE AFFINITY, LLC 131 2.85% $9,568
HOMESPIRE MORTGAGE CORPORATION 126 3.08% $10,982
EMBRACE HOME LOANS, INC. 113 2.86% $9,352
BROKER SOLUTIONS, INC. 107 2.77% $10,667
LOANDEPOT.COM, LLC 104 3.03% $10,214
HARBORONE MORTGAGE, LLC 103 2.94% $8,755
GUARANTEED RATE, INC. 88 2.87% $9,834
FIRST HOME MORTGAGE CORPORATION 85 3.04% $11,278
AMERICAN FINANCIAL NETWORK, INC. 75 2.89% $13,809
Homestar Mortgage, Inc. 66 2.95% $7,756
Atlantic Home Loans, Inc. 66 3.02% $10,947
Home Loan Investment Bank, F.S.B. 64 2.90% $9,177
Paramount Residential Mortgage Group, Inc. 62 3.04% $10,261
OCMBC, INC. 55 3.13% $10,522
Envision Bank 53 2.70% $8,948
Sierra Pacific Mortgage Company, Inc. 53 2.98% $10,300
NORWICH COMMERCIAL GROUP, INC. 51 3.44% $11,528
The Federal Savings Bank 50 2.73% $11,031
Citizens Bank 46 2.69% $8,546
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 44 2.95% $11,499
Fall River Five Cents Savings Bank 44 2.62% $9,356
AMERISAVE MORTGAGE CORPORATION 40 2.82% $10,133
Carrington Mortgage Services, LLC 38 3.27% $9,117
GUILD MORTGAGE COMPANY 38 3.10% $10,393
FINANCE OF AMERICA MORTGAGE LLC 37 2.70% $10,206
ENVOY MORTGAGE, LTD 36 3.11% $10,071
RADIUS FINANCIAL GROUP INC. 36 2.93% $9,885
VILLAGE CAPITAL MORTGAGE 33 2.97% $2,964
STEARNS LENDING, LLC 33 2.69% $9,400
BAYCOAST MORTGAGE COMPANY, LLC 28 2.73% $8,884
PRIMELENDING, A PLAINSCAPITAL COMPANY 28 2.84% $12,337
The Washington Trust Company, of Westerly 28 2.51% $8,439
First Guaranty Mortgage Corporation 27 2.76% $8,744
PLAZA HOME MORTGAGE, INC. 24 2.71% $6,681
EMM LOANS LLC 21 2.78% $10,911
First Home Bank 21 3.08% $10,316
BAY EQUITY LLC 21 3.07% $14,782
AMERICAN NATIONWIDE MORTGAGE COMPANY, INC. 20 3.13% $12,211
Equity Prime Mortgage LLC 20 3.38% $10,198
Hometown Equity Mortgage, LLC 20 3.23% $12,912
Flagstar Bank, FSB 18 2.76% $10,225
EQUITY RESOURCES, INC. 18 2.96% $12,243
Rockland Trust Company 18 2.60% $10,177
AmeriHome Mortgage Company, LLC 18 2.76% $4,992
MUTUAL OF OMAHA MORTGAGE, INC. 16 2.91% $9,758
NEW FED MORTGAGE, CORP. 16 2.99% $11,173
LAND HOME FINANCIAL SERVICES, INC. 15 3.38% $12,841
GENEVA FINANCIAL, LLC 15 3.10% $10,578
Bank of America 14 2.73% $7,302
ALLIED MORTGAGE GROUP, INC. 14 2.99% $10,843
Eastern Bank 13 2.73% $11,235
Leader Bank 12 2.46% $10,554
SALEM FIVE MORTGAGE COMPANY, LLC 12 2.59% $11,471
NORTHPOINT MORTGAGE, INC. 12 2.91% $8,892
RELIANCE FIRST CAPITAL, LLC 11 2.98% $11,047
OCEANSIDE MORTGAGE COMPANY 11 2.71% $3,539
Ixonia Bank 10 3.43% $11,604
M&T Bank 10 3.20% $6,897
CMG MORTGAGE, INC. 9 3.04% $12,291
INLAND BANK & TRUST 9 3.14% $10,239
Santander Bank, N.A. 9 2.57% $8,820
Evolve Bank & Trust 8 2.84% $9,874
U.S. Bank 8 2.87% $9,015
SUN WEST MORTGAGE COMPANY, INC. 8 2.77% $9,126
MSA MORTGAGE, LLC 8 2.53% $9,768
CHURCHILL MORTGAGE CORPORATION 7 2.79% $10,596
CELEBRITY HOME LOANS, LLC 7 3.36% $9,608
BankNewport 7 2.73% $9,320
Bank of England 7 3.30% $10,794
Magnolia Bank 7 2.82% $13,575
EVERETT FINANCIAL, INC. 6 3.63% $7,058
CONWAY FINANCIAL SERVICES, LLC 6 3.00% $9,681
ZILLOW HOME LOANS, LLC 6 3.04% $6,928
Luxury Mortgage Corp. 6 2.79% $11,390
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 6 2.60% $11,698
Mortgage Network, Inc. 6 3.19% $10,008
PLANET HOME LENDING, LLC 6 2.94% $8,278
Prosperity Home Mortgage, LLC 5 2.95% $9,829
The Camden National Bank 5 2.38% $13,128
Residential Mortgage Solutions, Inc. 5 2.70% $9,267
ARC HOME LLC 5 2.92% $8,364
DRAPER AND KRAMER MORTGAGE CORP. 5 3.20% $10,563
Mortgage Research Center, LLC 5 3.30% $7,324
Bridgewater Savings Bank 4 2.47% $9,780
GUARANTY HOME MORTGAGE CORPORATION 4 2.69% $12,097
First Federal Bank 4 3.09% $11,023
LEADERONE FINANCIAL CORPORATION 4 2.91% $11,143
MID-ISLAND MORTGAGE CORP. 4 2.72% $7,130
MORTGAGE EQUITY PARTNERS LLC 4 3.09% $10,590
Network Funding, L.P. 4 2.63% $8,824
NP, Inc. 4 2.84% $9,791
Webster Bank 4 3.19% $7,051
Wells Fargo Bank 4 2.94% $10,083
WILLIAM RAVEIS MORTGAGE, LLC 4 2.63% $9,984
AMERICAN PACIFIC MORTGAGE CORPORATION 3 2.83% $9,174
BAYSHORE MORTGAGE FUNDING, LLC 3 2.58% $5,899
CONTOUR MORTGAGE CORPORATION 3 3.17% $12,247
Century Mortgage Company DBA Century Lending Company 3 2.75% $9,957
ACADEMY MORTGAGE CORPORATION 3 3.25% $10,225
Paramount Bank 2 3.31% $12,886
First Savings Bank 2 2.88% $10,239
KELLER MORTGAGE, LLC 2 2.63% $9,233
OCEAN STATE CREDIT UNION 2 2.63% $8,154
JPMorgan Chase Bank 2 3.06% $7,362
InterContinental Capital Group, Inc 2 2.88% $14,050
Centreville Bank 2 2.56% $7,874
Peoples Bank 2 3.56% $9,739
TOP FLITE FINANCIAL, INC. 2 3.63% $25,879
Ross Mortgage Company, Inc. 2 3.88% $11,026
PHH Mortgage Corporation 2 2.69% $9,896
FBC MORTGAGE, LLC 1 2.50% $9,369
LENDUS, LLC 1 3.38% $12,480
FirstBank 1 2.50% $8,633
Austin Capital Bank SSB 1 3.00% $8,299
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 2.88% $11,499
Strong Home Mortgage, LLC 1 2.88% $7,874
TD Bank 1 2.75% $8,414
INTELLILOAN, INC. 1 2.75% $17,078
AMERICAN FINANCING CORPORATION 1 3.00% $8,066
UNION HOME MORTGAGE CORP. 1 2.75% $23,312
AMERICAN FINANCIAL RESOURCES, INC. 1 2.50% $16,023
HUNT MORTGAGE CORPORATION 1 3.13% $10,215
Allied First Bank,sb 1 2.63% $7,337
Waterstone Mortgage Corporation 1 4.25% $7,138
Wyndham Capital Mortgage, Inc. 1 3.00% $5,271
NORTHERN MORTGAGE SERVICES, LLC 1 2.88% $8,948
DREW MORTGAGE ASSOCIATES, INC. 1 2.88% $9,771
WESTERN EXPRESS LENDING 1 3.75% $10,242
NATIONWIDE MORTGAGE BANKERS, INC. 1 3.00% $10,388
NATIONS DIRECT MORTGAGE, LLC 1 2.63% $12,375
PARKSIDE LENDING, LLC 1 2.63% $10,604
People's United Bank 1 3.25% $10,598
FAMILY FIRST FUNDING LLC 1 3.50% $17,039
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.00% $8,655
Poli Mortgage Group, Inc. 1 2.63% $5,036
Home Mortgage Alliance Corp 1 3.25% $11,877
Prime Choice Funding Inc. 1 2.88% $9,419
BNC National Bank 1 2.50% $10,453
MID AMERICA MORTGAGE, INC. 1 2.75% $5,111
BETTER MORTGAGE CORPORATION 1 2.50% $7,414
Barrington Bank & Trust Company, N.A. 1 3.20% $9,888
METRO 1 2.75% $3,603
Low VA Rates, LLC 1 2.88% $6,433
LOANLEADERS OF AMERICA, INC. 1 2.75% $11,278

The top Providence FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 474 FHA loans originated. Their average total fees are $7,974, which is $2,154 lower than the next largest lender, RESIDENTIAL MORTGAGE SERVICES, INC..

The lowest fee Providence FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,964), OCEANSIDE MORTGAGE COMPANY ($3,539), AmeriHome Mortgage Company, LLC ($4,992), Mr. Cooper ( Nationstar Mortgage ) ($5,626) and LAKEVIEW LOAN SERVICING, LLC ($6,019).

The lowest rate Providence FHA lenders (with over 10 loans originated) are Leader Bank (2.46%), The Washington Trust Company, of Westerly (2.51%), SALEM FIVE MORTGAGE COMPANY, LLC (2.59%), Rockland Trust Company (2.60%) and Fall River Five Cents Savings Bank (2.62%).

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

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%) 1.23 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%) 1.22 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 $366,371 (2.1%) $552,193 (1.1%) 1.20 4,181
2019-04-01 $377,000 (2.2%) $563,066 (1.3%) 1.20 4,322
2019-05-01 $379,950 (2.0%) $573,959 (2.7%) 1.19 4,617
2019-06-01 $384,900 (4.1%) $579,191 (3.8%) 1.20 4,764
2019-07-01 $387,000 (4.6%) $587,175 (3.6%) 1.21 4,803
2019-08-01 $378,898 (2.7%) $582,557 (5.3%) 1.20 4,818
2019-09-01 $377,394 (3.4%) $580,367 (6.0%) 1.21 4,828
2019-10-01 $378,230 (7.3%) $580,010 (8.4%) 1.22 4,825
2019-11-01 $379,900 (8.6%) $584,943 (9.4%) 1.25 4,445
2019-12-01 $369,900 (5.7%) $559,923 (7.4%) 1.23 3,843
2020-01-01 $367,400 (5.0%) $557,586 (6.4%) 1.23 3,438
2020-02-01 $380,000 (6.3%) $580,897 (6.6%) 1.24 3,139
2020-03-01 $399,000 (8.9%) $608,613 (10.2%) 1.25 3,106
2020-04-01 $399,000 (5.8%) $619,271 (10.0%) 1.25 3,082
2020-05-01 $399,900 (5.3%) $640,751 (11.6%) 1.22 3,028
2020-06-01 $427,450 (11.1%) $685,914 (18.4%) 1.26 2,813
2020-07-01 $427,350 (10.4%) $699,280 (19.1%) 1.24 2,567
2020-08-01 $429,900 (13.5%) $719,394 (23.5%) 1.23 2,377
2020-09-01 $421,950 (11.8%) $743,018 (28.0%) 1.21 2,328
2020-10-01 $419,000 (10.8%) $734,976 (26.7%) 1.20 2,341
2020-11-01 $409,450 (7.8%) $726,033 (24.1%) 1.20 2,201
2020-12-01 $409,950 (10.8%) $735,707 (31.4%) 1.22 1,873
2021-01-01 $429,900 (17.0%) $795,933 (42.8%) 1.28 1,604
2021-02-01 $415,450 (9.3%) $797,604 (37.3%) 1.21 1,330
2021-03-01 $399,900 (0.2%) $770,439 (26.6%) 1.13 1,348
2021-04-01 $401,700 (0.7%) $785,591 (26.9%) 1.09 1,324
2021-05-01 $399,900 (0.0%) $770,124 (20.2%) 1.06 1,397
2021-06-01 $421,950 (-1.3%) $780,372 (13.8%) 1.11 1,648
2021-07-01 $429,000 (0.4%) $771,185 (10.3%) 1.13 1,919
2021-08-01 $435,950 (1.4%) $748,364 (4.0%) 1.16 2,055
2021-09-01 $434,925 (3.1%) $733,607 (-1.3%) 1.16 2,100
2021-10-01 $439,900 (5.0%) $695,350 (-5.4%) 1.17 2,059
2021-11-01 $432,450 (5.6%) $708,934 (-2.4%) 1.15 1,815
2021-12-01 $424,725 (3.6%) $708,665 (-3.7%) 1.15 1,443
2022-01-01 $449,900 (4.7%) $760,876 (-4.4%) 1.22 1,132
2022-02-01 $449,700 (8.2%) $751,776 (-5.8%) 1.17 1,041
2022-03-01 $435,950 (9.0%) $736,462 (-4.4%) 1.09 1,021
2022-04-01 $471,977 (17.5%) $721,886 (-8.1%) 1.13 1,129
2022-05-01 $469,225 (17.3%) $708,639 (-8.0%) 1.07 1,432
2022-06-01 $477,000 (13.1%) $714,171 (-8.5%) 1.06 1,736
2022-07-01 $479,900 (11.9%) $727,838 (-5.6%) 1.09 2,061
2022-08-01 $472,450 (8.4%) $756,815 (1.1%) 1.09 2,042
2022-09-01 $477,375 (9.8%) $776,717 (5.9%) 1.12 1,910
2022-10-01 $469,900 (6.8%) $769,855 (10.7%) 1.11 1,976
2022-11-01 $474,950 (9.8%) $745,561 (5.2%) 1.14 1,955
2022-12-01 $469,900 (10.6%) $743,362 (4.9%) 1.17 1,704
Providence's median listing price for 2022-12-01 was $469,900, a difference of $45,175 (10.6%) versus the prior year and $-5,050 versus the prior month.

Providence's median listing price comes in at 117% of the national average.

Providence's average listing price for 2022-12-01 was $743,362, a difference of $34,697 (4.9%) versus the prior year and $-2,199 versus the prior month.

For the 2022-12-01 period, Providence had 1,704 MLS listings, a difference of -251 listings (-13%) versus the prior month and 261 listings (18%) 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 1,715 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 1,711 sqft
2018-09-01 52 days 1,700 sqft
2018-10-01 54 days 1,698 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 1,691 sqft
2019-04-01 47 days 1,710 sqft
2019-05-01 46 days 1,735 sqft
2019-06-01 47 days 1,754 sqft
2019-07-01 52 days 1,748 sqft
2019-08-01 53 days 1,725 sqft
2019-09-01 53 days 1,712 sqft
2019-10-01 52 days 1,709 sqft
2019-11-01 60 days 1,728 sqft
2019-12-01 74 days 1,681 sqft
2020-01-01 79 days 1,676 sqft
2020-02-01 70 days 1,697 sqft
2020-03-01 51 days 1,737 sqft
2020-04-01 56 days 1,731 sqft
2020-05-01 64 days 1,750 sqft
2020-06-01 53 days 1,800 sqft
2020-07-01 50 days 1,768 sqft
2020-08-01 44 days 1,773 sqft
2020-09-01 34 days 1,751 sqft
2020-10-01 33 days 1,720 sqft
2020-11-01 42 days 1,691 sqft
2020-12-01 54 days 1,693 sqft
2021-01-01 58 days 1,697 sqft
2021-02-01 54 days 1,646 sqft
2021-03-01 42 days 1,628 sqft
2021-04-01 31 days 1,596 sqft
2021-05-01 29 days 1,567 sqft
2021-06-01 24 days 1,597 sqft
2021-07-01 29 days 1,600 sqft
2021-08-01 26 days 1,609 sqft
2021-09-01 30 days 1,645 sqft
2021-10-01 29 days 1,638 sqft
2021-11-01 32 days 1,617 sqft
2021-12-01 49 days 1,569 sqft
2022-01-01 47 days 1,590 sqft
2022-02-01 39 days 1,596 sqft
2022-03-01 33 days 1,570 sqft
2022-04-01 26 days 1,600 sqft
2022-05-01 23 days 1,606 sqft
2022-06-01 23 days 1,618 sqft
2022-07-01 29 days 1,600 sqft
2022-08-01 34 days 1,620 sqft
2022-09-01 40 days 1,642 sqft
2022-10-01 37 days 1,644 sqft
2022-11-01 39 days 1,649 sqft
2022-12-01 47 days 1,658 sqft
Providence's median listing age (time on market) for 2022-12-01 was 47 days. This is -5% shorter than the same period one year ago.

Providence's median square footage for active listings during the 2022-12-01 period was 1,658 sqft. One year prior, the average listing was 1,569 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).