Reading FHA Loan Rates, Closing Costs & Stats

READING, 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.

    Reading's 112 lenders originated 1,066 FHA loans during 2024. The total origination value was $255,710,000, with an average FHA loan value of $239,878.

    Reading FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Reading averaged 6.86% for the week of 2025-04-11, compared to the national average (all FHA variants) of 6.429% for the same period.

    Reading's average FHA mortgage closing costs are $8,039.

    The average rate for the prior week (2025-04-04) was 6.59% and one month ago for the week of 2025-03-07, the average rate was 6.75%.

    The average rate one year ago was 6.8%.

    For refis of the same type during the week of 2025-04-11, the average rate was 6.55%.

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

    Reading 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 Reading level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    CROSSCOUNTRY MORTGAGE, LLC 97 6.64% $11,819
    QUICKEN LOANS, LLC 91 6.34% $11,607
    Mortgage America, Inc. 57 6.38% $9,862
    UNITED WHOLESALE MORTGAGE, LLC 54 6.07% $14,857
    PENNYMAC LOAN SERVICES, LLC 48 6.18% $12,291
    CMG MORTGAGE, INC. 38 6.35% $12,963
    Customers Bank 38 6.26% $7,691
    MOVEMENT MORTGAGE, LLC 34 6.70% $10,213
    Flanagan State Bank 32 6.67% $13,032
    BROKER SOLUTIONS, INC. 28 6.65% $13,527
    FREEDOM MORTGAGE CORPORATION 27 6.41% $13,942
    Univest Bank and Trust Co. 22 5.97% $9,759
    PLAZA HOME MORTGAGE, INC. 21 6.50% $9,205
    LOANDEPOT.COM, LLC 18 6.21% $13,830
    Fulton Bank 15 6.43% $8,886
    East Coast Capital Corp. 15 6.67% $17,237
    Paramount Residential Mortgage Group, Inc. 14 6.46% $12,642
    SUCCESS MORTGAGE PARTNERS, INC. 14 6.59% $12,537
    CONTOUR MORTGAGE CORPORATION 13 6.83% $10,965
    GUARANTEED RATE, INC. 13 6.50% $12,468
    Carrington Mortgage Services, LLC 11 6.10% $15,272
    Homesale Mortgage, LLC 11 6.77% $9,439
    AmeriHome Mortgage Company, LLC 10 6.50% $12,214
    M&T Bank 10 6.24% $8,749
    GUARANTEED RATE AFFINITY, LLC 9 6.40% $11,223
    Equity Prime Mortgage LLC 9 6.19% $14,831
    Flagstar Bank, FSB 9 6.25% $11,533
    LOANPAL, LLC 7 5.78% $12,224
    UNION HOME MORTGAGE CORP. 7 6.82% $11,504
    Mr. Cooper ( Nationstar Mortgage ) 7 6.54% $11,895
    AMERISAVE MORTGAGE CORPORATION 7 6.25% $12,178
    GUILD MORTGAGE COMPANY 7 6.45% $12,216
    ALLIED MORTGAGE GROUP, INC. 6 6.06% $11,048
    RELIANCE FIRST CAPITAL, LLC 6 6.21% $15,823
    Prosperity Home Mortgage, LLC 6 6.27% $12,826
    NEWREZ LLC 6 6.58% $10,587
    FIRST COMMUNITY MORTGAGE, INC. 6 6.33% $13,792
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 6.68% $10,077
    Citizens Bank 5 6.43% $7,816
    Truist 4 6.78% $10,321
    First National Bank of Pennsylvania 4 6.03% $9,776
    MUTUAL OF OMAHA MORTGAGE, INC. 4 6.13% $15,254
    PLANET HOME LENDING, LLC 4 6.25% $12,136
    MORTGAGE SOLUTIONS OF COLORADO, LLC 4 7.00% $11,794
    AMERICAN FINANCING CORPORATION 4 5.81% $14,361
    GSF Mortgage Corporation 4 7.22% $15,475
    EMBRACE HOME LOANS, INC. 3 6.83% $12,643
    Keystone Funding, Inc. 3 6.79% $10,721
    Mortgage Research Center, LLC 3 7.08% $5,935
    LENDING CAPITAL GROUP Inc 3 6.96% $11,392
    TOWNE MORTGAGE COMPANY 3 5.41% $16,140
    Northpointe Bank 3 6.50% $8,816
    HOMESIDE FINANCIAL, LLC 3 6.71% $16,254
    SUN WEST MORTGAGE COMPANY, INC. 3 5.96% $12,965
    EMM LOANS LLC 3 6.29% $19,191
    Meridian Bank Corporation 3 6.58% $11,484
    Wells Fargo Bank 3 6.38% $11,357
    CARDINAL FINANCIAL 3 6.63% $18,949
    MILEND, INC. 3 6.25% $13,982
    ZILLOW HOME LOANS, LLC 2 6.25% $9,645
    VILLAGE CAPITAL MORTGAGE 2 6.25% $6,752
    US MORTGAGE CORPORATION 2 6.00% $12,163
    U.S. Bank 2 6.63% $6,678
    Franklin Loan Corporation 2 6.19% $10,516
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 5.75% $14,215
    Capital Bank 2 7.13% $13,630
    TOP FLITE FINANCIAL, INC. 2 6.69% $17,246
    American Mortgage & Equity Consultants, Inc. 2 6.75% $13,233
    Lakeview Community Capital, LLC 2 6.37% $11,959
    LAKEVIEW LOAN SERVICING, LLC 2 7.00% $10,228
    T2 FINANCIAL LLC 2 7.00% $10,531
    Century Mortgage Company DBA Century Lending Company 2 6.00% $6,239
    Advisors Mortgage Group, L.L.C. 2 6.81% $11,726
    NFM, INC. 2 5.94% $18,759
    TJC Mortgage, Inc. 1 5.75% $11,301
    Acre Mortgage and Financial Inc 1 6.25% $7,086
    AMERICAN FINANCIAL NETWORK, INC. 1 7.63% $19,660
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.13% $6,814
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.13% $8,314
    Arvest Bank 1 5.88% $14,149
    AXIA FINANCIAL, LLC 1 6.75% $13,584
    BAY EQUITY LLC 1 6.13% $8,756
    BAYSHORE MORTGAGE FUNDING, LLC 1 6.63% $19,290
    BETTER MORTGAGE CORPORATION 1 7.13% $8,017
    DEVELOPER'S MORTGAGE COMPANY 1 7.00% $6,589
    DIRECT MORTGAGE LOANS, LLC 1 8.25% $8,468
    EQUITY RESOURCES, INC. 1 6.75% $7,374
    EVERETT FINANCIAL, INC. 1 6.75% $6,548
    FIRST ALLIANCE HOME MORTGAGE, LLC 1 5.62% $8,909
    First Citizens Community Bank 1 6.63% $7,763
    FIRST COLONY MORTGAGE CORPORATION 1 5.25% $20,063
    First Federal Bank 1 5.50% $17,789
    Gateway First Bank 1 6.75% $11,594
    JMAC LENDING, INC. 1 6.00% $11,860
    LAND HOME FINANCIAL SERVICES, INC. 1 8.50% $10,565
    MICHIGAN MUTUAL, INC. 1 6.25% $11,635
    Mid Penn Bank 1 6.00% $16,492
    MORTGAGE ACCESS CORP. 1 6.25% $10,073
    NATION ONE MORTGAGE CORPORATION 1 5.25% $9,425
    NATIONS DIRECT MORTGAGE, LLC 1 8.25% $10,975
    Nations Lending Corporation 1 6.75% $15,613
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $20,270
    PENTAGON FEDERAL CREDIT UNION 1 5.88% $10,872
    POLARIS HOME FUNDING CORP. 1 6.75% $9,335
    Quaint Oak Mortgage, LLC 1 6.25% $7,934
    RADIUS FINANCIAL GROUP INC. 1 6.25% $9,197
    TD Bank 1 6.50% $6,070
    The Loan Store, Inc. 1 6.88% $11,417
    ABSOLUTE HOME MORTGAGE CORPORATION 1 6.25% $11,065
    UNITED MORTGAGE CORP 1 6.75% $13,630
    UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 7.50% $8,229
    York Traditions Bank 1 6.75% $9,191

    The top Reading FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 97 FHA loans originated. Their average total fees are $11,819, which is $212 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Reading FHA lenders (with over 10 loans originated) are Customers Bank ($7,691), M&T Bank ($8,749), Fulton Bank ($8,886), PLAZA HOME MORTGAGE, INC. ($9,205) and Homesale Mortgage, LLC ($9,439).

    The lowest rate Reading FHA lenders (with over 10 loans originated) are Univest Bank and Trust Co. (5.97%), UNITED WHOLESALE MORTGAGE, LLC (6.07%), Carrington Mortgage Services, LLC (6.10%), PENNYMAC LOAN SERVICES, LLC (6.18%) and LOANDEPOT.COM, LLC (6.21%).

    Reading FHA Loan Limits

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

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Reading (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 $171,945 (1.2%) $224,586 (3.4%) 0.64 1,241
    2018-02-01 $174,950 (0.7%) $224,243 (0.6%) 0.64 1,159
    2018-03-01 $179,900 (2.8%) $232,726 (4.0%) 0.63 1,103
    2018-04-01 $186,875 (1.1%) $237,457 (3.7%) 0.63 1,159
    2018-05-01 $199,900 (5.3%) $247,733 (6.8%) 0.67 1,191
    2018-06-01 $209,945 (10.8%) $256,616 (9.7%) 0.70 1,253
    2018-07-01 $209,050 (10.1%) $255,063 (7.8%) 0.70 1,253
    2018-08-01 $210,500 (13.8%) $255,859 (9.0%) 0.71 1,253
    2018-09-01 $209,900 (16.7%) $253,270 (9.3%) 0.71 1,255
    2018-10-01 $209,950 (17.4%) $255,392 (10.2%) 0.71 1,246
    2018-11-01 $209,900 (20.2%) $254,543 (12.6%) 0.71 1,239
    2018-12-01 $204,990 (17.2%) $251,406 (9.4%) 0.71 1,176
    2019-01-01 $199,948 (16.3%) $251,747 (12.1%) 0.69 1,071
    2019-02-01 $199,945 (14.3%) $256,610 (14.4%) 0.68 1,009
    2019-03-01 $208,471 (15.9%) $261,668 (12.4%) 0.68 997
    2019-04-01 $222,400 (19.0%) $268,807 (13.2%) 0.71 987
    2019-05-01 $222,400 (11.3%) $269,733 (8.9%) 0.70 1,006
    2019-06-01 $220,000 (4.8%) $268,946 (4.8%) 0.69 1,030
    2019-07-01 $219,900 (5.2%) $265,874 (4.2%) 0.69 1,095
    2019-08-01 $218,991 (4.0%) $269,232 (5.2%) 0.69 1,077
    2019-09-01 $225,127 (7.3%) $273,995 (8.2%) 0.72 1,043
    2019-10-01 $232,445 (10.7%) $278,665 (9.1%) 0.75 998
    2019-11-01 $235,000 (12.0%) $280,092 (10.0%) 0.77 953
    2019-12-01 $233,725 (14.0%) $281,449 (12.0%) 0.78 841
    2020-01-01 $229,950 (15.0%) $282,298 (12.1%) 0.77 770
    2020-02-01 $247,300 (23.7%) $287,164 (11.9%) 0.81 717
    2020-03-01 $259,900 (24.7%) $297,749 (13.8%) 0.81 675
    2020-04-01 $274,674 (23.5%) $313,591 (16.7%) 0.86 593
    2020-05-01 $259,900 (16.9%) $303,032 (12.4%) 0.79 619
    2020-06-01 $249,950 (13.6%) $306,374 (13.9%) 0.74 587
    2020-07-01 $272,650 (24.0%) $326,195 (22.7%) 0.79 486
    2020-08-01 $270,000 (23.3%) $322,004 (19.6%) 0.77 479
    2020-09-01 $259,975 (15.5%) $317,546 (15.9%) 0.74 477
    2020-10-01 $264,900 (14.0%) $325,747 (16.9%) 0.76 460
    2020-11-01 $267,400 (13.8%) $315,962 (12.8%) 0.78 465
    2020-12-01 $262,400 (12.3%) $311,155 (10.6%) 0.78 432
    2021-01-01 $259,000 (12.6%) $317,005 (12.3%) 0.77 367
    2021-02-01 $284,900 (15.2%) $346,614 (20.7%) 0.83 284
    2021-03-01 $288,450 (11.0%) $354,339 (19.0%) 0.82 274
    2021-04-01 $279,075 (1.6%) $341,853 (9.0%) 0.76 285
    2021-05-01 $274,900 (5.8%) $339,395 (12.0%) 0.73 313
    2021-06-01 $237,748 (-4.9%) $314,874 (2.8%) 0.63 407
    2021-07-01 $249,245 (-8.6%) $322,735 (-1.1%) 0.66 414
    2021-08-01 $246,495 (-8.7%) $315,304 (-2.1%) 0.66 448
    2021-09-01 $242,450 (-6.7%) $312,485 (-1.6%) 0.65 438
    2021-10-01 $245,990 (-7.1%) $320,052 (-1.8%) 0.66 438
    2021-11-01 $245,220 (-8.3%) $310,791 (-1.6%) 0.66 411
    2021-12-01 $232,500 (-11.4%) $296,653 (-4.7%) 0.63 352
    2022-01-01 $239,900 (-7.4%) $308,839 (-2.6%) 0.65 273
    2022-02-01 $239,450 (-16.0%) $313,873 (-9.5%) 0.62 261
    2022-03-01 $254,725 (-11.7%) $332,217 (-6.2%) 0.64 251
    2022-04-01 $259,950 (-6.9%) $336,724 (-1.5%) 0.62 270
    2022-05-01 $249,950 (-9.1%) $331,140 (-2.4%) 0.57 280
    2022-06-01 $255,000 (7.3%) $345,783 (9.8%) 0.57 341
    2022-07-01 $254,900 (2.3%) $341,887 (5.9%) 0.57 395
    2022-08-01 $264,975 (7.5%) $338,426 (7.3%) 0.61 414
    2022-09-01 $248,700 (2.6%) $329,147 (5.3%) 0.58 425
    2022-10-01 $250,000 (1.6%) $334,888 (4.6%) 0.59 423
    2022-11-01 $272,450 (11.1%) $344,724 (10.9%) 0.65 413
    2022-12-01 $279,900 (20.4%) $337,642 (13.8%) 0.69 359
    2023-01-01 $274,925 (14.6%) $347,775 (12.6%) 0.68 306
    2023-02-01 $287,400 (20.0%) $357,876 (14.0%) 0.69 280
    2023-03-01 $298,725 (17.3%) $382,152 (15.0%) 0.70 283
    2023-04-01 $317,450 (22.1%) $386,628 (14.8%) 0.74 297
    2023-05-01 $319,950 (28.0%) $398,014 (20.2%) 0.73 308
    2023-06-01 $339,741 (33.2%) $415,642 (20.2%) 0.76 322
    2023-07-01 $337,754 (32.5%) $423,547 (23.9%) 0.77 310
    2023-08-01 $332,950 (25.7%) $404,337 (19.5%) 0.76 326
    2023-09-01 $349,900 (40.7%) $407,398 (23.8%) 0.81 342
    2023-10-01 $348,197 (39.3%) $406,877 (21.5%) 0.82 367
    2023-11-01 $336,200 (23.4%) $395,412 (14.7%) 0.80 376
    2023-12-01 $316,750 (13.2%) $371,887 (10.1%) 0.77 360
    2024-01-01 $307,450 (11.8%) $369,204 (6.2%) 0.75 305
    2024-02-01 $306,200 (6.5%) $365,293 (2.1%) 0.74 280
    2024-03-01 $298,500 (-0.1%) $378,392 (-1.0%) 0.70 262
    2024-04-01 $325,000 (2.4%) $397,227 (2.7%) 0.76 278
    2024-05-01 $349,925 (9.4%) $419,082 (5.3%) 0.80 285
    2024-06-01 $349,450 (2.9%) $428,576 (3.1%) 0.79 300
    2024-07-01 $342,450 (1.4%) $414,621 (-2.1%) 0.78 359
    2024-08-01 $339,900 (2.1%) $414,093 (2.4%) 0.79 388
    2024-09-01 $344,900 (-1.4%) $417,700 (2.5%) 0.81 396
    2024-10-01 $347,450 (-0.2%) $399,825 (-1.7%) 0.82 420
    2024-11-01 $335,000 (-0.4%) $393,399 (-0.5%) 0.80 425
    2024-12-01 $329,950 (4.2%) $388,851 (4.6%) 0.82 382
    2025-01-01 $330,000 (7.3%) $388,060 (5.1%) 0.82 364
    2025-02-01 $338,700 (10.6%) $385,473 (5.5%) 0.82 340
    2025-03-01 $329,900 (10.5%) $401,729 (6.2%) 0.00 305
    Reading's median listing price for 2025-03-01 was $329,900, a difference of $31,400 (10.5%) versus the prior year and $-8,800 versus the prior month.

    Reading's median listing price comes in at 0% of the national average.

    Reading's average listing price for 2025-03-01 was $401,729, a difference of $23,337 (6.2%) versus the prior year and $16,256 versus the prior month.

    For the 2025-03-01 period, Reading had 305 MLS listings, a difference of -35 listings (-10%) versus the prior month and 43 listings (16%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Reading (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 92 days 1,742 sqft
    2018-02-01 90 days 1,767 sqft
    2018-03-01 65 days 1,791 sqft
    2018-04-01 52 days 1,812 sqft
    2018-05-01 52 days 1,862 sqft
    2018-06-01 53 days 1,917 sqft
    2018-07-01 58 days 1,884 sqft
    2018-08-01 60 days 1,887 sqft
    2018-09-01 64 days 1,900 sqft
    2018-10-01 67 days 1,899 sqft
    2018-11-01 67 days 1,881 sqft
    2018-12-01 73 days 1,856 sqft
    2019-01-01 85 days 1,856 sqft
    2019-02-01 87 days 1,881 sqft
    2019-03-01 69 days 1,938 sqft
    2019-04-01 47 days 1,998 sqft
    2019-05-01 39 days 1,985 sqft
    2019-06-01 40 days 1,952 sqft
    2019-07-01 44 days 1,947 sqft
    2019-08-01 48 days 1,960 sqft
    2019-09-01 53 days 1,992 sqft
    2019-10-01 58 days 2,023 sqft
    2019-11-01 58 days 2,036 sqft
    2019-12-01 70 days 2,010 sqft
    2020-01-01 77 days 2,025 sqft
    2020-02-01 66 days 2,048 sqft
    2020-03-01 44 days 2,080 sqft
    2020-04-01 66 days 2,134 sqft
    2020-05-01 74 days 2,034 sqft
    2020-06-01 40 days 2,047 sqft
    2020-07-01 34 days 2,109 sqft
    2020-08-01 28 days 2,144 sqft
    2020-09-01 25 days 2,030 sqft
    2020-10-01 41 days 2,052 sqft
    2020-11-01 42 days 2,010 sqft
    2020-12-01 47 days 1,963 sqft
    2021-01-01 57 days 1,934 sqft
    2021-02-01 62 days 2,100 sqft
    2021-03-01 45 days 1,986 sqft
    2021-04-01 30 days 1,949 sqft
    2021-05-01 25 days 1,889 sqft
    2021-06-01 31 days 1,810 sqft
    2021-07-01 38 days 1,831 sqft
    2021-08-01 39 days 1,810 sqft
    2021-09-01 39 days 1,784 sqft
    2021-10-01 43 days 1,792 sqft
    2021-11-01 45 days 1,784 sqft
    2021-12-01 48 days 1,754 sqft
    2022-01-01 50 days 1,692 sqft
    2022-02-01 42 days 1,739 sqft
    2022-03-01 28 days 1,765 sqft
    2022-04-01 27 days 1,805 sqft
    2022-05-01 22 days 1,768 sqft
    2022-06-01 23 days 1,776 sqft
    2022-07-01 29 days 1,780 sqft
    2022-08-01 32 days 1,794 sqft
    2022-09-01 40 days 1,774 sqft
    2022-10-01 39 days 1,790 sqft
    2022-11-01 42 days 1,853 sqft
    2022-12-01 56 days 1,841 sqft
    2023-01-01 62 days 1,824 sqft
    2023-02-01 50 days 1,905 sqft
    2023-03-01 37 days 1,979 sqft
    2023-04-01 33 days 1,960 sqft
    2023-05-01 33 days 1,982 sqft
    2023-06-01 37 days 1,970 sqft
    2023-07-01 38 days 1,979 sqft
    2023-08-01 35 days 1,930 sqft
    2023-09-01 41 days 1,969 sqft
    2023-10-01 38 days 1,981 sqft
    2023-11-01 38 days 1,880 sqft
    2023-12-01 45 days 1,848 sqft
    2024-01-01 52 days 1,822 sqft
    2024-02-01 38 days 1,807 sqft
    2024-03-01 36 days 1,702 sqft
    2024-04-01 29 days 1,821 sqft
    2024-05-01 26 days 1,934 sqft
    2024-06-01 27 days 1,986 sqft
    2024-07-01 29 days 1,957 sqft
    2024-08-01 34 days 1,966 sqft
    2024-09-01 35 days 1,950 sqft
    2024-10-01 34 days 1,959 sqft
    2024-11-01 38 days 1,885 sqft
    2024-12-01 43 days 1,881 sqft
    2025-01-01 50 days 1,893 sqft
    2025-02-01 37 days 1,820 sqft
    2025-03-01 0 days 1,808 sqft
    Reading's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

    Reading's median square footage for active listings during the 2025-03-01 period was 1,808 sqft. One year prior, the average listing was 1,702 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).