Punta Gorda FHA Loan Rates, Closing Costs & Stats

PUNTA GORDA, FL

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.

Punta Gorda's 140 lenders originated 924 FHA loans during 2023. The total origination value was $274,140,000, with an average FHA loan value of $296,688.

Punta Gorda FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Punta Gorda averaged 6.87% for the week of 2024-05-24, compared to the national average (all FHA variants) of 6.746% for the same period.

Punta Gorda's average FHA mortgage closing costs are $8,764.

The average rate for the prior week (2024-05-17) was 6.87% and one month ago for the week of 2024-04-19, the average rate was 6.58%.

The average rate one year ago was 6.41%.

For refis of the same type during the week of 2024-05-24, the average rate was 7.44%.

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

Punta Gorda 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 Punta Gorda level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 121 6.42% $13,510
QUICKEN LOANS, LLC 60 6.32% $13,155
DHI MORTGAGE COMPANY, LTD. 50 5.68% $9,743
LOANDEPOT.COM, LLC 36 6.56% $12,796
EAGLE HOME MORTGAGE, LLC 34 5.85% $13,160
CROSSCOUNTRY MORTGAGE, LLC 26 6.63% $13,688
NEWREZ LLC 24 6.70% $13,365
CARDINAL FINANCIAL 21 6.27% $14,049
INSPIRE HOME LOANS INC. 19 6.18% $11,067
NVR Mortgage Finance, Inc. 16 5.53% $11,832
FBC MORTGAGE, LLC 16 6.30% $11,255
FREEDOM MORTGAGE CORPORATION 15 6.73% $14,823
GUARANTEED RATE, INC. 15 6.35% $14,786
PENNYMAC LOAN SERVICES, LLC 14 5.94% $16,188
Sierra Pacific Mortgage Company, Inc. 13 6.17% $15,300
BROKER SOLUTIONS, INC. 12 6.96% $14,978
Paramount Residential Mortgage Group, Inc. 12 6.56% $14,253
Ixonia Bank 12 6.93% $13,433
HOMESIDE FINANCIAL, LLC 10 6.76% $12,265
M/I FINANCIAL, LLC 9 5.69% $17,821
THE MORTGAGE FIRM, INC. 9 6.83% $13,202
NFM, INC. 9 6.56% $13,542
Bank of England 8 6.67% $12,471
AMERICAN PACIFIC MORTGAGE CORPORATION 8 6.75% $13,679
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 8 6.16% $11,135
EMBRACE HOME LOANS, INC. 8 6.41% $15,338
Carrington Mortgage Services, LLC 8 6.39% $16,536
MOVEMENT MORTGAGE, LLC 8 6.55% $16,144
GENEVA FINANCIAL, LLC 7 6.36% $13,828
PULTE MORTGAGE LLC 7 6.48% $10,075
UNION HOME MORTGAGE CORP. 5 7.23% $13,232
Plains Commerce Bank 5 6.65% $15,181
SECURITYNATIONAL MORTGAGE COMPANY 5 6.95% $17,881
Equity Prime Mortgage LLC 4 6.53% $17,105
CALIBER HOME LOANS, INC. 4 6.19% $10,362
Century Mortgage Company DBA Century Lending Company 4 6.59% $14,656
LOANPAL, LLC 4 5.59% $15,951
VAN DYK MORTGAGE CORPORATION 4 6.69% $13,585
EVERETT FINANCIAL, INC. 4 6.75% $17,012
BAY EQUITY LLC 3 6.12% $10,252
AMCAP MORTGAGE, LTD. 3 7.25% $15,046
American Mortgage & Equity Consultants, Inc. 3 6.50% $12,172
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 3 7.04% $18,329
CMG MORTGAGE, INC. 3 6.33% $21,241
GUILD MORTGAGE COMPANY 3 6.67% $10,310
Hometown Equity Mortgage, LLC 3 6.38% $18,807
LAKEVIEW LOAN SERVICING, LLC 3 6.08% $16,750
Mortgage Research Center, LLC 3 6.46% $9,912
MUTUAL OF OMAHA MORTGAGE, INC. 3 6.71% $15,363
Nations Lending Corporation 3 6.75% $9,166
Northpointe Bank 3 5.88% $12,669
OCMBC, INC. 3 7.33% $12,727
POLARIS HOME FUNDING CORP. 3 7.00% $9,265
PREMIER MORTGAGE RESOURCES, L.L.C. 3 6.42% $12,194
PRIMARY RESIDENTIAL MORTGAGE, INC. 3 7.00% $12,900
STOCKTON MORTGAGE CORPORATION 3 7.08% $9,121
TJC Mortgage, Inc. 3 6.83% $10,557
Wells Fargo Bank 3 6.42% $14,062
LIBERTY HOME MORTGAGE CORPORATION 2 6.75% $8,943
MY MORTGAGE, INC. 2 6.75% $10,819
CONTOUR MORTGAGE CORPORATION 2 6.81% $16,121
AMERICAN FINANCIAL NETWORK, INC. 2 6.19% $16,382
MORTGAGE 1 INCORPORATED 2 7.31% $12,185
Mortgage Lenders Investment Trading Corporation 2 7.00% $8,223
BECKAM FUNDING CORP. 2 7.38% $17,632
ZILLOW HOME LOANS, LLC 2 6.69% $12,009
U.S. Bank 2 6.25% $15,658
T2 FINANCIAL LLC 2 6.63% $16,030
FIRST ALLIANCE HOME MORTGAGE, LLC 2 6.06% $12,143
FIRST COMMUNITY MORTGAGE, INC. 2 7.00% $12,481
FIRST HOME MORTGAGE CORPORATION 2 6.50% $12,373
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.88% $12,731
Flagstar Bank, FSB 2 7.19% $14,450
Keystone Funding, Inc. 2 6.44% $10,141
MICHIGAN MUTUAL, INC. 2 5.75% $11,914
AMERISAVE MORTGAGE CORPORATION 2 7.00% $16,271
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 2 7.19% $8,958
GUARANTEED RATE AFFINITY, LLC 2 7.25% $17,562
EMM LOANS LLC 2 7.56% $15,216
AmeriHome Mortgage Company, LLC 2 5.81% $14,851
READY MORTGAGE LENDERS, LLC 2 7.13% $16,322
Regions Bank 2 5.69% $11,495
TOWNE MORTGAGE COMPANY 1 7.25% $15,365
NATIONS RELIABLE LENDING, LLC 1 7.00% $15,263
BELEM SERVICING LLC 1 6.63% $16,106
North American Savings Bank, F.S.B. 1 5.25% $12,629
ALLIED MORTGAGE GROUP, INC. 1 6.50% $15,672
NP, Inc. 1 6.88% $24,374
NTFN, INC. 1 7.63% $15,257
Acre Mortgage and Financial Inc 1 6.99% $11,684
Allied First Bank,sb 1 7.25% $14,213
Barrington Bank & Trust Company, N.A. 1 6.75% $13,194
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 7.25% $22,429
Performance Financial, Inc. 1 7.25% $16,853
ARC HOME LLC 1 5.63% $24,298
PLANET HOME LENDING, LLC 1 6.75% $5,496
PLAZA HOME MORTGAGE, INC. 1 7.13% $19,288
PREFERRED LENDING SERVICES, LLC 1 6.00% $9,820
Advisors Mortgage Group, L.L.C. 1 7.25% $14,714
VILLAGE CAPITAL MORTGAGE 1 5.88% $10,430
RESIDENTIAL BANCORP 1 7.13% $21,525
RESIDENTIAL HOME FUNDING CORP. 1 7.00% $8,055
ROYAL UNITED MORTGAGE LLC 1 6.38% $9,493
AMERICAN FINANCING CORPORATION 1 7.63% $9,573
Shamrock Home Loans, Inc. 1 7.25% $12,879
AMERICAN FINANCIAL RESOURCES, INC. 1 6.25% $12,096
Wallick & Volk, Inc. 1 6.25% $23,089
SUCCESS MORTGAGE PARTNERS, INC. 1 6.00% $10,622
Synovus Bank 1 7.63% $10,113
FIRST MORTGAGE COMPANY, INC. 1 6.25% $14,521
FAIRWAY FUNDING GROUP, INC. 1 6.00% $11,307
Evolve Bank & Trust 1 6.63% $11,751
GLENDENNING MORTGAGE CORPORATION 1 6.50% $17,197
The Federal Savings Bank 1 7.00% $7,710
Hancock Whitney Bank 1 6.25% $19,153
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 6.00% $10,167
HARBORONE MORTGAGE, LLC 1 7.00% $8,796
East Coast Capital Corp. 1 6.50% $16,560
HOMESPIRE MORTGAGE CORPORATION 1 6.13% $12,412
The Loan Store, Inc. 1 6.25% $17,001
HOMEXPRESS MORTGAGE CORP. 1 5.38% $14,097
Eagle Bank and Trust Company 1 5.63% $14,225
INTELLILOAN, INC. 1 6.75% $7,414
ISERVE RESIDENTIAL LENDING, LLC 1 6.25% $15,063
DG PINNACLE FUNDING LLC 1 6.13% $21,711
JPMorgan Chase Bank 1 5.38% $13,155
KeyBank 1 7.00% $8,119
LAND HOME FINANCIAL SERVICES, INC. 1 7.00% $7,993
LEADERONE FINANCIAL CORPORATION 1 5.99% $17,854
Citizens Bank 1 7.63% $7,492
Loan Simple, Inc. 1 7.25% $13,706
MASON MCDUFFIE MORTGAGE CORPORATION 1 5.75% $13,819
MID AMERICA MORTGAGE, INC. 1 6.75% $6,077
CALCON MUTUAL MORTGAGE LLC 1 7.13% $21,035
MLB RESIDENTIAL LENDING, LLC 1 5.13% $9,097
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.75% $7,800
BNC National Bank 1 5.63% $9,809
Mr. Cooper ( Nationstar Mortgage ) 1 5.75% $13,644
TOP FLITE FINANCIAL, INC. 1 6.75% $13,811
NATIONS DIRECT MORTGAGE, LLC 1 6.25% $10,956

The top Punta Gorda FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 121 FHA loans originated. Their average total fees are $13,510, which is $355 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Punta Gorda FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($9,743), INSPIRE HOME LOANS INC. ($11,067), FBC MORTGAGE, LLC ($11,255), NVR Mortgage Finance, Inc. ($11,832) and HOMESIDE FINANCIAL, LLC ($12,265).

The lowest rate Punta Gorda FHA lenders (with over 10 loans originated) are NVR Mortgage Finance, Inc. (5.53%), DHI MORTGAGE COMPANY, LTD. (5.68%), EAGLE HOME MORTGAGE, LLC (5.85%), PENNYMAC LOAN SERVICES, LLC (5.94%) and Sierra Pacific Mortgage Company, Inc. (6.17%).

Punta Gorda FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
PUNTA GORDA, FL CHARLOTTE 2022 $420,680 $538,650 $651,050 $809,150
PUNTA GORDA, FL CHARLOTTE 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Punta Gorda (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 $274,900 (1.8%) $364,771 (-2.4%) 1.02 2,207
2018-02-01 $274,950 (2.1%) $366,572 (-0.4%) 1.00 2,254
2018-03-01 $275,000 (3.6%) $366,004 (0.2%) 0.96 2,256
2018-04-01 $269,950 (1.5%) $366,584 (0.5%) 0.92 2,186
2018-05-01 $269,950 (2.8%) $365,442 (0.9%) 0.90 2,074
2018-06-01 $274,900 (4.1%) $373,399 (4.4%) 0.92 1,937
2018-07-01 $271,790 (2.6%) $368,957 (3.8%) 0.91 1,859
2018-08-01 $269,949 (1.8%) $361,520 (2.0%) 0.90 1,811
2018-09-01 $269,000 (1.6%) $354,561 (1.0%) 0.90 1,788
2018-10-01 $274,925 (3.0%) $363,862 (4.7%) 0.93 1,880
2018-11-01 $279,250 (2.9%) $367,202 (3.2%) 0.95 2,114
2018-12-01 $279,900 (3.7%) $373,128 (2.6%) 0.97 2,309
2019-01-01 $280,000 (1.9%) $375,992 (3.1%) 0.97 2,441
2019-02-01 $279,950 (1.8%) $374,421 (2.1%) 0.95 2,606
2019-03-01 $277,857 (1.0%) $369,580 (1.0%) 0.91 2,572
2019-04-01 $275,000 (1.9%) $365,321 (-0.3%) 0.87 2,483
2019-05-01 $275,000 (1.9%) $363,976 (-0.4%) 0.86 2,290
2019-06-01 $274,900 (0.0%) $364,221 (-2.5%) 0.86 2,092
2019-07-01 $275,000 (1.2%) $366,634 (-0.6%) 0.86 1,926
2019-08-01 $277,483 (2.8%) $368,239 (1.9%) 0.88 1,891
2019-09-01 $278,336 (3.5%) $369,772 (4.3%) 0.89 1,882
2019-10-01 $279,000 (1.5%) $371,357 (2.1%) 0.90 1,894
2019-11-01 $279,900 (0.2%) $375,497 (2.3%) 0.92 1,990
2019-12-01 $290,000 (3.6%) $389,105 (4.3%) 0.97 2,010
2020-01-01 $290,000 (3.6%) $389,008 (3.5%) 0.97 2,019
2020-02-01 $289,900 (3.6%) $390,180 (4.2%) 0.95 2,016
2020-03-01 $285,875 (2.9%) $388,584 (5.1%) 0.90 2,006
2020-04-01 $282,895 (2.9%) $380,851 (4.3%) 0.89 2,028
2020-05-01 $285,000 (3.6%) $384,848 (5.7%) 0.87 1,932
2020-06-01 $284,500 (3.5%) $391,462 (7.5%) 0.84 1,713
2020-07-01 $281,300 (2.3%) $392,088 (6.9%) 0.82 1,513
2020-08-01 $284,000 (2.4%) $392,083 (6.5%) 0.81 1,409
2020-09-01 $279,475 (0.4%) $395,707 (7.0%) 0.80 1,343
2020-10-01 $276,035 (-1.1%) $401,673 (8.2%) 0.79 1,298
2020-11-01 $278,700 (-0.4%) $412,786 (9.9%) 0.81 1,253
2020-12-01 $289,675 (-0.1%) $422,570 (8.6%) 0.86 1,165
2021-01-01 $294,900 (1.7%) $451,789 (16.1%) 0.88 1,003
2021-02-01 $297,948 (2.8%) $459,840 (17.9%) 0.87 798
2021-03-01 $300,000 (4.9%) $462,255 (19.0%) 0.85 615
2021-04-01 $322,425 (14.0%) $489,867 (28.6%) 0.87 522
2021-05-01 $324,900 (14.0%) $476,577 (23.8%) 0.86 537
2021-06-01 $337,500 (18.6%) $488,708 (24.8%) 0.89 535
2021-07-01 $355,900 (26.5%) $509,041 (29.8%) 0.94 583
2021-08-01 $370,000 (30.3%) $523,803 (33.6%) 0.99 623
2021-09-01 $374,950 (34.2%) $528,588 (33.6%) 1.00 641
2021-10-01 $379,900 (37.6%) $545,744 (35.9%) 1.01 649
2021-11-01 $399,225 (43.3%) $599,207 (45.2%) 1.07 609
2021-12-01 $395,463 (36.5%) $595,410 (40.9%) 1.07 639
2022-01-01 $391,527 (32.8%) $587,603 (30.1%) 1.06 534
2022-02-01 $422,500 (41.8%) $623,182 (35.5%) 1.10 530
2022-03-01 $430,227 (43.4%) $630,148 (36.3%) 1.08 555
2022-04-01 $435,699 (35.1%) $627,310 (28.1%) 1.04 659
2022-05-01 $454,500 (39.9%) $625,924 (31.3%) 1.04 849
2022-06-01 $457,625 (35.6%) $621,058 (27.1%) 1.02 1,019
2022-07-01 $449,900 (26.4%) $603,564 (18.6%) 1.01 1,165
2022-08-01 $448,068 (21.1%) $565,689 (8.0%) 1.04 1,264
2022-09-01 $449,396 (19.9%) $565,559 (7.0%) 1.05 1,291
2022-10-01 $449,900 (18.4%) $571,322 (4.7%) 1.06 1,158
2022-11-01 $441,500 (10.6%) $560,292 (-6.5%) 1.06 1,171
2022-12-01 $426,050 (7.7%) $556,437 (-6.6%) 1.05 1,189
2023-01-01 $429,000 (9.6%) $561,564 (-4.4%) 1.06 1,290
2023-02-01 $437,450 (3.5%) $583,740 (-6.3%) 1.06 1,397
2023-03-01 $438,850 (2.0%) $575,524 (-8.7%) 1.04 1,583
2023-04-01 $430,410 (-1.2%) $569,089 (-9.3%) 1.00 1,767
2023-05-01 $432,475 (-4.9%) $573,269 (-8.4%) 0.98 1,813
2023-06-01 $434,975 (-5.0%) $567,375 (-8.6%) 0.98 1,919
2023-07-01 $429,000 (-4.7%) $554,172 (-8.2%) 0.98 2,004
2023-08-01 $426,523 (-4.8%) $542,444 (-4.1%) 0.98 2,037
2023-09-01 $429,000 (-4.5%) $537,217 (-5.0%) 1.00 2,203
2023-10-01 $431,788 (-4.0%) $546,044 (-4.4%) 1.02 2,419
2023-11-01 $429,900 (-2.6%) $551,449 (-1.6%) 1.02 2,687
2023-12-01 $427,500 (0.3%) $553,021 (-0.6%) 1.04 2,987
2024-01-01 $425,000 (-0.9%) $558,551 (-0.5%) 1.04 3,216
2024-02-01 $425,000 (-2.9%) $558,029 (-4.4%) 1.02 3,502
2024-03-01 $419,000 (-4.5%) $547,362 (-4.9%) 0.99 3,636
2024-04-01 $415,088 (-3.6%) $535,672 (-5.9%) 0.97 3,673
Punta Gorda's median listing price for 2024-04-01 was $415,088, a difference of $-15,322 (-3.6%) versus the prior year and $-3,912 versus the prior month.

Punta Gorda's median listing price comes in at 97% of the national average.

Punta Gorda's average listing price for 2024-04-01 was $535,672, a difference of $-33,417 (-5.9%) versus the prior year and $-11,690 versus the prior month.

For the 2024-04-01 period, Punta Gorda had 3,673 MLS listings, a difference of 37 listings (1%) versus the prior month and 1,906 listings (108%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Punta Gorda (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 69 days 1,800 sqft
2018-02-01 68 days 1,790 sqft
2018-03-01 66 days 1,787 sqft
2018-04-01 71 days 1,777 sqft
2018-05-01 74 days 1,759 sqft
2018-06-01 85 days 1,768 sqft
2018-07-01 87 days 1,782 sqft
2018-08-01 86 days 1,758 sqft
2018-09-01 86 days 1,756 sqft
2018-10-01 84 days 1,764 sqft
2018-11-01 65 days 1,760 sqft
2018-12-01 66 days 1,767 sqft
2019-01-01 73 days 1,771 sqft
2019-02-01 72 days 1,756 sqft
2019-03-01 72 days 1,745 sqft
2019-04-01 74 days 1,729 sqft
2019-05-01 81 days 1,723 sqft
2019-06-01 89 days 1,723 sqft
2019-07-01 93 days 1,731 sqft
2019-08-01 92 days 1,754 sqft
2019-09-01 90 days 1,754 sqft
2019-10-01 86 days 1,754 sqft
2019-11-01 71 days 1,766 sqft
2019-12-01 73 days 1,788 sqft
2020-01-01 78 days 1,779 sqft
2020-02-01 73 days 1,770 sqft
2020-03-01 66 days 1,760 sqft
2020-04-01 70 days 1,742 sqft
2020-05-01 78 days 1,731 sqft
2020-06-01 90 days 1,694 sqft
2020-07-01 89 days 1,698 sqft
2020-08-01 74 days 1,692 sqft
2020-09-01 72 days 1,715 sqft
2020-10-01 61 days 1,685 sqft
2020-11-01 61 days 1,692 sqft
2020-12-01 66 days 1,691 sqft
2021-01-01 70 days 1,693 sqft
2021-02-01 59 days 1,686 sqft
2021-03-01 44 days 1,667 sqft
2021-04-01 43 days 1,678 sqft
2021-05-01 38 days 1,685 sqft
2021-06-01 38 days 1,686 sqft
2021-07-01 37 days 1,685 sqft
2021-08-01 41 days 1,708 sqft
2021-09-01 43 days 1,691 sqft
2021-10-01 46 days 1,710 sqft
2021-11-01 46 days 1,738 sqft
2021-12-01 54 days 1,733 sqft
2022-01-01 49 days 1,715 sqft
2022-02-01 37 days 1,755 sqft
2022-03-01 37 days 1,728 sqft
2022-04-01 34 days 1,697 sqft
2022-05-01 35 days 1,738 sqft
2022-06-01 39 days 1,714 sqft
2022-07-01 43 days 1,729 sqft
2022-08-01 48 days 1,737 sqft
2022-09-01 52 days 1,753 sqft
2022-10-01 73 days 1,776 sqft
2022-11-01 75 days 1,783 sqft
2022-12-01 79 days 1,745 sqft
2023-01-01 68 days 1,737 sqft
2023-02-01 49 days 1,746 sqft
2023-03-01 45 days 1,729 sqft
2023-04-01 47 days 1,726 sqft
2023-05-01 57 days 1,728 sqft
2023-06-01 62 days 1,714 sqft
2023-07-01 66 days 1,704 sqft
2023-08-01 66 days 1,713 sqft
2023-09-01 71 days 1,720 sqft
2023-10-01 71 days 1,717 sqft
2023-11-01 64 days 1,720 sqft
2023-12-01 67 days 1,713 sqft
2024-01-01 78 days 1,717 sqft
2024-02-01 75 days 1,712 sqft
2024-03-01 69 days 1,700 sqft
2024-04-01 73 days 1,700 sqft
Punta Gorda's median listing age (time on market) for 2024-04-01 was 73 days. This is 55% longer than the same period one year ago.

Punta Gorda's median square footage for active listings during the 2024-04-01 period was 1,700 sqft. One year prior, the average listing was 1,726 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).